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Drills Continue to Intersect Gold Mineralized Zones, Including High Grade Veins & Visible Gold

18 November 2004

African Gold Group, Inc., is pleased to report the results of diamond drill holes 13 through 24, representing the balance of results for the first 24 holes drilled to date at AGG’s Mankranho concession, located in Ghana, West Africa. All results represent analysis performed by Eco-Tech Labs of Kamloops, Canada.

Highlights

AGG continues to be encouraged with the results from the initial portion of the Phase I drilling program located within Area I of the Mankranho concession . In particular:

- Area I North:  widths up to     16.48 metres at 2.82 g/t gold;
                 including up to  1.50 metres at 43.40 g/t gold;
                 and              1.48 metres at 26.60 g/t gold

The Mankranho concession is located at the north-eastern end of the Sefwi Gold Belt in Ghana and lies along strike and contiguous to Newmont Mining Corp.’s (“Newmont”) 9.1 Moz Ahafo gold project, where production has been scheduled for Q3, 2006. The Mankranho concession has been subdivided into four separate areas (Area’s 1, 2, 3 and 4) based on historical and/or current soil sampling, pitting, trenching, ground magnetic and IP geophysics (see attached map).

Mr. Greg Hawkins, P. Geo., a director of AGG, stated that, “the continuity of mineralized sections along strike and to depth is very encouraging with results supporting the notion of fold and fault controlled gold. While much needs to be done to fully understand what controls the economic concentrations, the broad widths of mineralization, isolated high-grade gold veins and numerous occurrences of visible gold all support the expectation of developing the broad economic grades encountered in the same geologic environments by Newmont at their Ahafo project, to our immediate south.”

AREA I

All 24 of the diamond drill holes to date were concentrated within sub-regions of Area I. Diamond drill holes 13 through 17, plus holes 23 and 24 were collared in the sub region designated, “Area I – North.” Diamond drill holes 18 through 22 were collared in the sub-region designated the, “Boundary Zone”, located on the south western flank of the AGG-Newmont (Mankranho-Ahafo) common border (see attached map). The 24 holes drilled to date represent 64.45% of the budgeted 10,000 metre diamond drilling program that comprises a part of the Phase I exploration program at the Mankranho concession.

As previously stated, these diamond drill holes were selected in order

to gain a better understanding of:

 

  • The geological signature of the region;
  • The orientation of the geological structure; and
  • The geological features that control mineralization in the region.

 

As detailed in the Company’s Press Release dated November 09, 2004, the broad, lower grade gold-bearing zones intersected in Area I occur typically within tuffs and argillites exhibiting ductile deformation. Data from the initial drilling (i.e., core orientation data) in addition to newly acquired geophysics and satellite remote sensing data will greatly assist in a more detailed structural interpretation of the region. The results of this exercise will be utilized to focus future drilling on the identification and delineation of brittle deformation structures which commonly host the majority of lode gold deposits in the Ahafo area (i.e., large scale faults, extensive shear zones or fold hinges).

Area I – North

Area I North is located in the northeastern region of Area I. A total of 6 of the 24 drill holes (holes 2, 4, 5, 8, 9, & 11) were the focus of the Company’s press release dated November 09, 2004. These drill holes tested 200 metres of strike under trenches T5 (historic results included 1,321 ppb gold over 12 metres) and T6 (historic results included 1,062 ppb gold over 21 metres). Drill hole results reported in today’s press release represent testing of other geochemical, geophysical and structural targets beyond Trenches 5 and 6, within the Area I – North region (refer to map).

Gold mineralization in Area I North appears to be associated with multi-phase quartz veining including vein swarms/quartz flooding +/- carbonate, disseminated fine-grained pyrite, thin shear zones, and quartz-sericite-pyrite alteration zones.

Significant Intersections: Area I North

Results are tabulated based on the section line on which they were drilled. These section lines correspond to the existing or historical survey grid.

