African Gold Group, Inc. (TSX-V: AGG) is pleased to announce updated results from its Phase 4 in-fill drilling campaign targeting conversion of Inferred oxides into Measured and Indicated Resources. Most recent drilling results continue to show extensions of the oxide orebody at depth, far deeper than expected with numerous high-grade gold intersections. Ongoing drilling continues to test strike, depth and plunge extensions of the mineralized system.

Highlights

• The drill program has extended the depth of the oxide-sulphide boundary from 120 m to 190 m at the northern extensions of the main shear zone.
• The boundary between the oxidised lithologies and the unaltered (sulphide) lithologies being repeatedly intersected at deeper levels are conducive to adding more volume to the Inferred Mineral Resource.
• High grade gold mineralisation, plus numerous recent strong intersections consistently reported from outside the mineral resource estimate in the NI 43-101 Technical Report on Kobada Gold Project dated June 17, 2020 (the “2020 DFS”) will be incorporated in the next mineral resource estimate update on track for Q1 2021.
• Phase 4 drilling programme is ahead of target with some significant grade intersections identified in the oxide orebody.
• Drilling continues along the main shear zone (Phase 4), the Gosso target (Phase 3), and the northern extension of the main Kobada shear zone (Phase 5) as part of the 10,000 m drilling programme announced in September (see press release dated September 14, 2020).

Drilling highlights include (Table 1):

• 1.04 g/t Au over 37.0 m from 47.0 m to 84.0 m (Drill hole KB20_PH4A_11)
  • Including 8.41 g/t Au over 1.0 m, 6.41 g/t Au over 1.0 m and 7.85 g/t Au over 1.0 m
• 2.81 g/t Au over 7.0 m from 102.0 m to 109.0 m (Drill hole KB20_PH4A_11)
  • Including 18.50 g/t Au over 1.0 m
• 1.39 g/t Au over 9.0 m from 33.0 m to 42.0 m (Drill hole KB20_PH4A_10)
  • Including 5.78 g/t Au over 1.0 m

Andy Rompel, Vice President Exploration of African Gold Group commented:

“I am very pleased to report that these drill results have exceeded our expectations and the saprolite zone of the oxidised resource is larger than anticipated. We have drilled soft mineralised lithologies at unexpected depth and can push the boundary between soft and hard rock further down. This will consequently add volume to our already known resource. We will continue to pursue this occurrence further northwards where we intend to confirm the mineralisation along the Kobada shear and its northern extension. We see great potential along this and our neighbouring shear zone along the Gosso target, which has only recently been proven auriferous on surface as well as at depth.”

Overview of drilling programme

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, 3,051 m have been drilled, of which 1,690 m were Reverse Circulation drilling (RC) and 1,361 m were Diamond drilling (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 and the anticipated grade of the Inferred oxide Mineral Resource correlate positively with the 1.34 g/t mean grade currently used in the existing Inferred Resource estimate. In addition, the boundary between the oxidised lithologies and the unaltered (sulphide) lithologies has been repeatedly intersected at deeper levels than anticipated. These results are conducive to adding more volume at depth to the Inferred Mineral Resource in the oxides.

The campaign to upgrade a portion of the Inferred oxide Mineral Resources is part of a three-phase drilling campaign. The objective of the drilling campaign is to upgrade the Inferred oxide resource to a higher confidence category, test the northern extension of the Kobada shear beyond the last known occurrence in the northern parts of the Kobada concession and the initial drill-testing of the neighbouring Gosso shear zone (see press release dated October 20, 2020). It comprises an initial 6,720 m at a split of 70% RC holes (4,704 m) and 30% DD holes (2,016 m).

Figure 1: Plan view of drilling campaign at Kobada. Solid lines represent holes drilled to date:

https://www.globenewswire.com/NewsRoom/AttachmentNg/33adf2e1-7c09-4aa7-a755-d1119bc36bcd

Figure 2: Drill hole KB20_PH4A_11, confirming mineralisation close to surface and an additional newly discovered mineralised zone: 

https://www.globenewswire.com/NewsRoom/AttachmentNg/31d08b93-2db8-4dda-89c1-960816b819fc

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.

Qualified Person

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 (“NI 43-101”) 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.

Table 1: Assay results from the mineralized zone

Cumulative Mineralization Widths

Significant Intersections (above 1 g/t Au)