SOURCE: Pan African Mining Corp.

September 11, 2006 08:00 ET

Pan African Mining Corp. in Joint Venture With Manica Minerals for Two Gold Projects in Mozambique; Field Exploration Underway

VANCOUVER, BC -- (MARKET WIRE) -- September 11, 2006 -- PAN AFRICAN MINING CORP. (TSX-V: PAF) (FRANKFURT: P2A) (the "Company") is pleased to report that it has now entered into Joint Venture Agreements with Manica Minerals Ltd. ("Manica"), for exploration, development and exploitation of two prospective gold projects in Mozambique presently under license to Manica, the Casula Project and the Fingoe Project. Both are situated in Mozambique's Tete Province in the Northwest.

Under terms of the Joint Venture Agreements, the Company has the right to earn up to 85% interest in each of the two projects in stages, by funding through pre-feasibility. A minimum of U.S. $150,000 is required to be spent on each project by the Company over the first two years. Fieldwork has now begun on the Casula Project.

The Casula Project targets an area of historic gold mining activity and is made up of 9 Prospecting Licenses amounting to about 87,000 Ha. Eight of such licenses have been granted to Manica and one is still pending. Gold and minor amounts of copper were mined during the 1910s and again more recently, prior to 1978. It appears that mining has only been undertaken within the oxidized zone (up to 80m depth) and where significant difficulties were not encountered with ground water. Gold is hosted by shear systems within granitoids and gneisses of the Meso-Neoproterozoic Luia Group and near to the contact of the Pan African Desaranhama granite. Gold mineralisation is associated with quartz veining and hydrothermally altered and brecciated host rocks within shear zones. The quartz veining ranges from 10s of centimeters to several metres thick in places. Zones of alteration of up to 70m wide have been recorded. Reported mine grades range from 3-20g/t.

A sampling program is now underway to target the old workings, associated shears and zones of alteration. In addition, a more general regional reconnaissance geochemical sampling program is being undertaken to examine other potential regional targets generated by airborne geophysics and other studies. Remote Exploration Services (Pty) Ltd. has been engaged to undertake the initial geochemical sampling program on the property on behalf of the Joint Venture. It is a Cape Town-based member of the Mineral Services Group of Companies.

The Fingoe project is a grass roots exploration project with good potential for the discovery of mesothermal vein gold, distal skarn Au and IOCG deposits. It comprises 4 Prospecting Licenses granted to Manica totalling approximately 45,000 Ha. The licenses cover the Meso-Proterozoic Fingoe Group consisting of a low-grade, meta-volcanosedimentary supracrustal succession of quartzites (BIF types), carbonates, shales, conglomerates, volcanoclastics, amphibolitic basalts and intrusive ultramafics. Fingoe supracrustals have been intruded by I-type granites. Very limited previous exploration has taken place, although there are known gold and Cu-Fe occurrences and reported veining, skarn mineralization and hematitic breccias within the belt. A reconnaissance geochemical sampling program is planned.

Manica is a privately owned mineral exploration company operating in southern and east Africa under the control of Dr. John Gurney and Dr. Peter Hildebrand. Dr. Gurney has decades of experience in geochemical exploration for a wide variety of mineral deposits including gold and base metals. He has helped develop and has served on the Boards of numerous companies with interests in the mineral exploration industry, including Benguela Concessions, Industrial and Commercial Holdings (both Johannesburg Stock Exchange), and Motapa Diamonds (Toronto Stock Exchange). Manica is under the leadership of Dr. Peter Hildebrand who has 12 years experience in the minerals exploration industry, including project generation work, grass-roots programs, advanced projects and work on established mines.

According to Irwin Olian, CEO of the Company, "We are excited about the opportunity to explore the Casula and Fingoe Projects in Mozambique as the Joint Venture partner of Manica. It is a great pleasure to be working in association with Drs. Hildebrand and Gurney in connection with these projects, and we feel they are both highly prospective gold properties with potential to host significant commercial deposits. Pan African remains enthusiastic about our ongoing programs in Madagascar and we are expanding into Mozambique at this time in response to the opportunity which these two new projects represent for adding shareholder value. We remain totally committed to achieving success in our Madagascar programs with our committed staff of highly qualified geological professionals and continued support from our strong investor base."

About Pan African

The Company is an exploratory resource company with approximately 10,000 square kilometres of diversified mineral properties and 2,500 square kilometres of uranium properties in Madagascar. The Company is exploring these properties for gold, uranium, precious stones, base metals and industrial commodities. Its operations in Madagascar are carried out through its operating subsidiary, PAM Madagascar Sarl, and its uranium activities are carried out through its 80% owned subsidiary PAM Atomique Sarl. The Company has offices in Vancouver, Canada and Antananarivo, Madagascar. More information about the Company is available at www.panafrican.com

ON BEHALF OF THE BOARD OF DIRECTORS OF PAN AFRICAN MINING CORP.

"Irwin Olian"
Irwin Olian
Chairman & CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations.

Contact Information

  • For more information, contact:

    Irwin Olian
    President and CEO
    E-mail: Email Contact
    Phone: (604) 899-0100
    Fax: (604) 899-0200

    Tom Kinakin
    Corporate Communications - Vancouver
    Email: Email Contact
    Phone: (604) 899-0100
    Fax: (604) 899-0200

    Carrie Howes
    Corporate Communications - London
    Email: Email Contact
    Phone: 7780-602-788

    Marlies Studer
    Corporate Communications - Europe
    Email: Email Contact
    Phone: 44-215-2803

    Pan African Mining Corp.
    Suite 1925, Box 11553
    650 West Georgia Street
    Vancouver, BC
    V6B 4N8