African Gold Group, Inc.
TSX VENTURE : AGG

African Gold Group, Inc.

November 16, 2006 10:02 ET

African Gold Group, Inc.: Mobilizing to Commence Most Aggressive Drill Campaign in Corporate History at Kobada, Mali

Second Diamond Drill Rig Enroute to Kobada

TORONTO, ONTARIO--(CCNMatthews - Nov. 16, 2006) - African Gold Group, Inc., ("AGG" or the "Company")(TSX VENTURE:AGG) is pleased to report that the seasonal rains that affect exploration initiatives in Mali have abated. The Company is pleased to announce that the resumption of drilling at Kobada, Mali, is anticipated to commence before month end. At present, permanent camp facilities are being erected to accommodate upwards of 30 on-site technical and support personnel who will be responsible for the ongoing exploration initiatives at Kobada.

The Kobada concession is located in the Kangaba region of Mali. It hosts a significant anomaly that is defined by 12 kilometres of strike length with a corresponding width of 1 kilometre. This anomaly has greater than 500 ppm arsenic-in-soil geochemistry with coincident, extensive artisanal surface, hardrock and placer mining activity. Previous work on the concession, commencing in the 1980's, approximated US$3.5 million and was undertaken by French exploration entities: BRGM, La Source and Cominor (COGEMA). Their collective work comprised surface geochemical and geophysical surveys, 1,736 metres (18 holes) of AirCore drilling, 13,200 metres (134 holes in "Zone 1" out of a total of 156 holes) of RC drilling and 913.4 metres (7 holes) of diamond drilling. Their initial primary target within the 12 kilometre strike length that comprises the Kobada Trend has been a 1.2 kilometre zone of extensive artisanal hardrock mining activity referred to as "Zone 1" (see attached map).

http://www.ccnmatthews.com/docs/Kobada_zone1.pdf

SECOND DRILL RIG ENROUTE

At present, a single Longyear 38 diamond drill rig, capable of drilling to a depth of 600 metres down-hole, is on site. A second more powerful diamond drill rig, a LF90D, capable of drilling to a depth of 900 metres down-hole, is in transit and is anticipated to arrive at the Kobada exploration site in approximately four weeks. The Company intends to have the two diamond drill rigs working simultaneously and continuously until approximately August, 2007, when it is anticipated that the annual rainy season will re-commence. Going forward, this exploration initiative represents the most aggressive and continuous drill campaign in the history of the Company. It is anticipated to generate a consistent and orderly flow of drill results over the ensuing eight month period, barring events that are beyond the control of the Company.

KOBADA IN REVIEW

In November - December of 2005, African Gold Group, Inc. initiated its first diamond drill campaign at Kobada, with two distinct objectives:

1/ Verify and confirm the historical exploration work undertaken by Cominor (COGEMA).

2/ Test the mineralization to depth and obtain samples of bedrock mineralization below the saprolite horizon. The saprolite horizon extends approximately 125 vertical metres from surface. The historical drilling by the previous owners had never penetrated this horizon into solid bedrock.

On February 23, 2006, the Company released the results of its 2005 drill campaign that was highlighted by hole KB05-4: "48 metres of 2.95 g/t Au including 19.20 metres of 5.91 g/t Au confirms gold discovery at Kobada, Mali."

Results and Analysis - 2005

Results from AGG's 2005, six diamond drill hole campaign, totaling 1,033 metres, are shown in Table 1 below. All samples from AGG's diamond drill program were analyzed by Eco-Tech Laboratory of Kamloops, Canada. Samples returning greater than 300 ppb Au were fire assayed.



