African Gold Group, Inc., is pleased to report that a meeting between senior officials of Newmont Ghana Gold Limited, (“Newmont”) the Ghanaian subsidiary of Newmont Mining Corporation and African Gold Group, Inc. was convened on Thursday, June 02, 2005, at the request of Newmont, in Accra, Ghana.
Newmont has formally requested permission, in a letter dated May 30, 2005, to enter Area I and Area IV of AGG’s Mankranho concession, for the sole purpose of placing current electrodes on AGG ground, that will facilitate conducting an IP geophysical survey of Newmont’s tenements between Adrobaa and Bisi, in August, 2005.
The above mentioned tenements, associated with the proposed survey, share 3 common borders with AGG’s Mankranho concession, which explains Newmont’s need to position the electrodes on AGG ground (see attached map).
AGG has advised that it is pleased to grant Newmont permission to put current electrodes on its concession for the purpose of conducting the IP survey of the Adrobaa-Bisi tenements. AGG has requested that in the event Newmont collects geophysical data that relates to its Mankranho concession, as a result of the survey, that Newmont will share this data with AGG.
In addition, Newmont Ghana Gold Limited has generously extended an invitation to AGG geologists to visit its Ahafo offices at Techere and Subenso in order to examine a variety of geological data that Newmont has compiled as a result of its ongoing exploration programs at Ahafo.
The Ahafo project, located on the Sefwi gold belt in Ghana, West Africa, represents Newmont’s biggest development project in the world. To date, 11 ore bodies have been identified over a 48 km strike length. Testing for underground potential is underway.
Current reserves at Ahafo are stated at 10.6 million ounces. A US$425 million milling facility is under construction with production of approximately 525,000 ounces per annum scheduled for Q3 2006, at a total cash cost/oz of $200. Newmont’s engineering studies continue to focus on maximizing returns and optimizing mine life, including the evaluation of constructing a second milling facility that would process reserves located in the northern segment of Ahafo (1).
African Gold Group’s Mankranho concession is located at the north-eastern end of the Sefwi Gold Belt in Ghana, West Africa. The concession lies along strike and contiguous to Newmont’s 10.6 Moz Ahafo project and represents the mineralized northern extension of Ahafo.
AGG is encouraged with the level of exploration activity that continues within proximity of its concession borders. Over the past several months AGG has undertaken and concluded:
- The structural analysis of 6,445 meters of core derived from drilling 24 holes within a 2,500 meter x 1,500 meter vicinity of Area I (see map)
- Additional geo-chemical surveys throughout the concession
- Additional pitting and trenching programs
- 3-D IP geophysical surveys throughout the concession
The Company is currently compiling the composite data generated from these programs with the intention of prioritizing future drill targets and will report the results of the exercise to shareholders in the near future.
The Company is pleased to report that it has earned an 85% direct interest in the Mankranho concession as a direct result of the above mentioned exploration initiatives. 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 Wasa-Akyem Gold Belts.
(1) Source: Newmont Mining Corporation – www.newmont.com
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AFRICAN GOLD GROUP INC.
151 Yonge St.
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