TORONTO, ONTARIO--(Marketwired - May 8, 2013) - African Gold Group, Inc., ("AGG" or the "Company") (TSX VENTURE:AGG) is pleased to report the analytical results for 57 near surface (oxide), reverse circulation (RC) southern step out drill holes from the Company's Kobada, Mali gold project.
Near Surface (Oxide) Drill Highlights From Southern Step Out RC Holes Include:
|KBRC11-043*: 52 m @ 1.02 g/t Au|
|KBRC11-045*: 47 m @ 0.77 g/t Au|
|KBRC12-036: 29 m @ 0.86 g/t Au|
|KBRC12-044: 56 m @ 0.91 g/t Au|
|KBRC11-055*: 35 m @ 0.9 g/t Au|
|KBRC11-056*: 18 m @ 1.18 g/t Au|
|KBRC11-059*: 14 m @ 3.08 g/t Au|
|KBRC11-071: 38 m @ 1.01 g/t Au|
|KBRC11-076: 30 m @ 0.75 g/t Au|
|KBRC11-093: 27 m @ 1.28 g/t Au|
|KBRC11-088: 15 m @ 7.38 g/t Au|
The assay results detailing mineralized intercepts for the 57 near surface (oxide) southern step out RC holes are listed in Table 1 below:
|Section||Hole_ID||From||To||Length||Grade g/t Au||Depth||Azimuth||Objective|
|3000S||KBRC11-043*||21||73||52||1.02||102||Southern step out from 2011 Resource|
|3000S||KBRC11-045*||2||49||47||0.77||82||Southern step out from 2011 Resource|
|3050S||KBRC12-032||3||6||3||3.21||75||200||Infill to 2011 resource|
|3050S||KBRC12-033||9||12||3||0.79||75||200||Infill to 2011 resource|
|3053S||KBRC12-034||NSR||84||200||Infill to 2011 resource|
|3100S||KBRC12-035||NSR||75||200||Infill to 2011 resource|
|3100S||KBRC12-036||0||26||26||0.9||81||200||Infill to 2011 resource|
|3100S||KBRC12-037||52||55||3||0.41||81||200||Infill to 2011 resource|
|3250S||KBRC12-039||1||15||14||0.83||93||200||Infill to 2011 resource|
|3250S||KBRC12-040||22||41||19||0.57||93||200||Infill to 2011 resource|
|3250S||KBRC12-041||20||49||29||0.86||81||200||Infill to 2011 resource|
|3250S||KBRC12-042||1||7||6||0.61||75||200||Infill to 2011 resource|
|3300S||KBRC12-043||0||3||3||0.45||93||200||Infill to 2011 resource|
|3300S||KBRC12-044||0||56||56||0.91||87||200||Infill to 2011 resource|
|3300S||KBRC12-045||52||55||3||0.44||96||200||Infill to 2011 resource|
|3350S||KBRC11-054*||0||3||3||0.43||100||200||Southern step out from 2011 Resource|
|3350S||KBRC11-055*||1||8||7||0.33||100||200||Southern step out from 2011 Resource|
|3350S||KBRC11-056*||1||4||3||0.47||100||200||Southern step out from 2011 Resource|
|86||100||14||0.29||Ended In Mineralization|
|3400S||KBRC11-058*||0||4||4||0.49||100||200||Southern step out from 2011 Resource|
|3400S||KBRC11-059*||0||3||3||0.57||45||200||Southern step out from 2011 Resource|
|30||44||14||3.08||Ended In Mineralization|
|3400S||KBRC11-059A*||27||37||10||0.43||100||200||Southern step out from 2011 Resource|
|3400S||KBRC11-060*||0||3||3||1.68||100||200||Southern step out from 2011 Resource|
|3450S||KBRC12-046||0||3||3||0.3||75||200||Infill to 2011 resource|
|3450S||KBRC12-047||1||44||43||0.57||87||200||Infill to 2011 resource|
|3450S||KBRC12-048||NSR||81||200||Infill to 2011 resource|
|3450S||KBRC12-049||35||41||6||0.75||81||200||Infill to 2011 resource|
|3500S||KBRC12-050||NSR||81||200||Infill to 2011 resource|
|3500S||KBRC12-051||0||8||8||1.14||93||200||Infill to 2011 resource|
|3500S||KBRC12-052||0||23||23||0.49||87||200||Infill to 2011 resource|
|3500S||KBRC12-053||79||87||8||0.32||87||200||Infill to 2011 resource|
|3600S||KBRC11-070||1||12||11||0.35||100||200||Southern step out from 2011 Resource|
|3600S||KBRC11-071||2||40||38||1.01||100||200||Southern step out from 2011 Resource|
|3600S||KBRC11-072||20||34||14||0.69||100||200||Southern step out from 2011 Resource|
|3650S||KBRC12-054||70||73||3||0.62||93||200||Infill to 2011 resource|
|3650S||KBRC12-055||24||29||5||0.46||93||200||Infill to 2011 resource|
|3650S||KBRC12-056||NSR||111||200||Infill to 2011 resource|
|3650S||KBRC11-096||33||36||3||0.48||108||200||Southern step out from 2011 Resource|
|3700S||KBRC12-057||15||18||3||5.8||93||200||Infill to 2011 resource|
|3700S||KBRC11-076||57||87||30||0.75||100||200||Southern step out from 2011 Resource|
|3700S||KBRC12-058||NSR||111||200||Infill to 2011 resource|
|3700S||KBRC11-093||19||22||3||0.66||100||200||Southern step out from 2011 Resource|
|3700S||KBRC11-094||54||59||5||1.55||100||200||Southern step out from 2011 Resource|
|3750S||KBRC12-059||NSR||111||200||Infill to 2011 resource|
|3750S||KBRC11-087||22||31||9||0.74||100||200||Southern step out from 2011 Resource|
|3750S||KBRC11-088||46||61||15||7.38||100||200||Southern step out from 2011 Resource|
|3750S||KBRC11-089||37||41||4||1.87||100||200||Southern step out from 2011 Resource|
- 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
- Up to 7 m of horizontal "waste" included within mineralized intercept
- * previously published, re-published to complete line drilled
- NSR: no significant results
"Today's results have extended drilling on 25 meter centers for a total of one kilometer south of AGG's resources estimate that was published as part of a press release issued on July 14, 2011. 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.
On July 14, 2011 AGG announced the results of a positive NI 43-101 Preliminary Economic Assessment (http://www.africangoldgroup.com/index.php?option=com_content&view=article&id=197%3Aafrican-gold-group-inc-positive-preliminary-economic-assesment-generates-2169-million-npv-and-90-irr&catid=54&Itemid=161) (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