TORONTO, Sept. 14, 2020 (GLOBE NEWSWIRE) — African Gold Group, Inc. (TSX-V: AGG) (“AGG” or the “Company”) is pleased to announce that a 10,000 meter drill program has commenced at the Company`s flagship Kobada Gold Project in Southern Mali. The phase 3 program is designed to both increase resources through strike length extension drilling and upgrade certain inferred resources to indicated. The Company continues to focus on advancing the Kobada Gold Project, based upon delivery of its very robust Definitive Feasibility Study (“DFS”) in July 2020 at $1,530/oz gold.
The 2020 work program will focus on the following:10,000 m drill program comprised of approximately 160 holes, utilising reverse circulation (RC) and diamond drilling (DD) rigs at the Kobada main shear zone, its northern extension and the Gosso target.Extension of main shear zone – prove strike extension northwards along continuous mineralized zone for at least another 4 km.Gosso target – a mineralized fault zone located 5 km to the East of Kobada main shear zone with known mineralisation in high-grade grab samples (results below).Resource upgrade – upgrade the 575,000oz inferred resources in oxides to the indicated and measured resource category with a target to reach 1 Moz of reserves.The Kobada Gold Project, based in southern Mali, is AGG’s flagship asset with the potential to produce 100,000oz of gold per annum. The previous drilling campaigns focused on delineating a 2.3 million-ounce resource, and 755,00oz oxide reserve, and only focused on 4km of 30km of shear zones identified on the concession. The upside potential of the Kobada Gold Project will be targeted in a number of phases, with Phase 3 focusing on the conversion of inferred ounces to indicated and measured resources and subsequently into reserves, and targeted drilling along the Kobada shear to extend the strike of the resource.“The delivery of the robust DFS, demonstrating a project with potential to produce 100,000oz per annum, with highly favourable financial deliverables, was a major milestone in the ongoing development of our flagship, ready for construction, Kobada Gold Project,” comments Danny Callow, Chief Executive Officer and President of AGG. “Despite some of the recent challenges in Mali, we have succeeded in mobilising and commencing exploration drilling. We look forward to re-commencing targeted exploration drilling to bolster the properties significant blue-sky potential by expanding resources and proving the upside potential of what could be a 3 to 5 million ounce deposit.”AGG awarded the contract to Etasi Drilling, a Malian drilling company, in keeping with the company policy of utilising high-quality local service providers. This partnership has enabled rapid mobilisation of the drilling fleet to site, more than 10km of roads and drill platforms have been prepared, and the company has started drilling.“We are very keen to advance the exploration drilling on our Kobada Gold Project,” says Dr. Andreas Rompel, Vice President Exploration. “In particular, we are looking forward to new discoveries along the parallel shear which is untested by drilling so far, and to upgrading the oxide resources to get the reserves to over 1 million ounces.”Extend Strike North Along Continuous Mineralized ZoneLast 3 holes of Phase 2 campaign intersected exceptional results to the north of the resource shell on main shear zone. Highlights include:22.20m at 5.25 g/t Au from 78.40m to 100.6m23.80m at 1.57 g/t Au from 110.50m to 134.30mHistorical artisanal workings show the extent of the mineralised zone for many kilometres.Step out drilling expected to increase strike length of existing resource pit.Drill plan will follow the continuity of the main shear zone into Faraba concession.Conversion of 575,000 oz Inferred OxidesNear mine shallow resource drilling.In-fill drilling of oxides in gap areas to convert to measured & indicated.Target high confident conversion to reserves to increases life-of-mine to 10+ years.Develop Understanding of Gosso Potential Through DrillingA test pit has been excavated on the Gosso target, located ~5 km to the East of the Kobada Gold Project’s resource pit.Mineralization at the Gosso target appears to be identical to the main shear zone in its structural control and reinforces the prospect of multiple mineralized oxide and sulphide deposits in the closer neighbourhood of our Kobada shear.The Gosso target has shown positive gold value assay results from grab samples earlier this year.Sample #207470 returned 1.10 g/t AuSample #207471 returned 3.16 g/t AuSample #207473 returned 4.60 g/t AuSample #207475 returned 1.87 g/t AuThe Gosso target will be drill tested to estimate the mineralization and its extent along the shear.The Company intends to initially diamond drill to the north and the south to gain knowledge about the structures defining the gold mineralisation, stepping away from the know fault location in the outcrop, and then follow up with RC drilling for grade estimation.Drilling CompanyEtasi & Co Drilling SARL (“ETASI”) has been selected to conduct the Phase 3 drilling program at Kobada Gold Project in Southern Mali. ETASI is the successor company to AMCO, who conducted the Company’s Phases 1 and 2 programs during 2019-2020 drilling program. The Company expects a similar high level of productivity by AMCO as demonstrated previously.About African Gold GroupAfrican 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.Qualified PersonThe 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.For more information:Danny Callow
President and Chief Executive Officer
+(27) 76 411 3803
[email protected]Scott Eldridge
Non-Executive Chairman of the Board
(604) 722-5381
[email protected]Daniyal Baizak
VP Corporate Development
(416) 861-2267
[email protected]Cautionary statementsThis press release contains “forward‑looking information” within the meaning of applicable Canadian securities legislation. Forward‑looking information includes, but is not limited to, statements regarding, the Company’s Phase 3 exploration program, expectations of increase in resources or reserves at the Kobada Gold Project, contracting with ETASI, extension of shear zones and additional targets at Gosso and Faraba. 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”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements 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 AGG to be materially different from those expressed or implied by such forward‑looking information, including but not limited to: receipt of necessary approvals; general business, economic, competitive, political and social uncertainties; future prices of mineral prices; accidents, labour disputes and shortages and other risks of the mining industry. Although AGG 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. AGG does not undertake to update any forward-looking information, except in accordance with applicable securities laws.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.Photos accompanying this announcement are available at:https://www.globenewswire.com/NewsRoom/AttachmentNg/e4fcc4d1-b9af-4f1a-a958-e8017720fab7https://www.globenewswire.com/NewsRoom/AttachmentNg/9088da1d-cc12-4563-b28b-d66206e48054
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