Canal+ Regulatory News (CAN)

29 May 2007 07:02

Central African Gold PLC29 May 2007 Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining 29th May 2007 Central African Gold Plc ("CAG" or "the Company") Discovers new gold mineralisation zones and establishes 504,809 oz Au mineral resource estimate at Medinandi, west Mali Central African Gold Plc, the AIM traded gold mining and exploration company, ispleased to announce positive results from its initial phase of ReverseCirculation ("RC") drilling at the circa 154 km 2 Medinandi permit, in westMali. Highlights: • 8,300m Reverse Circulation ("RC") drilling completed • Fadougou Main Zone Indicated and Inferred mineral resource estimate 3.45 mt @ 4.55 g/t Au for 504,809 oz Au (JORC compliant) • Geological continuity of one zone of mineralisation established over more than 2,500m of strike • First phase of Diamond Core Drilling ("DD") in progress • Mineralisation open-ended along strike in both directions and down dip • Additional new gold discovery at Medinandi prospect - 20 intersections > 1 g/t Au over a 1,500m strike, including 4m @ 12.35 g/t Au • Induced Polarization ("IP") surveys in progress, confirming very high resistivity and chargeability anomalies • Five additional targets identified for follow-up work Greg Hunter, CEO of CAG, commented, "This resource estimate for the FadougouMain Zone on the Medinandi permit in Mali reinforces our belief that theconcession area is both highly prospective and ultimately may have significantproduction potential. The resource estimate of in excess of 500,000 oz of goldgrading 4.55 g/t gold is preliminary and with additional drilling we envisage anincrease. Additionally, further gold anomalies for follow-up have beenidentified, which underpin our belief that the area is host to a significanteconomic gold system." Background: The Medinandi permit is situated in the southern part of the Kenieba window oflower Proterozoic age Birimian strata in west Mali, roughly 40km south-west ofthe town of Kenieba. The property locates over structural splays from theSenegal-Mali shear zone, which is associated with major gold deposits in thearea such as Sadiola and Loulo/Yalea. Previous drilling (Sonarem, AZCO/WAG) delineated a zone of mineralisation atMedinandi, which is in excess of 3,000m in strike. Mineralised intersectionsindicated a zone averaging three metres wide at an average grade of 9.7 g/t Au,resulting in a non-compliant mineral resource estimate to a shallow depth inexcess of 100,000 oz Au. CAG's Phase 1 drilling programme has focused on three aspects: the validationand extension of the 3,000m Fadougou Main Zone target, subsurface investigationof an adjacent 2,000m robust Au-in-soil geochemical anomaly and initialvalidation of certain new structural targets in the area identified from thetarget prioritisation exercise. Fadougou Main Zone: The 28 RC boreholes totalling for 2,925m completed to date have confirmedmultiple zones of predominantly narrow (average three metres) but high gradegold mineralisation with peak assays of +100 g/t Au mineralisation. Host rocksare predominantly a metasedimentary package comprising pelites, psammites andsubordinate carbonaceous shale. This package has been intruded bydiorite-granodiorite, quartz-porphyry and mafic sills and dykes. The geological/structural controls are complex, but current ongoing interpretations beingprogressed suggest the mineralisation has been localised on limbs of recumbentfolds, and significant widths formed proximal to the axial plane and/or nose ofthe structure. There is growing evidence of broader (+15m) zones at both thenorthern and southern extremities, which will be tested by future drilling. Highlights (RC drilling)Borehole ID From To Metres Average Au g/ tMFRD-1 29 42 13 7.00MFRD-6 78 79 1 4.45MFRC-2 13 21 8 2.88MFRC-2 13 15 2 5.75MFRC-2 18 20 2 5.46MFRC-7 106 107 1 4.74MFRC-8 3 5 2 2.75MFRC-8 25 27 2 3.15MFRC-10 28 30 2 35.57MFRC-11 36 38 2 2.05MFRC-17 89 97 8 1.61MFRC-17 89 92 3 3.76MFRC-18 34 36 2 6.60MFRC-21 72 73 1 11.95MFRC-21 84 85 1 5.02MFRC-26 107 116 9 2.10 