• Tue. Nov 30th, 2021
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Central African Gold Corp. Is Looking For A Payday In The Zani-Kodo Region Of The DRC

ByMichael Berger

Oct 27, 2021

During the last year, we have been highly focused on identifying mining companies that have an environmental, social, and governance (ESG) component as we believe this theme will only become more significant on a going forward basis.

Central African Gold Inc. (TSXV: CAGR) (FSE: BC21) (OTCQB: NDENF) is a natural resource company that we consider to be levered to the ESG theme and believe our readers should be aware of this. The company has been executing on a major growth strategy and is highly focused on the acquisition, exploration, development, and operation of mineral projects in the DRC.

Central African Gold’s decision to implement a carbon capture and carbon credit program to complement mining operations provides it with a significant ESG component and we consider this to be an attractive aspect of the story. The company is led by a management team that is focused on executing on organic and inorganic growth projects to create value for shareholders. As part of its strategy, Central African Gold has plans to make strategic acquisitions and we will monitor how the story evolves from here.

Announces a Strategic Acquisition

A few weeks ago, Central African Gold reported to have entered into an agreement to acquire a 60% interest in the multi-million-ounce Zani-Kodo gold project in I’turi Province, DRC. We consider the transaction to be significant due to the size and scope of the asset and the scarcity value of gold projects with existing large resources.

Zani-Kodo is located approx. 120 kilometers away from Barrick-Anglogold’s Kibali mine, which is considered to be one of Africa’s largest gold mines with a reported reserve of 22m ozs. Zani-Kodo is strategically located on the Kilo-Moto Archaean greenstone belt which hosts the Kibali deposit to the northwest and the Mongbwalu deposit to the southwest with an estimated 5m ozs in reserve.

A key trait in the region is related to how gold mineralization at Zani Kodo appears to be structurally controlled with a dominant north-west trend which host fewer north-east trending structures. This structurally setting has also been identified at the Kibali mine and we find this to be significant.

Positive Historical Data Bodes Well for the Company

Historic drilling at Zani Kodo has identified gold mineralization up to 20 meters by  40 meters and the gold has an association with banded iron (BIF). From a structure standpoint, this association has been observed at deposits  located in the Kibali gold district. The size of the structures have enabled Barrick to utilize bulk mining techniques on lower grade ore at Kibali with much success.

Zani-Kodo is comprised of three exploitation permits with an approximate area of 1,069 sq kilometers. We are favorable on the size and the strategic location of the mine and consider the transaction to be a major potential growth driver for Central African Gold.

We consider the acquisition to be a major milestone for Central African Gold and believe the management team’s extensive experience in the region will play an important role in the success of the operation.

Zani-Kodo is one of the last remaining drilled out assets in the region and retains significant upside potential. Based on statements made by the company, we would not be surprised if the company decided to continue to pursue additional acquisition opportunities and will monitor how the story advances from here.

Based on previously announced mineral resource estimates,  Zani-Kodo could prove to be a game-changer for the company. Although Central African Gold believes the resource calculations to be relevant and reliable, the company will conduct additional studies to verify data that shows there to be an increase in reported resources at the project.

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Pursuant to an agreement between StoneBridge Partners LLC and Central African Gold Corp. we have been hired for a period of 90 days beginning October 25, 2021 and ending January 25, 2021 to publicly disseminate information about (CAGR) including on the Website and other media including Facebook and Twitter. We are being paid $5,000 per month for a period of 3 months. We own zero shares of (CAGR), which we purchased in the open market. We plan to sell the “ZERO” shares of (CAGR) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (CAGR) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

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