African Gold Group, Inc., is pleased to report the results of diamond drilling at the Company's Moseaso gold concession, located in the Ashanti region of Ghana and covering a portion of the Asankrangwa gold belt.

A total of 2,155.89 metres of NQ core drilling was completed representing 12 holes drilled from 6 pads that covered a strike length of 380 metres and tested to a maximum vertical depth of approximately 185 metres below surface. In total 786 samples were collected during the program.

A previous drill program occurred at the Topey prospect (see map) where prior surface cuts, diamond drilling and reverse circulation drilling had identified gold mineralization. This program confirmed the presence of gold, improved the density of intercepts and provided substantial data for a rigorous interpretation.

Quartz stockworks are the primary targets at the Topey prospect. These occur in the Birimian sequence that consist of interbedded greywacke, siltstone and mudstones. Irregular feldspar porphyry dykes intrude the steeply dipping metasediments and are essentially parallel to the local stratigraphic planes. The maximum core length of feldspar porphyry was 56.21 metres.

The sedimentary package strikes northeast and dips approximately 065 degrees to the north. Present porphyries display a prominent quartz stockwork internally resulting from fracture filling. Each fracture carries a broad sericite alteration envelope. A well developed stockwork occurs in the footwall of the dykes. This occasionally recurs in the hanging wall as well. Stockwork veining is present without the presence of porphyry as well, and correlates from hole to hole.

Disseminated arsenopyrite and pyrite occurs in the groundmass of the porphyry and is related to the fracturing and subsequent alteration. The quartz veinlets also bear the two sulphides and volumes range up to 12% in both units, with arsenopyrite dominating.

Stockwork veining normally is largely concordant with sedimentary bedding planes and quartz volume ranges from 10 to 85%. Zones within broad stockworks contain arsenopyrite and pyrite. The sulphides occur in and immediately adjacent to quartz veinlets. The most westerly holes revealed deformed and boudinaged quartz veinlet stockworks which were discordant with bedding planes.

Visible gold was noted in two holes, MA04-01 and MA04-08. There were two occurrences in MA04-01, both occurred in quartz within the feldspar porphyry. In diamond drill hole MA04-08 visible gold occurs in a prominent quartz stockwork that is in the footwall of a feldspar porphyry.

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African Gold Group, Inc.,  is pleased to report that it has secured final government approval of its acquisition of the Manso Nkwanta and Assuowunu gold concessions held by Tropical Mines Ltd. of Ghana, West Africa.

The acquisition of these licenses represents a strategic consolidation of land on the northern segment of the Asankrangwa gold belt as the concessions are contiguous with AGG's Twedee and Moseaso licenses. Total land holdings in the region have increased from 314 sq. km to 449 sq. km with the resultant known mineralized strike length increasing from 9 km to 24 km, on the consolidated land package.

"The acquisition of these two concessions represents the fulfillment of a publicly stated corporate goal that dates back to the inception of the Company. We view our land portfolio as our primary asset and intend to continue to grow this asset as we move forward with our business plan," states AGG Chairman, Ben Adoo. This region of the Asankrangwa gold belt has a significant history of exploration as well as gold mining:

Immediately to the south of the Manso Nkwanta concession, Resolute Resources mined approximately 30 million tonnes of ore grading 2.0 g/t Au from a number of pits at Nkran Hill, Adubiaso, Akwasiso and Abore.Immediately to the west and draining from the Assuowunu concession, Bonte Gold Mines produced approximately 500,000 ounces of alluvial gold from 1992 to 2002.To the immediate north, at Mpesetia, AngloGold Ashanti produced approximately 100,000 ounces of gold from open pit operations.All of the above sources of gold are believed to be structurally controlled and these structures are known to extend onto AGG holdings. Previous operators, in the mid to late 1990's, carried out extensive preliminary exploration by way of regional geochemistry and geology, geophysics and trenching, producing a number of, as yet untested anomalies. It will be AGG's focus to incorporate this data into their own database derived from the Company's work on the contiguous Twedee and Moseaso licenses.

