Botswana

• 100% interest in Matoko Mining Ltd
• Exploration rights across 436km² in southern Botswana, over the Kraaipan Greenstone Belt
• Collation and structural re-interpretation of available data will direct continuing exploration

CAG has one project in Botswana, namely the Kraaipan project. The permit area overlies the north westward strike continuation of the Archean Kraaipan greenstone belt from South Africa. This greenstone belt has been shown to be prospective for gold (up to four million ounces past production and resources at Gold Ridge and 240,000 ounces at Goulplaats Project), platinum and base metal mineralisation in South Africa, but has not been systematically prospected in Botswana.

History

CAG has a consolidated a 100% controlling interest in Matoko Mining Ltd, (previously the Holding company of Golden Tau Mining Ltd). Previous exploration dates from 2005 over the renewed 436km² Kraaipan Project in southern Botswana. Previous work included mapping and collation of regional data by the Botswana Geological survey (1985, Bulletin 28). Billiton also surveyed the area during the 1980’s for Cu-Ni and Cu-Pb-Zn sulphides. Airborne magnetics were flown on a 250m line spacing. The area was also flown by Ampal on north-south lines as part of a kimberlite exploration programme.

The discovery of the Goldridge Mine in RSA prompted Reunion Mining (Botswana) to undertake a phase of gold exploration under joint ventures with First Quantum Minerals and Ashanti. Reunion explored the southern subcropping portion of the tenement, and activities included a high resolution airborne magnetic and radiometric survey at 150m line spacing followed by high sensitivity < 53 micron soil sampling over sub outcropping banded iron formation. Three anomalous zones were delineated by follow-up work which culminated in an RC drilling programme comprising 78 holes totalling 3971m. Best drill intersections (traverses were 200m apart) included 13m@1.71 g/t Au, 5m@2.2 g/t Au, 9m@1.1 g/t Au, and 21m@1.0 g/t Au.

It was concluded that the drill target follow-up was not optimal because the original Reunion composited soil sampling survey was potentially misleading, and that coarser fractions (as ratified by the Geological Survey and Tau Mining) are more reliable indicators. Furthermore, it is recognised that fine grained fractions are easily transported by wind erosion, and diffused within the Kalahari sand profile.

In 2004, Golden Tau flew a trial helicopter EM survey (known as a VTEM survey) over a portion of the licence area. An interpretation of re-processed aeromagnetic surveys together with the new VTEM data identified over 50 specific target areas which have now been located and tested on the ground using a ground VTEM geophysical survey. This work has enabled a detailed geological map of the belt to be produced for the first time. An initial programme of seven reverse circulation drill holes (1025m) was undertaken to test three strong geophysical and geological target zones. All holes intersected a greenstone succession comprising mafic volcanics, invariably interspersed with banded iron formation and sediment rock units and occasional ultramafic rock units (talcose). The highest gold value is 0.83 g/t gold and the disseminated sulphides would explain the VTEM anomaly. The strongest VTEM anomalies have yet to be drill tested. This work has identified new areas within the company's licences that are prospective for gold mineralisation.

Mineralisation

No definitive mineralisation zones have been identified yet, although the mineral styles targeted are common to Archean mesothermal gold mineralisation. These include, for example, disseminated sulphides in banded iron formation (BIF) and porphyry intrusives, shear zone related mineralisation on rheological contacts such as between mafic rocks and chemical sediments, and within strain shadows associated with syn-to-late tectonic granitic intrusives.

Mineral Resources

No mineral resources have been estimated on the property.

2007/2008 Exploration programme

The next phase of exploration on the Kraaipan licence will entail more detailed structural mapping combined with the integration of enhanced Aster imagery with the existing data-sets. Follow-up targets will be reviewed and re-prioritised. CAG has initiated collation of this data with remote sensing and structural interpretations. Priority targets are to be tested in the field with systematic trenching and RC/DDH drilling where applicable.