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, is pleased to announce
positive results from its initial phase of Reverse Circulation (“RC”) drilling
at the circa 154 km 2 Medinandi permit, in west Mali.
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 Fadougou Main Zone on the Medinandi permit
in Mali reinforces our belief that the concession area is both highly
prospective and ultimately may have significant production potential. The
resource estimate of in excess of 500,000 oz of gold grading 4.55 g/t gold is
preliminary and with additional drilling we envisage an increase. Additionally,
further gold anomalies for follow-up have been identified, which underpin our
belief that the area is host to a significant economic gold system.”
Background:
The Medinandi permit is
situated in the southern part of the Keniéba window of lower Proterozoic age
Birimian strata in west Mali,
roughly 40km south-west of the town of Keniéba.
The property locates over structural splays from the Senegal-Mali shear zone, which
is associated with major gold deposits in the area such as Sadiola and
Loulo/Yalea.
Previous drilling
(Sonarem, AZCO/WAG) delineated a zone of mineralisation at Medinandi, which is
in excess of 3,000m in strike. Mineralised intersections indicated 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 in excess of 100,000
oz Au.
CAG’s Phase 1 drilling
programme has focused on three aspects: the validation and extension of the
3,000m Fadougou Main Zone target, subsurface investigation of an adjacent
2,000m robust Au-in-soil geochemical anomaly and initial validation of certain
new structural targets in the area identified from the target prioritisation
exercise.
Fadougou
Main Zone:
The 28 RC boreholes
totalling for 2,925m completed to date have confirmed multiple zones of
predominantly narrow (average three metres) but high grade gold mineralisation
with peak assays of +100 g/t Au mineralisation. Host rocks are predominantly a
metasedimentary package comprising pelites, psammites and subordinate
carbonaceous shale. This package has been intruded by diorite-granodiorite,
quartz-porphyry and mafic sills and dykes. The geological/structural controls
are complex, but current ongoing interpretations being progressed suggest the
mineralisation has been localised on limbs of recumbent folds, and significant
widths formed proximal to the axial plane and/or nose of the structure. There
is growing evidence of broader (+15m) zones at both the northern and southern
extremities, which will be tested by future drilling.
Highlights
(RC drilling)
|
Borehole
ID
|
From
|
To
|
Metres
|
Average
Au g/t
|
|
MFRD-1
|
29
|
42
|
13
|
7.00
|
|
MFRD-6
|
78
|
79
|
1
|
4.45
|
|
MFRC-2
|
13
|
21
|
8
|
2.88
|
|
MFRC-2
|
13
|
15
|
2
|
5.75
|
|
MFRC-2
|
18
|
20
|
2
|
5.46
|
|
MFRC-7
|
106
|
107
|
1
|
4.74
|
|
MFRC-8
|
3
|
5
|
2
|
2.75
|
|
MFRC-8
|
25
|
27
|
2
|
3.15
|
|
MFRC-10
|
28
|
30
|
2
|
35.57
|
|
MFRC-11
|
36
|
38
|
2
|
2.05
|
|
MFRC-17
|
89
|
97
|
8
|
1.61
|
|
MFRC-17
|
89
|
92
|
3
|
3.76
|
|
MFRC-18
|
34
|
36
|
2
|
6.60
|
|
MFRC-21
|
72
|
73
|
1
|
11.95
|
|
MFRC-21
|
84
|
85
|
1
|
5.02
|
|
MFRC-26
|
107
|
116
|
9
|
2.10
|
The first pass RC
programme has in-filled the 3,000m strike extent on a heel-toe basis. It also
tested northern strike extensions. The mineralisation style varies between
zones of quartz veining, brecciated host rock with quartz and sulphide impregnation, and quartz-stockworks.
Broad zones of sulphide replacement have also been intersected, predominantly
pyrite and some pyrrhotite. There are clearly at least two or more deformation
events and gold mineralisation appears to be linked to one of the later events,
where the structural preparation of the rocks has created favourable sites for
mineralisation.
