Mali - Medinandi Update
May 29 2007 - 3:02AM
UK Regulatory
RNS Number:3019X
Central African Gold PLC
29 May 2007
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 Kenieba window of
lower Proterozoic age Birimian strata in west Mali, roughly 40km south-west of
the town of Kenieba. 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 Kenieba 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.
This information is provided by RNS
The company news service from the London Stock Exchange
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