African Gold Group, Inc., is pleased to report that diamond drilling at the Company’s Mankranho concession, in Ghana, West Africa, is scheduled to resume imminently.
The Mankranho concession is located at the northeastern end of the Sefwi Gold Belt in Ghana and lies along strike and contiguous to Newmont Mining Corp.’s (“Newmont”) 10.6 M oz Ahafo gold project, where a US$425 million plant is being constructed and production has been scheduled for Q3, 2006. The Mankrahno concession has been subdivided into four separate areas (Area’s I, II, III and IV) based on historical and current soil sampling, pitting, trenching, ground magnetic and IP geophysics (see attached map).
The decision to resume drilling follows the compilation and thorough review of a technical report that details AGG’s Phase I and II exploration programs on the Mankranho concession to date.
Mr. Greg Hawkins, P. Geo., a director of AGG, said, “Our resumption of diamond drilling will focus on priority targets generated by IP surveys that have delineated 2 distinct, deep, coincident, high resistivity (+2,000 ohm/m) and high chargeability targets (+15 msecs) located within both Area I — South and Area I – North. We intend to drill down dip of the already established zones of gold mineralization to test these targets to a depth of approximately 300 vertical metres. A third target, exhibiting similar geophysical characteristics, has been identified in Area II, and will be the first diamond drill hole in this region. We anticipate drilling a total of 1,000 meters to test these 3 high priority geophysical targets. This program is consistent with the exploration model previously established by both Normandy and Newmont in the exploration of their Ahafo licenses to our immediate south. No delays are anticipated in initiating this exercise.”
The Company’s Phase I exploration program (May, 2004 – December, 2004) consisted of
the following initiatives:
- Grid establishment: 316.99 line-km (23.83 line-km baseline and 293.16 line-km, cross lines);
- Soil sampling: 10,453 samples;
- GPS surveying: 316.99 line-km;
- Airborne geophysical acquisition and interpretation;
- Ground magnetic surveying: 308.70 line-km;
- Induced polarization orientation survey: 10.25 line-km gradient and 2D;
- Pitting and trenching: 97 pits, 10 trenches, 1,406 samples;
- Auger sampling: 13 holes, 56 samples;
- Diamond drilling: 24 holes totaling 6,455.65 metres (2,747 samples);
These initial 24 diamond drill holes represent the first core recovered from the concession and were selected in order to gain a better understanding of:
- The geological signature of the region encompassed by Area I of the Mankranho concession;
- The orientation of the geological structure;
- The geological features that control mineralization in the region.
The company was encouraged by the diamond drill results as 22 of the 24 initial drill holes intersected gold mineralization. The holes were concentrated within a 2,500 metre x 1,500 metre region of Area I, within the 108 sq. km Mankranho concession. AGG’s technical personnel noted, “The continuity of mineralized sections along strike and to depth is very encouraging and results support the notion of fold and fault-controlled gold. Although 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 south.”
Drill highlights from holes 1 through 24 include:
- Area I North: MN04 02: widths up to 18.62 metres at 1.25 g/t Au
- MN04 15: widths up to 16.48 metres at 2.82 g/t Au
- including up to 1.5 metres at 43.40 g/t Au
- and 1.48 metres at 26.60 g/t Au
- Area I South: MN04 03: 15.98 metres at 1.86 g/t Au
- including up to 5.35 metres of 2.22 g/t Au
The Company’s Phase II exploration program commenced January, 2005, and continued intermittently through August, 2005. This program focused on the follow-up of soil geochemical anomalies primarily in Areas II and IV by trenching, pitting and augering. A structural geology study was also undertaken to further define the structural setting of the Mankranho concession. Thin section analysis on selected core samples was also received. Exploration totals for this phase are:
- Grid establishment: 10.25 line-km;
- Soil sampling: 704 samples;
- GPS surveying: 10.25 line-km;
- Ground magnetic survey interpretation;
- Induced polarization (3D) survey: 68.1 line-km;
- Trenching and pitting: 8 trenches, 2 pits, 605 samples (520 horizontal, 79 vertical, 6 grab);
- Pit re-sampling: 37 pits, 111 samples (85 horizontal, 26 vertical);
- Rock sampling: 2 grab;
- Auger sampling: 139 holes, 525 samples;
- Structural geological evaluation; and,
- Thin section analysis.
As stated in the Company’s press releases of July 13 and August 2, 2005, AGG has mobilized to commence drilling its Kobada concession in Mali, West Africa. All equipment and personnel remain in place, on standby in Bamako, Mali. AGG has engaged Boart Longyear to undertake a 1,000 metre diamond drill program that is intended to verify drill results previously generated by the BRGM and Cominor S.A.
“Previous work, totaling approximately €5,000,000, of which a considerable percentage was directed to the exploration of the Kobada concession, has indicated some very encouraging results from both diamond and RC drill programs. In order to report on those results to an acceptable standard, AGG will be undertaking a confirmation of the historical database by way of diamond drilling some twinned holes, as well as some deeper holes, to gain a better understanding of the as yet unexplored bedrock geology of the Kobada trend. Drilling to date has reached depths of 125 vertical meters without completely penetrating the saprolite horizon or intersecting bedrock. This is an unusual situation but one that bodes well for demonstrating a low-cost surface deposit, that will hopefully complement the deeper resource potential,”
AGG director, Greg Hawkins, P. Geo.
To date heavy rains and flooding have hampered access to the drill site. Alternative approaches to the Kobada concession are being evaluated and the program will proceed as soon as it is logistically possible.
AGG is embarking on the next phase of its planned development in both Ghana and Mali by focusing on converting known gold potential into resources, initially at Mankranho, Ghana and Kobada, Mali and subsequently at Nyankumasi, Ghana, in early 2006.
Nyankumasi has been the subject of a recent geochemical and geophysical survey that has identified an anomalous gold mineralized zone measuring approximately 4 km in strike length. A previous RC drill program, which consisted of 3 fences on 400-metre spacing was focused within a region of the anomalous zone and confirms the presence of gold mineralized zones of up to 40 metres depth.
Nyankumasi is located approximately 30 km south-southwest of Newmont’s 5.6 M oz Akyem gold project where construction of a US$525 million plant has been approved and production is scheduled for 2008.
African Gold Group, Inc., based in Toronto, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends in West Africa. The Company’s immediate focus is to systematically explore both surface, and in particular, subsurface targets that have been identified within the Company’s current portfolio of gold concessions.
Additional Information is available on www.sedar.com or at
AFRICAN GOLD GROUP INC.
151 Yonge St.
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