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Discovery Of New Gold Zone Located Up To 1.5 KM South-East Of Main “Zone 1” Deposit Intercepted At Kobada, Mali

3 February 2011

African Gold Group, Inc., is pleased to report the analytical results for 30 near surface (oxide) drill holes. All holes were collared approximately 300 to 600 meters east and up to 1.5 km south of the Kobada gold projects main “Zone 1” gold deposit. Four widely spaced fences were drilled at azimuth 290 degrees over a total of 840 meters of strike length. In addition, a single fence of six north directed holes were drilled at azimuth 17 degrees over approximately 330 meters of strike length to evaluate potential gold bearing east-west (E-W) striking tension gashes.

The newly discovered zone of gold mineralization has been aptly named, “The Termite Zone,” due to geochemical sampling and analysis of large termite mounds located within the region that returned anomalous values of gold that resulted in the establishment of the drill targets that are being reported in this release.

Near Surface (Oxide) Drill Highlights Include:

  • KBRC10-025:  12 m @ 2.70 g/t Au
  • KBRC10-023:    8 m @ 1.25 g/t Au
  • KBRC07-108:    3 m @ 9.16 g/t Au
  • KBRC10-026:  26 m @ 0.61 g/t Au
  • KBRC10-027:    9 m @ 0.96 g/t Au
  • KBRC10-029:  15 m @ 0.6 g/t Au
  • KBD045: 30 m @ 0.6 g/t Au

The assay results depicting the 30 near surface (oxide) step-out drill holes from within the newly discovered Termite Zone are listed in Table 1 below:

Section Hole ID From (m) To (m) Length (m) Au (g/t) EOH (m) Degrees (tn) Hole Objective
3000S

 

KBRC10-023

including

108

116

124

124

16

8

0,73

1.25

126

 

290

 

Testing Geochermical Anaomaly – Termite Zone

 

3000S

 

KBRC10-025

 

87

113

95

116

12

3

2.7

0.53

126

 

Testing Geochermical Anaomaly – Termite Zone

 

3320S

 

KBRC10-020

 

47

78

50

81

3

3

0.51

0.38

 

108

290

 

Testing Geochermical Anaomaly – Termite Zone

 

3320S KBRC10-021 18 22 4 0.87 126 290 Testing Geochermical Anaomaly – Termite Zone
3320S

 

 

KBRC10-022

 

 

69

83

112

73

86

115

4

3

3

1.11

0.35

0.30

 

 

126

290

 

 

Testing Geochermical Anaomaly – Termite Zone

 

 

3340S

 

KBRC10-031

 

58

97

61

100

3

3

0.87

0.54

 

116

17

 

Testing Tension Gash – Termite Zone

 

3450S KBRC10-029 0 15 15 0.60 125 17 Testing Tension Gash – Termite Zone
3520S

 

 

 

KBRC10-028

 

 

 

21

46

74

109

26

49

77

112

5

3

3

3

0.58

0.35

0.37

0.45

 

 

 

125

17

 

 

 

Testing Tension Gash – Termite Zone

 

 

 

3600S

 

 

KBRC10-027

 

 

23

38

99

26

47

102

3

9

3

0.92

0.96

0.35

 

 

125

17

 

 

Testing Tension Gash – Termite Zone

 

 

3650S KBRC10-026 101 125 24 0.62 125 17 Testing Tension Gash – Termite Zone
3700S

 

KBRC10-016

 

12

14

16

15

4

1

4.45

12.28

 

126

290

 

Testing Geochermical Anaomaly – Termite Zone
3350S KBRC10-018 97 108 11 1.17 126 290 Testing Geochermical Anaomaly – Termite Zone
3350S KBRC07-108* 85 88 3 9.16 100 290 Testing Orpaillage Anaomaly – Termite Zone
3350S KBRC07-109* 0 5 5 1.564 100 290 Testing Orpaillage Anaomaly – Termite Zone
3350S KBRC07-110* 53 56 3 0.41 100 290 Testing Orpaillage Anaomaly – Termite Zone
3600S

 

KBD43*

 

37

93

53

97

16

4

0.473

0.465

100

 

290

 

3600S KBD44* 27 57 30 0.595 100 290
3840S KBD26* 63 69 6 1.403 100 290
KBRC10-24, 30, 15, 17 ,19 & KBRC07-107 & KBD42, 45, 47, 48, 49, & 50 – No signifigant mineralization

Notes:

1) In-fill holes drilled other than 290  azimuth are designed to test for the density of occurrence of mineralized tension gashes perpendicular to Zone 1 strike

2) Significant drilled intercepts have a minimum length of 3m at 0.3 g/t or the product “Length X Grade” greater than 0.9 g.m/t

