Pan African Resources PLC
17 May 2006
17th May 2006
Pan African Resources plc
('Pan African' or 'the Company')
Manica Project, Mozambique and Wa Project, Ghana
Manica Project (Mozambique) - Exploration update
Pan African Resources PLC (AIM: PAF), the African based gold exploration
company, announces that a recently completed dipole-dipole geophysical programme
at its Manica Project in Mozambique has delineated nine new drill targets
adjacent to historically mined areas. In total these drill targets represent a
combined strike-length of 4.5km in the vicinity of Pan African's Dot's Luck,
Fair Bride North, Fair Bride West, Fair Bride East and Guy Fawkes prospects.
The new drill targets at the Dot's Luck and Fair Bride prospects represent
strike extensions of the Fair Bride Central prospect, which is the subject of a
pre-feasibility study on the potential of an opencast mine. The company is
currently completing geological work that will see these targets tested by
drilling before year-end. The Dot's Luck and Fair Bride prospects occur along
the Andrada shear zone where the mineralization is conducive to possible
opencast mining methods.
Part of the recently completed geophysical survey also focussed for the first
time on prospective exploration targets adjacent to the Guy Fawkes underground
mine. The mine historically mined narrow but high grade quartz veins. Four
historical boreholes drilled by Pangea Exploration (Pty) Ltd in November 2003
within part of the newly defined drill targets adjacent to the mine made
Borehole Mac002 3m @ 4.13g/t (from 9 to 12m)
Borehole Mac003 1m @ 13.95g/t (from 54m to 55m)
Borehole Mac006 1m @ 5.29g/t (from 92m to 93m)
Borehole Macd002 1m @ 7.20g/t (from 109m to 110m)
A re-sampled exploration drive (level 715) extending into one of the drill
targets has been re-mapped and sampled by Pan African geologists to give an
average value of 5.75g/t over an average width of 1.21 m along a strike-length
of 80m (samples were taken across the roof of the exploration drive
perpendicular to the strike of the reef at intervals of approximately 1.7m).
Jan Nelson, Chief Executive of Pan African, commented: 'Our exploration
programme on the Manica Project is advancing well and we are encouraged by the
results from the geophysical survey. Recent underground sampling and mapping by
our geologists, together with historical drill data, show that the identified
geophysical anomalies are prospective for gold. As a result we have fast
tracked our exploration programme at Manica and increased the size of our
geological team on the ground.'
The historical borehole data and underground sampling data was checked and
verified by Explormine Geological Consultants (Pty) Ltd ('Explormine'), a South
African based Resource & Geological Consultancy. Explormine also act as
Competent Person for the company on the Manica project.
Wa project - Ghana
Pan African, through its wholly-owned subsidiary, Mistral Resource Development
Corporation ('Mistral'), has given formal notice to Kenor ASA ('Kenor'), of its
decision to terminate its option agreement regarding the Wa Project in Ghana.
After a re-assessment of the underlying fundamentals of the project based on
recent exploration and geological information, the project fails to meet the
criteria of: (a) significant resource in excess of 750,000oz; (b) imminent
development; and (c) the potential to add significant new ounces.
Jan Nelson, Chief Executive of Pan African, commented: 'This termination is
consistent with our policy only to pursue projects that meet the aforesaid
criteria and deliver consistent shareholder value. We will maintain our
focussed efforts on our current exploration projects and continue to review
other project opportunities which satisfy our stringent criteria'.
For further information on Pan African Resources please visit the website at
Pan African Resources Ambrian Partners Limited Parkgreen Communications
Jan Nelson, CEO Richard Chase Justine Howarth / Victoria Thomas
+27 11 886 1211 +44 (0)20 7776 6461 +44 (0) 20 7493 3713
Colin Bird, Chairman
+44 (0) 20 7584 2155
This information is provided by RNS
The company news service from the London Stock Exchange