TORONTO, ONTARIO--(Marketwire - Feb. 27, 2013) - African Gold Group, Inc., (TSX VENTURE:AGG) ("AGG" or the "Company") is pleased to report the analytical results for 20 near surface (oxide), reverse circulation (RC) step out drill holes, from the Company's Kobada, Mali gold project.
Near Surface (Oxide) Drill Highlights From Northern Step Out RC Holes Include:
|KBRC12-010: 52 m @ 1.28 g/t Au, ended in mineralization|
|KBRC12-012: 41 m @ 1.04 g/t Au, ended in mineralization|
|KBRC12-013: 85 m @ 1.13 g/t Au|
|KBRC12-014: 107 m @ 1.21 g/t Au, ended in mineralization|
|KBRC12-015: 43 m @ 1.39 g/t Au, ended in mineralization|
|KBRC12-016: 75 m @ 1.92 g/t Au & 68 m @ 0.96 g/t Au, ended in mineralization|
|KBRC12-017: 109 m @ 0.81 g/t Au|
|KBRC12-018: 56 m @ 1.21 g/t Au, ended in mineralization|
|KBRC12-020: 146 m @ 1.13 g/t Au, ended in mineralization|
The assay results detailing mineralized intercepts for the 20 near surface (oxide) northern step out RC holes are listed in Table 1 below:
|TABLE 1 |
|Section||Hole ID||From||To||Length||Au||EOH||Degrees||Hole Objective|
|850S||KBRC12-009||15.00||39.00||24.00||1.20||Infill Zone 1 North extension|
|850S||KBRC12-009||104.00||153.00||49.00||0.51||Hole end in mineralization|
|850S||KBRC12-010||2.00||19.00||17.00||0.58||147||200||Infill Zone 1 North extension|
|850S||KBRC12-010||95.00||147.00||52.00||1.28||Hole end in mineralization|
|850S||KBRC12-011||0.00||5.00||5.00||0.51||128||200||Infill Zone 1 North extension|
|850S||KBRC12-011||115.00||121.00||6.00||0.51||Hole end in mineralization|
|800S||KBRC12-012||2.00||5.00||3.00||0.62||153||200||Infill Zone 1 North extension|
|800S||Including||130.00||131.00||1.00||10.56||Hole end in mineralization|
|800S||KBRC12-013||2.00||21.00||19.00||0.68||135||200||Infill Zone 1 North extension|
|800S||KBRC12-014||2.00||18.00||16.00||0.32||153||200||Infill Zone 1 North extension|
|800S||Including||58.00||59.00||1.00||56.10||Hole end in mineralization|
|800S||KBRC12-015||15.00||58.00||43.00||1.39||141||200||Infill Zone 1 North extension|
|800S||Including||134.00||135.00||1.00||22.93||Hole end in mineralization|
|750S||KBRC12-016||1.00||76.00||75.00||1.92||153||200||Infill Zone 1 North extension|
|750S||KBRC12-016||85.00||153.00||68.00||0.96||Hole end in mineralization|
|750S||KBRC12-017||2.00||111.00||109.00||0.81||123||200||Infill Zone 1 North extension|
|750S||KBRC12-018||78.00||105.00||27.00||0.58||Hole end in mineralization|
|700S||KBRC12-019||4.00||9.00||5.00||0.36||147||200||Infill Zone 1 North extension|
|700S||KBRC12-020||2.00||148.00||146.00||1.13||153||200||Infill Zone 1 North extension|
|700S||Including||128.00||129.00||1.00||10.29||Hole end in mineralization|
|700S||KBRC12-021||10.00||15.00||5.00||0.51||111||200||Infill Zone 1 North extension|
|700S||KBRC12-022||10.00||15.00||5.00||0.55||147||200||Infill Zone 1 North extension|
|700S||KBRC12-022||110.00||147.00||37.00||0.67||Hole end in mineralization|
|650S||KBRC12-023||2.00||39.00||37.00||0.47||135||200||Infill Zone 1 North extension|
|650S||KBRC12-024||4.00||7.00||3.00||0.35||147||200||Infill Zone 1 North extension|
|650S||KBRC12-025||7.00||19.00||12.00||0.41||139||200||Infill Zone 1 North extension|
|650S||KBRC12-026||2.00||11.00||9.00||0.78||147||200||Infill Zone 1 North extension|
|600S||KBRC12-027||10.00||13.00||3.00||0.85||153||200||Infill Zone 1 North extension|
|600S||KBRC12-028||9.00||17.00||8.00||0.54||153||200||Infill Zone 1 North extension|
|600S||KBRC12-028||145.00||153.00||8.00||0.52||Hole end in mineralization|
