African Gold Group, Inc. (TSX-V: AGG) ("AGG" or the "Company") is pleased to advise it has filed the Resource Update andPEA on SEDAR in accordance with National Instrument 43-101, on 23 December, 2014 for its 100%-owned Kobada gold deposit in Mali, West Africa ("Kobada" or the "Project")
The cash flow forecast for the final version of the PEA, filed on SEDAR, has been updated to provide the Project's financial metrics after the payment of royalties, taxes and dividends to the Government of Mali. Production schedules, gold production and all other physical parameter estimates that were presented in the November 25 press release have not changed in the final version of the PEA, filed on SEDAR.
As previously announced,the PEA envisions a relatively simple and low capital cost gravity concentration and concentrate leaching operation with an initial fifteen year mine life. Mining output is modeled at 1.6 million tonnes per annum.
By all financial metrics (i.e. gross cash flows, discounted pre or post-tax cash flow), the Project displays robust economics which result from the relatively high initial gold production and low waste to ore ratio during the first two years of operation. Further details of this summary can be found in the Kobada Gold Project Technical Report, filed on SEDAR.
The Preliminary Economic Assessment was prepared under the supervision of John Dunlop (John Dunlop and Associates), Tim Hughes (Gekko Systems Pty Ltd) and Brian Wolfe (International Resource Solutions Pty Ltd).All three are independent of African Gold Group and are Qualified Persons as defined by NI 43-101. DeclanFranzmann (CEO of AGG) is the Company's designated Qualified Person for the study. All QP's have reviewedthe content of this press release.
The Company is pleased to provide stakeholders with a year-end corporate update, as AGG took definitive steps totransform the Companyfrom a greenfieldsgold explorer to a mine developer over 2014. Accomplishments funded and achieved by AGG in 2014 include:
President and CEO of African Gold Group, Mr. Declan Franzmann, FAusIMM, comments:
"The inclusion of cash flow analysis accounting for taxes, royalties and dividend payments to the Government of Mali completes the financial assessment for the Kobada Gold Project. The Project displays robust economics, low capital cost,and provides a development route with opportunity fororganic expansion of theKobada resource base and production profile, which is achievable from cashflow. The Company's aim is to maximise the value of the Kobada Project and provide shareholders with a long term sustainable return on their investment.
On the Project development front, 2014 has been a year of great change for AGG as it honed the development strategy for Kobada and strengthened the minedevelopment team with the aim of gold production in 2016. I look forward with great anticipation to 2015, as the Company progresses through further milestonesand into the construction phase of the Project."
On Behalf of the Board of Directors:
President and CEO
About African Gold Group
African Gold Group is a Canadian exploration and development company with a strong focus on West Africa. African Gold Group is positioned to grow in value as it progresses its Kobada Gold Project through a feasibility study, development and into production. For more information regarding African Gold Group visit our website at www.africangoldgroup.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
African Gold Group, Inc.
Michael A. J. Nikiforuk
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact included herein, including without limitation, statements regarding future plans and objectives of African Gold Group; and statements regarding the ability to develop and achieve production at Kobada are forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from African Gold Group's expectations have been disclosed under the heading "Risk Factors" and elsewhere in African Gold Group's documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities. African Gold Group disclaims any intention or obligation to update or revise any forward looking statements whether resulting from new information, future events or otherwise, except as required by applicable law.