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TORONTO, Sept. 11, 2019 (GLOBE NEWSWIRE) -- African Gold Group, Inc. (TSX-V: AGG) (“AGG” or the “Company”) is pleased to announce significant progress on the Kobada Project in southern Mali since July 2019.
The project, which has a 2016 feasibility study with a stated resource of 2.2 million oz (NI 43-101), has embarked on a process to upgrade its geological model and understanding of the ore body in order to double the production rate to 100,000oz per annum.
A new Definite Feasibility Study (“DFS") will incorporate results of an additional expected 15,000 m of diamond drilling and 3,000 m of RC in-fill drilling to gain a better geological understanding of the main shear zone and additional highly prospective exploratory targets.
In addition, AGG is carrying out extensive detailed metallurgical test work on representative samples to optimize the processing plant in terms of gold recoveries, capital expenditure and operating costs.
“By carrying out the in-fill drilling program, which we expect to complete in early-December, we will have a comprehensive understanding of the geological structures and the mineralogy, the knowledge of which is paramount for the design of the process plant in order to treat every type of ore present at Kobada,” comments Dr Andreas Rompel, VP Exploration. “The 30km of shear zones already identified at Kobada are largely untested and we see significant upside to the resource as we progress on the drilling program. In addition, all historical drilling indicates deeper resources below the current level of drilling. Our objective is to increase the resource through this and ongoing drilling campaigns to be able to develop a 100,000oz production operation.”
The DFS will also deliver a processing plant and mine infrastructure design and detailed equipment lists, as well as an updated Environmental Impact Statement (the “ESIA”). Danny Callow, the Chief Operating Officer of AGG, states, “This is an exciting time for Kobada as we move towards the construction phase. We have assembled a number of world class experts to partner with us in engineering design, drilling, geological interpretation, assaying and construction. All of our partners have extensive experience in West Africa and in particular Mali and this will ensure that we have a solid foundation to build a world class operation when construction begins” He goes on to say, “there is no doubt that there is huge upside potential in the gold resource yet to be drilled and this solid foundation will enable us to develop a modular approach to construction that will see an initial 50,000 oz plant be constructed followed by an expansion to 100,000 oz as the resource increases. With 30km of shear zones yet to be drilled there is no doubt we are sitting on a significant resource and I am looking forward to taking this project through the DFS and construction phase into full production.”
Since the beginning of August, geological consultants Minxcon have mobilized to site to incorporate recent drilling and regional geological data into the model and review close to 30,000 meters of existing diamond drill core. In addition, AMCO drilling contractors are mobilizing to site to begin the next phase of drilling, and SGS, a world-class international assay laboratory, have been awarded the contract to fast-track the assays. Overseeing this phase of the project is SENET, part of the international DRA Group. SENET is one of the most experienced EPCM companies operating in West Africa and have been involved in dozens of projects over the past 15 years in Mali and neighbouring countries. Finally, as part of this initial phase construction has restarted on the new camp at the Kobada site by EGTF, one of the largest Malian construction and mining companies. The expectation is that the new camp will be finished by December as AGG starts to build a permanent team on site to take the project through to the construction stage.
“I have been involved in a number of early stage projects, in Africa over the past 15 years,” says Danny Callow, COO of AGG. “This project is extremely exciting, with significant upside potential and we have an opportunity to build and operate a low cost, large-scale gold operation in one of the most significant gold producing countries in the world. AGG has an excellent relationship with local communities and Government. We will use local suppliers and contractors to develop the economy in the locality in which we operate, and we look forwards to developing a world class team on site.”
AGG expects to deliver the full DFS by March 2020 as well as an updated ESIA. It is possible that construction will start soon after that as most permits are already in place.
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:
President and Chief Executive Officer
(416) 861 2267
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, the timeline for the completion of the definitive feasibility study 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.
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