Canal+ Regulatory News (CAN)

5 Jun 2008 07:00



Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining

5th June 2008

Central African Gold Plc ("CAG" or the "Company")

Mobilises AUMS for underground development project

Central African Gold Plc, the AIM traded gold mining and exploration company, has signed a letter of intent with African Underground Mining Services Ltd ("AUMS") for the development of its Strauss decline to enable the eventual installation of a conveyor haulage system from the Bibiani underground development in support of CAG's plans to process 100,000 tonnes ore per month by the end of 2008. Subsequent to the signing of the letter of intent, AUMS have mobilised their equipment, completed the site establishment and have commenced work with the development.

AUMS was recently appointed to undertake an underground development and mining project at Redback's Chirano mine in Ghana.

Barminco provides the plant, the people and expertise for hard rock underground mining operations throughout Australia and through Ausdrill in West Africa and has experience with all mining methods from narrow vein small deposits to large scale sub-level cave operations using the latest mechanised mining equipment.

CAG has completed the portal and initial development that is located at Bibiani's Strauss pit next to the run-of-mine pad at the plant. The contract will be for a 2,000m by 5.5m x 5.5m decline that will link the portal and ultimately 14L (approximately 500m below surface) which is expected to be completed by Q1 2009.

Once the decline has been completed the mine will have two fully serviced declines that will result in an installed capacity of over 100,000 tonnes per month ("tpm") of ore. The final installation of the conveyor will result in an ore haulage capacity of 200,000 tpm.

CAG CEO, Greg Hunter, said: "We chose the Barminco/Ausdrill JV for its excellent track record in terms of delivery and implementing innovative mining and management approaches to ensure the best possible use of resources and technology.

"We look forward to the imminent initiation of this project and fruitful working relationship."

CEO of Barminco and Director of AUMS, Neil Warburton, said: "We are extremely excited about this opportunity. We have a range of new mechanised mobile equipment in Ghana with future orders secured with suppliers to assist our clients achieve their productivity goals. CAG is a well run company with excellent upside to expand our business and we look forward to working closely with the site management team to bring the Strauss decline on line ahead of schedule."

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For further information please visit www.centralafricangold.com or contact:

Central African Gold Plc

Greg Hunter/Nicole Broome Tel: +27 (0) 11 676 2500

In London:

St Brides Media & Finance Ltd

Hugo de Salis/Felicity Edwards Tel: +44 (0) 20 7 236 1177

Strand Partners Limited

Simon Raggett /Braden Saunders Tel: +44 (0) 20 7409 3494

RBC Capital Markets

Martin Eales/Andrew Smith Tel: +44 (0) 20 7029 7881

In South Africa:

Russell and Associates

Charmane Russell Tel: + 27 (0) 11 880 3924

Notes to Editors:

Central African Gold Plc, admitted to AIM in April 2004, was established to acquire gold assets with a geographical focus on Africa. The Company has established a sound portfolio with projects in Ghana, Mali, Zimbabwe and Botswana. It has a highly experienced management team, which has worked together for four years managing six underground greenstone gold mining operations and building exploration portfolios.

CAG's portfolio includes the developing of Bibiani gold mine and two prospecting licences in Ghana, which it acquired from AngloGold Ashanti Limited, two ventures in Mali covering 17 prospective permits and a licence in Botswana covering the extension of the Kraaipan greenstone belt from South Africa. CAG acquired five mines and extensive exploration properties in Zimbabwe during 2007. The management team is evaluating additional prospects in Africa to establish CAG as a leading mid-tier African gold producer with world class exploration and production assets.