17th May 2007 12:10
Central African Gold PLC17 May 2007 Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining 17th May 2007 Central African Gold Plc ("CAG" or "the Company") Regional Gold Exploration on Mali Properties Delivers Exciting Results Central African Gold Plc, the AIM traded gold mining and exploration company, ispleased to announce results from its first phase of systematic gold explorationon 22 properties covering 2,864 km(2) in the prospective Birimian strata in westand south Mali and the Kenieba district in west Mali. Highlights: • Over 10,700 assays effected to date • 39 follow-up gold targets identified, of which 16 are being prioritised • A number of clustered and structurally controlled Au anomalies isolated • Yanfolila district highly encouraging with a number of 2-7km long clustered gold-in-soil anomalies Greg Hunter, CEO of CAG, commented: "These are highly encouraging results,having yielded multiple gold targets which we aim to advance as soon aspossible. In a short space of time, we have made great progress with thedevelopment of our Malian portfolio, which is giving us all the right signs interms of being able to deliver into CAG"s growth strategy. We are rapidlyincreasing the resource base of the Company which we hope will be furtherincreased with the arrival of Richard Dahl (Exploration Manager, Mali) to assistthe existing exploration team on the ground. We have great confidence in theportfolio and our determination to fast track our targets given the results wehave achieved and we look forward to publishing further results and increasingour confidence in Mali." Geological details: Exploration, currently conducted by two CAG subsidiary companies, MaliGoldfields and Songhoi Ressources SA, has been undertaken on all of theproperties. A reverse circulation ("RC") and diamond drilling ("DD") programmeis at an advanced stage on the Medinandi Project (Songhoi Ressources SA) in westMali, and significant drill results will be announced in a separate update inthe near future. Exploration on the other 22 properties has been based on initial desktop andregional data collation studies as well as field reconnaissance work conductedduring 2006 and early 2007. This work has involved infill soil and termitesampling programmes on sub-regional infill grids (either 1000m x 200m or 500m x100m sampling spacing) producing over 10,700 assays to date: CENTRAL AFRICAN GOLD MALI EXPLORATION Property District Area Geochem Sampling Assay Km(2) Soil Termite QA QC TotalMali GoldfieldsMali SouthMandiela Yanfolila 201 594 3 18 615Sankana Yanfolila 250 1528 25 44 1597Sansandou Yanfolila 27 222 19 6 247Farani Yanfolila 26 296 14 10 320Gouenso Yanfolila 190 1124 116 28 1268Ourou-Ourou Yanfolila 26 709 84 21 814Yanfolila Yanfolila 348 194 being processed 194Nounfara Yanfolila 44 in progress 47 47Diossyan Bougouni 248 660 0 23 683N'Tebougou Bougouni 160 384 9 12 405Timpola Bougouni 199 in progress 0Zamblena Bougouni 101 716 0 23 739Heremakono Kangaba 37 in progress 0Kouremale-Nord Kangaba 8 in progress 0Djinetoumanina Bagoe 250 in progress 0Fakola 1 Bagoe 250 1305 being processed 1305Kalana-Sud Bagoe 113 672 116 61 849Mali WestSerinati Kayes 138 520 0 35 555Mankouke-Ouest Kenieba 50 310 6 20 336Babara Kenieba 30 160 0 16 176 Songhoi Ressources SAMali WestOuiga Nord Kenieba 100 477 20 497Diangounte Kenieba 69 86 0 6 92 TOTAL 2,864 9,957 439 343 10,739 This systematic geochemical survey has identified a number of significanttargets for follow-up. In particular the anomalies generated in the Yanfoliladistrict in south Mali are very encouraging with a number of 2-7km longclustered Au-in-soil anomalies (100-500 ppb Au) delineated along targetedregional structures and geological contacts. CENTRAL AFRICAN GOLD MALI EXPLORATION Property District Follow-up Comment Targets MALI GOLDFIELDS SAMali South No StrikeMandiela Yanfolila 3 each 3 - 6 km 100-300 ppb Au on N-S and NE regional structuresSankana Yanfolila 2 each 7 km Significant 100-600 ppb Au clusters on N-S & NNE structures/contactsFarani - Sansandou