African Gold Group, Inc. KBRC12-084 Intercepts 69 Meters Of 2.37 g/t Au; KBRC12-066 Iintercepts 20 Meters Of 1.63 g/t Au & 9 Meters Of 20.96 g/t Au At Kobada, Mali

  • Wednesday, 15 May 2013

African Gold Group, Inc., (“AGG” or the "Company”) is pleased to report the analytical results for 72 near surface (oxide), reverse circulation (RC) drill holes, from the Company’s Kobada, Mali gold project. The holes reported in this press release comprise a portion of the 2012 Feasibility Study drill program that were infill drilled on 25 meter centers within the (2011) Zone 1 deposit. Drill collars for the RC holes reported in this release are collectively located between sections 1480S through to section 2050S.

Near Surface (Oxide) Drill Highlights From Southern Step Out RC Holes Include:

  • KBRC12-062: 28 m @ 0.90 g/t Au

  • KBRC12-063: 13 m @ 4.49 g/t Au

  • KBRC12-066: 20 m @ 1.63 g/t Au & 9 m @ 20.96 g/t Au

  • KBRC12-069: 19 m @ 2.99 g/t Au

  • KBRC12-074: 33 m @ 0.80 g/t Au

  • KBRC12-075: 28 m @ 0.99 g/t Au

  • KBRC12-077: 25 m @ 1.01 g/t Au

  • KBRC12-078: 69 m @ 1.67 g/t Au

  • KBD12-117: 20 m @ 4.14 g/t Au

  • KBRC12-081: 45 m @ 1.05 g/t Au

  • KBRC12-084: 69 m @ 2.37 g/t Au

  • KBRC12-087: 67 m @ 0.83 g/t Au

  • KBRC12-089: 11 m @ 6.86 g/t Au

  • KBRC12-091: 39 m @ 0.89 g/t Au & 42 m@ 0.76 g/t Au & 12 m @ 1.04 g/t Au

  • KBRC12-094: 36 m @ 0.94 g/t Au

  • KBRC12-098: 97 m @ 0.95 g/t Au

  • KBD12-116: 13 m @ 2.24 g/t Au & 47 m @ 0.89 g/t Au

  • KBRC12-102: 43 m @ 0.73 g/t Au

  • KBRC12-105: 39 m @ 1.04 g/t Au & 3 m @ 8.07 g/t Au

  • KBRC12-108: 23 m @ 4.23 g/t Au

  • KBRC12-125: 51 m @ 0.70 g/t Au

  • KBRC12-131: 24 m @ 1.08 g/t Au

  • KBRC12-137: 27 m @ 1.90 g/t Au

  • KBRC12-144: 48 m @ 1.66 g/t Au

  • KBRC12-151: 30 m @ 1.19 g/t Au

  • KBRC12-152: 30 m @ 1.54 g/t Au

The assay results detailing mineralized intercepts for the  near surface (oxide) infill RC holes collared between sections 1480S through to 2050S are listed in Table 1 below:

TABLE 1 

SectionHole IDFrom (m)To (m)Length (m)Grade g/t AuDepthObjective

1480S

 

 

KBRC 12-060

 

 

1.00

37.00

50.00

4.00

40.00

53.00

3.00

3.00

3.00

0.31

0.59

0.60

117

 

 

Zone 1 infill

 

 

1480S

 

 

 

KBRC 12-061

 

 

 

2.00

21.00

38.00

62.00

5.00

28.00

44.00

65.00

3.00

7.00

6.00

3.00

0.30

0.97

0.58

0.39

99

 

 

 

Zone 1 infill

 

 

 

1480S

 

 

KBRC 12-062

 

 

11.00

40.00

89.00

32.00

68.00

92.00

21.00

28.00

3.00

0.46

0.90

0.30

117

 

 

Zone 1 infill

 

 

1500S

 

KBRC 12-063

 

8.00

24.00

11.00

37.00

3.00

13.00

0.69

4.49

111

 

Zone 1 infill

 

1500S

 

KBRC 12-064

 

25.00

65.00

28.00

73.00

3.00

8.00

0.96

0.67

93

Zone 1 infill

 

1500S

 

KBRC 12-065

 

6.00

92.00

9.00

98.00

3.00

6.00

1.64

0.86

105

 

Zone 1 infill

 

1500S

 

KBRC 12-066

 

14.00

114.00

34.00

123.00

20.00

9.00

1.63

20.96

123

 

Zone 1 infill

 

1500S

 

 

 

KBRC 12-067

 

 

 