Fadougou
Main Zone Preliminary
Mineral Resource Estimate:
CAG has undertaken a preliminary
mineral resource estimate of the Fadougou main zone based on forty-two
boreholes (28 current and 14 historic). Borehole intercepts and heel-toe lines
were executed generally 80m apart, and geological continuity of one zone of
mineralisation has been established over more than 2,500m of strike. This zone
is open along strike and at depth. There are three sub-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 model at a 1.0 g/t Au cut-off
and capped at 80 g/t Au (< 97% percentile) was generated for Indicated
resources, and an unconstrained solids model at a 1.0 g/t Au cut-off
established for other zones. A specific gravity of 2.75 was used in the tonnage
estimate, but requires empirical ratification from diamond core analyses. The
mineral resource estimate is shown below, and totals 3.45 million tons at 4.55 g/t
Au for 505 koz Au.
Fadougou Main Zone mineral resources
|
1.0g/t cut
|
Tons
|
Au g/t
|
Au Oz
|
|
Indicated
|
341,198
|
4.25
|
46,669
|
|
Inferred
|
3,111,428
|
4.58
|
458,140
|
|
Total
|
3,452,626
|
4.55
|
504,809
|
Assays were conducted at
the Analabs (Kayes) laboratory in west Mali. All samples were split and a
50g sample fire assayed. Blank and duplicate samples were submitted for Quality
Control purposes every 20 samples.
A first phase of DD has
been initiated on the Fadougou Main Zone, and 15 of 16 holes have been drilled
to date. These boreholes will enable a better understanding of the geological
and structural controls of mineralisation. A further phase of shallow RC
drilling is also being evaluated, as there are both strike extensions and sub-parallel
mineralised zones that require further evaluation.
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 of ferricrete up to five metres
thick obscuring outcrop. Initial remote sensing and ASTER imagery structural
interpretations indicated the possibility of multiple structures striking north-east.
The structural and geological setting of the target has been initially tested
with three lines of shallow heel-toe RC drilling covering circa 1500m in width
and circa 1500m of strike. There have been 176 RC boreholes totalling 4,791m that
have been completed to date. A number 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/t
|
|
MPRC-169
|
8
|
9
|
1
|
14.45
|
|
MPRC-84
|
16
|
20
|
4
|
12.35
|
|
MPRC-84
|
65
|
66
|
1
|
9.30
|
|
MPRC-130
|
11
|
13
|
2
|
3.11
|
|
MPRC-68
|
17
|
18
|
1
|
2.27
|
|
MPRC-80
|
14
|
15
|
1
|
2.04
|
|
MPRC-59
|
18
|
19
|
1
|
1.71
|
|
MPRC-2
|
5
|
6
|
1
|
1.63
|
|
MPRC-61
|
2
|
3
|
1
|
1.56
|
|
MPRC-82
|
52
|
53
|
1
|
1.50
|
|
MPRC-141
|
11
|
12
|
1
|
1.43
|
|
MPRC-86
|
5
|
6
|
1
|
1.37
|
|
MPRC-45
|
16
|
17
|
1
|
1.20
|
|
MPRC-38
|
17
|
18
|
1
|
1.16
|
|
MPRC-60
|
8
|
12
|
4
|
1.14
|
|
MPRC-82
|
2
|
3
|
1
|
1.10
|
|
MPRC-47
|
12
|
13
|
1
|
1.09
|
|
MPRC-87
|
26
|
27
|
1
|
1.07
|
|
MPRC-123
|
4
|
6
|
2
|
1.05
|
|
MPRC-92
|
22
|
23
|
1
|
1.03
|
The geological and
structural setting of the Medinandi prospect continues to be evaluated. A
significant aspect is the ratification of the source of the geochemical anomaly
over a strike length of 1,500m. There are multiple mineralised zones, although
they tend to be narrow, indicate a clear presence of strong gold
mineralisation. Further DD and some infill RC boreholes are planned to be effected
before the end of this field season (July 2007).
Geophysical
Surveys:
High Resolution Induced
Polarisation (“HIRIP”) surveys have also been completed over certain zones of
the Fadougou Main Zone (4 lines) and Medinandi prospect (9 lines). This highly
effective geophysical technique measures the resistivity and chargeability
properties of the strata accurately down to 200m below surface. Resistivity
anomalies in gold bearing environments are generally linked to silicification
(quartz veining, stockwork veining). Chargeability anomalies can be a result of
sulphide mineralisation, carbonaceous shale or mafic intrusions.
