Central African GOLD Enters Agreement to Acquire Multi- Million Ounce DRC GOLD Project
Central African Gold Inc. |Suite 1080, 789 West Pender Street, Vancouver, B.C., Canada, V6C 1H2 1
CENTRAL AFRICAN GOLD ENTERS AGREEMENT TO ACQUIRE MULTI-
MILLION OUNCE DRC GOLD PROJECT
Vancouver, British Columbia - (September 28, 2021) – Central African Gold Inc . (TSXV:
CAGR; FSE: BC2; OTCQB: NDENF) (the “Corporation” or “Central African Gold”) is pleased
to announce the Corporation has entered into an agreement with an arm’s length third party to
acquire a 60% interest in the multimillion-ounce Zani-Kodo gold project (“Zani-Kodo”), located
in I’turi Province, DRC. The consideration for the 60% interest is US$55m comprised of cash
payments and assumption of certain third -party liabilities. The transaction remains subject to
industry standard terms and conditions such as completion of technical and corporate due
diligence, the execution of definitive agreements, required financing, and regulatory approval. The
Corporation will pay a finder’s fee on this transaction.
Zani-Kodo is in Northeast DRC, 120km southeast of the Barrick-Anglogold Kibali mine, which is
Africa’s largest gold mine with a reported 2019 production of 814,000 oz Au, and a total reported
resource of 22M oz Au. Zani-Kodo occurs in the Kilo-Moto Archaean greenstone belt which hosts
the Kibali deposit to the northwest and the Mongbwalu deposit to the southwest which has a
resource of 3.2M oz Au. Gold mineralization at Zani Kodo appears to be structurally controlled
with a dominant north -west trending fabric which host lesser northeast trending structures. This
structurally setting is also seen at Kibali . The mineralized zones at Zani-Kodo have a geochemical
signature which extends for a strike length of over 5 kms. Historic drilling has identified gold
mineralization up to 20 metres wide at Zani Kodo and the gold has an association with banded iron
(BIF), This association with BIF’s is also a common observation of deposits hosted in the Kibali
gold district. Zani-Kodo is comprised of three exploitation permits with an approximate area of
1,069 sq kms.
Mr. Yves Kabongo, CEO stated: “This acquisition is a major milestone and company building
event for Central African Gold. It is the culmination of total group ef fort utilizing all of our
extensive local knowledge of business and experience in the DRC, so essential to success in a
complex environment.”
Mr. Kevin Torudag stated:” Zani-Kodo is one of the last remaining drilled out assets in the DRC
and retains signif icant upside potential . For Central African Gold to enter into an agreement to
acquire a controlling interest in a project of this size is extremely exciting. We have stayed on
course with our previously disclosed objective of pursuing and acquiring signif icant assets in the
DRC and will continue to pursue additional opportunities.”
In February 2012, Bloy Resource Evaluation completed resource estimation work at Zani -Kodo
for Mwana Africa PLC (Mwana). The final resource calculated by Bloy using a .5% cutoff grade
was:
Deposit Category Tonnes Au (g/t) Au ozs
Zani-Kodo Indicated 3,543,828 3.94 448,901
Zani-Kodo Inferred 7,254,962 4.06 947,361
Badolite Inferred 2,806,940 2.34 211,010
Central African Gold Inc. |Suite 1080, 789 West Pender Street, Vancouver, B.C., Canada, V6C 1H2 2
Zani Central Inferred 9,683,455 1.28 398,894
Most of the drilling included in the Bloy resource was reportedly diamond drilling (>99%). Some
47,959m of drilling data was considered in the 2012 resource work by Bloy. Drilling varied in
orientation to intercept the mineralized body orthogonally, generally between 250 degrees to 270
degrees. SGS Mwanza in Tanzania processed samples utilized in the 2012 resource estimate. SGS
Mwanza provides services with quality assurance in line with ISO 17025 standards. SGS used fire
assay coupled with flame atomic absorption spectroscopy as their primary assay technique and
samples with gold values greater than 3g/t determined gravimetrically. Drillhole data was used to
create wireframes that represented a 0.5g/t Au mineralized envelope. Faults were modelled as was
the oxidation state. These attributes were coded into a Datamine block model along with
topography which included previous mining activities. Drilling data was not composited for the
Zani-Kodo deposit and the drill data from Badolite was composited to 1m intervals. Statistical data
supported the domaining work done by Bloy. Variography modelling was completed for the Zani-
Kodo deposit and due to the lack of sample data at Badolite, the Zani-Kodo variograms were used
in the the Badolite resource estimate. For Zani-Kodo the parent block size was 25mY × 10mX ×
10mZ, for Badolite, blocks of 30mY × 40mX × 10mZ were chosen and Zani Central having a
panel size of 50mY × 50mX × 10mZ. The models all use a maximum sub -cell resolution of 1 x 1
x 1m in the X, Y and Z di rections respectively. Ordinary kriging estimation was used to estimate
gold values. Density values were also determined via the kriging methodology.
