African Gold Group. (TSX-V:AGG) (“AGG” or the “Company”) is pleased
to provide drilling results from its Kobada gold project (the
“Koboda Project”) located in south eastern Mali, Africa. The drill
program was designed to confirm and expand knowledge of existing
shallow mineral resources, as well as explore down dip and along
strike from known mineralization. The Company is also pleased to
announce the engagement of DRA Global (Toronto) on a feasibility
study gap analysis and renewal of its exploration license adjacent
to Kobada.
The first five (5) reverse circulation (“RC”)
holes drilled at the Kobada Project were designed to confirm the
extent of gold mineralization from historic drilling in an area
that had been drilled parallel to trend and to generate a better
understanding of the controls on mineralization, lithological
characteristics and structures of the Kobada Project deposit so as
to guide next phases of drilling.
Highlights:
- 1.60 grams per tonne gold
(g/t Au) over 19 metres, from 86.0m, including 3.24 g/t Au over
6.0m within the Kobada Shear Zone in hole RC2.
- 1.80 grams per tonne gold
(g/t Au) over 18 metres from 114.0m, including 18 g/t Au over
1.0m, within the Kobada Shear Zone in hole RC3.
- DRA Global
(Toronto) have been engaged to complete a gap analysis on
the historical feasibility study.
- Kobada Est exploration
license adjacent to Kobada Mining License has been successfully
renewed for a further three (3) years.
“Our welcome return to drilling at Kobada, Mali
has delivered exciting initial results that continue to demonstrate
shallow and wide zones of gold mineralization at the project,”
noted Stephan Theron, President and CEO. “Our newly assembled
technical team set out to demonstrate, in a short period of time,
an increased confidence in the controls on gold mineralization, and
expand new opportunities across our land package – we are
successfully on that path with both our drilling results and
adjacent exploration license renewal. We also look forward to
additional diamond drill results and updating our shareholders as
soon as possible.”
Mr. Theron also noted, “We are also excited to
engage DRA Global (Toronto) to complete a gap analysis of the
historical feasibility study with respect to current, updated
industry standards. This work will enable us to rapidly move
forward towards an updated feasibility study with greater
effectiveness and efficiency.”
RC Drilling Results
691 metres in five (5) RC holes were completed
in phase 1. Drilling focused on the northern limits of the
historical and published National Instrument 43-101: Standards of
Disclosure for Mineral Projects (NI 43-101) Mineral Resources in an
area where previous drilling was orientated parallel to
mineralization trend. (Figures 1, 2 and 3)
Significant
Mineralized Zones |
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Mineralized Zones |
Mineralized Intersections
(inclusive) |
BHID |
From |
To |
Width (m) |
Grade (g/t) |
From |
To |
Width (m) |
Grade (g/t) |
RC1 |
55 |
57 |
2 |
2.99 |
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|
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|
RC1 |
73 |
75 |
2 |
0.43 |
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|
RC1 |
84 |
86 |
2 |
0.50 |
|
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|
RC1 |
89 |
91 |
2 |
4.01 |
|
|
|
|
RC1 |
107 |
108 |
1 |
1.71 |
|
|
|
|
RC1 |
117 |
122 |
5 |
0.79 |
|
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|
RC1 |
133 |
138 |
5 |
0.50 |
|
|
|
|
RC2 |
44 |
46 |
2 |
2.42 |
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|
RC2 |
71 |
73 |
2 |
0.37 |
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RC2 |
86 |
105 |
19 |
1.60 |
89 |
95 |
6 |
3.24 |
RC2 |
125 |
127 |
2 |
0.79 |
|
|
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|
RC2 |
130 |
131 |
1 |
1.00 |
|
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|
RC3 |
47 |
49 |
2 |
1.06 |
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RC3 |
114 |
132 |
18 |
1.80 |
131 |
132 |
1 |
18.7 |
RC3 |
139 |
140 |
1 |
4.32 |
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RC4 |
47 |
53 |
6 |
0.63 |
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RC4 |
56 |
59 |
3 |
0.45 |
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RC4 |
79 |
85 |
6 |
1.09 |
79 |
80 |
1 |
3.57 |
RC4 |
120 |
126 |
6 |
0.66 |
120 |
121 |
1 |
1.54 |
RC4 |
138 |
140 |
2 |
0.68 |
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RC5 |
81 |
86 |
5 |
0.69 |
85 |
86 |
1 |
2.24 |
RC5 |
100 |
102 |
2 |
5.11 |
100 |
101 |
1 |
9.44 |
RC5 |
110 |
126 |
16 |
1.70 |
111 |
112 |
1 |
14.1 |
RC5 |
133 |
134 |
1 |
3.85 |
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*Metal grades uncut. Drill holes drilled to west at -55 degrees.
Drill intersections are downhole widths.
Gold at the Kobada Project is present in the
laterite, saprolite and quartz veins that comprise the Koboda
Project. There are also placer style deposits in the region,
although these have largely been exploited by artisanal miners.
Gold mineralisation was coeval with the hydrothermal events that
introduced the regionally common quartz veins. The 20°NE structures
are the only regional structures that have been identified on the
property, the E-W and low angle features seem to be confined to the
mineralised zone in-between discrete shear zones.