4.00

21.00

52.00

102.00

12.00

24.00

63.00

109.00

8.00

3.00

11.00

7.00

0.61

0.62

0.98

1.11

129

 

 

 

Zone 1 infill

 

 

 

1500S

 

KBRC 12-068

 

2.00

50.00

18.00

53.00

16.00

3.00

1.14

10.57

135

 

Zone 1 infill

 

1535S

 

KBRC 12-069

 

10.00

43.00

29.00

46.00

19.00

3.00

2.99

0.36

123

 

Zone 1 infill

1535S

 

KBRC 12-070

 

63.00

98.00

70.00

110.00

7.00

12.00

0.63

0.56

129

 

Zone 1 infill

1535S

 

KBRC 12-071

 

4.00

114.00

9.00

117.00

5.00

3.00

0.67

1.10

117

 

Zone 1 infill
1560S
 
KBRC 12-072
 
NSR
 
      105
 
Zone 1 infill
 
1560S
 
KBRC 12-073
 
2.00
 
16.00
 
14.00
 
1.22
 
129
 
Zone 1 infill
 

1560S

 

KBRC 12-074

 

0.00

59.00

33.00

66.00

33.00

7.00

0.80

1.11

129

 

Zone 1 infill

 

1560S

 

KBRC 12-075

 

37.00

69.00

40.00

97.00

3.00

28.00

0.61

0.99

99

 

Zone 1 infill

 

1585S

 

KBRC 12-076

 

0.00

33.00

9.00

36.00

9.00

3.00

0.65

0.57

99

 

Zone 1 infill

 

1585S

 

 

KBRC 12-077

 

 

9.00

45.00

60.00

34.00

48.00

71.00

25.00

3.00

11.00

1.01

1.13

0.45

117

 

 

Zone 1 infill

 

 

1585S
 
KBRC 12-078
 

24.00

93.00
 
69.00
 
1.67
 
93
 
Zone 1 infill
 

1585S

 

 

 

KBRC 12-079

 

 

 

2.00

33.00

50.00

106.00

17.00

36.00

53.00

129.00

15.00

3.00

3.00

23.00

1.26

1.10

0.64

0.31

129

 

 

 

Zone 1 infill

 

 

 

1620S

 

 

KBD 12-117

 

 

57.50

73.50

105.50

63.50

93.50

109.00

6.00

20.00

3.50

1.37

4.14

1.59

130

 

 

Zone 1 infill

 

 

1625S
 
KBRC 12-080
 
1.00
 
4.00
 
3.00
 
0.79
 
117
 
Zone 1 infill
 

KBRC 12-081

 

 

 

 

 

8.00

26.00

46.00

99.00

114.00

126.00

18.00

29.00

91.00

104.00

117.00

129.00

10.00

3.00

45.00

5.00

3.00

3.00

0.52

0.51

1.05

0.41

0.31

0.83

129

 

 

 

 

 

Zone 1 infill

 

 

 

 

 

1650S

 

KBRC 12-082

 

2.00

26.00

11.00

29.00

9.00

3.00

0.71

1.16

129

 

Zone 1 infill

 

1650S

 

 

KBRC 12-083

 

 

0.00

57.00

75.00

8.00

63.00

78.00

8.00

6.00

3.00

0.66

0.90

0.56

129

 

 

Zone 1 infill

 

 

1650S

 

KBRC 12-084

 

0.00

60.00

4.00

129.00

4.00

69.00

0.55

2.37

129

 

Zone 1 infill

 

1675S
 
KBRC 12-085
 
4.00

10.00
 
6.00
 
0.46
 
129
 
Zone 1 infill
 
1675S
 
KBRC 12-086
 
37.00
 
129.00
 
92.00
 
0.55
 
129
 
Zone 1 infill
 

1675S

 

KBRC 12-087

 

60.00

85.00

63.00

152.00

3.00

67.00

0.50

0.83

153

 

Zone 1 infill

 

1700S
 
KBRC 12-088
 
0.00
 
9.00
 
9.00
 
0.66
 
105
 
Zone 1 infill
 

1700S

 

KBRC 12-089

 

0.00

43.00

11.00

47.00

11.00

4.00

6.86

1.49

123

 

Zone 1 infill

 

1700S

 

 

 

 

KBRC 12-090

 

 

 

 

5.00

32.00

54.00

69.00

102.00

17.00

41.00

58.00

83.00

105.00

12.00

9.00

4.00

14.00

3.00

0.42

0.34

1.13

0.57

0.54

105

 

 

 

 

Zone 1 infill

 

 

 

 

1700S

 

 

 

 

 

