SOURCE: Pan African Mining Corp.

May 07, 2007 04:00 ET

Pan African Mining Corp.'s Sakoa South Coal Project Greenlighted by Malagasy Government

VANCOUVER, BC -- (MARKET WIRE) -- May 7, 2007 -- PAN AFRICAN MINING CORP. (TSX-V: PAF) (FRANKFURT: P2A) (the "Company") is pleased to announce that it has now received full environmental permitting from the Malagasy Government to commence exploration and development of its interests in the Sakoa South Coal deposit. The Company holds Research Permits covering 64 squares, which represents an area of approximately 400 sq. km., in Southwest Madagascar. It encompasses significant tracts of the major Sakoa and Sakamena coalfields as well as the entire extent of the Beroy and Vohipotsy coal-bearing basins. Coal-bearing seams have been identified along 38 km. of strike within the Company's license area.

Environmental Permits on Forms PEE-RIM and PEE-RIS have now been granted to the Company in order to carry out anticipated drilling, trenching, pitting, road-building, camp establishment and other exploration activities contemplated in the Phase I exploration program now getting underway. The new PEE-RIM also permits the Company to put in place a pilot factory for test mining with an approximate capacity of 25,000 tonnes per day.

The Phase I exploration program is now commencing with the onset of the dry season in Madagascar. The Program aims at testing an initial target of 100 million tonnes of coal in situ near surface within 52 squares covering 325 sq. km. of the Company's license area. Phase I is anticipated to include 6,000 metres of core drilling. The Program is being carried out in accordance with the Independent Technical Report on Sakoa South prepared by Mark Stewardson, Pr.Sci.Nat., a Qualified Person, in accordance with NI 43-101.

According to Fafah Ramboasalama, the Company's Southern Africa Regional Manager and Resident Manager in Madagascar, "We are actively mobilizing necessary human and technical resources in order to commence our large-scale exploration program at Sakoa immediately. A diamond drill rig is being moved onto site, our base camp is under construction and our geological team is now in place. We believe Sakoa represents an outstanding opportunity for Madagascar to develop an independent source of energy while at the same time contributing jobs and foreign exchange to the economy. We are grateful to be part of this effort and are committed to expending all monies necessary to see the project achieve commercial success."

About Pan African

The Company is an exploratory resource company with approximately 7,500 square kilometres of diversified mineral properties and 5,000 square kilometres of uranium properties in Madagascar. The Company is exploring these properties for uranium, gold, coal, precious stones, base metals and industrial commodities. In addition, the Company is exploring two regions for gold and metals in Mozambique under agreements with other companies. 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