London, England — MININGREVIEW.COM — 31 March, 2008 – AIM-listed gold mining and exploration company Central African Gold plc (CAG) says gold sold so far from its Bibiani mine in Ghana has been on target at 24 391 oz, and that it remains confident that the mine will produce 100 000 oz of underground gold by this year-end.
A production update issued here confirms that underground development work at Bibiani has been gathering momentum, and reveals that the company is examining expansion potential with a view to reaching 150 000 oz pa from underground through optimised use of conveyor decline and increased extraction rates.
The mine development programme has progressed significantly during 2007, already having increased Bibiani’s total proven and probable mineral resource base from its stated inventory of 299 000 oz of ore reserve within 1.5Moz of mineral resources at December 31, 2006, to 1.1Moz of ore reserves within 3.2Moz million ounces of mineral resources (JORC compliant). This means a life-of-mine of at least 10 years.
Bibiani gold mine is located in western Ghana, 250km north-west of Accra. The mine lies within the Sefwi-Bibiani belt, which hosts over 17 Moz of gold mineral resources, and is the second-most significant gold-bearing belt in Ghana after the Ashanti belt to the east.
Surface resources at Bibiani – comprising tailings dams and extensions of mineralisation at previously mined satellite opencast pits – are expected to yield 378 000 oz.