18th Aug 2008 07:00
Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining
18 August 2008
Central African Gold Plc ('CAG' or the 'Company')
Increases Underground Production at Bibiani Gold Mine
Highlights:
Underground tonnage and average grade produced have increased to 33,500 tonnes per month ('tpm') at 2.6 g/t Au
Circa US$ 1.7 million cash operating profit over the past three months up to July 2008
Equipment upgrades implemented to enhance mine haulage capacity and reduce maintenance costs
Underground drilling and sampling programme returning positive orebody grades and widths as good as and, in most cases, better than expected
Bibiani has a 1.4 million ounce ('oz') gold reserve and a plus 3 million oz gold resource (JORC compliant)
CAG, the AIM traded gold mining and exploration company, reports continued increases in both tonnage and grade at its Bibiani Gold Mine ('Bibiani') in Ghana. Underground production has increased to circa 33,500 tpm grading at 2.6 g/t Au in July 2008. In line with this, the Company has produced a circa US$ 1.7 million cash operating profit over the past three months to end July 2008.
With improving grade trends and recoveries, new fleet and equipment initiatives in place, the ongoing development of the new decline to increase access to the main underground orebody, as well as an alleviation of short term funding requirements, the Board believes the Company is in a position to significantly enhance the value of this project and its contribution to group performance.
CAG has now addressed a number of difficulties most notably problems with its fleet. Three fully-paid up new trucks are now on site and in operation and two new Caterpillar R1700D loaders are expected on site in October. This new equipment will enhance the haulage capacity of the mine and help reduce maintenance costs.
It is anticipated that the two newly purchased trucks will allow Bibiani to continue to build on its increased production experienced over June and July 2008. It is also anticipated that the positive trend in terms of the increase in grade will also continue.
Furthermore, CAG has improved its process plant by upgrading the oxygen plant and commissioning the Knelson concentrator, In-line Reactor, Flash float cell, Regrind mill, and the Aachen reactors (oxygen and shear reactor). These initiatives are aimed at helping to enhance the recoveries currently being achieved.
On an ongoing basis the reconciliation between what the Company is mining and the orebody model is circa 95%, with the underground drilling and sampling programme returning results that show the orebody grade and width to be as good and, in most cases, better than expected. Bibiani has a 1.4 million oz gold reserve and a plus 3 million oz gold resource (JORC compliant).
In addition, the Company has had encouraging results from its development programmes aimed at delivering both short-term oxide surface mining and larger open cast mining opportunities. CAG is currently mining opportunistic oxides and is scheduled to continue at a rate of between 10,000 and 12,000 tpm at a grade of around 1.2g/t Au.
Central African Gold CEO Greg Hunter said: "We are emerging from a difficult period wiser, more resilient and firm in our convictions that Bibiani has the makings of a solid, cash-flow generative asset.
"The positive increases in our underground production figures and the growth of our inaugural operating profits over the last few months highlight that production and operations are progressing well. The Board believes with the new initiatives in place including the upgrading of equipment; this trend improvement is set to continue."
* * ENDS * *
For further information please visit www.centralafricangold.com or contact:
|
Greg Hunter/ Nicole Broome |
Central African Gold Plc |
Tel: +27(0)11 676 2500 |
|
Hugo de Salis/ Felicity Edwards |
St Brides Media and Finance Ltd |
Tel: +44(0)20 7236 1177 |
|
Simon Raggett |
Strand Partners Limited |
Tel: +44(0)20 7409 3494 |
|
Charmane Russell |
Russell and Associates |
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 Bibiani gold mine and two prospecting licences in Ghana, which it acquired from AngloGold Ashanti Limited, three joint ventures in Mali covering 17 prospective permits and a licence in Botswana covering the extension of the Kraaipan greenstone belt from South Africa. During 2007 CAG acquired 5 gold mines and extensive exploration properties in Zimbabwe. 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.
Related Shares:
Canal+