African Gold Group, Inc.
TSX VENTURE : AGG

African Gold Group, Inc.

January 20, 2010 09:01 ET

African Gold Group, Inc., Multi-Phase Work Program Focused on Surpassing 1,000,000 Oz Gold Threshold Has Commenced at Kobada, Mali

TORONTO, ONTARIO--(Marketwire - Jan. 20, 2010) - African Gold Group, Inc., (TSX VENTURE:AGG) ("AGG" or the "Company") is pleased to report that a multi-phase exploration and development program has commenced at Kobada, Mali. The primary goal of the program will be to surpass the 1,000,000 oz gold threshold within "Zone 1" of the Kobada deposit. "Zone 1" measures 1.2 km in strike length, representing 10% of the 12 km anomalous Kobada trend.

The Company is pleased to advise that it has engaged the services of an internationally renowned consulting group, Scott Wilson Roscoe Postle Associates ("Scott Wilson RPA"), to assist AGG in achieving the following corporate objectives associated with this multi-phase program:

  • A consolidation and review of 100% of all the exploration data associated with the Kobada gold project;
  • the completion of a current resource estimate, that meets the standards set out in NI 43-101, that includes upper oxide material omitted from the initial resource estimate published in May 2008, by Watts, Griffis & McOuat (see AGG Press Release dated Sept. 23, 2009);
  • Planning and implementation of an exploration/development program that will include both diamond and RC drilling that is intended to support the revised 43-101 resource estimate and where logical upgrade the current resource estimate from the Inferred category to the Indicated category;
  • To prepare a Scoping Study that will meet the requirements of a Preliminary Assessment under NI 43-101 regulations. Scott Wilson RPA will utilize the updated resource estimate as the basis for preparing this study.

Technical Team Arrives At Kobada

A contingent of technical personnel arrived on site at Kobada on January 17, 2010 to commence with all preliminary work, including the location and preparation of all drill pads.

Airborne Geophysical Survey

The Company is pleased to advise that it has retained the services of Xcalibur Airborne Geophysical, a South African company that specializes in ultra-high resolution airborne surveys to conduct a geophysical airborne survey over the entire 216 sq km contained within the 4 contiguous AGG concessions that comprise the greater "Kobada Gold Project". Xcalibur collects data at lower ground clearances (10m to 40m) than what is commonly used in the airborne geophysics industry (80m to 100m). The data quality and resolution improves exponentially when reducing flight altitude providing geologists with significantly more detailed information for planning future exploration programs.

The total flight distance of the survey will consist of approximately 4,700 line-kilometres flown on 50 metre flight line spacing. The fixed wing aircraft employs horizontal gradiometer (wing-tip) systems on a dual turbine Islander. This platform type is safely capable of maintaining a nominal survey height of 30 m above hazard level as measured with radar altimeter. Experience has shown this height is achievable for surveys in Mali, given the nature of the vegetation and topography.

The survey will use the known resource at "Zone 1" as a control. The airborne geophysical data will be used to identify extensions of known structures which will assist in selecting drill targets for the pending drill program, as well as, to identify and prioritize other target areas for future exploration.

AGG has retained Paterson, Grant & Watson Limited ("PGW"), headquartered in Toronto, Canada, ("PGW") as project manager of the airborne geophysical survey. PGW has been furnishing technical excellence in the planning, supervision, processing and interpretation of a wide variety of geophysical surveys, since 1973.

The survey is anticipated to commence on or about Feb 10, 2010. Data collection will be completed in approximately 10 calendar days and the processed results will be available for interpretation 20 working days after completion of the last flight.

Drilling Set To Commence

AGG is pleased to advise that it has retained the services of West African Drilling Services ("WADS") to facilitate the diamond and RC drilling that will be associated with this work program. It is anticipated that drilling will commence on or about February 15, 2010 and that this phase of the program will approximate 10,000 meters of drilling. Scott Wilson RPA will assist in the planning and implementation of this program with their senior geologist proposing recommendations for drilling, including the amount of diamond drilling as well as RC drilling. The planning phase of this initiative is underway and at this juncture it is perceived that a significant amount of drilling will be within "Zone 1" with step-out holes immediately along strike of "Zone 1", predominantly to the north. As stated previously, drill data from this portion of the program will be utilized to support a revised 43-101 resource estimate.

Scoping Study

The multi-phase program that is underway is intended to culminate with Scott Wilson RPA preparing a Scoping Study that will meet the requirements of a Preliminary Assessment under NI 43-101 regulations. The revised 43-101 resource estimate will be utilized in the preparation of this report. The parameters to be investigated, that will comprise the report, will include: mining, metallurgy and process, infrastructure, environment, manpower, current life of mine plan (based on current resources) and project execution plan.

Asankrangwa Holdings, Ghana

The Company is pleased to advise that it is currently engaged in formulating an exploration strategy that is intended to create shareholder value and advance the Asankrangwa Holdings from its current state. AGG's Asankrangwa Holdings represent a 456 sq km footprint, comprised of five contiguous concessions, of which the Assuowunu concession, located in the north-west quadrant of the region, is on strike and contiguous with Keegan Resource's 3.5 million ounce Esaase gold deposit. The Company is confident that work will commence at Asankrangwa within the first quarter of 2010.

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: BCE Place, Canada Trust Tower, 27th Floor, 161 Bay Street, Toronto, Canada M5J 2S1

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.

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