African Gold Group, Inc.

African Gold Group, Inc.

August 09, 2006 08:00 ET

African Gold Group, Inc: 2,000 Metre Diamond Drill Program Commences at Nyankumasi, Ghana


TORONTO, ONTARIO--(CCNMatthews - Aug. 9, 2006) - African Gold Group, Inc., ("AGG" or the "Company")(TSX VENTURE:AGG) is pleased to announce that a 2,000 metre diamond drill program has commenced at Nyankumasi, Ghana.

The Nyankumasi concession is located 30 km south-southwest of Newmont Mining's 5.4 million ounce Akyem project, (which is slated for production in 2008, following the construction of a US$500 million processing plant), and approximately 48 km east of AngloGold Ashanti's Obuasi mine.

Past exploration work programs at Nyankumasi have consisted of a reconnaissance alluvial program, stream and outcrop sampling, geological mapping, sampling of historical workings, survey grid work, pitting, trenching and RC drilling.

To date, three significant gold-in-soil anomalies have been identified within the concession. Historical exploration included a total of 72 RC drill holes that indicate several promising zones of gold mineralization. Significant historical drill intercepts include:

- SRC5: 12m @ 4.05 g/t Au from 22 metres

- SRC49: 15m @ 1.66 g/t Au from 17 metres

- SRC60: 12m @ 2.04 g/t Au from 30 metres

- SRC62: 9m @ 3.12 g/t Au from 25 metres

AGG's current exploration program has focused on the southern "Linear Anomaly" of the concession and has consisted of grid establishment, soil sampling, trenching, ground magnetic and IP surveys. This work confirms the southern "Linear Anomaly" to be continuous along the entire 4 km strike length and forms the basis for establishing the drill targets related to this 2,000 metre diamond drill program (see map).

Trench Summary and Significant Results, Horizontal Channel Samples
Interval (m) Au (g/t) Min Au (g/t) Max Au (g/t)
Trench ----------------------
From To Length
NK-T1 Ext 0 8 8 0.49 0.14 1.60
incl 5 6 1 1.60
NK_T1 0 85 85 0.27 0.11 1.71
incl 31 56 25 0.49
or 48 52 4 1.21
NK_T2 0 55 55 0.24
incl 11 12 1 0.44
incl 16 17 1 0.64
incl 30 55 25 0.32
NK_T3 0 42 42 0.28 0.08 0.97
incl 4 6 2 0.42
incl 12 21 9 0.51
incl 39 41 2 0.45
NK_T4 No Significant Intercept

AGG Director, Greg Hawkins, P. Geo, states, "The region of the concession encompassed by the "Linear Anomaly" clearly shows potential for a resource but current drill and trench coverage does not allow any interpretation of mineralization controls or depth extent into fresh bedrock. What is of great significance is both the continuous widths of greater than 0.25 g/t Au over up to 85 metres and intercepts confirmed in deep saprolite of greater than 2.0 g/t Au over 12.0 metres with high grades of up to 10.0 g/t Au in more than one stacked zone. If the Tarkwaian turns out to be the host rock, as suspected and as demonstrated by the lack of arsenic in the soils, the more simple metallurgy is also a big plus. Our recent IP surveys have provided us with some excellent high chargeability and resistivity targets that will be the subject of investigation with this current drill program."


To date, the Company is pleased to report that it has completed 9 diamond drill holes representing approximately 2,200 metres of the planned 10,000 metre diamond drill program at Kobada, Mali.

The Company reported the confirmation of a gold discovery at Kobada, Mali, in a press release dated February 23, 2006, where 6 diamond drill holes on six individual drill sites were completed in order to:

1) Confirm the historical drill results generated by the previous concession owner, Cominor SA (COGEMA); and

2) To drill the mineralized zone at depth in order to test its continuity and to examine the nature of the mineralization in solid bedrock.

All six holes of this campaign intersected significant gold mineralization. Of particular mention:

- 6 metres of 3.28 g/t Au (KBO5-1);

- 23.05 metres of 1.07 g/t Au (KBO5-2);

- 37.5 metres of 1.08 g/t Au (KBO5-3);

- 48 metres of 2.95 g/t Au, including 19.20 metres of 5.91 g/t Au (KBO5-4);

- 38.5 metres of 1.58 g/t Au (KBO5-5) and

- 17.0 metres of 0.85 g/t Au (KBO5-6).

These holes were drilled on lines 2200S and 2300S within "Zone 1" of the 12 km strike length that comprises the Kobada Trend.

The current drill program that generated the 9 diamond drill holes totaling approximately 2,200 metres, stepped out approximately 600 metres to the north to test the continuity and grade of mineralization on lines 1600S, 1650S and 1700S (see map).

All core samples for this current program are being shipped to ABILAB Afrique de l'ouest SARL for analysis. The Company will report the results of this current program upon receipt of the core sample analysis.


Exploration work to date has indicated the presence of significant gold mineralization on the property. Area I has provided the most detailed exploration to date and mineralization is seen to occur as both wide (greater than 10 metres) low-grade mineralized bodies and as narrow high-grade quartz veins with visible gold.

As of this date, the Company is undertaking additional IP surveys within Area I of the concession and a resumption of diamond drilling is anticipated around mid September, 2006, to test these targets.

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 nine gold concessions that are consolidated in five separate 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 and on 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

Please note: Maps are available on CCNMatthews' website at the following link:

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

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