London, England — MININGREVIEW.COM — 19 August 2008 – London-based and AIM-listed Central African Gold plc (CAG) – a company which identifies, acquires and develops projects in the natural resource sector, with particular emphasis on gold projects in Africa – has just completed a successful quarter, having achieved a cash operating profit, increased underground production and impressive drilling and sampling results at its Bibiani gold mine in Ghana.
A press release issued here revealed that CAG had reported continued increases in both tonnage and grade at Bibiani. Underground production had increased to 33 500 tpm, grading at 2.6 g/t Au in July 2008. In line with this, the company had produced a US$ 1.7 million (R12.75 million) cash operating profit over the three months to 31 July 2008.
The release added that with improving grade trends and recoveries, new fleet and equipment initiatives in place, ongoing development of the new decline to increase access to the main underground ore body, and alleviation of short term funding requirements, the board believed the company was in a position to enhance the value of this project significantly, as well as its contribution to group performance.
“The company has had encouraging results from its development programmes aimed at delivering both short-term oxide surface mining and larger open cast mining opportunities,” the release continued. CAG is currently mining opportunistic oxides, and is scheduled to continue at a rate of between 10 000 and 12 000 tpm at a grade of around 1.2g/t Au. Bibiani has a 1.4 million oz gold reserve and a plus 3 million oz gold resource (JORC compliant).
Company CEO Greg Hunter commented: “We are emerging from a difficult period wiser, more resilient and firm in our convictions that Bibiani has the makings of a solid, cash-flow-generative asset.The positive increases in our underground production figures and the growth of our inaugural operating profits over the last few months highlight the fact that production and operations are progressing well. The Board believes that, with the new initiatives in place this improvement trend is set to continue.”