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African Gold Group, Inc., is pleased to report that a meeting between senior officials of Newmont Ghana Gold Limited, ("Newmont") the Ghanaian subsidiary of Newmont Mining Corporation and African Gold Group, Inc. was convened on Thursday, June 02, 2005, at the request of Newmont, in Accra, Ghana.

Newmont has formally requested permission, in a letter dated May 30, 2005, to enter Area I and Area IV of AGG's Mankranho concession, for the sole purpose of placing current electrodes on AGG ground, that will facilitate conducting an IP geophysical survey of Newmont's tenements between Adrobaa and Bisi, in August, 2005.

The above mentioned tenements, associated with the proposed survey, share 3 common borders with AGG's Mankranho concession, which explains Newmont's need to position the electrodes on AGG ground (see attached map).

AGG has advised that it is pleased to grant Newmont permission to put current electrodes on its concession for the purpose of conducting the IP survey of the Adrobaa-Bisi tenements. AGG has requested that in the event Newmont collects geophysical data that relates to its Mankranho concession, as a result of the survey, that Newmont will share this data with AGG.

In addition, Newmont Ghana Gold Limited has generously extended an invitation to AGG geologists to visit its Ahafo offices at Techere and Subenso in order to examine a variety of geological data that Newmont has compiled as a result of its ongoing exploration programs at Ahafo.

The Ahafo project, located on the Sefwi gold belt in Ghana, West Africa, represents Newmont's biggest development project in the world. To date, 11 ore bodies have been identified over a 48 km strike length. Testing for underground potential is underway.

Current reserves at Ahafo are stated at 10.6 million ounces. A US$425 million milling facility is under construction with production of approximately 525,000 ounces per annum scheduled for Q3 2006, at a total cash cost/oz of $200. Newmont's engineering studies continue to focus on maximizing returns and optimizing mine life, including the evaluation of constructing a second milling facility that would process reserves located in the northern segment of Ahafo (1).

African Gold Group's Mankranho concession is located at the north-eastern end of the Sefwi Gold Belt in Ghana, West Africa. The concession lies along strike and contiguous to Newmont's 10.6 Moz Ahafo project and represents the mineralized northern extension of Ahafo.

AGG is encouraged with the level of exploration activity that continues within proximity of its concession borders. Over the past several months AGG has undertaken and concluded:

  • The structural analysis of 6,445 meters of core derived from drilling 24 holes within a 2,500 meter x 1,500 meter vicinity of Area I (see map)
  • Additional geo-chemical surveys throughout the concession
  • Additional pitting and trenching programs
  • 3-D IP geophysical surveys throughout the concession
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African Gold Group, Inc., is pleased to report that Mr. Samuel Bosomtwe has joined AGG (Ghana) Ltd. in the capacity of Exploration Geologist. Mr. Bosomtwe will report directly to Mr. Ben Adoo, Managing Director, AGG (Ghana) Ltd.

"The appointment of Samuel to the position of Exploration Geologist concludes our extensive search to fill this extremely important position within our West African operating subsidiary, and further reflects our ambitious plans for the growth of AGG throughout the region. Samuel's duties will encompass every aspect of our field operations from project design, implementation, budget control and report generation. He will be working closely with Project Managers, CME & Company, in a bid to maximize the efficiency of all AGG field operations going forward," reports M.D., Ben Adoo.

Most recently, Samuel served as Chief Geologist (Surface-Exploration) with AngloGold Ashanti - Obuasi Mine. In 1996, Samuel led the former Ashanti Goldfields Company Ltd. - Obuasi Mine's due diligence team's review of Gulf Coast Resources, Banka property. He was also directly involved with the discovery of the Dadieso deposit of the Ayanfuri- Akropong concession in October, 2000 and assisted in the compilation of the feasibility study reports of both the Homase (2001) and Mampong (2002) projects. His various positions within the Exploration Department has provided him with experience in planning, budgeting, monitoring and implementation of approved policies and strategies associated with grass roots exploration through to feasibility reporting.

Samuel holds an M. Sc., Mineral Exploration degree from the University of Leicester, U. K. and a diploma in Geological Engineering from the University of Science and Technology, School of Mines, Tarkwa, Ghana. He is a member of the Australasian Institute of Mining and Metallurgy and a member of The Ghana Institution of Geoscientists.