Mineralisation at the Kobada Project extends for
a minimum strike of 4 km and is associated with narrow, irregular,
high-angle quartz veins and with disseminated sulphides in the wall
rock and vein selvages. Mineralisation occurs as free gold,
sulphides present include arsenopyrite, pyrite and rare
chalcopyrite. Visible gold is not common. Arsenopyrite (up to 5 mm)
is localised near vein selvages and as fine-grained disseminated
patches within the host rock. Pyrite occurs in finely disseminated
patches within the host rocks and as euhedral crystals in the black
shale, generally as trace to 3% by volume with up to 10% locally in
the wall rock over centimetre scale intervals adjacent to quartz
veins.
Veins have a milky white colour, are generally
discordant with a thickness ranging from millimetric to sub metric.
Mineralised veins are narrow, high-angle quartz veins, either
cross-cutting another vein or the main fabric.
Figure 1: Kobada Project area in southern Mali is available
at http://www.globenewswire.com/NewsRoom/AttachmentNg/872c0023-0dd4-4a8f-908c-1cc395f1fc8d
Figure 2 : Location of RC holes in relation to historical
drilling and 0.3 g/t grade shell used for exploration targeting is
available
at http://www.globenewswire.com/NewsRoom/AttachmentNg/4244cbf3-e199-47e5-9351-2cacf6f7686d
Figure 3 : Cross section through RC2 showing likely down
dip extent of gold mineralization of 0.3 g/t shell used for
exploration drilling targeting. (View to north) is available
at http://www.globenewswire.com/NewsRoom/AttachmentNg/4f898b25-92ad-478c-b5ad-17bcbaa3814f
Figure 4: AGG’s licences in southern Mali showing
both the mining licence and recently renewed (August 16, 2018)
exploration licence is available
at http://www.globenewswire.com/NewsRoom/AttachmentNg/55ebf5b2-1429-47e4-9a1d-f2b50950db92
About Kobada
The Kobada Project is near-surface gold project
that has a mineral resource base (all categories) of over 2.2Moz of
gold. The project is located in Mali, Africa’s third largest gold
producing nation, 125 km south southwest of its capital city,
Bamako. Previous operators completed 1,108 holes and 126,335m of
drilling on the property and completed 3 economic studies, the last
one being a feasibility study released in February 2016. Although
the economics were compelling, the new management of the project
has decided to undertake internal scoping studies in order to gain
a better understanding of the project with a goal to optimize the
size of the envisioned mine and increase the confidence in the
resource model. Salient features of the 2016 feasibility study
included:
- Global resource of 2.2Moz in all categories
- Strong economic potential demonstrated in feasibility study
- LOM cash costs of US$557/Oz
- Initial capex of US$45.4M
- Post-tax NPV5% of US$86M and IRR of 43%
- Shallow mineralization with deep oxidation
- Ore is largely free-digging enabling mining to be conducted
with significantly less blasting than other more conventional ore
bodies
- Simple processing enables pre-concentration of ore resulting in
lower processing costs
- Significant resource growth potential
- The 2.2Moz resource stretches over 4km within a larger 12km
strike length that has not been properly tested
- An additional 30km of shear zone structures have been
identified on the property and have yet to be explored (Figure
1)
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 two principal assets
are the Kobada Project in Mali and the gold project located in
Madougou, Burkina Faso.
Quality Assurance / Quality
Control Drilling was undertaken by Geodrill Limited and
supervised by Minxcon (Pty) Limited of South Africa. During the
drill program, one metre assay samples were taken from RC chips
collected during drilling, split and sent for assaying at SGS
(Bamako) Laboratory, a certified commercial laboratory, and
remainder has been retained for cross checks and future reference.
A strict Quality Assurance/Quality Control program is applied to
all samples; which include insertion of one certified mineralized
standard and one blank sample in each batch of 20 samples (at a
rate of 5% of submitted samples). The gold analyses were by
fire-assay on 30 grams of pulp.
Qualified Person The technical and scientific
information in this press release has been reviewed, verified and
approved by Andrew Cheatle, P.Geo., who is a Qualified Person as
defined by NI 43-101.
For more information, please contact:
Stephan Theron President and Chief Executive Officer Telephone:
(416) 861-1685 E-mail: stheron@africangoldgroup.com
Cautionary statements
Mineral Resources are not Mineral Reserves and
do not have demonstrated economic viability. There is no certainty
that all or any part of Mineral Resources will be converted to
Mineral Reserves. Inferred Mineral Resources have a lower
level of confidence that that applied to an Indicated Mineral
Resource and must not be converted to a Mineral Reserve. Quantity
and grades are estimates and are rounded to reflect the fact that
the Mineral Resource Estimate is an approximation.
This 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 impact of drill results and
mineral resources estimate on the Company, the projected economics
of the project, and the Company’s understanding of the project;
statements with respect to the development potential and timetable
of the project; the estimation of mineral resources; realization of
mineral resource estimates; the timing and amount of estimated
future exploration; costs of future activities; capital and
operating expenditures; success of exploration activities;
government regulation of mining operations; and environmental risks
and the receipt of any required regulatory approvals.
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.
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