Pope & Company Initiates Equity Research Coverage On African Gold Group, Inc.

  • Sunday, 04 November 2012

TORONTO, CANADA – African Gold Group, Inc., ("AGG" or the "Company") is pleased to announce that Pope & Company, based in Toronto, Canada has initiated research coverage on African Gold Group, Inc. with a speculative buy recommendation and a target price of $0.84/share.

Pope & Company’s initiating research report on AGG states:

      “African Gold is developing the Kobada property which has a 218.5 sq km concession in the prolific gold producing area of south-west Mali. We recommend African Gold based on the following:

  • Near Term Producer—AGG has the potential to begin production in 2015, and to ramp up production to 126,000 oz Au annually by 2017.
  • Significant Increase In Oxide Resource Expected — Based on pre-2011 drilling, the Resource at Kobada is over 1 M oz Au of which more than 95% is in highly oxidized rock. In Q4/12, the Company plans a Resource update which will include 49,000 m of drilling completed since 2010. We believe this drilling will increase the Resource at Kobada by 65%. Longer term, there is potential to find significantly more gold at Kobada and in the surrounding area, providing the drilling is undertaken.
  • Gold Grade Upside—The gold at the Kobada deposit is coarse and nuggety, which means the contained gold content is often under estimated. The development of Kobada is based on processing the oxide gold ores in a Gravity Processing Plant (GPP) similar to the one which was recently put in operation at Wassoul’Or’s Kodieran Mine also in Mali. Reports from Kodieran indicate that gold grade in ore processed is higher than estimated.
  • Potential Sulfide Resource—Kobada has potential for a large gold sulfide Resource below the oxide layer. The Company has intersected gold in sulfides below the oxide Resource in many areas, but the drill density has not been sufficient to define a Resource.
  • Exploration Upside—Besides Kobada, African Gold has a number of exploration targets (Gossokorodji, Diaban, Foroko North). Ultimately, we expect the total gold Resource, including Kobada, to exceed 5 M oz Au.
  • Good Team—The Company has worked in Mali for many years and has personnel with experience in the development of other gold mines in Mali. The Company’s management has a proven track record in the capital markets and in mining in West Africa.
  • Good Jurisdiction—Mali is a good jurisdiction in which to develop new mines. The geology is excellent and the domestic workforce is inexpensive. The oxide deposits are near surface with good metallurgy and can be mined  for the most part at a low strip ratio. In addition, the country allows permitting prior to the completion of a Feasibility Study.

Please click here to view the complete report authored by Pope & Company initiating coverage of AGG.

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 at AGG’s Kobada, Mali gold project. The Company is projecting the Feasibility Study will be completed in Q2/2013, at which time, the Company will submit an application to obtain an Exploitation License to the appropriate Malian authorities.

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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