Pan African Resources Regulatory News (PAF)

26 Jan 2005 07:00

Embargoed: 0700hrs, 26 January 2005 Pan African Resources Plc (the "Company") Exploration Update * Significant exploration results from Ghana including 8 metres @ 5.26 g/t Au and 7 metres @ 5.90 g/t Au. * Reverse circulation drill programme suggests a duplication of the mineralized zone at West Fair Bride prospect in Mozambique. * Acquisition of new projects being investigated. Further to its announcement on 25 November 2004, Pan African Resources Plc ispleased to update shareholders on the two drilling programmes it is currentlyengaged in at the Company's exploration projects in Ghana (the Wa Gold Project)and Mozambique (the Manica Gold Project):The Company's targets in Ghana and Mozambique could each produce a resource inexcess of 1,000,000 ounces of gold.The Wa Gold Project, Ghana.The Company is currently undertaking a 6,000 metre reverse circulation drillingprogramme at the project which is designed to further test and extend the knowngold mineralization of the Julie Prospect (current inferred resource of over300,000 ounces of gold to only a shallow depth) both along strike and at depthand to increase the quality of the resource estimate.To date 1709 metres of reverse circulation drilling have been completed on thewestern end of the Julie Prospect. Initial results from drill holes completedby the end of 2004 are now available and the following table details some ofthe more significant intersections.Drill Hole Intersection To Width Grade From (m) (Au g/t) JRC 58 2 3 1 1.65 14 15 1 1.04 40 41 1 1.31 JRC 59 2 3 1 1.69 6 7 1 3.24 13 21 8 5.26 Including 4 8.10 JRC 61 28 29 1 1.94 50 53 3 1.01 JRC 62 57 60 3 1.08 JRC 64 4 6 2 6.16 JRC 87 43 45 2 1.70 JRC 88 20 27 7 5.90 Including 3 10.30All holes were drilled at an inclination of -50 degrees.The current drill programme will also further test the potential of the highlyprospective Collette Prospect.In addition to this drill programme the Company continues to reassess all ofthe extensive work completed by Kenor SA and conduct follow up explorationprogrammes both in the licence areas and regionally. A further drill programmedesigned to test these other targets is planned for later in 2005.The Wa Gold Project is located in the Upper West Region of Ghana, approximately50 km east of the regional capital, Wa and comprises three explorationlicences, Julie, Collette and Josephine, totalling 304 square kilometres.The project is situated in an area of Birimian greenstones and granites in anacurate belt, which represents the junction between the north-south trendingLawra Belt and the north-east trending Bole-Navrongo Belt.The geological setting of the project and the range of mineralization stylesidentified to date are comparable to the major Birimian hosted gold deposits inthe south of Ghana and elsewhere in West Africa.The Manica Gold Project, Mozambique.A 2004 drill programme on the Andrada (Dot's Luck - Fair Bride) zone at WestFair Bride demonstrated that mineralization is hosted by a package of chloriteschists up to 50 metres wide. Significant intersections (previously reported)were encountered over a 660 metre strike length to depths of 120 metres belowsurface.The Company is currently funding a follow up 2000 metre reverse circulationdrill programme designed to further test the West Fair Bride area and otherdrill targets (Dot's Luck, Boa Esperanca, Vinganca and Palhada) within theexploration licence.To date some 824 metres of reverse circulation drilling have been completed andsamples submitted for assay. At this time no assay results have been received,however, interpretation of the drill hole logs suggests a duplication of thecurrent mineralization in the form of a series of stacked mineralized lenses tothe north east of the previously drilled mineralization. Results will bereported as received.The Manica Project is situated at Manica, Mozambique on the east end of theOdzi-Mutare-Manica Greenstone Belt. The belt is part of the Archean ZimbabweShield and has produced more than 80 tonnes of gold to date. Manica is situatedon the Beira-Harare Corridor between Mozambique and Zimbabwe, with excellentinfrastructure, rail, power and communications.The project area comprises a large exploration licence covering the 10kilometre Mutambarico shear zone and the 7 kilometre Andrada zone of bandediron formations. Both zones contain several old mines and workings.The Manica Project is managed by Pangea Exploration with whom the Company has a"right of first refusal" for all Pangea generated African gold projects. PangeaExploration has an enviable reputation for discovering and developing mineralresource projectsNew ProjectsThe Company is currently assessing a number of opportunities to add one or moresignificant gold projects to its existing portfolio following its policy tobecome a major African based gold exploration and development company.Shareholders will be updated at the appropriate time.Roger Craddock, Managing Director, commented,"These results confirm the attractiveness of our prospects in Ghana where wehave seen some significant intersections of high grade mineralization. Our nextstep will be to process results from Mozambique and further results from Ghanabefore we are able to better determine the increase in our assets but I am mostencouraged by what we have seen so far. Furthermore we are currentlyinvestigating a number of interesting gold projects with a view to adding themto our existing portfolio." -Ends- For further information please contact,Roger CraddockManaging Director, Pan African Resources PlcTel. 07785 364 291Ben SimonsHansard CommunicationsTel. 020 7245 1100END