African Gold Group, Inc. (TSX-V: AGG) is pleased to provide an update on the ongoing exploration drilling programme and the recent significant drilling results at the Kobada Gold Project on its Phase 4 infill drilling programme targeting an upgraded resource model in early 2021.
To date, the Company has drilled 6,257.50 metres of combined Diamond Drilling and Reverse Circulation with encouraging results continuing to show deeper than anticipated extensions of the orebody.
The Company has completed Phase 4A drilling aimed at upgrading the inferred resource in oxides at the northern extension of the current pit design at Kobada concessions. After evaluating the results, the Company intends to continue with Phase 4B and C, aiming at the conversion of the majority of the 575,000 ounces of inferred oxide resources. The technical team is encouraged with the large number of high-grade intersections at very shallow levels, as well as at deeper levels, but still in the “soft-rock” saprolite, which extends deeper than originally anticipated, thereby increasing the volume of the known orebody.
The Company’s key internal goal for the Q1 2021 is to further show the considerable potential for increased resource base at Kobada Gold Project. The Company expects to incorporate the results of the drilling programme in the next mineral resource estimate update on track for early 2021.
Dr. Andreas Rompel, Vice President Exploration of AGG, commented:
“We are very happy to report more high-grade results from our highly successful endeavour to upgrade a portion of our inferred resource in the oxides to the indicated and measured category. Furthermore, we have discovered that a large portion of this orebody has oxides reaching deeper into the ground than originally anticipated, thus, leading to an unforeseen increase in volume of rock that we can mine in a future open pit. After a short break, we intend to continue pursuing this high-grade zone even further north along this highly prolific shear zone and, with additional resources, test its gold-bearing neighbouring shear zones.”
Overview of Drilling Programme
The Company`s exploration drilling programme is focused on the following targets:
The Company intends to continue drilling for the northern strike extension of the highly prolific Kobada Shear (Phase 5 ABC) and at its neighbouring shear zone, the Gosso Shear, where the initial drilling results have confirmed gold mineralisation not only at surface, but also down dip at depth (Phase 3 ABC).
Drill rigs have been operating since early September 2020, and despite heavy rains, the Company has made very good progress in its exploration drilling programme. To date, 6,257.50 m have been drilled, of which 4,035 m were RC and 2,222.50 m were DD. The assay results from the infill drilling campaign on the Kobada main shear zone have confirmed that to date, large portions of the geological model correlate positively with the existing inferred resource estimate.
Figure 1: Plan view of drilling campaign at Kobada. Significant drill intersections and cumulative mineralization:
The Kobada Gold Project
The Kobada Gold Project is an advanced stage gold development project located in Mali, Africa’s 4th largest gold producing country. The property is located 126 km south-west of Bamako, the capital city of Mali, in the Birimian Greenstone Belt, with excellent transportation links to the capital and excellent logistics routes via other West African ports.
In July 2020, the Company released an updated definitive feasibility study that showed Kobada`s potential as a highly profitable standalone mine, delivering IRR of 45.5% and NPV of US$284 m, with an AISC of US$788/oz Au.
The Company continues to advance the Kobada Gold Project through an exploration drilling programme in parallel to negotiations on securing the financing for the construction of the project. Advanced discussions with several institutional investors are underway.
About African Gold Group
African Gold Group is a TSX Venture Exchange listed exploration and development company with a focus on building Africa’s next mid-tier gold producer. The Company has a highly experienced board and management team with a proven track record in the African mining sector operating mines from development through to production. AGG’s principal asset is the Kobada Project in southern Mali, which is in an advanced stage of development having completed the 2020 DFS and is targeting gold production of 100,000 oz per annum by Q2 2022. As well as the initial Kobada Gold Project, other exploration locations have been identified on the Kobada, Farada and Kobada Est concessions, offering potential for an increase in resource.
The scientific and technical information contained in this press release has been reviewed, prepared and approved by Dr. Andreas Rompel, PhD, Pr. Sci. Nat. (400274/04), FSAIMM, Vice President Exploration of AGG, who is a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects and by Mr. Uwe Engelmann (BSc (Zoo. & Bot.), BSc Hons (Geol.), Pr.Sci.Nat. No. 400058/08, MGSSA), a director of Minxcon (Pty) Ltd and a member of the South African Council for Natural Scientific Professions.
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