Yanfolila 3 each > 2 km > 100 ppb Au clusters on N-S and NNW structuresGouenso Yanfolila 1 4 km > 200 ppb Au cluster on NE trending structuresOurou-Ourou Yanfolila 3 3 km > 100 ppb Au clusters on NE structuresYanfolila Yanfolila In progressNounfara Yanfolila Results being processedDiossyan Bougouni 4 each > 2 km 100-300 ppb Au on NNW regional structuresN'Tebougou Bougouni 2 each 4km >100 ppb Au clusters on NW & N-S structures & granite-metased contactTimpola Bougouni In progressZamblena Bougouni 4 1-2 km 4 clusters >200 ppbHeremakono Kangaba 1 3 km Cluster of >100 ppb AuKouremale-Nord Kangaba 2 500m 2 spot anomalies on NE trending structuresDjinetoumanina Bagoe Results being processedFakola 1 Bagoe Results being processedKalana-Sud Bagoe Results being processedMali WestSerinati Kayes 3 2 km Low level Au-As anomalismBabara Kenieba 2 > 2 km >100 ppb Au clusters with associated As & Cu anomalismMankouke-Ouest Kenieba 2 1-3 km > 100 ppb clusters on N-S structures SONGHOI RESSOURCES SAMali WestMedinandi Kenieba 5 1-3 km Current RC and DDH programme, separate reportOuiga Nord Kayes 1 4 km Cluster >100 ppb Au on NW structureDiangounte Kayes 1 1 km Cluster >100 ppb Au on intersection of N-S / NE structure A total of 39 follow-up targets have been identified, of which 16 are beingprioritised, specifically those on the Mandiela, Sankana, Guenso, Diossyan, N"tebougou and Zamblena properties. The next phase of field investigations will involve more detailed structural andgeological interpretations, close-spaced infill soil geochemistry and ifwarranted ground geophysical surveys. This work is aimed at providing positiveresults in order to design a reconnaissance programme of rotary air blast("RAB")/RC and or DD drilling. Phil Bentley, CAG"s Group Geology and Exploration Manager commentedthat: "The results to date are significant, bearing in mind thedifficulties in "seeing" through the extensive ferricreteregolith cover so common in Mali. Furthermore, the results underline the valueof regional remote sensing, satellite image and structural interpretation,coupled with collation of existing exploration data, skills which CAG possessin-house and have resulted in the fast tracking of the field programmes". The positive results from the geochemical programmes also support CAG"scontinued assessment of the geotectonic setting of the Birimian strata,providing a basis for delineating regional scale corridors with goldmineralisation potential that exists in south and west Mali which is one of themost prospective, under-explored gold terranes in Africa and boasts some of thelowest-cost gold mines in the world. Mr Bentley added: "We will continue to hone our target parameters, butthis phase of work has definitely come up trumps with the isolation of someexcellent clustered and structurally controlled Au anomalies. The Sankana (twoanomalies, each 7km in strike), Mandiela (three anomalies between 3-6km instrike), Guenso and N"tebougou (a number of anomalies 4km in strike)properties are targets that may yield sustainable economic mineralisation". 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: Greg Hunter Central African Gold Plc Tel: +27 (0)82 882 4222 In London:Hugo de Salis St Brides Media & Finance Ltd Tel: +44 (0)20 7242 4477Felicity Edwards St Brides Media & Finance Ltd Tel: +44 (0)20 7242 4477Simon Raggett Strand Partners Limited Tel: +44 (0)20 7409 3494Braden Saunders Strand Partners Limited Tel: +44 (0)20 7409 3494 In South Africa:Nicole Broome Central African Gold Tel: +27 11 676 2500 Mobile +27 83 601 1702 Charmane Russell Russell and Associates Tel: + 27 11 880 3924 (Tel) Mobile + 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 and Botswana. It hasa highly experienced management team, which has worked together for four yearsmanaging six underground greenstone gold mining operations and buildingexploration 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. 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 ExchangeRelated Shares:
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