African Gold Group, Inc.
TSX VENTURE : AGG

African Gold Group, Inc.

December 20, 2010 09:06 ET

African Gold Group, Inc. Financing Sets Stage for Aggressive Ghana & Mali Exploration Programs in 2011

TORONTO, ONTARIO--(Marketwire - Dec. 20, 2010) - African Gold Group, Inc. (TSX VENTURE:AGG) ("AGG" or the "Company") is pleased to announce that the closing of the Company's oversubscribed financing, that was detailed in a press release issued December 17, 2010, has set the stage for the commencement of aggressive exploration and development programs for both the Company's Asankrangwa Holdings, Ghana and its Kobada Project, Mali.

ASANKRANGWA HOLDINGS, GHANA: Planned +20,000 Meter Drill Program

Exploration work at the Company's Asankrangwa Holdings in Ghana is scheduled to commence in January 2011. AGG's consolidated Asankrangwa land holdings comprise 5 contiguous concessions (Assuowunu, Twedee, Moseaso, Manso Nkwanta and Manso Atwere) that collectively encompass 456.2 sq. km of ground, representing 94% of the active exploration ground contained within the Northern Asankrangwa gold belt. A gold-in-soil anomaly that measures 24 kilometers in strike length, oriented in a north-east / south-west (NE/SW) direction, is contained within AGG's consolidated boundaries. This linear anomaly is perceived to run parallel to the major structural target(s) currently being drilled by Keegan Resources at its 28 sq. km Esaase concession. Please visit www.africangoldgroup.com to view AGG's Asankrangwa Holdings.

AGG's exploration objectives at Asankrangwa, Ghana, are as follows:

  • To commence with geochemical surveys over structural targets identified by AGG's 2010 high resolution helicopter airborne survey that was flown over the entire 456 sq km Asankrangwa footprint. The identification and location of the aforementioned structural targets will be disclosed in a subsequent press release.
  • To follow with a trenching program over gold in soil anomalies that are generated in the area of the above mentioned geophysical targets.
  • To follow with a drill program, that will approximate +20,000 meters of RC drilling, to test anomalous geochemical / geophysical targets that are generated by the above mentioned programs. At present, it is anticipated that drilling will commence in April, 2011.
  • The program will focus on the western segment of the Asankrangwa Holdings and include significant work on the Assuowunu concession which is contiguous and on strike with Keegan Resources' Esaase deposit, which is estimated to contain an indicated and inferred resource that approximates 4.9 million oz's Au.

KOBADA, MALI: Planned +30,000 Meter Drill Program

AGG's exploration objectives at its Kobada Gold Project (Mali), are as follows:

  • To extend the Zone 1 deposit to the north of section 1500S, the northern extent of the 43-101 mineralized envelope that is estimated to contain approximately 740,000 oz's Au at an average grade of 1.25 g/t Au at a 0.3 g/t Au cutoff. At present, North step out drill highlights, 450 meters north of the 43-101 mineralized envelope on section 1100S include: 8m @ 7.74 g/t Au & 21m @ 4.89 g/t Au.
  • To extend the Zone 1 deposit to the South of section 2600S, representing the southern extent of the 43-101 mineralized envelope, where the deposit remains open to the south and west. At present, South step out drill highlights, up to 200 meters south of the 43-101 mineralized envelope, include: 100m @ 1.00 g/t Au; 44m @ 2.11 g/t Au; 37m @ 1.47 g/t Au; 26m @ 1.09 g/t Au.
  • To continue with the exploration and development of the newly discovered Foroko North structure, a distinct north-south structure that is located 4.3 km north of Zone 1. To date AGG's reconnaissance drilling has tested and encountered mineralization over 800 meters of the 4 km long Foroko North Structure. Drill highlights at the newly discovered Foroko North Structure include: 23m @ 2.10 g/t Au; 62m @ 1.04 g/t Au; 53m @ 1.53 g/t Au & 9m @ 5.78 g/t Au (hole ended in mineralization).
  • To complete the evaluation of the seven distinct structural targets that have been identified by AGG's 2010 airborne geophysical survey flown over the entire 216 sq km Kobada footprint. Approximately 10% of this ground has been explored to date.
  • To drill test anomalous trench results from the current ongoing trench program where trenching is now up to 800 meters south of section 2600S, the most southerly extent of the 43-101 mineralized envelope.
  • To execute +30,000 meters of RC drilling to evaluate the above mentioned targets.

About African Gold Group, Inc.

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 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, on www.sedar.com and through the Company's offices at: Suite 2518, 150 King Street 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.

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