|600S||KBRC12-029||5.00||12.00||7.00||0.43||150||200||Infill Zone 1 North extension|
|600S||KBRC12-029||78.00||148.00||70.00||0.70||Infill Zone 1 North extension|
|600S||including||135.00||136.00||1.00||11.720||Infill Zone 1 North extension|
|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|
AGG's management is most encouraged with the drill results being reported today. More specifically, today's results demonstrate the continuation of significant gold mineralization being intercepted as far as 500 meters north of the Company's current 43-101 resource estimate, reported in July, 2011. This 500 meter northern extension, contained between sections 1100S thru section 600S, will be incorporated into a revised resource estimate that forms part of the Company's ongoing Feasibility Study for the Kobada, Mali gold project. It is anticipated that a revised resource estimate will be published on or before April 30, 2013.
Drill intercepts from section 1000S, located 100 meters north of AGG's 43-101 resource estimate, were previously reported in a press release dated November 15, 2011 and included the following near surface drill intercept highlights:
Near Surface (Oxide) Drill Highlights From Northern Step-Out Holes On Section 1000S Include:
- KBRC11-189: 112 m @ 2.14 g/t Au, incl, 1 m @ 90.19 g/t Au, ended in mineralization
- KBRC11-192: 88 m @ 1.66 g/t Au, incl 2 m @ 25.60 g/t Au
- KBRC11-191: 55 m @ 0.79 g/t Au, incl 1 m @ 15.06 g/t Au
- KBRC11-190: 42 m @ 0.96 g/t Au, incl 1 m @ 12.42 g/t Au
- KBRC11-193: 12m @ 0.89 g/t Au, ended in mineralization
Drill intercepts from Section 950S and 900S, located up to 200 meters north of AGG's 43-101 resource estimate, were previously reported in a press release dated March 20, 2012 and included the following near surface drill intercept highlights:
Near Surface (Oxide) Drill Highlights From Northern Step-Out Holes On Section 950S & 900S Include:
- KBRC12-006: 70 m @ 1.83 g/t Au & 45 m @ 1.79 g/t Au, ended in mineralization
- KBRC12-003: 27 m @ 0.47 g/t Au & 84 m @ 1.26 g/t Au, ended in mineralization
- KBRC12-004: 21 m @ 1.07 g/t & 9 m @ 1.80 Au
- KBRC12-005: 21 m @ 1.15 g/t Au
"Today's drill results, detailing holes collared on sections 850S thru to 600S, clearly show the continuing presence of robust gold mineralization extending as far as 500 meters north of our current Zone 1, 43-101 resource. Kobada obviously remains open to the north along strike and our depth potential is clearly visible with 11 of 20 holes (being reported in this release) ending in mineralization.
"In addition to demonstrating a strike extension of at least 500 meters north of our current 43-101 resource estimate, the holes that comprise northern extension also define a mineralized corridor that exceeds 100 meters in lateral width that are also associated with an oxidation depth in the magnitude of 100 vertical meters. The mineralization contained within these northern step out holes is well distributed down several of the holes, and is as strong as any gold mineralization encountered in the Zone 1 resource to date," states AGG President, Michael A. Nikiforuk.
To view the map associated with this press release, please visit http://media3.marketwire.com/docs/AGG226MAP.jpg.
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 87.9% 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 the Company's website at www.africangoldgroup.com and on www.sedar.com and through the Company's offices at: Sun Life Financial Tower, Suite 2518, 150 King St. West, Toronto, Canada
On Behalf of the Board:
Michael A. J. Nikiforuk, President, Director