Explorer lays claim to CAR riches

Allan Seccombe | Thu, 17 Aug 2006 11:00

[miningmx.com] -- AMID a global scramble for new gold deposits, Pan African Resources is pegging as much of the Central African Republic’s (CAR’s) mineral wealth as it can. The firm’s dubious advantage is that it’s one of the first exploration companies in an unstable country.

CEO Jan Nelson says the risk is worthwhile. “We’re the only other major exploration company in the country. We have the whole country to ourselves.”

Pan African Resources is drilling the greenstone gold project at Manica in Mozambique. Canada’s AXMIN controls two greenstone belts in CAR and London AIM-listed Pan African is looking at another two, the largest being Bogoin.

Says Nelson: “We’ve just pegged virtually all this greenstone gold belt. We have a whole greenstone belt to ourselves. I don’t know where else in the world you can do that.”

Pan African shares a small office block with private SA company Pangea Exploration, which found the world’s largest titanium deposit –Corridor Sands in Mozambique. Pangea was also instrumental in discovering and developing Rhovan, the largest vanadium mine, as well as the Tuluwaka, Buzwagi and Golden Ridge gold projects in Tanzania. It’s that exploration expertise that Pan African is relying heavily upon for success in CAR.

Pangea’s Anton Esterhuizen and Rob Still are behind the CAR venture, in which a South African group called International Mining Investments holds a 45% stake. “With that experience we know exactly how to look for deposits,” Nelson says.

Pan African is exploring a second gold project called Dekoa in CAR and is applying for permits to look at three other gold deposits plus deposits of other metals, notably platinum.

Pan African isn’t now alone. Nelson says that some major gold mining companies, and a number of North American exploration firms, have started showing an interest in CAR. “We’re seeing other companies expressing an interest. If we’re well positioned with land holding then there’s a lot of upside for us in terms of doing deals or partnerships.”

We have the whole greenbelt to ourselves

CAR is ruled by a government ushered in after a military coup in 2003 and the rule of President Francois Bozize, a general who led the coup, was entrenched in elections last year.

Gold companies are under pressure to find replacement ounces and the search is moving into more risky areas. An estimated 70% of undeveloped gold deposits are estimated to be in high-risk countries or are high-risk projects. The number of discoveries and the size of deposits have shrunk dramatically over the past decades, from more than 14 in 1995 to barely two last year.

Pan African will complete a pre-feasibility on its Manica gold project and, if the results are positive, move into a full feasibility in January, Nelson says. A 1m oz resource has so far been delineated through exploration of just 12% of the ore body. Pan African is drilling another 8 000m and is looking to add at least another 1m oz to what it has.

“We haven’t even scratched the surface yet,” says Nelson.

Pan African will look to bring in a mining company to either buy the project or form a partnership to exploit the deposit. But Nelson says Pan African can go it alone on the project if it has to.