TORONTO, ONTARIO--(Marketwire - Aug. 23, 2011) - African Gold Group, Inc., ("AGG" or the "Company") (TSX VENTURE:AGG) is pleased to report that the Government of Mali's Minister of Mines, the Honourable, Monsieur Amadou Cisse, has formally granted AGG an extension of its Kobada, Mali exploration license.
AGG's application for extension of the exploration license was granted to facilitate AGG completing a Feasibility Study for the Kobada (Mali) gold project. The extension of the exploration license calls for AGG to submit a Feasibility Study to the Ministry of Mines (Mali), on or before June 28, 2012. AGG anticipates submitting a positive Feasibility Study. The submission of a positive Feasibility Study is required for securing an Exploitation (Mining) License.
On July 14, 2011 AGG issued a press release announcing the results of its 43-101 compliant Preliminary Economic Assessment ("PEA") for the Kobada (Mali) gold project. The PEA estimates an after-tax Net Present Value (NPV) of US$216.9 million from commencement of construction and an after-tax Internal Rate Of Return (IRR) of 90.57% using a base case of US$1,100 per ounce of Au and a discount rate of 5%.
Kobada's sensitivity to the price of gold is illustrated by a gold price variation to US$1,450 per ounce of Au which generates an after-tax Net Present Value of US$415.8 million from commencement of construction and an after-tax Internal Rate Of Return of 160.10% (all other variables remain constant).
In addition, AGG advised, within the above mentioned press release, that the Kobada (Mali) gold project had surpassed the 1,000,000 ounce Au threshold, emanating from 15% of the structural strike length that includes the Zone 1 deposit. The PEA incorporates and includes drill data up to the end of December, 2010. There is no drill data from the 2011 campaign included in the Study. More specifically, the Study does not incorporate drill data for the northern extension step-out holes that may extend Zone 1 up to 2 kilometers north of the Zone 1 deposit, it does not incorporate the 2011 southern step-out holes or the newly discovered Foroko North deposit, nor the newly discovered Termite Zone, the latter two are separate and distinct structures from Zone 1. To review the entire press release announcing the PEA please activate the attached link: http://tmx.quotemedia.com/article.php?newsid=42959475&qm_symbol=AGG
Kobada, Mali, 2011 Drill Campaign Update:
AGG's 2011 drill campaign has focused 100% on step-out exploration drilling. No holes were drilled into the Zone 1 deposit in 2011.
To date, AGG issued a press release (April 07, 2011) announcing the analytical results for 27 RC drill holes, from the 2011 drill campaign, that have extended gold mineralization up to 2 km north of the current 43-101 Zone 1 resource.
Near Surface (Oxide) Northern Step-Out Drill Highlights Include:
KBRC11-025: 10 m at 5.7 g/t Au, incl 1 m at 25.45 g/t Au and 1 m at 19.06
15 m at 4.79 g/t Au, incl 2 m at 30.80 g/t Au, ended in
KBRC11-026: 45 m at 1.21 g/t Au, incl 1 m at 16.2 g/t Au and 1 m at 15.6
KBRC11-024: 10 m at 2.18 g/t Au
KBRC11-023: 73 m at 0.75 g/t Au, incl 1 m at 18.9 g/t Au, ended in
KBRC11-019: 34 m at 2.08 g/t Au, incl 1 m at 45.8 g/t Au
KBRC11-020: 107 m at 0.60 g/t Au
KBRC11-016: 15 m at 1.61 g/t Au
10 m at 2.38 g/t Au, incl 1 m at 20.86 g/t Au
KBRC11-012: 8 m at 6.23 g/t Au, incl 1 m at 47.34 g/t Au
KBRC11-005: 3 m at 19.6 g/t Au
KBRC11-007: 6 m at 3.02 g/t Au
KBRC11-008: 3 m at 42.4 g/t Au
KBRC11-001: 3 m at 29.7 g/t Au
Please activate the attached link to view the entire April 07, 2011 press release: http://tmx.quotemedia.com/article.php?newsid=42959475&qm_symbol=AGG
Subsequently, AGG issued a press release on June 01, 2011 announcing the analytical results for 14 RC drill holes, from the 2011 drill campaign, that have extended gold mineralization 200 meters south of the current 43-101 Zone 1 resource.
Near Surface (Oxide) Southern Step-Out Drill Highlights Include:
KBRC11-029: 96 m at 1.35 g/t Au, incl 22 m at 2.41 g/t Au and 14 m at
1.87 g/t Au, ended in mineralization
KBRC11-033: 46 m at 1.53 g/t Au, incl 1 m at 16.56 g/t Au, ended in
KBRC11-034: 9 m at 1.45 g/t Au and 43 m at 0.79 g/t Au, ended in
KBRC11-036: 56 m at 0.77 g/t Au, ended in mineralization
KBRC11-037: 3 m at 2.98 g/t Au and 10 m at 1.02 g/t Au and 42 m at 0.81
g/t Au, incl 1 m at 11.47 g/t Au, ended in mineralization
RPA10-008A(i): 102 m at 1.00 g/t Au, incl 20 m at 1.45 g/t Au and 38 m at
1.33 g/t Au, ended in mineralization.
