Pan African Mining Corp.
TSX VENTURE : PAF

Pan African Mining Corp.

July 07, 2005 08:00 ET

Pan African Receives Approval of its Plan of Exploration for Madagascar Uranium

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 7, 2005) - PAN AFRICAN MINING CORP. (the "Company") (TSX VENTURE:PAF) is pleased to announce that L'Office des Mines Nationales et des Industries Strategiques ("OMNIS") has now approved the Company's formal Exploration Program and Budget for uranium projects in Madagascar. OMNIS is a government agency of the Malagasy State charged with oversight and administration of the country's strategic resources of uranium and hydrocarbons.

On January 25, 2005, the Company entered into a preliminary agreement with OMNIS for the establishment of a joint venture with respect to exploration, development and exploitation of four prospective uranium properties in Madagascar. In accordance with the terms of said agreement, the Company organized a new operating subsidiary named PAM Atomique Sarl, of which 20% is to be owned by the Malagasy State through OMNIS and 80% by the Company. Approval of the Company's formal Exploration Program and Budget was specified in the agreement as a condition precedent to moving forward with the joint venture's uranium exploration and development activities.

The Company's Exploration Program and Budget was prepared by senior management in consultation with Dr. Peter A. Christopher, P.Eng., a qualified person. It delineates success-contingent, staged exploration programs, with four stages required to reach the point of a production decision on each of four perimeters, namely Folakara, Faratsiho, Tranomaro and Makay. Included within these perimeters are sites of historic uranium production by a French Agency, as well as known uranium occurrences and in some cases historic uranium resources. The exploration budget for each perimeter contemplates aggregate expenditures of up to U.S. $3,920,000 over four result-contingent stages through preliminary feasibility. Work in the various perimeters will commence on a staggered basis following final Malagasy State ratification and approval of the joint venture and granting of requisite environmental permits.

The Company is also pleased to announce that it has entered into a Convention of Cooperation, dated June 25, 2005, with OMNIS and L'Institut National des Sciences et Techniques Nucleaires. Under the Convention, the joint venture agrees to adhere to the recommendations and standards of the International Atomic Energy Agency in Vienna and the Malagasy State concerning control and sale of radioactive materials.

About Pan African

The Company is an exploratory resource company with approximately 10,000 square kilometres of diversified mineral 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 A. Olian"

Irwin A. Olian
Chief Executive Officer


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.

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.

Contact Information

  • Pan African Mining Corp.
    Irwin Olian
    President and CEO
    604-899-0100
    604-899-0200 (FAX)
    tigertail@panafrican.com
    or
    Pan African Mining Corp.
    Karim Gangji
    Technical Operations Manager
    604-521-6846
    604-899-0200 (FAX)
    karim@panafrican.com