Reserves and resources

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Bibiani

Snowden Mining Consultants were initially retained by CAG during the due diligence and readmission CPR to estimate gold mineral resources and where applicable ore reserves (report dated August, 2006 - JORC code) for input into the mine valuation. The work follows on from previous internal estimates undertaken by AGA using Datamine software.

The geological and resource upside was ratified by independent consultants, Snowden: “Snowden support CAG’s view that this style of mineralisation continues through the vertical extension of the orebody. At an underground mining pay limit grade of 1,9g/t the unrealised and unidentified resource opportunities is, in Snowden’s opinion, considerable. There are existing workings to a depth of 800m and positive drill intersections to a depth of over 1km. The current resource statement only extends to a depth below surface of approximately 350m.” (Snowden CPR August 2006).

Total mineral resources

	Kt	Au g/t	Au Koz
Measured	13,646	2.61	1,147
Indicated	26,694	1.46	1,390
Total measured & indicated	43,340	1.82	2,536
Inferred	15,705	1.98	1,000
Total resources	59,046	1.86	3,536
* CAG estimates, verified by Snowden

Surface Resources

Surface resources at Bibiani comprise tailings dams and extensions of mineralisation at previously mined satellite opencast pits. The tailings are currently being exploited, and have been evaluated by a combination of historic tailings assays, survey of the various dump volumes, and auger drilling to the base of the respective tailings dams. The mineral resources are modified to ore reserves on a basis of payability, which generally includes the total mineral resource at a 0g/t Au cut–off.

Satellite pit inferred mineral resources have been estimated during an initial in-house study using polgygonal methods to better understand their potential. These pits were originally optimised and mined by AGA at a gold price of US$375/oz, and, with the increased gold price, require revised modeling and mineral resource estimations

Surface mineral resources

	Kt	Au g/t	Au Koz
Measured
Surf - Tailings #1 & 2	808	1.06	28
Surf - Bibiani	0	0	0
Surf - Sat	0	0	0
Subtotal	808	1.06	28
Indicated
Surf - Tailings (other)	1,263	0.76	31
Surf - Tailings New	15,000	0.57	275
Surf - Bibiani	0	0.00	0
Surf - Sat	0	0.00	0
Subtotal	16,263	0.58	306
Total measured & indicated	17,072	0.61	333
Inferred
Surf - Sat	3,289	1.24	131
Subtotal	3,289	1.24	131
Total resources	20,361	0.71	464

Underground Resources

Subsequent to remodelling from first principles the geology and structural controls of mineralisation, CAG has continued to periodically upgrade the mineral resource estimation on the main Bibiani orebody. The geological modelling was carried out by sectional digitising of geological units and alteration zones, especially silicification, brecciation and sulphidation, and served as an initial basis to create a mineral envelope, within which a constrained (0.2 g/t Au) wireframing for global mineral resource estimates was erected. Revised estimates have been completed in February, June, September and December 2007. A total of 552 surface and underground boreholes, as well as 37 channel sections were utilized in the September 2007 estimation. The current block model estimation was run using 1.0m down hole drill hole sample composites (total of 55,611 sample composites, minimum 0,005 g/t and maximum cut 35 g/t Au (NB peak value uncut 218.0 g/t Au).

Gold grades for the reported underground resource model have been determined using Ordinary Kriging (OK) with grades interpolated into parent blocks with dimensions of 3m (east) by 7.5m (north) by 7.5m (elevation). The recoverable resource estimates within each block have been classified Measured, Indicated or Inferred according to the distribution of sampling in the kriging neighbourhood, ie utilizing a combination of the normalised kriged variance, sample density and spatial continuity. This classification scheme takes into account the uncertainty in the estimates related to the proximity and distribution of the informing composites.

For the purposes of the Mineral Resource statement (December 31,2007) the underground mineral resources shown in the table below have been calculated from below the topographic surface and the pit shell to -200 metres vertical below datum (approximately 420m) and are reported based on a 2.0g/t Au cut-off grade.

Underground main zone mineral resources

	Kt	Au g/t	2.00g/t cut off Au kOz
Measured	12,838	2.71	1,119
Indicated	13,431	2.51	1,084
Subtotal	26,269	2.61	2,203
Inferred	12,416	2.18	869
Total	38,685	2.47	3,072

The estimates are considered recoverable by mining and Snowdens and Ukwasi Mining recommend application of ore loss and dilution factors in quantifying ore reserves (see below). The resource estimate was undertaken internally by CAG. Messrs Phil Bentley, Dale Richards and Frans Dooge (SACNAPS affiliated) with combined more than fifty years experience in the geological modeling of orebodies and the utilization of geostatistics for the estimation of recoverable resources in gold deposits. For the purpose of reporting under the JORC code Phil Bentley is regarded as the Competent Person. Snowdens validated the block model database, and advised CAG on the application of certain geostatistical tools to optimise the kriged estimates.

Ore Reserves

Ukwasi Mining are currently retained by CAG to finalise the initial mine planning and scheduling based on the revised geological and September 2007 resource model developed by CAG. The mining study has included the modification of certain of the mineral resources to ore reserve category. The modifying factors utilized by CAG, with advice from Ukwasi Mining are :

Dilution
Internal Stope Material below 2.0 g/t cut off	14% of the diluted resource tonnage at 1.05 g/t Au
Over-break and HW failures (instability)	8% of the diluted resource tonnage at 0.82g/t Au
Mining Loss	(5%)
Mine Call Factor (MCF)	9% is used as per the CPR August 2006
Metallurgical Recovery	82% for ug ore

The proven and probable underground ore reserve estimate dated December 31, 2007 (JORC compliant) by CAG is based on a gold price of $600 per ounce Au.

Underground ore reserves

	Kt	Au g/t	Au Koz
Proven
Bibiani (2.1 g/t stope cut-off)	5,063	3.21	523
Satellite	0	0.00	0
Subtotal	5,063	3.21	523
Probable
Bibiani (2.1 g/t stope cut-off)	8,783	3.04	859
Satellite	0	0.00	0
Subtotal	8,783	3.04	859
Total reserves	13,846	3.10	1,382

Total ore reserves

	Kt	Au g/t	Au Koz
Proven	6,146	2.74	541
Probable	10,046	2.71	875
Total reserves	16,191	2.72	1,416