Please activate the link to view the entire June 01, 2011 press release: http://tmx.quotemedia.com/article.php?newsid=41816693&qm_symbol=AGG
Pending 2011 Drill Results:
The main objective of the 2011 field program has been to explore, identify and prioritize new zones of gold mineralization, outside of the Zone 1 deposit, that warrant delineation and definition drilling during AGG's upcoming 2012 drill program. As stated in the Company's July 14, 2011 press release, AGG has surpassed the 1,000,000 oz Au threshold, contained primarily within the near surface oxide resource. This year's field program is intended to bring visibility to the 2,000,000 oz Au threshold, as an interim target, derived from within the oxide profile.
Southern Extension of Zone 1:
AGG has RC drilled on lines that are spaced approximately 200 meters apart to explore or test for the continuation of gold mineralization commencing on Section 2800S through to 4400S, a distance of 1,600 meters south of the current 43-101 Zone 1 resource. AGG's technical team is in receipt of the analytical results for the southern step out holes and is currently compiling the results of these Zone 1 southern extension test holes. The Company anticipates reporting the analytical results of these southern step out holes in the near future.
Foroko North Discovery Zone:
AGG announced the discovery of the Foroko North gold zone in a press release dated October 14, 2010. The Foroko North gold zone is a separate and distinct structure, located 4.3 km North-East of the Zone 1 deposit. At present, approximately 30% of the Foroko North discovery zone has been drilled tested with gold mineralization identified over 1.2 kms of strike. Drill highlights from the discovery of the Foroko North gold zone are detailed below.
Near Surface (Oxide) Drill Highlights From Foroko North Step-Out Discovery Holes Include:
KBRC10-034: 23m @ 2.10 g/t Au
KBRC10-037: 10m @ 0.92 g/t Au
KBRC10-038: 53m @ 1.33 g/t Au and 9m @ 5.78 g/t Au, includes 1m @ 46.86
KBRC10-047: 16m @ 0.91 and 62m @ 1.04 g/t Au
AGG's 2011 exploration drilling included 33 RC step-out drill holes that are intended to increase the mineralized strike length to a total of 2.5 km in length. A total of 7 RC step-out holes were drilled to the north of the Foroko North gold zone and a total of 26 RC step-out holes were drilled to test to the south of the Foroko North gold zone. The analytical results of the Foroko North step-out exploration drilling remain pending.
Please activate the link to view the entire press release announcing the discovery of the Foroko North Deposit: http://tmx.quotemedia.com/article.php?newsid=34759318&qm_symbol=AGG:CA
The Gossokorodji anomaly is situated approximate 5 km laterally to the east of the Zone 1 deposit. It is a separate and distinct structure that is perceived to be running parallel to the N20 degrees E structure that hosts the Zone 1 deposit.
The Gossokorodji anomaly was originally generated as a result of AGG's 2010 fixed wing airborne geophysical survey. Geophysical interpretation of the region highlighted a geophysical magnetic and radiometric signature similar to the Zone 1 deposit. Follow up ground reconnaissance identified extensive small scale historical and current mining activity. Ground geochem confirmed a gold in soil anomaly. AGG has RC drill tested the Gossokorodji anomaly over 1.25 km of strike, with a total of 17 exploration holes that were drilled from four distinct locales. Pads for holes drilled to the East and West, in scissor pattern, were located approximately 60m to 150m apart. Pads for holes drilled to the north and south measured approximately 30 meters apart and were staggered or offset by approximately 20 meters. This positioning of drill holes was repeated over the four locales of the 1.25 km of strike. The analytical results of the Gossokorodji step-out exploration drilling remains pending.
Extensive auger drilling continues to test multiple regional targets throughout the 218 sq km Kobada gold project footprint. Geochem surveys, including sampling regional termite mounds and trenching remain part of the overall exploration program. The whole of the 218 sq km project has now been covered by a 400m x 80m regional termite mound geochemical program, and the 60 sq km that was the footprint of the original Kobada License has been covered by a 200m x 40m program. Anomalous geochem targets will be drill tested at the appropriate time.
Reconnaisance studies have now established the existence of historic eluvial artisanal gold workings over a strike length of 10km along the Kobada Shear Zone and a 2.5km strike length of the Foroko North structure. The Northern Step Out and Foroko North discovery drill results noted above were in part targeted on the occurrence of eluvial artisanal workings and indicate that these workings are a good indication of gold mineralization. These results illustrate the potential of the Kobada and the Foroko North structures, while the potential of a parallel Gossokorodji structure is only just becoming evident.
Under the guidelines of National Instrument 43-101, the qualified person for the Kobada Gold Project is Mr. Pierre Lalande, P. Geo. Mr. Lalande is a member of the Association of Professional Geoscientists of Ontario and has reviewed and approved the contents of this news release.
African Gold Group, Inc., based in Toronto, Canada, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within West Africa. To date, the Company controls a total of eleven gold concessions that are consolidated in four distinct stand alone exploration projects. Three of these projects are located in Ghana and one project (Kobada) is located in Mali, West Africa.
Additional Information is available on the Company's website at www.africangoldgroup.com and on www.sedar.com and through the Company's offices at: Sun Life Financial Tower, Suite 2518, 150 King St. West, Toronto, Canada M5H 1J9.
On Behalf of the Board:
Michael A. J. Nikiforuk, President, DirectorThe TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.