3) Up to 5m of horizontal “waste” included within mineralized intercept

4)* Denotes historical regional drill holes that preceded AGG’s 2010 drill campaign

“We are most encouraged with the development potential of the southern region of our Kobada gold project. On November 16th, 2010 AGG announced the results of Zone 1 southern extension drill holes that were collared to the south of the most southerly extent of the 43-101 mineralized envelope. One of the highlight holes included hole RPA10-008A, which intercepted 102 meters of 1.0 g/t Au. This hole intercepted gold from the collar and ended in mineralization at the completion depth of 102 meters. Similarly, on August 31, 2010 we announced southern extension holes RPA10-003, -005 and -006 which intercepted, 44m @ 2.11 g/t Au, including 3m @ 19.30 g/t Au; 37m @ 1.47 g/t Au, including 5m @ 7.48 g/t Au and 26m @ 1.09 g/t Au, respectively. All three of these Zone 1 southern extension holes ended in mineralization. In addition, our 2010 drill program has also confirmed that the most northern region of the Zone 1 deposit remains open along strike.

The Termite Zone represents a separate and distinct structure that lies up to 1,500 meters south of and between 300 to 600 meters east of the North 20 degrees East (N20E) trend of the Zone 1 main gold deposit as is demonstrated in the map below:

Click here to download PDF of map

At present, our understanding of the Termite Zone region has yet to reach a level from which we can draw conclusions about the ultimate potential of the area. It may be that the mineralization intersected at depth in KBRC10-018 and KBRC10-026 are connected, as low angle veins have also been observed in Zone 1.  If this is the case, we may be at the north end of another pod of mineralization. Regardless, all tonnes and ounces that emanate from the Termite Zone could be accurately categorized as incremental ounces that will ultimately complement the main Zone 1 gold deposit. Our Kobada gold project continues to grow,” states AGG President, Michael A. Nikiforuk.

Under the guidelines of National Instrument 43-101, the qualified person for the Kobada Gold Project is Mr. Pierre Lalande, P. Geo. Mr. Lalande is a member of the Association of Professional Geoscientists of Ontario and has reviewed and approved the contents of this news release.

 

Sampling – QA/QC Program

 

RC cuttings are recovered at the bottom outlet of the RC rig cyclone into 50-kg capacity poly-weave bags to recover the cuttings from each 1 meter of drill penetration.  Each one meter sample weighs an average of approximately 19 to 23 kg.  Each sample is passed through a 3-tier Jones Riffler (1 to 8 split), the samples are riffled twice to obtain from 3 to 5 kg of cuttings which are put in a numbered sample bag. Each bag is sealed and dispatched to the ALS Chemex laboratory located in Burkina Faso.  The remaining 14 to 18 kg of cuttings (field rejects) are stored in camp under tarps to protect the bags against the elements.

Original samples are analyzed using Leachwell on 2 kg of pulp.  Leachwell is a bottle roll cyanidation procedure with the addition of a catalyst to speed up gold dissolution.  A QA/QC program is in place and includes:  blank (1 in 20 samples), duplicates (1 in 20), standards (1 in 20), external lab checks (1 in 30) and two different analytical procedures check (1 in 100).

Corporate Update

AGG’s 2011 drill campaign at Kobada, Mali is well underway. The Company has recently completed a significant trench program that is anticipated to guide southern extension drilling an additional kilometer south of the RPA10-003 zone which itself is 200 meters south of the southern extent of the 43-101 mineralized envelope. A complete update of the ongoing exploration and development work at Kobada will form the basis of a separate press release, in the near future.

AGG’s 2011 Asankrangwa, Ghana exploration program is well underway and the Company remains confident that it will achieve its drill commencement target date of April, 2011. An update on Ghana progress, including a discussion on the 11 newly identified structural targets that were identified in the high resolution helicopter airborne geophysical survey, will form the basis of a separate press release, in the near future.

The Company is pleased to advise that Dr. Kevin Downing, senior structural geologist, has been appointed Vice President, Exploration. Since joining AGG, approximately one year ago, Kevin has demonstrated exemplary leadership, diligence in the understanding and advancement of our Kobada gold project and a desire and dedication to move our Company forward. Kevin will continue to report to AGG Director, Mr. Pierre Lalande, P. Geo. and to AGG President, Michael Nikiforuk.

 

Finally, the Company is pleased to report that as per its press release of January 20, 2011,   $225,000 of  directors and officers loans have been repaid to the Company, leaving an outstanding loan  balance of $70,000 that is fully secured and it is anticipated will be repaid, in the very near term.

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 eleven gold concessions that are consolidated in four distinct standalone exploration projects, of which three projects (Asankrangwa, Mankranho & Nyankumasi) are located in Ghana and one project (Kobada) is located in Mali, West Africa.

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