African Gold Group, Inc. (TSX-V: AGG) (“
AGG” or
the “
Company”) is pleased to provide shareholders
with an update on the Company`s significant progress at the Kobada
Gold project and will be hosting a conference call to provide
an update to its shareholders.
Conference Call Details
Investors can call in and Q&A with Stan
Bharti, the Chairman and Danny Callow, the Chief Operating Officer,
at 10:00 a.m. EST on December 5th, 2019, at the number below:
North American Toll-Free Number:
844-467-7965International Number: 602-563-8498Conference ID:
7681298
Phase 1 Drilling Campaign Success
The Phase 1 drilling campaign focused on
confirming and upgrading the confidence level of the resource in
the feasibility study from 2016 (the “2016 Feasibility
Study”). High-grade intersections from Phase 1
drilling indicate that there is upside potential at the Kobada Gold
project.
Highlights from Phase 1 drilling
campaign include:
- Drill hole KP19_P1_17 returned 1.59 g/t gold over 11.0
metres (m), including 19.0 g/t gold over 0.80 m
- Drill hole KP19_P1_17 returned 6.39 g/t over 1.0
m
- Drill hole KP19_P1_18 returned 11.6 g/t gold over 1.55
m
- Drill hole KP19_P1_18 returned 5.96 g/t gold over 1.0
m
- Drill hole KP19_P1_03 returned 3.09 g/t gold over 2.50
m
Better than expected high-grade mineralization
in the central zone of the Kobada main shear reinforce our belief
that the resource is bigger with greater thicknesses than suggested
in the 2016 Feasibility Study. High grade intersections and
additional resources in satellite orebodies should complement the
resource model favorably.
“We are very happy to have completed the
Phase 1 drilling campaign aimed at confirming and upgrading the
resource confidence level,” says Dr. Andreas Rompel, VP
Exploration, “and we are keenly expecting the remaining results to
complement our already published high-grade intersections in the
area of the open pit which exceeded our expectations.”
The Phase 2 drilling campaign has already
commenced towards the north and aims at extending our resource
northward. Continuing mineralization to the north of central zone
is expected to further confirm our view that the Kobada project is
larger than previously suggested.
“The results that we are seeing on this initial
phase of drilling indicate a strong correlation to the resource
model in the 2016 Feasibility Study. In addition, efforts at
updating the structural information into the new model and are
paying dividends as we are able to closely map identical structures
in adjacent shear zones that are future exploration targets,” says
Danny Callow, COO of AGG. “Whilst the intention in Phase 1 and 2
drilling is to confirm the existing resource model to a higher
degree of accuracy, the overall resource is still only concentrated
on a 4km strike length within the main shear zone. With a further
26km of shear zones identified on our concession, and a more
accurate geological template to identify key drilling targets, we
believe that we will be able to define a significantly higher
resource with extra drilling.”
Figure 1: Kobada exploration
targets is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/c7bb136b-43e1-4128-85bf-a825fc76053b
This program has already had an impact on
improving the understanding of the structural geology and
mineralization model, which will enable AGG to accurately identify
additional drilling targets in adjacent shear zones. AGG expects
the Phase 2 drilling campaign to be completed towards the end of
December 2019, with further phases of drilling targeting additional
shear zones in the first quarter 2020. The diamond drilling
contractor AMCO has demonstrated an outstanding performance in
challenging, wet conditions during the end of the rainy season.
Figure 2: Drill hole locations in the
central part of the Kobada Main Shear Zone. Lines 1 to 13 have been
completed is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/2e2aa257-1f91-4c67-8a07-a67a5389a4ce
Infrastructure Update
Since the last construction progress update, the
infrastructure at the new and old camps have been fully completed.
Personnel has been relocated to the camps ahead of schedule despite
heavy rains and poor weather conditions.
The new senior camp consists of multiple
comfortable accommodation units with en-suite bathrooms, a large
dining room, kitchen and office complex to cater for the start-up
phase, as well as on site water and electricity supply. The
coreyard has been extended to accommodate the core storage of the
2019 drilling program.
