16th Dec 2005 07:01
Central African Gold PLC16 December 2005 Central African Gold Plc: Ticker: CAN / Index: AIM / Sector: Exploration 16th December 2005 CENTRAL AFRICAN GOLD PLC GAINS ACCESS TO BIRIMIAN GOLD BELT WITH JV FOR 2,500 SQ KM OF EXPLORATION LICENCES IN MALI Central African Gold Plc ('CAG' or 'the Company'), the AIM listed mining andexploration company, has signed a Joint Venture Agreement with Mali Mining House('MMH') for the exploration and development of 24 gold licences coveringapproximately 2,500 km(2) of the prospective Birimian Gold Belt in a number oflocations across south and west Mali. Under the agreement, CAG and MMH will establish an 80%-20% Joint Venture Companywhich will assume ownership of the licences issued by the Malian Ministry ofMines, Energy and Water. CAG will provide the technical and financial resourcesrequired to progress the various projects, while MMH, a company established bymembers of the Malian Union Nationale des Operateurs Miniers ('UNOMIN'), acollective of Malian title-holders, will assume a 20% free-carried stake. Work has already commenced to review the large volume of geophysical andgeochemical data that exists over the southern and western regions of Mali. Anumber of large anomalies have been identified, with the assistance of GuyFransceshi Consulting, a Belgium-based consulting group which has extensiveexperience in this region. Exploration is due to commence in late January 2006. The Joint Venture's permits, covering both the western and southern Mali golddistricts, are underlain by highly prospective geology in the same geologicaltrend and environment as the Lower Proterozoic Birimian, which already containsa number of gold mines and deposits. In spite of the presence of LowerProterozoic Birimian rocks, Mali is an immature mining district with modernexploration techniques only recently being introduced. However the country hasbecome Africa's third largest gold producer and is home to some of the lowestcost gold mines in the world. To date over 20 million of ounces of gold have been discovered in western Mali,with a focus in the Kedougou-Kenieba Inlier District. The Inlier is the host toAngloGold Ltd and Iamgold Corp's Sadiola and Yatela mines and Randgold ResourcesLtd's recently started Loulo-Yalea operation which has a total measured,indicated and inferred resource in excess of 7.5 million ounces of gold at 4.12g/t. The southern Mali auriferous area, or Boure District, is the host to the Morilaand Syama mines and to deposits in Bagoe, Yanfolila, Kalana and Kangaba.Randgold-AngloGold's Morila mine has produced more than three million ouncessince it went into production in October 2000. Additionally the Syama depositwas recently estimated by current owner Resolute Mining Ltd. to yield a totalresource of 66.6 million tonnes @ 3.0g/t Au for 6.43 million ounces of gold. CAG Chairman Phil Edmonds said: "This is great news for the Company and we areextremely excited to have gained access to such a large acreage on the MalianBirimian Gold Belt. Indeed I don't believe that any other foreign companyseeking an entry to Mali has found itself in a comparable position. Mali israpidly developing into a world class gold producer and the Birimian Gold Beltalready houses a number of large mining operations and deposits includingSadiola, Yatela, Syama, Loulo and Morila run by major companies includingAngloGold, Rangold, Iamgold and Resolute Mining. We aim to undertake an earlyreconnaissance programme to define the areas which we believe have the greatestprospectivity and then advance those identified as quickly as possible throughthe implementation of a comprehensive drill programmes." The Joint Venture Company has an initial period of 18 months to review thelicences with a view to establishing a short-list of properties for progression.After that time those licences outside of the short-list will be returned to theoriginal owners (the members of MMH). In line with the Malian Mining Code, inthe eventuality that a mine is discovered of a size that triggers the statutory10% free-carried interest of the Malian Government, then MMH will reduce itsstake by 5% and CAG will do the same to accommodate the Government'sparticipation. The Company continues its exploration activities on the Kraaipan Greenstone Beltin Botswana where it has been operating since mid 2004. ** E N D S** Contacts: Chris Parry Central African Gold Plc Tel: 0845 108 6060 Hugo de Salis St. Brides Media & Finance Ltd Tel: 020 7242 4477 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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