The first pass RC programme has in-filled the 3,000m strike extent on a heel-toebasis. It also tested northern strike extensions. The mineralisation stylevaries between zones of quartz veining, brecciated host rock with quartz andsulphide impregnation, and quartz-stockworks. Broad zones of sulphidereplacement have also been intersected, predominantly pyrite and somepyrrhotite. There are clearly at least two or more deformation events and goldmineralisation appears to be linked to one of the later events, where thestructural preparation of the rocks has created favourable sites formineralisation. Fadougou Main Zone Preliminary Mineral Resource Estimate: CAG has undertaken a preliminary mineral resource estimate of the Fadougou mainzone based on forty-two boreholes (28 current and 14 historic). Boreholeintercepts and heel-toe lines were executed generally 80m apart, and geologicalcontinuity of one zone of mineralisation has been established over more than2,500m of strike. This zone is open along strike and at depth. There are threesub-parallel zones that are also open on strike and at depth. The Fadougou Main Zone has been modelled to a depth of 120m. A wireframed modelat a 1.0 g/t Au cut-off and capped at 80 g/t Au (< 97% percentile) was generatedfor Indicated resources, and an unconstrained solids model at a 1.0 g/t Aucut-off established for other zones. A specific gravity of 2.75 was used in thetonnage estimate, but requires empirical ratification from diamond coreanalyses. The mineral resource estimate is shown below, and totals 3.45 milliontons at 4.55 g/t Au for 505 koz Au. Fadougou Main Zone mineral resources1.0g/t cut Tons Au g/t Au OzIndicated 341,198 4.25 46,669Inferred 3,111,428 4.58 458,140Total 3,452,626 4.55 504,809 Assays were conducted at the Analabs (Kayes) laboratory in west Mali. Allsamples were split and a 50g sample fire assayed. Blank and duplicate sampleswere submitted for Quality Control purposes every 20 samples. A first phase of DD has been initiated on the Fadougou Main Zone, and 15 of 16holes have been drilled to date. These boreholes will enable a betterunderstanding of the geological and structural controls of mineralisation. Afurther phase of shallow RC drilling is also being evaluated, as there are bothstrike extensions and sub-parallel mineralised zones that require furtherevaluation. Medinandi Prospect: This target, located circa 1.5 km north-west of the Fadougou Main Zone,comprises a coherent gold-in-soil geochemical anomaly (peak value >3 g/t Au)over 2,000m in strike. There is no exposure in the area, with two surfaces offerricrete up to five metres thick obscuring outcrop. Initial remote sensing andASTER imagery structural interpretations indicated the possibility of multiplestructures striking north-east. The structural and geological setting of thetarget has been initially tested with three lines of shallow heel-toe RCdrilling covering circa 1500m in width and circa 1500m of strike. There havebeen 176 RC boreholes totalling 4,791m that have been completed to date. Anumber of intersections have been received confirming the geochemical anomaly,and will be subject to follow-up drilling. Highlights (0.5 g/t Au cut-off)Borehole ID From To Metres Average Au g/tMPRC-169 8 9 1 14.45MPRC-84 16 20 4 12.35MPRC-84 65 66 1 9.30MPRC-130 11 13 2 3.11MPRC-68 17 18 1 2.27MPRC-80 14 15 1 2.04MPRC-59 18 19 1 1.71MPRC-2 5 6 1 1.63MPRC-61 2 3 1 1.56MPRC-82 52 53 1 1.50MPRC-141 11 12 1 1.43MPRC-86 5 6 1 1.37MPRC-45 16 17 1 1.20MPRC-38 17 18 1 1.16MPRC-60 8 12 4 1.14MPRC-82 2 3 1 1.10MPRC-47 12 13 1 1.09MPRC-87 26 27 1 1.07MPRC-123 4 6 2 1.05MPRC-92 22 23 1 1.03 The geological and structural setting of the Medinandi prospect continues to beevaluated. A significant aspect is the ratification of the source of thegeochemical anomaly over a strike length of 1,500m. There are multiplemineralised zones, although they tend to be narrow, indicate a clear presence ofstrong gold mineralisation. Further DD and some infill RC boreholes are plannedto be effected before the end of this field season (July 2007). Geophysical