Significant anomalies
have been detected at both target areas and the initial core drilling at
Fadougou Main Zone has indicated significant zones of sulphidation, local quartz
veining and host rock brecciation, as well as a complex suite of intrusive
rocks. The high resistivity and chargeability zones are being modelled with a
view to delineating zones of combined silicification, stockwork veining and
sulphidation. A broader scale gradient array Induced Polarisation (“IP”) survey
is currently underway, testing other structural targets.
Phil Bentley, CAG’s Group
Manager for Geology and Exploration commented, “We are very pleased with the
results to date. The drill programme has been deliberately aggressive, and has
already born fruit with the resources at Fadougou Main Zone and the new
discovery at the Medinandi prospect. Our structural understanding of the area
is developing rapidly, and there are clear indications that we are in a
strongly mineralised system. There are many similarities with the multi-million
ounce mineralisation in the Loulo Camp, 60km north of us. Importantly, we now
have definitive mineralised zones to investigate, with a huge upside to be
evaluated. The team is looking forward to an exciting period of sustained
exploration.”
Other
targets:
CAG believe that the
Medinandi permit has significant further potential for the discovery of new
mineralised zones existing below areas of extensive laterite. Future
exploration phases will include a shallow RC drill programme to explore below
the thin (5-7m) overburdern/ ferricrete/ laterite. There are already four
walk-up surface targets at Tintiba, Bakalobi, Betakili and Termite that were
delineated by previous exploration. The priority targets for a phase of
shallow RC drilling are Tintiba and Bakalobi.
At Tintiba, two trenches
120 meters apart returned 14m grading 5.44 g/t Au and 8m grading 5.54 g/t Au,
while pits in the area returned individual gold values well in excess of 2.5
g/t Au, with peaks of +30 g/t Au. The mineralisation is poorly understood, but
appears to be related to narrow structures trending north 80 degrees, with shallow
dips towards the south.
At Bakolobi, a north-south
trending mineralised structure was identified over 700m of strike. The
structure occurs in sheared quartzites and porphyries. Gold grades 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 in respect of ore reserve and
mineral resource estimations. Mr Bentley has overseen the borehole planning and
sampling and logging process, including submission of blanks and duplicates to
Analabs (Kayes) for Quality Control purposes. He has also overseen the
geological modelling and mineral resource estimation conducted in SURPAC. The
stated mineral resource classifications are JORC compliant.
CAG
in Mali:
The Medinandi Permit is
one of three gold exploration permits located in the prospective Keniéba window,
which constitute the Mani SARL joint venture entered into by CAG in July 2006.
Under the terms of the agreement, CAG will fund exploration on the three
properties through a joint venture company Songhoi Ressources SA, of which CAG
holds 80% equity.
Elsewhere, CAG manages
Mali Goldfields with UNOMIN, where a package of 20 permits covering over 2,500 sq
km in south and west Mali
is subject to certain follow-up exploration programmes during the 2007 field
season.
CAG is also conducting
exploration in Ghana at the Bibiani mine site (RC and DD programme), Botswana
(regional work on the extension of the Archean Kraaipan greenstone belt from
South Africa), as well as initiating fieldwork in Zimbabwe proximal to existing
mining operations at Camperdown and Dalny/Venice mines.
*
* ENDS * *
For further information
please contact or visit www.centralafricangold.com
or contact:
Central African Gold Plc
Greg Hunter Tel: +27
(0)82 882 4222
In London:
St Brides Media &
Finance Ltd
Hugo de Salis/ Felicity Edwards Tel: +44
(0)20 7242 4477
Strand Partners Limited
Simon Raggett /Braden
Saunders Tel: +44 (0)20 7409 3494
In South Africa:
Central African Gold
Nicole Broome Tel: +27
11 676 2500
Mob: +27
83 601 1702
Russell and Associates
Charmane 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 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 producing Bibiani gold mine and prospecting licences in Ghana, which it acquired from AngloGold Ashanti
Ltd, two joint ventures in Mali
covering 23 prospective permits and licences in Botswana
covering the extension of the Kraaipan greenstone belt from South Africa. CAG recently acquired
five mines and extensive exploration properties in Zimbabwe. The directors are
evaluating additional prospects in Africa to
establish CAG as a leading mid-tier African gold producer with world class
exploration and production assets.
Isabel Crossley
St Brides Media & Finance Ltd
Aldermary House, 10-15 Queen Street
London EC4N 1TX
Tel: 020 7242 4477
Fax: 020 7651 8689
Email: isabel@sbmf.co.uk