KBRC 12-091

 

 

 

 

 

0.00

14.00

27.00

39.00

84.00

135.00

4.00

17.00

30.00

78.00

126.0

147.00

4.00

3.00

3.00

39.00

42.00

12.00

0.39

0.33

0.38

0.89

0.76

1.04

147

 

 

 

 

 

Zone 1 infill

 

 

 

 

 

1725S

 

KBRC 12-092

 

2.00

23.00

11.00

29.00

9.00

6.00

0.94

0.37

81

 

Zone 1 infill

 

1725S

 

 

KBRC 12-093

 

 

0.00

32.00

48.00

 

21.00

35.00

51.00

 

21.00

3.00

3.00

0.69

0.31

0.43

129

 

 

Zone 1 infill

 

 

1725S

 

 

 

KBRC 12-094

 

 

 

5.00

59.00

81.00

97.00

41.00

71.00

84.00

101.00

36.00

12.00

3.00

4.00

0.94

1.08

1.48

0.49

111

 

 

 

Zone 1 infill

 

 

 

1750S

 

KBRC 12-095

 

0.00

46.00

34.00

49.00

34.00

3.00

0.42

0.36

111

 

Zone 1 infill

 

1750S

 

 

KBRC 12-096

 

 

37.00

57.00

91.00

42.00

82.00

115.00

5.00

25.00

24.00

0.95

1.06

0.74

117

 

 

Zone 1 infill

 

 

1775S

 

KBRC 12-097

 

0.00

65.00

21.00

80.00

21.00

15.00

0.45

1.04

123

 

Zone 1 infill

 

1775S

 

KBRC 12-098

 

1.00

13.00

4.00

110.00

3.00

97.00

0.31

0.95

111

 

Zone 1 infill

 

1800S

 

 

 

KBRC 12-099

 

 

 

3.00

41.00

54.00

67.00

7.00

45.00

58.00

80.00

4.00

4.00

4.00

13.00

0.63

0.30

0.62

1.07

94

 

 

 

Zone 1 infill

 

 

 

1815S

 

 

KBD 12-116

 

 

0.00

28.00

88.00

13.00

75.00

91.00

13.00

47.00

3.00

2.24

0.89

0.42

130

 

 

Zone 1 infill

 

 

1825S

 

 

KBRC 12-100

 

 

1.00

26.00

112.00

15.00

33.00

115.00

14.00

7.00

3.00

0.40

0.33

0.42

123

 

 

Zone 1 infill

 

 

1825S

 

 

 

KBRC 12-101

 

 

 

9.00

27.00

69.00

99.00

12.00

44.00

92.00

102.00

3.00

17.00

23.00

3.00

0.44

0.70

0.65

0.36

123

 

 

 

Zone 1 infill

 

 

 

1825S

 

KBRC 12-102

 

1.00

91.00

44.00

97.00

43.00

6.00

0.73

1.53

123

 

Zone 1 infill

 

1850S
 
KBRC 12-103
 
6.00
 
14.00
 
8.00
 
0.42
 
123
 
Zone 1 infill
 

1850S

 

 

 

KBRC 12-104

 

 

 

1.00

28.00

87.00

113.00

13.00

78.00

90.00

123.00

12.00

50.00

3.00

10.00

0.59

0.66

0.38

1.32

123

 

 

 

Zone 1 infill

 

 

 

1850S

 

 

 

 

KBRC 12-105

 

 

 

 

20.00

76.00

93.00

104.00

133.00

59.00

79.00

97.00

115.00

136.00

39.00

3.00

4.00

11.00

3.00

1.04

8.07

0.92

0.86

0.34

138

 

 

 

 

Zone 1 infill

 

 

 

 

1875S

 

 

KBRC 12-106

 

 

69.00

83.00

96.00

72.00

86.00

99.00

3.00

3.00

3.00

0.37

0.34

1.19

99

 

 

Zone 1 infill

 

 

1875S

 

KBRC 12-107

 

27.00

37.00

30.00

46.00

3.00

9.00

0.33

2.86

117

 

Zone 1 infill

 

1875S

 

 

 

KBRC 12-108

 

 

 

1.00

19.00

32.00

80.00

8.00

25.00

38.00

103.00

7.00

6.00

6.00

23.00

1.10

0.47

0.61

4.23

123

 

 

 

Zone 1 infill

 

 

 

1900S

 

KBRC 12-109

 

18.00

89.00

21.00

101.00

3.00

12.00

0.45

0.57

123

 

Zone 1 infill

 

1900S

 

 

KBRC 12-110

 

 

