African Gold Group, Inc. Southern Step-Out Hole KBRC11-043 Intercepts 52 Meters at 1.02 g/t Au. Step-Out Drilling Extends Gold Mineralization A Further 600 Meters South of Zone 1 Resource
TORONTO, ONTARIO -- (Marketwire) -- 09/14/11 -- African Gold Group, Inc., (TSX VENTURE: AGG)('AGG' or the 'Company') is pleased to report the analytical results for 38 near surface (oxide), reverse circulation (RC), step-out drill holes. All 38 step-out drill holes being reported in this release represent step-out drilling to the south of AGG's Zone 1, 43-101 resources estimate. All southern step-out holes, reported in this release, were collared between section 2700S and section 3400S. Step-out holes drilled on Section 3400S, represent the most southerly collared holes being reported in this release and are situated approximately 600 meters south of the Zone 1, 43-101 inferred resources estimate. Step-out drilling was patterned on widely spaced lines that measured approximately 200 meters apart with the sole objective of determining if gold mineralization continued beyond section 2800S, the most southern extent or border of the current 43-101 resources estimate.
Near Surface (Oxide) Drill Highlights Include:
KBRC11-043: 52 m at 1.02 g/t Au, incl 1 m at 10.14 g/t Au and 1 m at 10.96
g/t Au, ended in mineralization
KBRC11-103: 24 m at 1.56 g/t Au, incl 1 m at 17.52 g/t Au, ended in
mineralization
KBRC11-045: 47 m at 0.77 g/t Au
KBRC11-055: 35 m at 0.9 g/t Au, ended in mineralization,
KBRC11-056: 18 m at 1.18 g/t Au, incl 1 m at 13.16 g/t Au, hole ended in
mineralization
KBRC11-058: 21 m at 0.7 g/t Au
KBRC11-059: 14 m at 3.08, incl 1 m at 25.44 g/t Au, hole ended in
mineralization
Please activate the link to view drill collar and trace for Section 2800S area plan map:
http://media3.marketwire.com/docs/913aggmap.pdf
The assay results depicting the 38 near surface, (oxide) southern step-out RC holes are listed in Table 1 below:
TABLE 1
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Section Hole ID From To Length Au EOH Degrees Hole Objective
(m) (m) (m) (g/t) (m) (tn)
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2700S KBRC11-103 0 3 3 2.13 100 200 Test EW Tension
Gashes
15 19 4 0.59
35 59 24 1.56 ended in
mineralization
including 41 42 1 17.52
70 73 3 0.31
94 100 6 0.72
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2750S KBRC11-105 76 79 3 0.45 100 200 Test EW Tension
Gashes
-------------------------------------------------------------------
KBRC11-106 10 17 7 0.67 100 200 Test EW Tension
Gashes
-------------------------------------------------------------------
KBRC11-107 34 37 3 0.39 100 200 Test EW Tension
Gashes
47 73 26 0.42
96 99 3 0.45
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2950S KBRC11-040 5 17 12 0.56 100 200
27 34 7 0.69 Test South Ext Of
Zone 1
53 56 3 0.30
66 86 20 0.62
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KBRC11-041 43 46 3 0.37 100 200
58 61 3 0.62 Test South Ext Of
Zone 1
85 88 3 6.99
including 85 86 1 19.08
----------------------------------------------------------------------------
KBRC11-042 0 3 3 0.50 100 200
26 29 3 0.58 Test South Ext Of
Zone 1
43 46 3 0.67
54 65 11 0.36
71 82 11 0.54
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KBRC11-047 12 23 11 0.44 100 200 Test South Ext Of
Zone 1
39 42 3 0.34
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KBRC11-110 0 3 3 0.43 100 200
----------------------------------------------------------------------------
3000S KBRC11-043 21 73 52 1.02 100 200 Test South Ext Of
Zone 1
including 49 50 1 10.14
and 66 67 1 10.96
93 99 6 0.56
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KBRC11-044 9 16 7 0.43 100 200 Test South Ext Of
Zone 1
76 79 3 1.16
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KBRC11-045 2 49 47 0.77 100 200 Test South Ext Of
Zone 1
66 74 8 0.33
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3150S KBRC11-049 0 3 3 0.90 100 200
11 14 3 0.45
17 21 4 0.31 Test South Ext Of
Zone 1
37 40 3 0.36
52 55 3 0.60
66 69 3 0.42
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KBRC11-050 1 4 3 0.46 100 200 Test South Ext Of
Zone 1
17 41 24 0.50
73 76 3 0.31
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KBRC11-051 11 14 3 0.50 100 200 Test South Ext Of
Zone 1
43 46 3 0.56
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KBRC11-052 0 3 3 0.32 200 Test South Ext Of
Zone 1
----------------------------------------------------------------------------
3200S KBRC11-113 6 28 22 0.68 100 200 Test South Ext Of
Zone 1
82 85 3 0.32 ended in
mineralization
97 100 3 0.45
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KBRC11-114 0 3 3 1.54 100 200
11 21 10 0.29 Test South Ext Of
Zone 1
33 36 3 0.48
47 54 7 0.39
85 94 9 0.72
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KBRC11-115 7 14 7 0.43 100 200 Test South Ext Of
Zone 1
78 83 5 0.60
90 93 3 0.38
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KBRC11-116 89 96 7 1.17 100 200 Test South Ext Of
Zone 1
----------------------------------------------------------------------------
3350S KBRC11-054 0 3 3 0.43 100 200 Test South Ext Of
Zone 1
28 37 9 0.47
51 55 4 0.76 ended in
mineralization
77 100 23 0.58
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KBRC11-055 1 8 7 0.33 100 200 Test South Ext Of
Zone 1
25 38 13 0.53
45 49 4 0.77
65 100 35 0.9
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KBRC11-056 1 4 3 0.47 100 200
15 33 18 1.18 Test South Ext Of
Zone 1
including 32 33 1 13.16