Section 129+00E
----------------------------------------------------------
                          Interval (m)             
Hole          ---------------------------------   Au (g/t)
                From          To         Length
----------------------------------------------------------
----------------------------------------------------------
MN04-13        56.50       58.00           1.50       0.56
              166.90      168.03           1.13       0.58
              187.25      194.49           7.24       0.56
              191.48      193.00           1.52       1.85
              325.50      333.00           7.50       0.31
----------------------------------------------------------


Section 131+00E
Trench 13: 0.48 g/t Au over 6 metres, including 1.43 g/t
Au over 2 metres
----------------------------------------------------------
                          Interval (m)             
Hole          ---------------------------------   Au (g/t)
                From          To         Length
----------------------------------------------------------
----------------------------------------------------------
MN04-14        75.00       76.50           1.50       0.44
----------------------------------------------------------


Section 133+00E
----------------------------------------------------------
                          Interval (m)             
Hole          ---------------------------------   Au (g/t)
                From          To         Length
----------------------------------------------------------
----------------------------------------------------------
MN04-17              No significant intersections
----------------------------------------------------------
MN04-23              No significant intersections
----------------------------------------------------------
MN04-24        59.00       60.50           1.50       0.31
               75.50       78.72           3.22       1.42
incl           78.55       78.72           0.17      20.50
----------------------------------------------------------
Hole MN04-24 was drilled oblique to the section, toward 
section 134+00E to intersect the possible strike extensions
of the gold-bearing veins encountered in drill holes MN04-15 
and MN04-16 (Section 134+00E).


Section 134+00E
Trench 4: 0.42 g/t Au over 2 metres; composite chip sample 
of quartz vein material with 6.09 g/t over 2.50 metres
----------------------------------------------------------
                          Interval (m)             
Hole          ---------------------------------   Au (g/t)
                From          To         Length
----------------------------------------------------------
----------------------------------------------------------
MN04-15        62.50       68.50           6.00       0.68
----------------------------------------------------------
               95.50      111.98          16.48       2.82
incl          110.50      111.98           1.48      26.60
              122.50      124.00           1.50       0.53
              158.50      160.00           1.50      43.40
----------------------------------------------------------
MN04-16       116.15      117.65           1.50       0.33
              122.30      128.30           6.00       0.47
              159.00      160.50           1.50       0.92
              165.00      166.50           1.50       0.51
              178.50      180.00           1.50       0.38
              206.00      221.65          15.65       0.87
incl          209.00      209.50           0.50      14.80
----------------------------------------------------------

Area I – Boundary Zone

The Area I – Boundary zone is situated close to the AGG-Newmont (Mankranho-Ahafo) concession boundary. This area was identified by soil sampling and the completion of a 150 metre follow up trench, T19 (refer to map). Channel sample results taken from saprolite exposed in T19 returned an anomalous zone of 2,149 ppb gold over 10 metres, including a higher grade core of 5,413 ppb gold over 3 metres.

Significant Intersections: Area I - Boundary Zone
----------------------------------------------------------
                          Interval (m)             
Hole          ---------------------------------   Au (g/t)
                From          To         Length
----------------------------------------------------------
----------------------------------------------------------
MN04-18        61.00       62.50           1.50       1.83
----------------------------------------------------------
MN04-19        86.00       87.50           1.50       0.51
              233.10      234.28           1.18       0.48
----------------------------------------------------------
MN04-20       197.30      198.80           1.50       0.30
----------------------------------------------------------
MN04-21       267.31      268.80           1.49       0.82
----------------------------------------------------------
MN04-22       220.50      222.00           1.50       0.78
----------------------------------------------------------

Drill hole MN04-18 tested Trench 19 at depth. Drill hole MN04-19 tested the strike potential 100 metres to the west of hole 18. Drill holes MN04-20, 21 and 22 tested the strike potential 100 metres to the east of hole 18 and were set up as a fence at 125 metre spacings.

This press release has been reviewed and approved by Christopher O. Naas, P. Geo., a Qualified Person.

African Gold Group, Inc., based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects situated along significant gold trends in Ghana, West Africa. The Company’s immediate focus is to systematically explore both surface, and in particular, subsurface targets along three major gold trends: the Sefwi, Asankrangwa and Ashanti Gold Belts.

Additional Information is available on www.sedar.com or at

AFRICAN GOLD GROUP INC.

151 Yonge St.
11th Floor
Toronto, Ontario
M5C 2W7

Phone: 647-775-8538
Fax: 647-775-8301

Neither the 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.