Pencari Mining Corporation
TSX VENTURE : PMC

Pencari Mining Corporation

January 29, 2008 15:50 ET

Pencari Completes IP on Itea Gold Project, Trenching Underway-Drill Program Planned

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 29, 2008) - Pencari Mining Corporation (TSX VENTURE:PMC) has completed an extensive, detailed ground magnetic and induced polarization (IP) on its Itea Gold property in central Madagascar. The grid survey has yielded a number of anomalies, several of which are coincident with known mineralization, historic mine workings or areas of anomalous gold-in-soils. A programme of trenching is currently underway on these targets and a diamond core drill program is being planned for mid-late February. Diamond drill plan details will be announced when ready.

Gold mineralization at Itea is hosted in pyritic mica schists within a sequence of metamorphosed sedimentary and igneous rocks. Outcrop is sparse at Itea, with locally thick overburden on deeply weathered bedrock and laterite. IP is a geophysical method that is often successfully employed to detect disseminated sulphide mineralization such as that at Itea. The current survey has detected a strong feature at the historic mine workings, suggesting that the zone may increase from its known 250 by 100 metre size to 900 by 150 metres beneath covered areas, and extends to depth. Numerous other IP targets that encompass the old mine workings were also detected within a 2,500 metre-long corridor that is from 150 to 650 metres wide, extending to the northeast and southwest. Several of these are coincident with soil geochemical anomalies and scattered outcrops of mica schist similar to that found at the abandoned mine site.

The IP and magnetic survey at Itea consisted of over 60 kilometres of survey lines respectively spaced 50 to 100 metres apart. This survey was contracted to SAGAX MAGHREB SA. Eight trenches are currently being dug across the higher priority outlying anomalies in order to pinpoint locations for a first phase of drilling.

As a result of the very positive results at Itea, the Company has asked SAGAX to undertake additional IP and Magnetic surveys across the southern claim block at Itea - known as Tsinjava. The Tsinjava prospect lies some 13km SW of the main Itea property, and also has a history of reported gold production. Geological similar in many ways to that of the Itea prospect, mineralisation at Tsinjava appears to be hosted within favourable mica schist units that were exploited by pits and trenches in the early 20th century.

It is anticipated that geophysics survey will be completed across the Tsinjava property in early February with results to follow data processing and review. A reconnaissance soil sampling programme has been completed at Tsinjava and submitted to ALS Chemex in Johannesburg for geochemical analyses.

Pencari's current exploration programmes at Itea and Tsinjava are the first contemporary exploration programmes ever undertaken in the region. Historic mining activities (pre-1940) at both properties consisted of panning and washing deeply-weathered mineralized rocks, recovering coarse gold that was both disseminated in the schists and plated along joints and fractures. No mining occurred beneath the water table, 15 to 22 metres below surface. 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 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.

Contact Information

  • Pencari Mining Corporation
    Adrian Rollke
    President, CEO & Director
    (604) 683-2808
    (604) 683-2286 (FAX)
    Email: info@pencarimining.com
    or
    Pencari Mining Corporation
    Sean Charland
    Investor Relations
    (604) 681-5755 or Toll Free: 1-877-687-5755