Ambatofosy Uranium Property

The Ambatofosy property is 25 sq km situated 18 kilometers west of the city of Soavinandriana and 106 km west of Antananarivo, the capital of Madagascar. Historical records reported that the French started selectively mining this area in the early 1930's producing 20 tonnes of Betafite from hand-cobbed ore that graded approximately 20-26% uranium oxide. Mining activities where shut down at the start of the Second World War and resumed in 1948 by the French Commission a l'Energie Atomique. Work during this time period consisted of 1200 meters of underground tunnels and 390 meters of drilling. Historical production and drilling records for this period are not available.

Old workings on surface can be seen for a length of 250 meters by 100 meters. Artisans are presently mining the zone for quartz crystals 800 meters from the old mine workings. This is an indication that the structure could continue for a considerable distance, increasing the opportunity to expand the zone of uranium mineralization.

A recent assessment was performed by OMNIS (Office Nationale des Mines et des Industries Stratégiques), a Madagascar extra-governmental agency that aids the mineral exploration industry by performing geological services that include geological mapping, trenching and soil sampling. Pencari's geological consultants direct and review the results of the OMNIS work at Ambatofotsy.

Uranium mineralization at Ambatofotsy is associated with a large, zoned pegmatite complex. Mineralization is reported to include betafite (a high uranium, columbium-tantalum mineral) and columbite-tantalite (columbium-tantalum minerals). Both minerals are important sources of tantalum, a high-tech metal used in electronics.

A strong NW-SE trending uranium anomaly has been identified from an in-house aerial radiometric survey. The OMNIS program has already extended the uranium bearing pegmatite for 3,000 metres beyond the known workings The zone remains open. High spectrometer readings have been detected by OMNIS along the entire trend. Spectrometer readings exceed 7,000 counts per second. All high spectrometer readings are coincident with uranium anomaly detected by an aerial radiometric survey done in September 2007. Numerous other radiometric anomalies were detected during the airborne survey and are scheduled in conjunction with Pencari's regional prospecting and geochemical programmes.