Canal+ Regulatory News (CAN)

7 Feb 2007 10:12

Central African Gold PLC07 February 2007 Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining 7 February 2007 Central African Gold Plc ("CAG" or "the Company") Bibiani Mine Resources Update - Increased Gold Resources CAG, the AIM traded gold mining and exploration company, is pleased to announceit has completed Phase I of the re-evaluation of the main Bibiani mine ore bodyand surrounding ore sources and has increased its measured and indicated goldresources from 733,000 oz Au contained in 20,533,000 tonnes grading 1.11g/t Auto 925,000 oz Au contained in 22,871,000 tonnes grading 1.26 g/t Au. Provenand probable gold reserves have increased from 260,000 oz Au contained in4,220,000 tonnes grading 1.92 g/t Au to 299,000 oz Au contained in 4,357,000tonnes grading 2.13 g/t Au. The underground measured and indicated resources have increased from 359,000 ozAu contained in 2,556,000 tonnes grading 4.37 g/t Au to 546,000 oz Au containedin 4,288,000 tonnes grading 3.96 g/t. In addition, the underground reserves haveincreased from 161,000 oz Au contained in 1,243,000 tonnes grading 4.02 g/t to214,000 oz Au contained in 1,748,000 tonnes grading 3.81 g/t. Ore Reserves Kt Au g/t Au Koz Mineral Resources Kt Au g/t Au Koz----------- ------- ------- ------- ------------ ------- ------- -------Proven 3,320 1.80 192 Measured 3,521 2.10 238Probable 1,037 3.20 107 Indicated 19,350 1.11 687----------- ------- ------- ------- ------------ ------- ------- -------Total 4,357 2.13 299 Total M & I 22,871 1.26 925Reserves ======= ======= ======= ============ ======= ======= ================== Inferred 5,589 3.05 547 ------------ ------- ------- ------- Total 28,460 1.61 1,472 Resources ======= ======= ======= ============ The Phase I programme which has primarily involved the complete re-modelling ofthe main Bibiani mine ore body from the available raw data, supportsmanagement's belief that the Bibiani mine has the potential to increase both itsreserves and production capacity above current projections. The main Bibianimine ore body was mined by conventional mining methods down to 24 level (720mbelow surface) from the early 1900s to the late 1960s. During this time it wasrecorded that approximately 2 million oz were recovered from 7 million tonnes ofextracted material at a reported recovered grade of 9.0 g/t Au. The same orebody was further mined by open pit methods by Ashanti Gold Corporation andlatterly AngloGold Ashanti ("AGA") through the period 1997 to 2005. During thistime the Bibiani mine main pit was developed from surface to a depth of 150mover a strike length of approximately 800m yielding 1.66 million oz fromapproximately 15 million tonnes or ore. In addition there are positive drillhole intersections to a depth of 800m below surface. The available high densityevaluation data from the open pit mining (pre-mining drilling and in-pit gradecontrol) has been incorporated into the CAG geological modelling. Structuralmapping is continuing to glean more detail on the controls on mineralisation.The remodelling of the Bibiani mine ore body as well as the extent of previoushigh grade stoping at a 7.0 g/t Au cutoff (800m below surface) and open pitmining (150m below surface) has confirmed to management that the widths andgrades experienced by AGA while mining the open pit continue through thevertical extent of the ore body. The bulk of underground evaluation data existsbetween 6 and 9 level (180m to 270m below surface) and confirms mineralisedwidths of 15m to 40m and a grade of approximately 4.00 g/t Au at a 2.00 g/t Auresource cutoff. The planned Phase II programme of underground mapping anddrilling will provide pre-mining resource conversion between 6 and 9 levels (180to 270m below surface) along strike, as well as exploration between 9 and 12level (270 to 360m below surface). Management expect the Company to achieve gold production at the Bibiani minefrom tailings at an annualised rate of 40,000 oz in FY2007. Production fromunderground development is planned to commence in Q3 2007 and undergroundstoping production is expected to reach an annualised rate of 110,000 oz in Q32008. Surface drilling commenced in January 2007 with the initial prioritiesbeing dip and strike extensions of five satellite pits that were mined during2005 to a depth of approximately 30m. Chief Executive, Greg Hunter, said, "The ongoing reserve and resource baseenhancement and positive outcome of a mine planning and scheduling processcontinues to confirm our rationale for the acquisition of the Bibiani mine andwe are confident and excited by the opportunity to rapidly turn on production byQ3 2007. We have drilled over 3,000m of an approximately 15,000m surfacedrilling programme and we expect to commence underground drilling in Q2 of thisyear." The Ore Reserves and Mineral Resources have been prepared by the company'sCompetent Person who is duly registered with the South African Council forNatural Scientific Professions ("SACNASP") as required by the AIM Rules.SACNASP is synonymous with the Joint Ore Reserves Code ("JORC"), which is theAustralasian equivalent to the South African Mineral Resources Code ("SAMREC")prepared under the auspices of the Australasian Institute of Mining andMetallurgy ("AusIMM"). The SAMREC Code and SACNASP are officially recognised ona reciprocal basis by AusIMM. This ensures that the Mineral Resource statementsare compliant with the JORC. The company's Competent Person has taken intoaccount the JORC definitions and the Ore Reserves and Mineral Resources reportedhere are considered to be fully compliant in all material respects with therequirements of JORC. The Ore Reserve quantities and qualities wereindependently reviewed by Ukwazi Mining (Pty) Ltd., whilst Snowden MiningConsultants Pty Ltd ratified the mineral resource estimation procedures. * * ENDS * * For further information please contact or visit www.centralafricangold.com orcontact: Greg Hunter Central African Gold Plc Tel: +27 (0)82 882 4222 Hugo de Salis St Brides Media & Finance Ltd Tel: +44 (0)20 7242 4477 Simon Raggett Strand Partners Limited Tel: +44 (0)20 7409 3494 Notes to Editors: CAG, admitted to AIM in April 2004, was established to acquire gold assets witha geographical focus on Africa. The Company has established a sound portfoliowith projects in Ghana, Mali and Botswana. It has a highly experiencedmanagement team, which has worked together for four years managing sixunderground greenstone gold mining operations and building explorationportfolios. CAG's portfolio includes the producing Bibiani gold mine and prospectinglicences in Ghana, which it acquired from AngloGold Ashanti Limited, two jointventures in Mali covering 23 prospective permits and licences in Botswanacovering the extension of the Kraaipan greenstone belt from South Africa. Thedirectors are evaluating additional prospects in Africa to establish CAG as aleading mid-tier African gold producer with world class exploration andproduction assets. This information is provided by RNS The company news service from the London Stock Exchange