Last checked at 14 Apr 2008 07:00
Regulatory Announcement Company Pan African Resources plc TIDM PAF Headline Mining Convention: Dekoa gold project, Central African Republic Released 14 April 2008 Pan African Resources PLC
("Pan African" or the "Company")
(Incorporated and registered in England and Wales under Companies Act 1985 with registered number 3937466 on 25 February 2000)
Share code on AIM: PAFShare code on JSE: PANISIN: GB0004300496
Dekoa gold project, Central African Republic ("CAR"): 25 km of mineralised strike length identified and mining convention signed
Pan African today announced that eight major gold-in-soil anomalies have been delineated following a stream sediment and infill soil sampling programme on the Dekoa licence area in the Central African Republic ("CAR"). The Dekoa gold project represents three exclusive exploration licence areas; Boufoyo, Daya and Bozoro (collectively "Dekoa gold project"), covering approximately 3,000km2 of prospective greenstone belt.
The combined strike length of these anomalies is in excess of 25 km, double the size of the anomaly identified at the Bogoin project 150km to the South-West of the Dekoa gold project, where a mining convention was signed earlier this year.
As a result of these encouraging results Pan African has together with CARGold (Pan African's joint venture partner in the CAR) (collectively "JV") concluded a 25-year mining convention with the Ministry of Mines, Energy and Water Affairs in the CAR ("State").
The State has agreed to facilitate the exploration and development by the JV of the Dekoa gold project in the CAR. The JV will pay the State US$ 700,000 in respect of the rights it has acquired. The first instalment of US$ 200,000 was payable on signature and the balance due in instalments at various stages of the development of the Dekoa gold project.
The convention came into effect on 9 April 2008 and is extendible by agreement between the JV and the State. Once the mining phase is reached the State will hold a 10% free carry in the Dekoa gold project. The State has provided a number of concessions and exemptions in respect of taxes, duties and administrative provisions to the benefit of the company housing the Dekoa gold project.
Drilling has commenced at the Bogoin gold project with the first reverse circulation drill rig ("RC") on site. A second RC drill rig will be on site in three weeks to complete an 18,000m drilling programme as part of the first phase.
Once this programme has been completed, the drill rigs will be moved to the Dekoa gold project.
Jan Nelson, CEO of Pan African, commented: "The signing of a mining convention removes uncertainty regarding the funding required should the Dekoa gold project advance to the mining phase. Our combined gold projects in the CAR represent close to 37km of potentially mineralised strike length and are we comfortable with the pace at which these projects are progressing."
ENDS
NOTES TO EDITOR:
Manica gold project, Mozambique: Mining optimisation of the Manica gold project is progressing well and will be announced as soon as the work has been completed.
Akrokerri gold project, Ghana: Drilling has commenced on the Akrokerri gold project and the Company is currently drilling its third core hole below the Akrokerri mine, which historically produced 74,000oz of gold at 24.6 g/t between 1900 and 1909.
Barberton Exploration: Eagles Nest and Amira gold project, South Africa: Data compilation has been completed and the Company is currently reviewing the data to identify suitable drilling targets.
Martin Bevelander, Group Consulting Geologist for Pan African, is SACNASP (South African Council for Natural Scientific Professions) accredited. The information in this statement has been reviewed by Mr Bevelander who is a qualified person for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies.
For further information on Pan African Resources plc, please visit the website at www.panafricanresources.com
EnquiriesPan African Ambrian Partners Macquarie First St James's Resources Limited South Corporate Corporate Services Finance (Pty) Limited Jan Nelson, CEO Richard Brown Limited Phil Dexter +27 (0) 11 777 +44 (0) 20 7634 Amanda Markman 7840 4700 +44 (0) 20 7499 +27 (0) 11 343 2307 3916 Keith Spencer, Richard Greenfield Chairman Annerie Britz FDBeachhead Media & +44 (0) 20 7634 Investor Relations +27 (0) 11 880 4700 +27 (0) 11 343 2328 3155 Jennifer Cohen Nicole Spruijt +27 (0) 11 214 2401 Public Relations Louise Brugman +27 (0) 11 777 +27 (0) 11 214 24157840
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