Samuel's international experience includes, base metal mines in Ireland, Tin Mines in Cornwall, U.K., certain mining districts within Nevada and Utah, including Newmont Mining Corporation's Carlin mine.

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African Gold Group, Inc., is pleased to report that it has entered into a Memorandum of Undertaking (the "Agreement") with Compagnie Miniere d'Or ("Cominor") SA, of France, to purchase 100% of Cominor's assets located in The Republic of Mali, West Africa.

As per the terms of the Agreement, the Company will acquire:

  • Three exploration permits, for three separate mineral concessions, each of which has its own separate Establishment Convention.
  • The body of reference material that comprises a historical data base, for each of the concessions, derived from the past expenditure of approximately €5,000,000 in exploration and development capital.
  • A variety of ground transportation and exploration equipment.

for a price of 750,000 € to be paid in three installments, a first amount of 250,000 € being payable upon signing the Agreement and the other payments being conditional on the issuance of the Ministerial Order authorizing the assignment of the exploration permits to AGG.

The aforementioned three exploration permits consist of the:

  • The Bagoe - West concession, which comprises 183 sq. km of land located in the Sikasso Region;
  • The Bagoe - East concession, which comprises 183 sq. km of land located in the Sikasso Region;
  • The Kobada concession, comprising 41 sq. km of land located in the Kangaba region.

"To date, we have confined African Gold Group's land package to Ghana, West Africa, in accordance with our initial strategy of building a solid foundation, within a solid mining jurisdiction. Entering Mali represents a significant milestone in the life of AGG, as it too has always been a part of our core strategy that dates back to the inception of the Company. My first encounter with the considerable potential of the Cominor land package dates back to 1987 when it was controlled by the BRGM. I am personally very pleased that we are entering Mali as a result of this particular transaction," states CEO Greg Hawkins, P. Geo.

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African Gold Group, Inc., is pleased to announce the terms of a private placement of up to 1,000,000 common shares in the capital of AGG at $1.25 per common share for gross proceeds, if fully subscribed, of $1,250,000 to AGG. The securities issued under the private placement are subject to a four month resale restriction and the entire placement is subject to TSX Venture Exchange approval.

Proceeds from this placement will address general working capital requirements, the continuation of work programs at the Company's Ghana gold concessions, plus an immediate mobilization effort to undertake a 1,000 meter diamond drill program, that is intended to confirm or verify drill results previously generated by The BRGM and Cominor S.A., at the Company's recently acquired Kobada concession in Mali, West Africa.

"Previous work, totaling approximately €5,000,000, of which a considerable percentage was directed to the exploration of the Kobada concession, has indicated some very encouraging results in both diamond and RC drill programs. In order to properly and fully report on those results, to an acceptable standard, AGG will be undertaking a confirmation of the historical database by way of diamond drilling some twinned holes, as well as some deeper holes, to gain a better understanding of the as yet unexplored bedrock geology of the Kobada trend. Drilling to date has reached depths of 125 vertical meters without completely penetrating the saprolite horizon or intersecting bedrock. This is an unusual situation but one that bodes well for demonstrating a low cost surface deposit, that will hopefully complement the deeper resource potential,"

CEO, Greg Hawkins, P. Geo.

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African Gold Group, Inc., is pleased to announce that the private placement of up to 1,000,000 common shares in the capital of AGG, at $1.25 per common share, as detailed in the Company's press release dated July 13, 2005, has closed and was oversubscribed.

The Company has issued 1,040,000 common shares of its capital, at $1.25 per common share, for gross proceeds of $1,300,000. The securities issued under the private placement are subject to a four month resale restriction that remains in effect until November 30, 2005. The financing has received conditional approval from the TSX-Venture Exchange.

The private placement was non-brokered, however, the Company has issued a finders fee in the amount of 5% of gross proceeds, equal to $65,000, plus 104,000 warrants representing 10% of the shares issued in this private placement. Each finders warrant entitles the holder to acquire one common share at $1.40 per share for a (24) twenty four month period, from the date of closing.

