KBRC11-140 INTERCEPTS 42 METERS OF 1.50 g/t Au IN NEAR SURFACE RC HOLE
African Gold Group, Inc., is pleased to report the analytical results for 17 near surface (oxide), reverse circulation (RC), step-out drill holes, from the Company’s Kobada, Mali gold project. All 17 step-out drill holes were collared approximately 5 kilometers south-east of the Zone 1 deposit. The drill holes being reported in this release represent the first drilling ever undertaken in this area of the Kobada gold project. AGG has named this new gold discovery zone the Gossokorodji (“Gosso”) Target.
Near Surface (Oxide) Drill Highlights From the Gosso Step-Out Holes Include:
Gosso represents one of seven geophysical targets that exhibit characteristics similar to Kobada’s Zone 1 deposit. Paterson, Grant & Watson Ltd., (2010) classified this target as a Priority 1 airborne geophysical target characterized by: 1) a 250 meter wide ENE interpreted fault zone with numerous NNE inferred faults; 2) a highly anomalous magnetic alteration zone along the western edge of the contact of the basement rock with an interpreted granitoid intrusion; 3) a zone of potassium (K) enrichment, coincident with a southern magnetic alteration zone in the region of a strong ENE-NNE deformation; and 4) an arsenic anomaly located over the ENE faults in the Mag/K alteration zone in the southwest corner of the target. The target is coincident with artisanal gold diggings. Lastly, the 2011 gold geochemical survey conducted on a 80 meter by 400 meter grid also indicates a ENE trend cutting through the geophysical target. No outcrop was observed during the survey within this target.
To date, two of seven geophysical targets have been drill tested: Foroko North and Gosso, drilling at both targets has yielded the discovery of new zones of gold mineralization that are completely off trend of the Zone 1 deposit.
The assay results depicting the 17 near surface, (oxide) Gosso step-out RC holes are listed in Table 1 below:
We wish to bring your attention to African Gold Group Inc.'s most recent drill results which were recently featured on ResourceClips.com news site as seen in the image below.
** Correction From Source
African Gold Group, Inc. advises that the Company’s press release issued yesterday, September 14, 2011, was not the final version of the release that was intended for publication. The Company wishes to advise that this release is the correct and final version for publication.
African Gold Group, Inc., is pleased to report the analytical results for 38 near surface (oxide), reverse circulation (RC), step-out drill holes. All 38 step-out drill holes being reported in this release represent step-out drilling to the south of AGG’s Zone 1, 43-101 resources estimate . All southern step-out holes, reported in this release, were collared between section 2700S and section 3400S. Step-out holes drilled on Section 3400S, represent the most southerly collared holes being reported in this release and are situated approximately 600 meters south of the Zone 1, 43-101 inferred resources estimate. Step-out drilling was patterned on widely spaced lines that measured approximately 200 meters apart with the sole objective of determining if gold mineralization continued beyond section 2800S, the most southern extent or southern border of the current 43-101 resources estimate.
Near Surface (Oxide) Drill Highlights Include:
KBRC11-043: 52 m at 1.02 g/t Au, incl 1 m at 10.14 g/t Au and 1 m at 10.96 g/t Au, ended in mineralization
KBRC11-103: 24 m at 1.56 g/t Au, incl 1 m at 17.52 g/t Au, ended in mineralization
KBRC11-045: 47 m at 0.77 g/t Au
KBRC11-055: 35 m at 0.9 g/t Au, ended in mineralization,
KBRC11-056: 18 m at 1.18 g/t Au, incl 1 m at 13.16 g/t Au, hole ended in mineralization
KBRC11-058: 21 m at 0.7 g/t Au
KBRC11-059: 14 m at 3.08, incl 1 m at 25.44 g/t Au, hole ended in mineralization
African Gold Group, Inc., (“AGG” or the "Company”) 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 click here.
1,000,000 Oz Au THRESHOLD SURPASSED FROM 15% OF STRIKE AT KOBADA, MALI
TORONTO, CANADA, July 13, 2011 – African Gold Group, Inc., (“AGG” or the "Company”) is pleased to announce the results of a positive NI 43-101 compliant Preliminary Economic Assessment (the “PEA” or the "Study") that evaluates the potential of an open pit, bulk mining model, utilizing a gravity recovery process plant, at the Company’s Kobada (Mali) gold project. The consulting group Bumigeme Inc., located in Montreal, Quebec, was commissioned by AGG to complete the study. This news release has been revised to clarify the resource disclosure and to include the required 43-101 "Cautionary Statements" in compliance with regulatory requirements.
The Study 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 holes that extend Zone 1 up to 2 kilometers north of the Zone 1 deposit, it does not incorporate the 2011 southern 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
Project Economics – Base Case
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 gold and a discount rate of 5%.
The Kobada project base case is for processing 20,000 tonnes per day for a total of 7,000,000 tonnes per year in a gravity process plant that is projected to recover 87.9% of the gold contained in 41,750,000 tonnes of lateritic material assaying 0.64 g/t Au, for average annual production of 126,600 ounces of gold for the first five years of operation. The average annual operating cost is calculated to be US$8.27/t for the first five years of operation with a CAPEX of US$122,500,000. The project produces gold at the direct cost of US$470.90 per ounce. During years 4 and 5 of operations the CAPEX will be increased by US$2.9 million for the addition of a ball mill that will be required to process the sulphide resource. The average operating cost at year 6 will increase to US$8.73/t. Gold recovery and production in year 6 is projected to be 80.80% and 112,200 ozs Au, respectively.
Key highlights from the Study are as follows:
The Study demonstrates that the Kobada gold project is economically optimized by adopting bulk mining versus selective mining. The direct implications of bulk mining are demonstrated in a substantial increase in tonnage and recoverable gold but with an associated decrease in the average gold grade.
AGG Director and Qualified Persons, Mr. Pierre Lalande, P.Geo., has recommended that 100% of all material excavated between the hanging wall and footwall of the mineralized zone be processed in the gravimetric plant as lateritic deposits containing coarse free gold result in a strong “nugget effect”. It is this characteristic, due to weathering, that makes Kobada amenable to utilizing gravity for gold recovery. Mr. Lalande contends that the increase in sampling density of drilling during grade control of mined deposits in West Africa often turns much “in ore waste” of feasibility study estimates into incremental ore.
The inferred resources that are detailed in this study are only projected to a vertical depth of 160 meters versus the projected depth of 260 meters in AGG’s 43-101 compliant Initial Resources Estimate that was published in May of 2008. This amendment reflects AGG’s primary focus on the oxidized horizon of the deposit. Therefore, most of the volume of the sulphide resource that was included in the May, 2008 Initial Resources Estimate is not included in this Study.