CAN Central A.G.

    RNS Number : 0156W
  Central African Gold PLC
  05 June 2008
   

    Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining
    5th June 2008

    Central African Gold Plc ("CAG" or the "Company")
    Mobilises AUMS for underground development project

    Central African Gold Plc, the AIM traded gold mining and exploration company, has signed a letter of intent with African Underground
Mining Services Ltd ("AUMS") for the development of its Strauss decline to enable the eventual installation of a conveyor haulage system
from the Bibiani underground development in support of CAG's plans to process 100,000 tonnes ore per month by the end of 2008. Subsequent to
the signing of the letter of intent, AUMS have mobilised their equipment, completed the site establishment and have commenced work with the
development.

AUMS is a 50/50 joint venture between Australia*s leading underground mining contractor Barminco Ltd (*Barminco*) and Australia*s leading
contract mining services company, ASX Listed Ausdrill Ltd (*Ausdrill*).
 
    AUMS was recently appointed to undertake an underground development and mining project at Redback's Chirano mine in Ghana.
    Barminco provides the plant, the people and expertise for hard rock underground mining operations throughout Australia and through
Ausdrill in West Africa and has experience with all mining methods from narrow vein small deposits to large scale sub-level cave operations
using the latest mechanised mining equipment.

    CAG has completed the portal and initial development that is located at Bibiani's Strauss pit next to the run-of-mine pad at the plant.
The contract will be for a 2,000m by 5.5m x 5.5m decline that will link the portal and ultimately 14L (approximately 500m below surface)
which is expected to be completed by Q1 2009.  

    Once the decline has been completed the mine will have two fully serviced declines that will result in an installed capacity of over
100,000 tonnes per month ("tpm") of ore. The final installation of the conveyor will result in an ore haulage capacity of 200,000 tpm.

    CAG CEO, Greg Hunter, said: "We chose the Barminco/Ausdrill JV for its excellent track record in terms of delivery and implementing
innovative mining and management approaches to ensure the best possible use of resources and technology.

    "We look forward to the imminent initiation of this project and fruitful working relationship."
    CEO of Barminco and Director of AUMS, Neil Warburton, said: "We are extremely excited about this opportunity. We have a range of new
mechanised mobile equipment in Ghana with future orders secured with suppliers to assist our clients achieve their productivity goals. CAG
is a well run company with excellent upside to expand our business and we look forward to working closely with the site management team to
bring the Strauss decline on line ahead of schedule."
    * * ENDS * *

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

    Central African Gold Plc
    Greg Hunter/Nicole Broome                         Tel:    +27 (0) 11 676 2500

    In London:
    St Brides Media & Finance Ltd
    Hugo de Salis/Felicity Edwards                    Tel:    +44 (0) 20 7 236 1177

    Strand Partners Limited
    Simon Raggett    /Braden Saunders              Tel:    +44 (0) 20 7409 3494

    RBC Capital Markets
    Martin Eales/Andrew Smith                         Tel:    +44 (0) 20 7029 7881

    In South Africa:
    Russell and Associates
    Charmane Russell                                        Tel:    + 27 (0) 11 880 3924


    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 developing of Bibiani gold mine and two prospecting licences in Ghana, which it acquired from AngloGold
Ashanti Limited, two ventures in Mali covering 17 prospective permits and a licence in Botswana covering the extension of the Kraaipan
greenstone belt from South Africa. CAG acquired five mines and extensive exploration properties in Zimbabwe during 2007. The management team
is 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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