41 54 13 0.47 ended in
mineralization
86 100 14 0.29
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3400S KBRC11-058 0 4 4 0.49 100 200 Test South Ext Of
Zone 1
16 37 21 0.70
62 65 3 0.49
----------------------------------------------------------------------------
KBRC11-059 0 3 3 0.57 45 200 Test South Ext Of
Zone 1
30 44 14 3.08
including 38 39 1 25.44 ended in
mineralization
----------------------------------------------------------------------------
KBRC11-059A 27 37 10 0.43 100 200 Test South Ext Of
Zone 1
80 83 3 0.33
92 95 3 0.58
----------------------------------------------------------------------------
KBRC11-060 0 3 3 1.68 100 200 Test South Ext Of
Zone 1
22 29 7 1.31
46 55 9 0.34 ended in
mineralization
64 100 36 0.61
----------------------------------------------------------------------------
KBRC11-061 80 83 3 2.06 100 200 Test South Ext Of
Zone 1
----------------------------------------------------------------------------
KBRC11- 102, 104, 108, 109, 111, 112, 046, 048, 053, 057 - no significant
mineralization
----------------------------------------------------------------------------
1) step out holes drilled at N195 degrees azimuth are perpendicular to
East-West tension gashes
2) Significant drilled intercepts have a minimum length of 3m at 0.3 g/t or
the product 'Length X Grade' greater than 0.9g.m/t. May not be true
width within a structure dipping 70 degrees to 80 degrees
3) Up to 7 m of horizontal mineralized 'waste' included within mineralized
intercept
4) (i) Previously reported drill holes that are included to provide
complete drill data for Section(s) reported
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 picked up on site by ALS Chemex Laboratories for delivery to its Burkina Faso facilities. 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 checks (1 in 100).
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.
On July 14, 2011 AGG issued a press release announcing the results of its 43-101 compliant Preliminary Economic Assessment ('PEA') for the Kobada (Mali) gold project. The PEA estimates an after-tax Net Present Value (NPV) of US$216.9 million from commencement of construction and an after-tax Internal Rate Of Return (IRR) of 90.57% using a base case of US$1,100 per ounce of Au and a discount rate of 5%.
Kobada's sensitivity to the price of gold is illustrated by a gold price variation to US$1,450 per ounce of Au which generates an after-tax Net Present Value of US$415.8 million from commencement of construction and an after-tax Internal Rate Of Return of 160.10% (all other variables remain constant).
In addition, AGG advised, within the above mentioned press release, that the Kobada (Mali) gold project had surpassed the 1,000,000 ounce Au threshold, emanating from 15% of the structural strike length that includes the Zone 1 deposit. The PEA incorporates and includes drill data up to the end of December, 2010. There is no drill data from the 2011 campaign included in the Study. More specifically, the Study does not incorporate drill data for the northern extension step-out holes that may extend Zone 1 up to 2 kilometers north of the Zone 1 deposit, it does not incorporate the 2011 southern step-out holes or the newly discovered Foroko North deposit, nor the newly discovered Termite Zone, the latter two are separate and distinct structures from Zone 1. To review the entire press release announcing the PEA please activate the attached link:
http://tmx.quotemedia.com/article.php?newsid=42959475&qm_symbol=AGG
Southern Extension of Zone 1:
AGG has RC drilled on lines that are spaced approximately 200 meters apart to explore or test for the continuation of gold mineralization commencing on Section 2800S through to 4400S, a distance of 1,600 meters south of the current 43-101 Zone 1 resource. AGG's technical team is in receipt of the analytical results for the southern step out holes and is currently compiling the results of these Zone 1 southern extension test holes. The Company anticipates reporting the analytical results of these southern step out holes in the near future.
Reconnaisance Work:
Extensive auger drilling continues to test multiple regional targets throughout the 218 sq km Kobada gold project footprint. Geochem surveys, including sampling regional termite mounds and trenching remain part of the overall exploration program. The whole of the 218 sq km project has now been covered by a 400m x 80m regional termite mound geochemical program, and the 60 sq km that was the footprint of the original Kobada License has been covered by a 200m x 40m program. Anomalous geochem targets will be drill tested at the appropriate time.
Reconnaisance studies have now established the existence of historic eluvial artisanal gold workings over a strike length of 10km along the Kobada Shear Zone and a 2.5km strike length of the Foroko North structure. The Northern Step Out and Foroko North discovery drill results noted above were in part targeted on the occurrence of eluvial artisanal workings and indicate that these workings are a good indication of gold mineralization. These results illustrate the potential of the Kobada and the Foroko North structures, while the potential of a parallel Gossokorodji structure is only just becoming evident.
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 stand alone exploration projects. Three of these projects are located in Ghana and one project (Kobada) is 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