CAN Central A.G.

RNS Number:8624Y
Central African Gold PLC
19 May 2004

 Central African Gold Plc ('CAG'): Epic: CAN / Index: AIM / Sector: Exploration

                    CENTRAL AFRICAN GOLD TO ACQUIRE 53% STAKE

                           IN GOLDEN TAU MINING LTD



Central African Gold Plc ('CAG'), the AIM listed mineral exploration company has
agreed to purchase a controlling 53% in Golden Tau Mining Ltd ('Golden Tau') for
a cash consideration of AU$604,000 (approximately #237,000). Australian based
Golden Tau, through a Botswana registered subsidiary, has applied for the
exploration rights over significant portions of the Kraaipan Greenstone Belt in
southern Botswana. The agreement is subject to the successful granting of the
exploration rights, which the Board hopes to be issued within two months.



CAG director Roy Pitchford said: "CAG is seeking investment opportunities in
Africa in gold exploration and mining projects, particularly where the potential
for success is high.  We listed on AIM in April and raised funds specifically
for the purpose of securing acquisitions in this area. These exploration
projects in Botswana fit the goals set by CAG and form part of a number of gold
prospects being pursued in southern Africa, some of which include operating
mines capable of expanding production."



The Kraaipan Greenstone Belt is substantially under-explored. CAG's consulting
geologist, Mr. Geoff Blackburn, reports that the Belt "is host to a number of
gold deposits, including the world-class Goldridge gold deposit (over 4.0
million ounces of gold to 150 metres depth)."



He also stated that "the gold mineralization at Goldridge (current known and
reported resource of 44.0 million tonnes averaging 1.79 g/t Au with a 0.8 g/t Au
cut off) is hosted in a sulphidic banded iron formation ("BIF"), and that there
is little exploration in the greenstone succession away from the BIF."  The
bedrock geology is obscured by a thin covering of Kalahari sands over much of
the Belt and therefore not tested adequately."



Certain areas of the Kraaipan Greenstone Belt have been identified as being:



  * Inadequately tested despite having significant mineralization including
    mining operations in the Belt
  * Inadequately tested despite strong surface encouragement for gold
    mineralization
  * Having undergone almost no exploration
  * Similar to those that hosts the world famous gold deposits of the Eastern
    Goldfields of Western Australia



One tenement area being pursued by CAG contains substantial gold values in
surface rock chip anomalies with best gold values of 50 metres averaging 21.1g/t
Au, 50 metres averaging 8.62g/t Au and 100 metres averaging 2.93g/t Au in an
area of no old mine workings.  Rock chip sampling of this anomaly returned
results for 1.8 km along strike.



Very limited and shallow reconnaissance drill testing of this anomaly produced a
best intersection of 5.0 metres averaging 5.12 g/t Au, and 5 metres averaging
2.29 g/t Au.



The CAG consulting geologist concluded that "this prospect is an exciting new
gold discovery in rocks of comparable lithology and age to the gold bearing
greenstone belts of Western Australia's Eastern Goldfields, and if this prospect
were in Western Australia it would create enormous industry interest."



A programme of work for these tenements has been defined and further exploration
would commence on the granting of the exploration permits.



                                    **ENDS**



Issued on behalf of Central African Gold Plc by St Brides Media & Finance Ltd,
46 Bedford Row, London WC1R 4LR.

Contacts:

Roy Pitchford   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
END

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