African Gold Group, Inc., (“AGG” or the “Company“) is pleased to report that it has received an interim exploration report from Newmont Ghana Gold Limited, (“NGGL” or “Newmont“), a subsidiary of Newmont Mining Corporation (NYSE:NEM), that details Newmont’s ongoing work at AGG’s Mankranho, Ghana gold concession.
On October 23, 2008, AGG issued a press release announcing the commercial terms of an Option Agreement and a Venture Agreement that would provide for NGGL to earn up to a 70% interest in AGG’s Mankranho, Ghana concession, in consideration of NGGL’s expending up to US$8,000,000 on Mankranho exploration.
The 107.24 sq km Mankranho concession is located in the Brong Ahafo region of Ghana and is situated at the north-eastern end of the Sefwi Gold Belt. Mankranho shares nine common borders and surrounds the northern extension of Newmont’s Ahafo project on three sides. As at December 31st, 2008 Newmont provided guidance that the Ahafo Gold District contained 9.4 million ounces of gold. Ahafo commenced production in July, 2006, following the construction of an 8.4 million ton/year CIL treatment plant. As at June 30, 2009 Newmont forecast 500,000 — 525,000 ounces of equity gold sales for Ahafo for 2009.
RECENT EXPLORATION ACTIVITIES BY NEWMONT
Newmont’s ongoing exploration program consists of comprehensive structural/geological mapping and an IP survey that are focused on generating additional exploration targets, including drill targets.
A regolith map covering the entire Mankranho tenement (107.24sq.km) has been completed by Newmont using largely remote sensing techniques.
The Mankranho tenement features a variety of regolith regimes broadly categorized into: Ferruginous, Residual, Erosional and Depositional Regimes.
Pole-Dipole Induced Polarization (IP) Survey
Data collection for the pole-dipole IP survey is currently ongoing on the Mankranho concession as part of the overall target generation program. To date, 84 km of line cutting; 21 km of Gradient Array and 1.2 km of Pole-Dipole IP/Resistivity Surveys have been completed. The lines were oriented at the same bearing as AGG’s soil grid.
The objective of the IP survey is to map out the disseminated sulphide (mainly pyrite) halo and resistive features that are typically associated with thrust fault/shear zone at the northern extension of the Yamfo-Kenyase structurally controlled mineralized system. IP Work remains ongoing.
Mankranho IP Chargeability
Mankranho IP Resistivity
Structural and Geological Mapping
Work has advanced on structural and geological mapping at Mankranho. The mapping program was aimed at establishing the structural architecture; styles of deformation as well as deposit and regional scale controls on gold.
Extensions of the structures that host the Yamfo North-East and Subenso North deposits have been mapped within the Mankranho tenement. Approximately 20 sq km of geological and structural mapping on Mankranho has been completed, to date.
Future Work Program
Optimum targets generated through the ongoing IP survey and structural/geological mapping, taking into consideration the regolith and all available datasets are anticipated to be drilled tested, in due course.
As stated in AGG’s October 23, 2008 press release: “Mankranho is ideally situated to benefit from its proximity to Newmont’s considerable infrastructure at Ahafo. We are pleased that we concluded the Option and Venture Agreements with Newmont and will continue to eagerly await the results of their ongoing exploration initiatives, recognizing that NGGL’s regional expertise and knowledge of the Sefwi Belt is without comparison.” States AGG President, Michael A. Nikiforuk.
This portion of the Press Release has been reviewed and approved by Newmont.
Kobada, Mali & Asankrangwa, Ghana Update
AGG is pleased to report that the Company continues to evaluate its options with respect to the separate interest expressed by distinct parties regarding the co-development of AGG’s Kobada, Mali and Asankrangwa, Ghana gold projects. The Company is focused on creating shareholder value through the future individual development of both gold projects.
AGG announces that, subject to regulatory approval, it has agreed to grant a certain director of AGG a total of 125,000 incentive stock options at an exercise price of $0.41 per share for a period of five (5) years from the date of issue, being October 22, 2009.
African Gold Group, Inc., based in Toronto, Canada, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within West Africa. To date, the Company controls a total of twelve gold concessions that are consolidated in five distinct standalone exploration projects, of which three projects are located in Ghana and the remaining two are located in Mali, West Africa.
Additional Information is available on www.sedar.com or at
AFRICAN GOLD GROUP INC.
151 Yonge St.
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