2.00

32.00

73.00

16.00

66.00

100.00

14.00

34.00

27.00

0.38

0.61

0.57

123

 

 

Zone 1 infill

 

 

1925S

 

 

KBRC 12-111

 

 

0.00

48.00

101.00

3.00

51.00

104.00

3.00

3.00

3.00

0.68

2.93

0.61

105

 

 

Zone 1 infill

 

 

1925S

 

 

KBRC 12-112

 

 

17.00

71.00

86.00

21.00

76.00

89.00

4.00

5.00

3.00

0.62

0.38

2.21

147

 

 

Zone 1 infill

 

 

1950S

 

KBRC 12-113

 

54.00

72.00

63.00

82.00

9.00

10.00

2.01

0.94

99

 

Zone 1 infill

 

1950S

 

 

 

KBRC 12-114

 

 

 

21.00

31.00

48.00

76.00

24.00

34.00

51.00

79.00

3.00

3.00

3.00

3.00

0.44

0.68

0.86

0.31

123

 

 

 

Zone 1 infill

 

 

 

1950S

 

 

KBRC 12-115

 

 

0.00

100.00

117.00

49.00

104.00

129.00

49.00

4.00

12.00

0.59

0.54

0.39

129

 

 

Zone 1 infill

 

 

1975S

 

KBRC 12-116

 

2.00

24.00

5.00

31.00

3.00

7.00

0.46

0.44

105

 

Zone 1 infill

 

1975S

 

 

KBRC 12-117

 

 

0.00

18.00

94.00

3.00

72.00

105.00

3.00

54.00

11.00

0.70

0.68

0.75

129

 

 

Zone 1 infill

 

 

1975S

 

 

 

KBRC 12-118

 

 

 

26.00

51.00

75.00

90.00

39.00

54.00

78.00

114.00

13.00

3.00

3.00

24.00

13.00

3.00

3.00

24.00

115

 

 

 

Zone 1 infill

 

 

 

2000S
 
KBRC 12-119
 
0.00
 
3.00
 
3.00
 
1.14
 
99
 
Zone 1 infill
 

2000S

 

KBRC 12-120

 

33.00

78.00

46.00

81.00

13.00

3.00

0.42

0.53

111

 

Zone 1 infill

 

2000S

 

 

 

 

 

 

 

KBRC 12-121

 

 

 

 

 

 

 

6.00

26.00

49.00

60.00

73.00

88.00

101.00

124.00

12.00

32.00

52.00

63.00

76.00

91.00

105.00

128.00

6.00

6.00

3.00

3.00

3.00

3.00

4.00

4.00

1.18

0.72

0.40

0.73

1.49

0.40

0.56

0.96

135

 

 

 

 

 

 

 

Zone 1 infill

 

 

 

 

 

 

 

2000S
 
KBRC 12-122
 
14.00
 
54.00
 
40.00
 
0.65
 
111
 

Zone 1 infill

 

2010S

 

 

 

 

 

KBD 12-115

 

 

 

 

.

0.00

24.00

38.00

55.00

73.00

125.50

10.00

27.00

42.00

60.00

45.50

128.50

10.00

3.00

4.00

5.00

2.50

3.00

0.51

2.73

1.33

0.99

4.03

0.40

130

 

 

 

 

 

Zone 1 infill

 

 

 

 

 

2030S

 

KBRC 12-123

 

3.00

29.00

15.00

32.00

12.00

3.00

0.31

0.44

99

 

Zone 1 infill

 

2030S

 

KBRC 12-124

 

15.00

38.00

26.00

61.00

11.00

23.00

1.01

0.52

123

 

Zone 1 infill

 

2030S

 

 

 

KBRC 12-125

 

 

 

0.00

83.00

96.00

116.00

51.00

88.00

106.00

119.00

51.00

5.00

10.00

3.00

0.70

0.53

0.27

0.69

135

 

 

 

Zone 1 infill

 

 

 

2030S

 

 

 

KBRC 12-126

 

 

 

29.00

47.00

68.00

0.00

32.00

60.00

79.00

14.00

3.00

13.00

11.00

14.00

0.78

0.63

0.31

0.68

111

 

 

 

Zone 1 infill

 

 

 

2050S

 

 

 

 

KBRC 12-127

 

 

 

 

28.00

40.00

61.00

83.00

124.00

42.00

44.00

64.00

86.00

129.00

14.00

4.00

3.00

3.00

5.00

0.62

0.59

0.32

0.35

0.82

129

 

 

 

 

Zone 1 infill

 

 

 

 

2050S

 

 

 

 