Proceeds from this placement will facilitate the continuation of work programs at the Company's Ghana gold concessions, plus an immediate mobilization effort to undertake a 1,000 meter diamond drill program, that is intended to confirm or verify drill results previously generated by The BRGM and Cominor S.A., at the Company's recently acquired Kobada concession in Mali, West Africa.

"Previous work, totaling approximately €5,000,000, of which a considerable percentage was directed to the exploration of the Kobada concession, has indicated some very encouraging results in both diamond and RC drill programs. In order to properly and fully report on those results, to an acceptable standard, AGG will be undertaking a confirmation of the historical database by way of diamond drilling some twinned holes, as well as, some deeper holes to gain a better understanding of the as yet unexplored bedrock geology of the Kobada trend. Drilling to date has reached depths of 125 vertical meters without completely penetrating the saprolite horizon or intersecting bedrock. This is an unusual situation but one that bodes well for demonstrating a low cost surface deposit, that will hopefully complement the deeper resource potential,"

 CEO, Greg Hawkins, P. Geo.

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African Gold Group, Inc., wishes to advise shareholders that its on site project manager reports a bridge, critical for crossing the Fie River, en route to its Kobada concession in Mali, West Africa, has become submerged under water due to very recent heavy rains.

AGG's anticipated Phase I diamond drill program will commence as soon as possible following the receding of the flood waters. All equipment and personnel are in place in Mali and ready to proceed to the Kobada concession as soon as logistically feasible.

As stated in the Company's press release of August 2, 2005, "Previous work, totaling approximately €5,000,000, of which a considerable percentage was directed to the exploration of the Kobada concession, has indicated some very encouraging results in both diamond and RC drill programs. In order to properly and fully report on those results, to an acceptable standard, AGG will be undertaking a confirmation of the historical database by way of diamond drilling some twinned holes, as well as, some deeper holes to gain a better understanding of the, as yet unexplored, bedrock geology of the Kobada trend. Drilling to date has reached depths of 125 vertical meters without completely penetrating the saprolite horizon or intersecting bedrock. This is an unusual situation but one that bodes well for demonstrating a low cost surface deposit, that will hopefully complement the deeper resource potential," states Director, Greg Hawkins, P. Geo.

All historical drill holes that are to be "twinned," in order to confirm the historical data base, have already been GPS located in the field with location identification markers in place to assist the drill crew with rig placement.

Corporate Update

Mr. T. Greg Hawkins has relinquished the title of interim CEO, effective August 31, 2005, following 6 months service in that capacity, in order to return to his primary focus on the geo-technical aspects of the Company's exploration and development programs in Ghana and Mali, West Africa.

Mr. Ben Adoo, Managing Director, AGG (Ghana) Ltd. and Chairman, African Gold Group, Inc., along with Michael A. Nikiforuk, President, African Gold Group, Inc., will jointly oversee all of the administrative and managerial functions of the Company going forward.

African Gold Group, Inc., based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within West Africa. The Company's immediate focus is to systematically explore both surface, and in particular, subsurface targets that have been identified within the Company's current portfolio of gold mineralized concessions.

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African Gold Group, Inc., is pleased to report that diamond drilling at the Company's Mankranho concession, in Ghana, West Africa, is scheduled to resume imminently.

The Mankranho concession is located at the northeastern end of the Sefwi Gold Belt in Ghana and lies along strike and contiguous to Newmont Mining Corp.'s ("Newmont") 10.6 M oz Ahafo gold project, where a US$425 million plant is being constructed and production has been scheduled for Q3, 2006. The Mankrahno concession has been subdivided into four separate areas (Area's I, II, III and IV) based on historical and current soil sampling, pitting, trenching, ground magnetic and IP geophysics (see attached map).

The decision to resume drilling follows the compilation and thorough review of a technical report that details AGG's Phase I and II exploration programs on the Mankranho concession to date.

