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African Gold Group, Inc. Step-Out Holes Intercept 102 Meters of 1.00 g/t Au from Surface, Ending in Mineralization and 45 Meters of 1.57 g/t Au-Kobada, Mali Continues to Grow

16.11.2010  |  Marketwire

TORONTO, ONTARIO -- (Marketwire) -- 11/16/10 -- African Gold Group, Inc., (TSX VENTURE: AGG) ('AGG' or the 'Company') is pleased to report the analytical results for 4 near surface step out, reverse circulation ('RC') drill holes from AGG's Kobada, Mali gold project.


These 4 holes, drilled on section 2700S, represent a step out of approximately 100 meters south of section 2600S, representing the southern extremity of the mineralized envelope that contains AGG's historical 43-101 initial resources estimate of approximately 740,000 oz's Au at an average grade of 1.25 g/t Au (visit www.africangoldgroup.com).


Table 1 below depicts the significant intercepts from the four near surface, step out drill holes being reported in this release. A drill hole location map can be viewed by activating the link: http://media3.marketwire.com/docs/AGGDHPM.pdf.


TABLE 1



----------------------------------------------------------------------------
Hole From To L Au EOH Degrees Hole
Section ID (m) (m) (m) (g/t) (m) TN objective
----------------------------------------------------------------------------
2700S Southern Step
RPA10-007 5 20 15 0.6 290 Out
Hole Ended In
31 102 71 0.63 102 Mineralization
----------------------------------------------------------------------------
2700S Southern Step
RPA10-007A 4 7 3 1.38 195 Out
26 29 3 0.44
38 41 3 0.49
Hole Ended In
70 102 32 0.56 102 Mineralization
----------------------------------------------------------------------------
2700S Southern Step
RPA10-008 1 4 3 0.34 290 Out
13 58 45 1.57
including 20 21 1 11.56
69 104 35 0.68
112 116 4 0.34 117
----------------------------------------------------------------------------
2700S Step Out,
Ended In
RPA10-008A 0 102 102 1.00 102 195 Mineralization
----------------------------------------------------------------------------
Notes:

1) In-fill holes drilled a N290 degrees azimuth are perpendicular to
Zone 1 strike

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

3) Significant drilled intercept have a minimum length of 3m at 0.3
g/t or the product 'Length X Grade' greater than 0.9 g.m/t

4) Up to 5m of horizontal 'waste' included within mineralized
intercept


AGG believes the significance of today's 4 step out holes, drilled on section 2700S, should be viewed within the context of the 6 step-out holes the Company reported on August 31, 2010. Collectively, these 10 holes represent three distinct fences, drilled 50 meters apart on sections 2700S (today's release), 2750S and 2800S (Aug. 31, 2010 release). Activate Link to view August 31, 2010 press release. http://africangoldgroup.com/index.php?option=com_content&view=category&id=47&Itemid=100


When the four step out holes being reported today are examined within the context of the six step out holes reported on Aug 31 (2010), we are conclusively demonstrating that this new zone of gold mineralization is:



-- considerably outside of the current 43-101 resource model;


and



-- a revised 43-101 model should reflect a substantial increase in tonnage
and ounces Au, derived from the inclusion of the southern extension of
Zone 1, alone.


Table 2 below depicts the significant intercepts from four of six near surface, step out drill holes drilled on section 2750S and 2800S, reported in AGG's August 31, 2010 press release.


TABLE 2



----------------------------------------------------------------------------
From To L Au EOH Degrees Hole
Section Hole ID (m) (m) (m) (g/t) (m) TN objective
----------------------------------------------------------------------------
2750S Test for
southern
RPA10-005 15 32 17 1.06 290 extension
2750S RPA10-005 38 41 3 0.55
2750S Hole ended in
RPA10-005 50 53 3 0.53 mineralization
2750S RPA10-005 73 110 37 1.47 110
2750S including 82 87 5 7.48
----------------------------------------------------------------------------
2750S Test for
southern
RPA10-006 2 17 15 0.37 290 extension
2750S RPA10-006 35 53 18 1.18
2750S Hole ended in
RPA10-006 62 67 5 0.64 mineralization
2750S RPA10-006 76 102 26 1.09 102
----------------------------------------------------------------------------
2800S Test for
southern
RPA10-002 20 23 3 1.57 290 extension
----------------------------------------------------------------------------
2800S RPA10-002 66 95 29 0.67
----------------------------------------------------------------------------
2800S RPA10-002 112 115 3 0.31 119
----------------------------------------------------------------------------

----------------------------------------------------------------------------
2800S Test for
southern
RPA10-003 0 17 17 1.65 290 extension
----------------------------------------------------------------------------
2800S RPA10-003 31 75 44 2.11 75
----------------------------------------------------------------------------
2800S Hole Ended In
including 35 38 3 19.30 Mineralization
----------------------------------------------------------------------------


'We are most encouraged with these southern step out holes and eager to continue expanding the southern potential of Zone 1. The collective results of our drilling on sections 2700S, 2750S and 2800S clearly demonstrates we are wide open to the west and south of the current 43-101 resource model. Also, we note our holes are quite often ending in mineralization and therefore, we remain open at depth. Further drill testing of this region will represent one of our highest priorities commencing in January, 2011,' states AGG President and Director, 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).


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 the Company's website at www.africangoldgroup.com and on www.sedar.com and through the Company's offices at: Sun Life Financial Tower, Suite 2518, 150 King St. West, Toronto, Canada M5H 1J9


On Behalf of the Board:


Michael A. J. Nikiforuk, President, Director


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts:

African Gold Group, Inc.

Michael A. J. Nikiforuk

(416) 644-8892 ext 101
info@africangoldgroup.com
www.africangoldgroup.com



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