KBRC 12-128

 

 

 

 

18.00

34.00

54.00

82.00

105.00

22.00

41.00

63.00

97.00

110.00

4.00

7.00

9.00

15.00

5.00

0.64

0.33

0.66

1.23

0.43

129

 

 

 

 

Zone 1 infill

 

 

 

 

  1. Significant drilled intercepts have a minimum length of 3m at 0.3 g/t or the product "Length X Grade" greater than 0.9 g.m/t. Intercepts are drilled lengths and may not be true width within a structure dipping 70 degrees to 80 degrees
  2. Up to 7 m of horizontal "waste" included within mineralized intercept
  3. NSR: no significant results

“Today’s results lend further credibility to the extent of gold mineralization contained within AGG’s Kobada, Mali gold project. Increasing drill density from 50 meter centers to 25 meter centers is anticipated to have a positive impact on increasing average gold grade within the overall Kobada deposit as well as upgrading the resource from the Inferred category to Measured and Indicated. At present, the overall strike length of the Kobada gold project now stands at 3,200 meters, representing an increase in strike length of 1,500 meters, relative to the 1,700 meters of strike length reported in the July 14, 2011 press release that detailed the results of the Kobada Preliminary Economic Assessment. We are encouraged to report that Kobada remains open along strike in both directions (north/south), at depth and to the west of the current resource,” states AGG President, Michael A. Nikiforuk.

Kobada Review

On July 14, 2011 AGG announced the results of a positive NI 43-101 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 PEA incorporates and includes drill data up to the end of December, 2010. There is no drill data from either the 2011 or 2012 campaign included in the PEA. More specifically, the PEA does not incorporate drill data for the northern extension holes that hold potential to extend Zone 1 up to 2 kilometers north of the Zone 1 deposit, in addition, the PEA does not incorporate the 2011 southern holes that hold potential to extend Zone 1 up to 1.55 kilometers south of the Zone 1 deposit, nor does the Study include any potential from the newly discovered Foroko North deposit, the newly discovered Termite Zone or the recently announced Gosso discovery zone, the latter three discovery zones being 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 85% 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. 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. Please visit www.africangoldgroup.com to review the entire content of AGG’s July 14, 2011 press release announcing the results of the positive Preliminary Economic Assessment.

Sampling - QA/QC Program

RC cuttings are recovered at the bottom outlet of the RC rig cyclone into 50-kg capacity poly-weave bags to recover the cuttings from each 1 meter of drill penetration. Each one meter sample weighs an average of approximately 19 to 23 kg. Each sample is passed through a 3-tier Jones Riffler (1 to 8 split), the samples are riffled twice to obtain from 3 to 5 kg of cuttings which are put in a numbered sample bag. Each bag is sealed and picked up on site by ALS Chemex Laboratories for delivery to its Burkina Faso facilities. The remaining 14 to 18 kg of cuttings (field rejects) are stored in camp under tarps to protect the bags against the elements.
Original samples are analyzed using Leachwell on 2 kg of pulp. Leachwell is a bottle roll cyanidation procedure with the addition of a catalyst to speed up gold dissolution. A QA/QC program is in place and includes: blank (1 in 20 samples), duplicates (1 in 20), standards (1 in 20), external lab checks (1 in 30) and two different analytical procedures checks (1 in 100).
Under the guidelines of National Instrument 43-101, the qualified person for the Kobada Gold Project is Mr. Pierre Lalande, P. Geo. Mr. Lalande is a member of the Association of Professional Geoscientists of Ontario and has reviewed and approved the contents of this news release.
African Gold Group, Inc., based in Toronto, Canada, is fully focused on transitioning from an exploration / development company into a gold producer. In conjunction with this objective, a full Feasibility Study is currently underway for AGG’s Kobada, Mali gold project. The Company is projecting the Feasibility Study will be completed in Q4/2013, at which time, the Company will submit an application to obtain an Exploitation License to the appropriate Malian authorities.

 

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The preliminary assessment includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.

Additional Information is available on www.sedar.com or at

AFRICAN GOLD GROUP INC.

151 Yonge St.
11th Floor
Toronto, Ontario
M5C 2W7

Phone: 647-775-8538
Fax: 647-775-8301

Neither 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.

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Michael Nikiforuk

Michael A. J. Nikiforuk - Executive Director, Founder & Past President

Mr. Nikiforuk (B.A. Econ.) is the former President, Founder and Director of AGG and a former Director of Banro Resource Corporation. Mr. Nikiforuk represented Banro in three rounds of equity financing totaling approximately $30,000,000.

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