FEASIBILITY STUDY FOCUSED ON 1,500 T/D GRAVITY PLANT
African Gold Group, Inc., (“AGG” or the “Company”) is pleased to announce that a team of engineers, under the direction of Bumigeme Inc., is mobilizing to depart Canada, en-route to Mali, West Africa, with the specific objective of commencing and completing the metallurgical test work for AGG’s Kobada gold project. Completion of the metallurgical test work represents an important phase of work that is essential to concluding AGG’s Feasibility Study for a 1,500 tonne/day gravity (gold recovery) plant for Kobada.
Collectively, the total volume of 500 samples have been selected to emulate the deposit from surface down to fresh bedrock. More specifically, the metallurgical program will test and measure gold recoveries, utilizing the gravity pilot plant, from seven distinct zones of the deposit. The program will commence from surface with the testing of the lateritic hardpan (iron-rich surface of in situ material); followed by testing the mottle clay zone (the material immediately below the hardpan); continuing with depth, three distinct horizons of the saprolite will be tested (upper, middle and lower); followed by testing the transition zone and finally, at greatest depth from surface, the sulphide material contained within fresh bedrock. In essence, testing the seven distinct zones of the deposit will result in testing approximately 100 vertical meters of the deposit, on average, from surface.
It is important to note that 100% of the mineralized material from surface through to the lower saprolite horizon is completely oxidized. It is anticipated that the transition zone of the deposit will also be amenable to a gravity process of gold recovery as it is significantly oxidized. Of equal importance in anticipating a high gold recovery rate utilizing gravity processing at Kobada is the fact the oxide zone does not require grinding (only scrubbing). Furthermore, all previous metallurgical test work, including laboratory tests of bulk sample(s) and field testing of approximately 1,200 samples, with an average weight of 10 kg per sample, derived from RC drill cuttings from various layers of the deposit, have yielded high rates of gold recovery, utilizing gravity processing.
The three primary objectives of the metallurgical test program are to validate the following:
1. Demonstrate that analyzing the gold grade based on 1 to 1.5 metric tonne samples should result in a higher gold grade being reported as compared to analyzing the same drill interval based on 50 g FA and/or 2 kg Leachwell analysis. (It is important to increase both the “sample support” (volume of material) and “aliquot” (amount of material actually analyzed) to counteract the “nugget effect” at Kobada.)
2. Study and evaluate the gravimetric process for gold recovery for the Kobada project with a process that emulates commercial operation.
3. Validate the potential of an initial de-sliming stage, prior to treatment of the ore by gravitmetric process, which could result in reducing the size of the gravity plant by 50% to 60%. A reduction in the size of the gravity plant would result in a significant decrease in Capex and Opex costs associated with the concentrator.
AGG anticipates that the conclusion of the metallurgical test work and the associated analysis will coincide with Bumigeme’s completion of the Company’s Kobada Feasibility Study for a 1,500 tonne/day gravity plant. The Company will provide further guidance on the actual timing of the completion of the Kobada Feasibility Study and its submission to the Mali Ministry of Mines, in conjunction with the submission of an application for a Exploitation (Mining) License, in due course.
AGG Director, Pierre Lalande P. Geo. comments, “On a technical note, a characteristic of the Kobada deposit is the significant amount of coarse gold that is contained within the deposit and surrounding environment. When one considers the extent of artisanal gold diggings, throughout Kobada, plus our preliminary metallurgical studies and the comparative results derived from our QA/QC programs, that form part of our drill campaigns dating back to 2005, one can conclude the collective evidence highlights the large statistical “nugget effect.” Lalande explains, “It is important to increase both the “sample support” (volume of material) and “aliquot” (amount of material actually analyzed) to counteract the “nugget effect” at Kobada. Since 2009, AGG commenced both a higher grid density of drilling with larger diameter holes and employed analytical procedures using larger amounts of material subjected to analysis (Leachwell on 2,000 g versus Fire Assay on 50 g). Our 2012 Feasibility Study drill program increased drill density to 25 meter centers from the 50 meter centers (reported in 2011). All drill analysis was based on 2,000 g Leachwell and it is this protocol combination that has resulted in AGG reporting a 10% increase in gold grade, relative to our 2011 resource estimate” continues Lalande.
Updated Resource Estimate Highlights (June 18, 2013)
- 2,306,000 Oz Au Measured and Indicated resources (contained within 80.61 million tonnes at 0.87 g/t Au using a 0.3 g/t Au cutoff) derived from drilling on 25m x 25m centers over a total of 3,200 meters of strike length between sections 600S and 3,800S, representing an 88% increase in infill drilled strike length relative to the 1,700 meters of strike length reported in the 2011 Inferred resource estimate.
- 542,000 Oz Au Inferred Resource (contained within 17.88 million tonnes at 0.94 g/t Au, using a 0.3 g/t Au cutoff), predominantly contained from within the Sulphide portion of Zone 1. Included, 186,000 Inferred ounces reported for the Foroko North Deposit (5.16 million tonnes at 1.13 g/t Au at a 0.3 g/t Au cutoff). Foroko North is a satellite deposit situated on a separate and distinct structure from Zone 1. It represents one of seven airborne geophysical targets generated by the 2010 airborne survey.
- Average grade of 0.87 g/t Au reported in the updated resources estimate represents a 10% increase in grade as compared to the average grade of 0.79 g/t Au reported in the 2011 resource estimate that formed part of AGG’s PEA.
- Further potential remains to significantly increase both the oxide and sulphide resources along strike and at depth for both Kobada, Zone 1 and Foroko North deposits and elsewhere on the 215 sq km concession where airborne geophysical and geochemical anomalies coincide with extensive areas of gold diggings.
AGG is pleased to announce that it has entered into an amendment agreement (the “Amendment Agreement”) to the investor relations consulting agreement originally entered into by AGG whereby AGG retained Torrey Hills Capital, Inc. (“Torrey Hills”). Cliff Mastricola is the principal of Torrey Hills and will continue to be responsible for activities related to AGG. Under the terms of the Amendment Agreement, Torrey Hills agrees to continue providing consulting services to AGG on a month-to-month basis while suspending the monthly cash fee payable by AGG to Torrey Hills until such time as both parties agree to recommencement of such fees. In addition, AGG has agreed to grant options to purchase 125,000 common shares of the Company (the “Options”) at a price of CDN$0.12 per common share for a period of two years from the date of grant. The Options shall be subject to the terms of the Company’s stock option plan and will vest in accordance with the provisions therein and the policies of the TSX Venture Exchange. The Company also announces that it has granted an aggregate of 2,100,000 incentive stock options to certain directors and officers of AGG to purchase common shares of the Company. The incentive stock options are exercisable at $0.12 per common share for a period of five (5) years from the date of issuance, being October 22, 2018.
African Gold Group, Inc., based in Toronto, Canada, is fully focused and committed to putting its Kobada, Mali gold project into production.
Additional Information is available on www.sedar.com or at
AFRICAN GOLD GROUP INC.
151 Yonge St.
Neither 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.
This press release includes certain “Forward-Looking Statements.” All statements, other than statements of historical fact included herein, including without limitation, statements regarding future plans and objectives of African Gold Group; and statements regarding the ability to develop and achieve production at Kobada are forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from African Gold Group’s expectations have been disclosed under the heading “Risk Factors” and elsewhere in African Gold Group’s documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities. African Gold Group disclaims any intention or obligation to update or revise any forward looking statements whether resulting from new information, future events or otherwise, except as required by applicable law.