NI 43-101 Gold Reserve and Resource Estimates (6626U)

TIDMCAN

RNS Number : 6626U

Central African Gold PLC

20 October 2010

Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining

20 October 2010

Central African Gold Plc

NI 43-101 Compliant Gold Reserve and Resource Estimates

for Zimbabwe Gold Mining Properties

Central African Gold Plc ('CAG' or the 'Company'), the AIM quoted gold mining and exploration company, announces that its major shareholder, New Dawn Mining Corp. ('NDM'), has completed and released to the market a technical report compliant with National Instrument 43-101 ('the NI 43-101 Report'), being the Canadian national instrument for the Standards of Disclosure for Mineral Projects. The CAG technical report has been filed on SEDAR (www.sedar.com), under New Dawn Mining Corp., and is available on CAG's website.

The NI 43-101 Report includes gold reserve and resource estimates for CAG's Zimbabwe gold mining properties held through its two subsidiaries, Falcon Gold Zimbabwe Limited ('Falgold') (84.7 per cent. owned) and Olympus Gold Mines Limited ('Olympus') (100 per cent. owned).

Summary of CAG's Total Gold Reserves and Resources in Zimbabwe, as set out in the NI 43-101 Report:

CAG's attributable interest in Falgold and Olympus consists of:

-- Gold Reserves of 59,600 ounces, grading 3.50 g/t, contained in 523 300 tonnes of mineralised material.

-- Gold Resources (inclusive of reserves) of 830,200 ounces, grading 1.50 g/t, contained in 16,820,700 tonnes of mineralised material.

-- Inferred Gold Resources of 218,300 ounces, grading 4.60 g/t, contained in 1,482,500 tonnes of mineralised material.

The NI 43-101 Report that includes the above gold reserve and resource estimates for the Company's Zimbabwe gold properties was prepared by Michael Othitis of Medusa Geo-Consulting LLC, who is an Independent Qualified Person as defined by NI 43-101. The contents of this news release were supervised and reviewed by Ian R. Saunders, B.Sc., who is an Executive Director of CAG and President, Chief Executive Officer, and a director of NDM, and is also a Qualified Person within the meaning of NI 43-101.

**ENDS**

For further information please visit www.centralafricangold.comor contact:

 
 Roy Pitchford/     Central African Gold Plc      Tel: [phone] 
  Ian Saunders                                     9985 
                                                   Tel: +(263) 9 76826/7/8 
 Stuart Faulkner/   Strand Hanson Limited         Tel: [phone] 
  James Spinney                                    3494 
 Hugo de Salis      St Brides Media and Finance   Tel: [phone] 
  / Felicity         Ltd                           1177 
  Edwards 
 

Notes to Editors

CAG

Central African Gold Plc is a gold mining company with a portfolio of production, development and exploration assets in Zimbabwe, where the Company operates through two subsidiaries, Falcon Gold Zimbabwe Limited (84.7 per cent. owned) and Olympus Gold Mines Limited (100 per cent. owned). Through these subsidiaries, CAG has five main gold mines, the Dalny, Old Nic, Golden Quarry, Venice and Camperdown mines, which arelocated in the highly prospective Kadoma, Shurugwi and Bulawayo gold regions in Zimbabwe.

NDM

The Company's 88.68% shareholder is Toronto Stock Exchange listed New Dawn Mining Corp. ('NDM'), a gold company with a broad portfolio of production and exploration assets also in Zimbabwe. NDM owns and operates the Turk and Angelus Mines in the upper southwest area of Zimbabwe, which it believes have the potential to produce an estimated 35,000 to 50,000 ounces of gold per annum. It is NDM's objective to orchestrate the development of CAG's mining operations and exploration portfolio, as well as its own, to become a mid-tier gold producer focussed in Zimbabwe, with a consolidated annualised gold production to between 50,000 and 60,000 ounces within the next 18 to 24 months, increasing to 100,000 ounces within four to five years.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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