Central African Gold believes the Bloy mineral resource estimate was completed according to
industry standards and the resource categorization defined in the technical report compiled by Bloy
Resource Evaluation “The Zani -Kodo Project Geology and Resources Report, February 2012”
methodology is in line with NI-43-101 standards in that to the extent known, all key assumptions,
parameters, and methods were used to prepare the historical estimate. It is also Central African
Gold’s opinion that the resource work is both reliable and relevant. Further work recommended to
the Corporation regarding verifying and upgrading the resources, would be to review the drill and
related QC data in greater detail, duplicate informing sample data by maybe twinning holes, re -
assay any remaining sample material, analyzing laboratory pulps and coarse rejects and increasing
the sample support by closer spaced drilling. The Qualified Person has not done sufficient work to
classify the Bloy 2012 resource as current and the Corporation does not consider this resource
work as anything but a historic resource.
Subsequent to the Bloy report, Mwana Africa completed additional drill programs and on February
26, 2013, and October 2, 2013, Mwana issued news releases reporting significant increases in
resources at Zani-Kodo, including a maiden resource for a new discovery at the Lelumodi deposit.
Although Central African Gold believes the resource calculations to be relevant and reliable,
additional verification work will need to be completed regarding the increase in resources.
Qualified Person
The geological information in this announcement has been reviewed by Mr. Michael Montgomery,
Member and Registered Professional Geoscientist of the Australian Institute of Geoscientists
(AIG), a competent person (as defined in the JORC code, 2012 edition). Mr. Montgomery is also
Central African Gold Inc. |Suite 1080, 789 West Pender Street, Vancouver, B.C., Canada, V6C 1H2 3
the Qualified Person as defined by National Instrument 43 -101 who has reviewed and approved
the contents of this news release. He has sufficient experience that is relevant to the style of
mineralization, the type of deposit under consideration and to the activity being undertaken to
qualify as a competent person as defined in the JORC code and under National Instrument 43-101.
Mr. Montgomery completed a NI -43-101 report on Zani -Kodo for a public company in March
2020 and has been retained by the Corporation to complete a current NI-43-101 report.
About Central African Gold Inc.
Central African Gold is a natural resource company with a focus on the acquisition, exploration,
development, and operation of mineral projects in the DRC. The implementation of a carbon
capture and carbon credit program will complement mining operations, meet important E SG
requirements, and present an opportunity for early revenue. Central African Gold has the intention
to acquire interests in additional concessions or relinquish concessions in the normal course of
business. Central African Gold has an experienced management team located in the DRC.
For further information, please contact:
Stephen Barley, Executive Chairman
Phone: (604-834-2968)
Email: [email protected]
Website: www.centralafricangold.com
Reader Advisory
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain “forward-looking information” within the meaning of applicable securities laws including
the successful implementation of a carbon credit program; the acquisition of additional copper, cobalt, and nickel
projects; the establishment of profitable revenue centers for the Cor poration and its DRC partners; the continued growth
of the clean technology and carbon credit sectors ; the closing of the Zani -Kodo acquisition; successful efforts to obtain
the necessary financing to pay for the acquisition of Zani -Kodo; the completion of satisfactory due diligence; obtaining
all required regulatory approvals . Although the Corporation believes considering the experience of its officers and
directors, current conditions and expected future developments and other factors that have been cons idered appropriate,
that the expectations reflected in this forward -looking information are reasonable, undue reliance should not be placed
on them as the Corporation can give no assurance that they will prove to be correct. Actual results and developments
may differ materially from those contemplated by these statements. The statements in this press release are made as of
the date of this release. The Corporation undertakes no obligation to comment on analyses, expectations or statements
made by third parties in respect of the Corporation its securities, or its financial or operating results.