African Gold Group, Inc., (“AGG” or the “Company”) is pleased to report the final results for the bulk sampling program at its wholly-owned Kobada Gold Project in Mali, West Africa. The program was designed to emulate the Kobada deposit from surface through to bedrock.
- Average bulk sample gold grade was 63% higher than assay data from the same drill hole intervals;
- Considering bulk sample data above a 0.4 g/t Au cutoff grade indicated that gold content was 76% greater than that provided from the assay data over the same drill hole intervals; and
- These results demonstrate that drill hole data alone is likely to under estimate gold content for the Kobada resource. Once a mining operation is established at Kobada, this trend is likely to result in positive reconciliations between resource estimates and actual gold production.
The average bulk sample size was 776 kg, with a total of 82 tonnes of material treated at AGG’s pilot plant at Kobada. The bulk sample comprised the retained residue from the 2012 Kobada RC drilling program, which was batched through the pilot plant as individual holes. The primary purpose of the test work was to demonstrate the effect that a large sample size has on the measured gold content. Each bulk sample represented 30 to 50 metres of drill hole length, and was compared to the composite of gold grades of the same drill hole interval previously established by leachwell analysis. This leachwell analysis was performed on a 2kg split of RC chips every one metre of the RC drill hole. Comparing the results for the entire 82 tonnes of material processed, the composite grade from drilling was 0.31 g/t Au while the average grade from the bulk sample was calculated to be 0.51 g/t Au, representing a 63% increase in contained gold. This is shown in Figure 1 with no Au cutoff grade applied to the bulk sample data (i.e. Cutoff = 0 g/t Au). It is important to note that the bulk sample contained material from RC drill holes that would be classified as waste or below an economic cutoff grade. Figure 1 illustrates that as the bulk sample data is filtered above increasingly higher grades (the bulk sample cutoff grade), the average grade of the bulk sample increases at a greater rate than the average grade of the drill hole data. This means that at estimated economic cutoff grades for a full scale mining project at Kobada, which is likely to be between 0.4 and 0.5g/t Au, the bulk sample data suggests that contained gold will be 76% to 94% greater than that indicated by the composited drill hole data.
The same data analysis is detailed in Table 1.
|Bulk sample cutoff:
|Pecentage of total sample size
|Bulk sample grade
|Drill hole composite grade
|Bulk sample to drill hole grade ratio
President and CEO of African Gold Group Mr. Declan Franzmann, FAusIMM, comments, “Results of this program demonstrated that there is a nugget effect associated with the Kobada resource, and that this will likely have a positive effect on the head grade for the project. The test work clearly demonstrated that at economic gold grades, the contained gold of the bulk sample was significantly greater than that estimated from drill hole assaying alone.”
“That said, it is AGG’s view that the feasibility study currently underway will consider a resource estimate from only the assay data of drill holes. AGG plans to update the resource estimate in the near future, once data from the current drill program has been processed. It is management’s belief that the grade and size of the Kobada resource is sufficient to be economic without the inclusion of data from this work. The nugget effect established in the bulk sample test work will likely result in positive reconciliations once mining of the project commences.”
AGG Director Mr. Pierre Lalande, P.Geo., comments, “It is important to note that lab analysis of drill intervals from within the lateritic hardpan zone overlying saprolite often averaged less than the 0.3 g/t Au, which is the cut-off grade for the Company’s 2013 mineral resource estimate. The bulk sample testing has demonstrated that this first 10 meters of the Kobada deposit is likely to significantly understate the contained gold endowment.”
Bulk Sample Methodology
Analytical results for the calculated gold grade were based on processing the individual composited bulk samples through AGG’s onsite pilot plant. This plant produced a gravity concentrate, a screen deck oversize and a tailing. Gold content of these three products was determined separately and combined to produce the calculated gold content of the bulk sample.
Representative samples of the feed material, plant screen oversize and tails and entire concentrates were sent for analysis at Activation Laboratories by 100-mesh metallics screened fire assay on 1000-g aliquot. One sample in 20 was further analyzed by Leachwell on 2,000-g aliquot as part of the QA/QC program.
The bulk sampling program was executed under the supervision of Mr. Florent Baril, P. Eng., Metallurgical Engineer. Mr. Baril is the CEO of Bumigeme Inc., a consulting engineering group, located in Montreal, Canada. Mr. Baril is a Qualified Persons under National Instrument 43-101 and has approved the technical information contained in this release.
About African Gold Group African Gold Group is a Canadian exploration and development company with a strong focus on West Africa. African Gold Group is positioned to grow in value as it progresses its Kobada Gold Project through a feasibility study, development and into production.
Additional Information is available on www.sedar.com or at
AFRICAN GOLD GROUP INC.
151 Yonge St.
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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.