Canal+ Regulatory News (CAN)

5 Jun 2007 14:31

Central African Gold PLC05 June 2007 Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining 5 June 2007 Central African Gold Plc ("CAG" or "the Company") Signs heads of agreement over the Kola permit, contiguous to the multi-million ounce Morila gold deposit, south Mali Central African Gold Plc, the AIM traded gold mining and exploration company,has signed heads of agreement with Mande Mines SARL to form a subsidiary companyfor the development of the circa 300 sq km Kola permit in south Mali, wherebyCAG, Mande Mines SARL and the Government of Mali would hold 80 per cent. 10 percent. and 10 per cent. equity interest respectively ("Kola Permit Agreement").The permit is situated in the prospective Birimian Gold Belt and is contiguousstructurally to the circa 6 million oz Au Morila gold deposit, operated byAnglogold Ashanti and Randgold Resources. It is CAG's intention to fast-trackexploration by utilising existing data and its teams' knowledge of the area togenerate drill targets. Greg Hunter, CEO of CAG, commented, "This agreement further extends our exposureto the prospective gold regions of southern Mali. The geological setting, inclose vicinity to Morila, and early work already conducted on the licence allunderpin our confidence in the Kola permit area. We have an extensive portfolioof exploration permits in highly prospective areas of Mali that have alreadyyielded significant gold targets, which we believe have the potential to beeconomic deposits. We are advancing our projects and look forward to updatingthe market once further sampling and drilling results have been processed." Kola permit background The Kola permit is situated over lower Proterozoic age Birimian strata in southMali, roughly 180 km east of the capital Bamako, in the Bougouni District. Theproperty is notable for its locality, which is partly over a preservedmetasedimentary package that is contiguous structurally to Morila. In recent years (2002-2004) Anglogold (now Anglogold Ashanti) has completedregional multi-element geochemical surveys (10,651 samples), and follow-upreverse-air-blast (RAB: 43,387m) and reverse circulation (RC: 6,677m) drillingprogrammes. These programmes were initiated on a previous 600 sq km permit area,which subsequently has been reduced on renewal to 300 sq km. Numerous anomalousgold intersections above 1g/t Au were intersected at shallow depths (1-30m)during the various phases of RAB drilling. RC boreholes checked certain highvalue gold intersections to a maximum of 180m. The relationship with Anglogoldwas terminated during 2005. CAG's intended work programme CAG intend to thoroughly collate and review all available data for the Kolapermit. The key areas of interest include metasedimentary enclaves (biotiteschist) preserved in certain structural domains emanating from the regionalBanifin deformation zone to the east of the property. CAG, from previousexperience working in the Bougouni district and Morila itself, has in-houseworking models on the Morila style mineralisation, and intends to systematicallygenerate and prioritise targets for diamond drilling during 2008. It isanticipated that the areas of interest will be deeper (200-800m below surface)than previous exploration work has tested. CAG in Mali The Kola Permit Agreement complements CAG's existing business interests in Mali,namely its two joint venture subsidiaries, Songhoi Ressources SA and MaliGoldfields SA, where exploration is ongoing over a package of 20 permitscovering over 2,500 sq km in south and west Mali, including the Medinandiprospect (500,000 oz Au resources). Assuming CAG enters into the Kola PermitAgreement, under the terms of the agreement the Company would fund explorationon the properties through its existing subsidiary companies in Mali. Other exploration CAG is also conducting exploration in Ghana at the Bibiani mine site (RC and DDprogramme), Botswana (regional work on the extension of the Archean Kraaipangreenstone belt from South Africa), as well as initiating fieldwork in Zimbabweproximal to existing mining operations at the Camperdown and Dalny/Venice mines. * * ENDS * * For further information please contact or visit www.centralafricangold.com orcontact: Central African Gold PlcGreg Hunter Tel: +27 (0)82 882 4222 In London:St Brides Media & Finance LtdHugo de Salis/ Felicity Edwards Tel: +44 (0)20 7242 4477 Strand Partners LimitedSimon Raggett /Braden Saunders Tel: +44 (0)20 7409 3494 In South Africa:Central African GoldNicole Broome Tel: +27 11 676 2500 Mob: +27 83 601 1702 Russell and AssociatesCharmane Russell Tel: + 27 11 880 3924 Mob: + 27 82 372 5816 Notes to Editors: Central African Gold Plc, admitted to AIM in April 2004, was established toacquire gold assets with a geographical focus on Africa. The Company hasestablished a sound portfolio with projects in Ghana, Mali, Zimbabwe andBotswana. It has a highly experienced management team, which has worked togetherfor four years managing six underground greenstone gold mining operations andbuilding exploration portfolios. CAG's portfolio includes the producing Bibiani gold mine and prospectinglicences in Ghana, which it acquired from AngloGold Ashanti Ltd, two jointventures in Mali covering 23 prospective permits and licences in Botswanacovering the extension of the Kraaipan greenstone belt from South Africa. CAGrecently acquired five mines and extensive exploration properties in Zimbabwe.The directors are evaluating additional prospects in Africa to establish CAG asa leading 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