Gold deal clinched in Mozambique

Manica Minerals is controlled by John Gurney, a professor of geochemistry at the University of Cape Town, and his mining engineer colleague, Peter Hildebrand.

According to a press release from Pan African Mining, the Canadian company will spend at least US$159,000 on each project in the first two years.

Casula is an area where mining of gold and copper took place sporadically in the 20th century, but mining did not go deeper than 80 metres.

Nine mining licenses have been granted, eight of them to Manica minerals, in the 87,000 hectares that constitute the Casula area.

The statement notes that the occurrence of gold is associated with quartz veining, and at Casula quartz veining can be up to several metres thick.

Pan African Mining says “a sampling programme is now under way to target the old workings, shears and zones of alteration”.

It has also hired the South African company, Remote Exploration Services, to undertake a more general geochemical sampling programme.

As for Fingoe, this is an area with very little previous prospection, but there are known occurrences of gold, and Pan African Mining claims there is “good potential” for viable discoveries. Manica Minerals has been granted four prospecting licenses here, covering about 45,000 hectares.

Pan African Mining’s Chief Executive Officer, Irwin Olian, said his company felt that Casula and Fingoe “are both highly prospective gold properties with potential to host significant commercial deposits”.

The company’s main African operations are in Madagascar where it is exploring for precious stones, gold, uranium and other metals.

Olian said Pan African Mining is “expanding into Mozambique in response to the opportunities which these two projects present for adding shareholder value”. ‘ AIM.

September 2006
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