CAN Central A.G.

RNS Number:7652V
Central African Gold PLC
16 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 and
exploration company, has signed a Joint Venture Agreement with Mali Mining House
('MMH') for the exploration and development of 24 gold licences covering
approximately 2,500 km(2) of the prospective Birimian Gold Belt in a number of
locations across south and west Mali.



Under the agreement, CAG and MMH will establish an 80%-20% Joint Venture Company
which will assume ownership of the licences issued by the Malian Ministry of
Mines, Energy and Water. CAG will provide the technical and financial resources
required to progress the various projects, while MMH, a company established by
members of the Malian Union Nationale des Operateurs Miniers ('UNOMIN'), a
collective of Malian title-holders, will assume a 20% free-carried stake.



Work has already commenced to review the large volume of geophysical and
geochemical data that exists over the southern and western regions of Mali.  A
number of large anomalies have been identified, with the assistance of Guy
Fransceshi Consulting, a Belgium-based consulting group which has extensive
experience in this region. Exploration is due to commence in late January 2006.



The Joint Venture's permits, covering both the western and southern Mali gold
districts, are underlain by highly prospective geology in the same geological
trend and environment as the Lower Proterozoic Birimian, which already contains
a number of gold mines and deposits.  In spite of the presence of Lower
Proterozoic Birimian rocks, Mali is an immature mining district with modern
exploration techniques only recently being introduced. However the country has
become Africa's third largest gold producer and is home to some of the lowest
cost 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 to
AngloGold Ltd and Iamgold Corp's Sadiola and Yatela mines and Randgold Resources
Ltd'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 Morila
and Syama mines and to deposits in Bagoe, Yanfolila, Kalana and Kangaba.
Randgold-AngloGold's Morila mine has produced more than three million ounces
since it went into production in October 2000.  Additionally the Syama deposit
was recently estimated by current owner Resolute Mining Ltd. to yield a total
resource 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 are
extremely excited to have gained access to such a large acreage on the Malian
Birimian Gold Belt. Indeed I don't believe that any other foreign company
seeking an entry to Mali has found itself in a comparable position. Mali is
rapidly developing into a world class gold producer and the Birimian Gold Belt
already houses a number of large mining operations and deposits including
Sadiola, Yatela, Syama, Loulo and Morila run by major companies including
AngloGold, Rangold, Iamgold and Resolute Mining.  We aim to undertake an early
reconnaissance programme to define the areas which we believe have the greatest
prospectivity and then advance those identified as quickly as possible through
the implementation of a comprehensive drill programmes."



The Joint Venture Company has an initial period of 18 months to review the
licences 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 the
original owners (the members of MMH).  In line with the Malian Mining Code, in
the eventuality that a mine is discovered of a size that triggers the statutory
10% free-carried interest of the Malian Government, then MMH will reduce its
stake by 5% and CAG will do the same to accommodate the Government's
participation.



The Company continues its exploration activities on the Kraaipan Greenstone Belt
in 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 Exchange
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