Pan African finds first signs of gold at Dekoa in CAR
mineweb.co.za
Pan African Resources has found gold anomalies at Dekoa in Central African Republic in its quest to establish a 3m ounce gold mine in the Central African Republic.
Author: Tessa Kruger
Posted: Monday , 14 Apr 2008
JOHANNESBURG -
Pan African Resources (JSE:PAN, AIM:PAF) has discovered eight great gold anomalies at its Dekoa exploration target in Central African Republic - the first signs of gold on an unexplored greenstone belt in the west central part of the country.
CEO Jan Nelson told Mineweb today the company was currently focusing on exploration at Dekoa and its Bogoin exploration target, 150km southwest of Dekoa, in order to find at least one open cast gold mine of 3m ounces.
Nelson said the company's discovery of the gold anomalies at Dekoa - about twice the size of the anomaly found at Bogoin - was "encouraging" as it was the first indication of gold ever found in the area.
Pan African's Dekoa licensed area comprised 3 000 square metres, while the combined strike length of the Dekoa anomalies was about 25km.
Although the company had to drill to establish whether the anomalies were indicative of a gold deposit or only gold threads running through the licensed area, the number of gold anomalies found was also positive as it increased the company's prospects of finding a deposit.
"We hope it is indicative of an ore body that lies underneath," said Nelson.
He said Pan African was targeting the discovery of at least 3m surface ounces as only a large open cast mine would justify the cost of infrastructure and building a mine here.
Nelson said the company had initiated its CAR exploration work at Bogoin as there had been a small open cast gold mine here in the past. It then claimed the previously unexplored greenstone belt at Dekoa.
Pan African took an interest in Dekoa as it lay unexplored and the company had the knowledge that there was gold in the region.
Nelson said the two CAR exploration targets were a priority for the company this year as a discovery would positively influence the company's valuation. It was also quite costly for the company to remain in the CAR, and a decision on the projects had to be made expeditiously.
In the meantime the company has started drilling on its Bogoin target where it hopes to establish an inferred resource in the next four months. Pan African will then move its drilling machines to Dekoa to establish what they have found here.
Pan African and its joint venture partner in the CAR, CARGold, have signed a 25-year mining convention with the ministry of mines, energy and water affairs in the CAR under which the state will facilitate the exploration and development of the Dekoa project in the country.
The joint venture will pay the state $700,000 in instalments for the rights it has required. Nelson said Pan African's Baberton would provide the funds and the company would only go to the market if it wanted to build a mine or acquire another gold project.
The state will hold a 10% free carry interest in the project once mining starts. |