Surveys: High Resolution Induced Polarisation ("HIRIP") surveys have also been completedover certain zones of the Fadougou Main Zone (4 lines) and Medinandi prospect (9lines). This highly effective geophysical technique measures the resistivity andchargeability properties of the strata accurately down to 200m below surface.Resistivity anomalies in gold bearing environments are generally linked tosilicification (quartz veining, stockwork veining). Chargeability anomalies canbe a result of sulphide mineralisation, carbonaceous shale or mafic intrusions. Significant anomalies have been detected at both target areas and the initialcore drilling at Fadougou Main Zone has indicated significant zones ofsulphidation, local quartz veining and host rock brecciation, as well as acomplex suite of intrusive rocks. The high resistivity and chargeability zonesare being modelled with a view to delineating zones of combined silicification,stockwork veining and sulphidation. A broader scale gradient array InducedPolarisation ("IP") survey is currently underway, testing other structuraltargets. Phil Bentley, CAG's Group Manager for Geology and Exploration commented, "We arevery pleased with the results to date. The drill programme has beendeliberately aggressive, and has already born fruit with the resources atFadougou Main Zone and the new discovery at the Medinandi prospect. Ourstructural understanding of the area is developing rapidly, and there are clearindications that we are in a strongly mineralised system. There are manysimilarities with the multi-million ounce mineralisation in the Loulo Camp, 60kmnorth of us. Importantly, we now have definitive mineralised zones toinvestigate, with a huge upside to be evaluated. The team is looking forward toan exciting period of sustained exploration." Other targets: CAG believe that the Medinandi permit has significant further potential for thediscovery of new mineralised zones existing below areas of extensive laterite.Future exploration phases will include a shallow RC drill programme to explorebelow the thin (5-7m) overburdern/ ferricrete/ laterite. There are already fourwalk-up surface targets at Tintiba, Bakalobi, Betakili and Termite that weredelineated by previous exploration. The priority targets for a phase of shallowRC drilling are Tintiba and Bakalobi. At Tintiba, two trenches 120 meters apart returned 14m grading 5.44 g/t Au and8m grading 5.54 g/t Au, while pits in the area returned individual gold valueswell in excess of 2.5 g/t Au, with peaks of +30 g/t Au. The mineralisation ispoorly understood, but appears to be related to narrow structures trending north80 degrees, with shallow dips towards the south. At Bakolobi, a north-south trending mineralised structure was identified over700m of strike. The structure occurs in sheared quartzites and porphyries. Goldgrades vary between 1 and 4g/t over widths in the range of 4m to 16m. Competent Person: Mr Phil Bentley (MSc, MSC (Minex), Pr Nat. Sci) is CAG's competent person inrespect of ore reserve and mineral resource estimations. Mr Bentley has overseenthe borehole planning and sampling and logging process, including submission ofblanks and duplicates to Analabs (Kayes) for Quality Control purposes. He hasalso overseen the geological modelling and mineral resource estimation conductedin SURPAC. The stated mineral resource classifications are JORC compliant. CAG in Mali: The Medinandi Permit is one of three gold exploration permits located in theprospective Kenieba window, which constitute the Mani SARL joint venture enteredinto by CAG in July 2006. Under the terms of the agreement, CAG will fundexploration on the three properties through a joint venture company SonghoiRessources SA, of which CAG holds 80% equity. Elsewhere, CAG manages Mali Goldfields with UNOMIN, where a package of 20permits covering over 2,500 sq km in south and west Mali is subject to certainfollow-up exploration programmes during the 2007 field season. 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 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