Pencari Mining Corporation
TSX VENTURE : PMC

Pencari Mining Corporation

October 02, 2007 12:23 ET

Pencari's Itea Gold Property-Zone is One Km Long and Open

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 2, 2007) - Pencari Mining Corporation (TSX VENTURE:PMC) is pleased to provide an update on the recently completed first stage of exploration work on the Itea property. Recent rock-chip sampling in one deeply weathered muscovite schist band yielded a weighted average of 0.49 g/t gold over a true width of 10 metres. Workings cover an area that is over 1,000 metres long and up to 150 metres wide. Itea is located in the central highlands of Madagascar approximately 210 kilometres south of Antananarivo, the capital city of Madagascar, in a region of mixed subsistence agricultural and mining use. Pencari has an option to acquire 100% of Itea.

Gold mineralization at Itea is hosted in a pyrite and arsenopyrite-bearing muscovite schist. The favourable schist unit occurs within a Precambrian metamorphic sequence thought to be of sedimentary origin, that in turn overlays older amphibolite and migmatite. This sequence has been intruded by younger granite which outcrops in the centre of a regional dome.

The Itea property was mined in colonial times. Work was limited to hydraulic sluicing and tunneling of the upper 3 to 16 metres of bedrock and adjacent laterite soil horizons. Workings, now largely overgrown, are extensive, covering an area that is over 1,000 metres long and up to 150 metres wide. The mineralized muscovite schist unit outcrops in a 130 by 60-metre open cut, where up to 62 kg of gold is reported to have been produced before World War II. Recent rock-chip sampling in one deeply weathered muscovite schist band yielded a weighted average of 0.49 g/t gold over a true width of 10 metres. This result is encouraging as it confirms the presence of gold at Itea and identifies the favourable host unit. Initial mapping and prospecting of the pit and the surrounding areas has indicated that this is one of perhaps several mineralized muscovite schist horizons at Itea, and that the favourable unit may be repeated by folding and faulting. The zone plunges to the southwest and may continue at depth.

Gold-bearing saprolite and lateritic soil is seen for at least 1,500 metres to the southwest of the cut. The topography and the location of these auriferous saprolites suggest that the source of the elluvial gold should be further to the west and southwest and not from the area of the open cut.

The company has completed a detailed geological map of the zone, and is currently prospecting and mapping a much larger area. Grid soil sampling has been completed, as well as detailed rock sampling. Further work, aimed at guiding future drilling, is planned for 2007, including completing a ground geophysical survey to help identify hidden zones of mineralized schist. The goal at the Itea Property is to explore for and develop a bulk gold deposit.

Information in this press release has been reviewed by Mr. Jerry Blackwell P.Geo., a qualified person under NI 43-101.

Pencari Mining Corporation is an exploration and development company publicly traded on the TSX Venture Exchange.

PENCARI MINING CORPORATION

Adrian Rollke, President, CEO & Director

This news release may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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