Mr. Greg Hawkins, P. Geo., a director of AGG, said, "Our resumption of diamond drilling will focus on priority targets generated by IP surveys that have delineated 2 distinct, deep, coincident, high resistivity (+2,000 ohm/m) and high chargeability targets (+15 msecs) located within both Area I -- South and Area I - North. We intend to drill down dip of the already established zones of gold mineralization to test these targets to a depth of approximately 300 vertical metres. A third target, exhibiting similar geophysical characteristics, has been identified in Area II, and will be the first diamond drill hole in this region. We anticipate drilling a total of 1,000 meters to test these 3 high priority geophysical targets. This program is consistent with the exploration model previously established by both Normandy and Newmont in the exploration of their Ahafo licenses to our immediate south. No delays are anticipated in initiating this exercise."

The Company's Phase I exploration program (May, 2004 - December, 2004) consisted of

the following initiatives:

  • Grid establishment: 316.99 line-km (23.83 line-km baseline and 293.16 line-km, cross lines);
  • Soil sampling: 10,453 samples;
  • GPS surveying: 316.99 line-km;
  • Airborne geophysical acquisition and interpretation;
  • Ground magnetic surveying: 308.70 line-km;
  • Induced polarization orientation survey: 10.25 line-km gradient and 2D;
  • Pitting and trenching: 97 pits, 10 trenches, 1,406 samples;
  • Auger sampling: 13 holes, 56 samples;
  • Diamond drilling: 24 holes totaling 6,455.65 metres (2,747 samples);

These initial 24 diamond drill holes represent the first core recovered from the concession and were selected in order to gain a better understanding of:

  • The geological signature of the region encompassed by Area I of the Mankranho concession;
  • The orientation of the geological structure;
  • The geological features that control mineralization in the region.

The company was encouraged by the diamond drill results as 22 of the 24 initial drill holes intersected gold mineralization. The holes were concentrated within a 2,500 metre x 1,500 metre region of Area I, within the 108 sq. km Mankranho concession. AGG's technical personnel noted, "The continuity of mineralized sections along strike and to depth is very encouraging and results support the notion of fold and fault-controlled gold. Although much needs to be done to fully understand what controls the economic concentrations, the broad widths of mineralization, isolated high-grade gold veins and numerous occurrences of visible gold all support the expectation of developing the broad economic grades encountered in the same geologic environments by Newmont at their Ahafo project, to our south."

Published in News Releases

African Gold Group, Inc., is pleased to report that diamond drilling has resumed at its Mankranho concession in Ghana, West Africa.

The Mankranho concession is located at the northeastern end of the Sefwi Gold Belt in Ghana and lies along strike and contiguous to Newmont Mining Corp.'s ("Newmont") 10.6 M oz Ahafo gold project, where a US$425 million plant is being constructed and production has been scheduled for Q3, 2006.

The Mankranho concession has been subdivided into four separate areas (Area I, II, III and IV) based on historical and current soil sampling, pitting, trenching, ground magnetic and IP geophysics (see attached map).

The decision to resume drilling follows the compilation and thorough review of a technical report that details AGG's Phase I and II exploration programs on the Mankranho concession to date.

Mr. Greg Hawkins, P. Geo., a director of AGG, said, "Our resumption of diamond drilling is focused on priority targets generated by IP surveys that have delineated two distinct, deep, coincident, high resistivity (+2,000 ohm/m) and high chargeability targets (+15 msec) located within both Area I -- South and Area I -- North. We are drilling down dip of the already established zones of gold mineralization to test these targets to a depth of approximately 300 vertical metres. A third target, exhibiting similar geophysical characteristics, has been identified in Area II of the Mankranho concession and represents the first diamond drill hole in this region. We anticipate drilling a total of 1,000 metres to test these three high priority geophysical targets. This program is consistent with the exploration model previously established by both Normandy and Newmont in the exploration of their Ahafo licenses to our immediate south. We are pleased that drilling is underway once again at Mankranho."

All samples from this drill program will be shipped to Eco-Tech Laboratory Ltd. of Kamloops, Canada, for analysis.

African Gold Group, Inc., based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within West Africa. The Company's immediate focus is to systematically explore both surface, and in particular, subsurface targets that have been identified within the Company's current portfolio of gold mineralized concessions.

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