Monday, 30th July 2007 (2126 views)

Central African Gold (CAG) has raised gold estimates for its Bibiani gold mine in Ghana by 288 per cent to 2.68 million ounces of gold.

The decision by the gold mining and exploration company to raise the Bibiani main zone underground mineral resource estimate comes following exploration of the site.

AIM-listed CAG has announced that Bibiani has the potential to become a long-life underground mining operation and the company is now planning further deep drilling in the future, with five new targets prioritised for follow-up resource delineation by surface exploration.

Greg Hunter, CAG chief executive, said: "This threefold increase in our underground resource estimate for the Bibiani orebody marks a great step in the development of the Bibiani gold mine and its value to the company. The updated estimate confirms our assessment during the due diligence period that the main zone orebody will sustain a multi-million ounce deposit."

CAG has stated that its total global mineral resources have risen by 300 per cent to 2.23 million ounces of gold since February 2007.

The CAG Bibiani main zone global mineral resource estimate rises to 31.3 million tonnes at 2.66 g/t Au for 2.68 million ounces of gold at a cut off grade of 1.50 g/t Au.

Around four million ounces of gold from a combination of high-grade underground (1902-67) and opencast (1997-2005) mining have been produced by the Bibiani gold mine. CAG took over management of the mine in Ghana in January 2007.

 

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