Figure 3: Sleeping quarters
(completed) is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/2d584491-02af-45b4-a878-7186d22fb7a5
Figure 4: Office facility
(completed) is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/2fba0a81-1c8d-4f0e-bcb0-11f0d35be9d7
Environmental and Social Impact
Assessment
As a part of program to deliver a definitive
feasibility study, the Company is working on updating approved
environmental and social impact assessment (the
“ESIA”). Environmental baseline data collection
and studies are in progress with teams already at site with
multiple field campaigns and monitoring programs planned.
The Kobada Gold project is fully licensed and
permitted by the Government of Mali. However, in anticipation of
the construction beginning in 2020, it was deemed necessary by the
management to update the ESIA to include the results of the 2019
drill program and account for the developments at site. The
management of the Company does not expect any major changes to the
existing ESIA and therefore would not require any new
applications.
The updated ESIA study will be prepared in
accordance to the IFC and World Bank international guidelines.
Community Engagement
As a part of our community engagement program,
our Company has been employing, where possible, workers from the
local community. In addition, we have been focusing on utilizing
only local and regional suppliers for the local procurement of
goods and services.
AGG sees its commitment to the local community
as one of the critical success factors in delivering the Kobada
project and will continue to meet regularly and communicate with
Kobada`s chiefs as the development of the mine progresses.
Moving forward, our Company will continue to
build a strong nurturing relationship with local communities and
will continue to adhere to international corporate social
responsibility standards.
Metallurgical Testwork
As part of the upgrade to a definitive
feasibility study, a comprehensive metallurgical testwork regime is
well underway. The testwork is pointing towards a simple, very
efficient flow sheet with currently no deleterious elements in the
orebody and high recoveries of gold. The design of a detailed
process flow sheet is underway as is the development of the process
design criteria and expectations are that a detailed, optimized
metallurgical design will be completed earlier than expected.
Qualified Persons
The scientific and technical information
contained in this press release has been reviewed, prepared and
approved by Dr. Andreas Rompel, PhD, Pr. Sci. Nat. (400274/04),
FSAIMM, Vice President Exploration of AGG, who is a "Qualified
Person" as defined by National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101") and
by Mr. Uwe Engelmann (BSc (Zoo. & Bot.), BSc Hons (Geol.),
Pr.Sci.Nat. No. 400058/08, MGSSA), a director of Minxcon (Pty) Ltd
and a member of the South African Council for Natural Scientific
Professions.
About African Gold Group
African Gold Group is a Canadian listed
exploration and development company on the TSX Venture Exchange
(TSX-V: AGG) with its focus on developing a gold platform in West
Africa. Its principal asset is the Kobada Project in southern Mali.
For more information regarding African Gold Group visit our website
at www.africangoldgroup.com.
For further information please
contact:
Stan BhartiPresident and Chief Executive
Officer(416) 861 2267
Forward-Looking Statements
This press release contains "forward looking
information" within the meaning of applicable Canadian securities
legislation. Forward looking information includes, but is not
limited to, management’s, the Company’s development and exploration
plans for the Kobada project, expectation of grade and resources at
the Kobada gold project, the rate of drilling during the Phase 1
and 2 drilling program at the Kobada gold project, expectation of
drill results at the Kobada project, the timeline for the
completion of Phase 2 drilling program, the definitive feasibility
study and the updated resource model, expectations for
mineralization and location of extensions at the Kobada gold
project and expected mining methods at the Kobada gold
project, and other statements with respect to the future
plans or intentions of the Company. Generally, forward looking
information can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", “aims”,
"intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". Forward-looking
information is subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: general
business, economic, competitive, geopolitical and social
uncertainties; the actual results of exploration activities;
regulatory risks; risks inherent in foreign operations; and other
risks of the mining industry. Although the Company has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward looking information. The Company does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
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.
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