RNS10 Sep 2010 08:34
Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining
10 September 2010
Central African Gold Plc ('CAG' or 'the Company')
Operational Update
Central African Gold Plc, the AIM quoted gold mining and exploration company, is pleased to announce that, in early August 2010, the Company resumed gold production at both the Old Nic and the Dalny mines in Zimbabwe, which were previously on a care and maintenance programme.
The Old Nic mine
The Old Nic mine, which is part of Olympus Mines Limited, a wholly owned subsidiary of the Company, currently employs 197 people and since production resumed on 2 August 2010, it has produced 110 ounces of gold (110 ounces attributable to CAG).
The Dalny mine complex
The Dalny mine complex, which is part of Falcon Gold Zimbabwe Limited, an 84.7% controlled subsidiary of the Company, employs 232 people and since production resumed on 2 August 2010, it has produced 124 ounces of gold (105 ounces attributable to CAG).
The Dalny mine complex has a strike length of over 15 kilometres. Historical production at the Dalny mine complex, up to 2006, was 2.44 million ounces of gold from 10.2 million tonnes of mineralised material grading approximately 7.42 g/t. The board of CAG ('the Board') believes that there is the opportunity to develop a number of open-pit, medium-grade bulk mining operations within the greater Dalny shear zone. Accordingly, the Board believes that this asset is currently under-explored and offers a substantial medium to long-term development opportunity.