Pan African proving up Africa’s big island

Pan African Mining (PAF-V) wants to further the mining momentum that is taking hold of Madagascar.

The world’s fourth largest island currently has two heavy weights operating on its soil with Rio Tinto (RTP-N, RIO-L) operating an industrial minerals complex and Sherritt International (S-T) pushing towards production at the Ambatovy nickel project.

The big dollar investments have come on the heels of the stabilizing of the political situation an improvement that coincides with the arrival of self-made business man Marc Ravalomanana as president. Ravalomanana who took office in 2002 — credits a World Bank loan with turning him from a yoghurt salesman into a dairy factory owner, and his reign has been marked by intense infrastructure efforts and the increased presence of the World Bank to help stimulate growth.

In 2006 the people of Madagascar voted in Ravalomanana for another five year term.

Pan African is intimately tied to the fortunes of the country, as chief executive Irwin Olian has carved out a massive presence in terms of mineral exploration claims.

In all, Pan African has 22 properties that span out over 7,500 sq. km of claims for gold, base metals, coal, diamonds and precious stones and another 5,000 sq. km of uranium claims.

Its key projects, however, are the Dabolava property or the Mountain of Gold and the Tranomaro uranium project.

Dabolava sits in the central-west plateau of the country 200-km west of the capital Antananarivo.

So far drilling has focused on Dabolava East, but that could soon be changing as a Pan African has finished an induced polarization survey of 900 sq. km to try and distinguish patterns similar to the gold bearing ones at Dabolava East.

At Dabolava East, highlights from the most recent assays included 9.5 metres grading 11.99 grams gold per tonne and 2.33 metres grading 5.1 grams gold per tonne.

Drilling has been testing a known mineralized zone that returned 32.25 grams gold over 0.9 metres in a 2005 program. The company is testing both the zone near its shear boundaries and the center of the zone, where Pan African says larger tonnage potential exists.

Past highlight intercepts from the project included 5.5 metres grading 50.81 grams per tonne, and 5.6 metres grading 9.51 grams per tonne.

Gold is contained in quartz veins, with most intersects coming from a mineralized zone that extends over a 10-km strike length.

As for Tranomaro, it is the primary target in the company’s large uranium portfolio.

All uranium projects, however, are operated as joint venture between Pan African and the government. The two entities make up PAM Atomique Sarl, with Pan African having an 80% stake and the government taking up the remaining 20%.

Tranomaro extends over 1,287 sq. km and Pan African has drilled 10 holes to a depth of between 70 and 130 metres at old French mine there known as Number 37.

Results from the drill program show uranium mineralization continues below the floor of the old open pit mine and were highlighted by 5 metres grading 0.2022% U₃0₈, 3 metres grading 0.3217% U₃0₈ and 3 metres grading 0.24% U₃0₈.

Results from the initial five holes were released in June of 2007 and were highlighted by 17.2 metres of grading 0.4329%U₃0₈.

Pan African shares were trading for $1.68 in Toronto on Jan. 23 and have traded between $3.59 and $1.62 over the last 52-weeks. It has 26.3 million shares outstanding.