CAN Central A.G.

RNS Number:5903P
Central African Gold PLC
16 January 2007


     Central African Gold Plc / Ticker: CAN / Index: AIM / Sector: Mining &
                                  Exploration


16th January 2006

               Central African Gold Plc ("CAG" or "the Company")

            Starts Drilling Programme at Medinandi Permit, West Mali


Central African Gold Plc, the AIM quoted gold mining and exploration company,
has commenced a drilling programme at its 154 sq km gold exploration Medinandi
Permit in west Mali. The programme will validate and test the Fadougou Main Zone
and Medinandi prospect targets as well as quantify new structural targets in the
area. This first phase of drilling will involve a combination of Reverse
Circulation ("RC") percussion and diamond core drilling ("DD"), totalling over
15,000m and is expected to be completed by July 2007.

The Medinandi Permit is one of three gold exploration permits located in the
prospective Kenieba window of lower Proterozoic age Birimian strata in west
Mali, 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 its 80% owned joint venture company, Songhoi Resources SA.

The Medinandi Permit is situated in the southern part of the Kenieba window, 40
km south-west of the town Kenieba. Gold was first discovered on the permit in
1953 by a French geologist but has remained largely under-explored due to thick
laterite cover despite positive indications from a number of more recent
exploration programmes in the late 1990s. The property locates over structural
splays from the Senegal-Mali shear zone ("SMZ"), which is associated with major
gold deposits in the region such as Sadiola and Loulo/Yalea. The permit also
includes similar geological packages and structures as those that host the
multi-million ounce Loulo and Yalea deposits 60 km to the north, although it is
conspicuous with significantly more evolved intrusive rocks associated with the
gold mineralisation.

CAG has finalised a geospatial information systems ("GIS") synthesis of the
permit area and has planned a systematic exploration programme to test a number
of "walk-up" drill targets and other surface exploration targets that have been
identified. The target prioritisation is based on the collation of existing
geological data, enhanced Aster satellite imagery and field structural
interpretations, coupled with multi-element soil geochemistry. The
mineralisation is marked by a combination of silica and carbonate alteration
controlled by the emplacement of quartz porphyries and other evolved granitic
apophyses into structurally favourable sites along a regional structural
corridor within a mixed metasedimentary package, including grits/sandstones,
arenites and quartz-tourmaline sandstones, as at Loulo.

Available historic reports and data on the Medinandi permit area have been
reviewed by CAG and its independent consultant, GFC Consult. Previous drilling
during the 1980s and 1990s by Sonarem and AZCO/WAG delineated five zones of
mineralisation northwest of Fadougou Village, which constitute the Fadougou main
zone, with a combined strike in excess of 3,000m. This drilling indicates a
significant geological continuity of mineralisation, and subject to further
drill validation by CAG. The mineralised system appears from drill intersections
to be 1.8m wide in the south (5g/t Au), 2.6m in the centre (4.9g/t Au) and 5.5m
(5.2g/t Au) in the northern part of the deposit. Randgold Resources deduced from
past drilling and its geological observations that the mineralisation becomes
wider towards the north, an area that deserves further attention. The 2001
Randgold Resources annual report states that the northernmost WAG-hole Me23
yields >25m at >5g/t Au.

CAG's drilling programme in 2007 will focus on:
     
1)   validation and extension of the 3,000m Fadougou Main Zone target;

2)   confirmation of strike and geological continuity of the adjacent Medinandi 
     prospect, a 2,000m long robust Au-in-soil geochemical anomaly; and

3)   initial shallow heel-toe RC drill testing of certain new structural
     targets in the area identified from the target prioritisation exercise.

The overall drilling programme will involve a combination of RC percussion and
diamond core drilling totalling over 15,000m.

CAG also intends planning follow-up exploration on other surface targets
delineated by previous surface exploration by Randgold Resources conducted
between 1999 and 2002. These targets are all masked to a certain degree by
transported cover, and will be tested by shallow RC drilling.

At Tintiba:

Two trenches, 120m apart, channel sampling returned 14m grading 5.44g/t Au and
8m grading 5.54g/t Au while pits in the area returned individual values
in-excess of 2.5g/t Au, with peaks of >30g/t Au.

At Bakolobi:

A north-south trending mineralised structure was identified over 700m of length.
The structure occurs in sheared quartzites and porphyries. Gold grades vary
between 1g/t Au and 4g/t Au over widths from 4m to16m.

Exploration of the Medinandi permit poses challenges due to extensive
lateritisation of the regolith. Significant potential exists below areas of
extensive laterite duricrust, where known regional structures are concealed.
Future exploration phases will be structured to include a provision for high
resolution Induced Polarisation surveys and shallow RC drilling due to the
hardness and thickness of overburden (3m to 6m).

CAG's CEO Greg Hunter said, "CAG's strategy is to become a leading mid-tier
operating gold company, with an initial target of circa 200,000 ounces of
annualised low-cost gold production and 7.5 million ounces of resource by the
end of 2008. We recently completed the acquisition of the Bibiani gold mine,
which is currently producing approximately 3,500 ounces of gold per month. The
commencement of drilling at the Medinandi permit in Mali represents a further
step in our plan to build a substantial gold resource base. The programme will
focus primarily on validation and extension of the 3,000m strike at the Fadougou
Main Zone target and the geological continuity of the adjacent 2000m strike
Medinandi prospect >200ppb Au-in-soil geochemical anomaly."


                                  * * ENDS * *


For further information please contact or visit www.centralafricangold.com or
contact:

Greg Hunter           Central African Gold Plc          Tel: +27 (0)82 882 4222
Hugo de Salis         St Brides Media & Finance Ltd     Tel: +44 (0)20 7242 4477
Simon Raggett         Strand Partners Limited           Tel: +44 (0)20 7409 3494


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 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. 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.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
DRLGUUCPGUPMGGQ

Central African Gold (LSE:CAN)
Historical Stock Chart
From Jun 2024 to Jul 2024

Central African Gold (LSE:CAN)
Historical Stock Chart
From Jul 2023 to Jul 2024