TABLE 1 RESULTS FROM AGG's 2005 DIAMOND DRILLING CAMPAIGN
-----------------------------------------------------------------
From To Interval Au Ag
HOLE -------------------------------------------------------
NUMBER m M m g/t g/t
-----------------------------------------------------------------
KB05-1(i) TWIN 36.00 42.00 6.00 2.93
KB05-1(i) 85.50 105.00 19.50 0.29
-------------------------------------------------------
KB05-2(i) TWIN 51.00 72.55 21.55 1.11
KB05-2(i) incl. 51.00 60.40 9.40 1.20
KB05-2(i) 120.50 122.50 2.00 0.75 38.7
-----------------------------------------------------------------
KB05-3 BEDROCK 106.50 144.00 37.50 1.23
KB05-3 incl. 106.50 111.00 4.50 3.91
KB05-3 126.00 129.00 3.00 4.40 6.1
-----------------------------------------------------------------
KB05-4(i) TWIN 52.50 100.50 48.00 2.95
KB05-4(i) incl. 81.30 100.50 19.20 5.91
-----------------------------------------------------------------
KB05-5 BEDROCK 112.50 151.00 38.50 1.58
KB05-5 incl. 136.00 148.00 12.00 3.50
-----------------------------------------------------------------
KB05-6 BEDROCK 115.00 132.00 17.00 0.82
KB05-6 incl. 116.00 123.70 7.70 1.31
-----------------------------------------------------------------------
(i) represent diamond drill holes that twinned Cominor RC drill holes.


The results shown in Table 1 indicated that AGG has successfully demonstrated oxide gold mineralization to a depth of approximately 125 vertical metres in saprolite, and furthermore have extended the gold mineralization an additional 25 metres into bedrock. The 2005 drill results emanate from within approximately 300 metres of the 1.2 kilometre primary target ("Zone 1") and indicates a broad zone averaging 30 metres in width with an associated grade averaging between 1.0 and 3.0 grams per tonne.

Encouraged by results of the 2005 drill program, AGG announced on May 04, 2006, that it had entered into a long term contract with BLY (Boart Longyear) Mali S.A. to provide a minimum of 10,000 metres of diamond drilling at Kobada.

As stated in the May 04, 2006 press release - the primary objective of the minimum 10,000 metre diamond drill program, which is concentrated within "Zone 1", is twofold and will run concurrently:

1/ Increase the confidence in the continuity of the known mineralized zone by diamond drilling a minimum of 49 holes, of infill drilling on 50 metre spacing, located between lines 1550S and 2600S (1.05 kilometers).

2/ Increase the size of the mineralized body by testing its depth extension up to 200 metres down dip (-55º), particularly on lines 2300S, 1800S - 1900S and 1600S, where both grade and thickness of mineralization are the strongest.

Results and Analysis - 2006

The Company commenced with the 10,000 meter diamond drill program in June 2006, drilling approximately 2,200 metres in nine separate drill holes. Importantly, this drill campaign continued to extend the gold mineralization through the 125 metre saprolite horizon into bedrock to a depth of 300 metres and represented an 800 metre step-out from AGG's initial 6 diamond drill holes, totaling 1,033 metres that was drilled in November, 2005.

Results from AGG's June 2006, nine diamond drill hole program, located on lines 1600S, 1650S and 1700S that total approximately 2,200 metres, are shown in Table 1 below. All samples from this portion of AGG's 2006, planned 10,000 metre program, were analyzed by ABILAB Afrique de l'ouest SARL, located in Bamako, Mali.



TABLE 1 RESULTS FROM AGG'S 2006 DIAMOND DRILLING CAMPAIGN (16+00S)

------------------------------------------------------------------------
Interval (m)
-------------------------------- Au
SECTION HOLE NUMBER From To Length (g/t)
------------------------------------------------------------------------
------------------------------------------------------------------------
16+00S KB06-1 121.50 163.50 42.00 0.82
including 144.00 163.50 19.50 1.34
---------------------------------------------------------------
KB06-2
(abandoned) 196.50 199.50 3.00 1.12
---------------------------------------------------------------
KB06-3
(short) 121.00 136.00 15.00 0.41
------------------------------------------------------------------------
16+50S KB06-4 183.00 203.00 20.00 3.26
---------------------------------------------------------------
KB06-5
(short) 270.50 274.50 4.00 2.26
------------------------------------------------------------------------
17+00S KB06-6 213.00 248.00 35.00 1.26
including 231.00 248.00 17.00 2.15
and 263.00 274.50 11.50 2.74
---------------------------------------------------------------
KB06-7 142.50 223.50 81.00 1.21
including 204.50 222.50 18.00 2.26
------------------------------------------------------------------------
17+50S KB06-8 134.00 177.50 43.50 1.18
including 134.00 147.50 13.50 1.28
and 159.50 177.50 18.00 1.88
------------------------------------------------------------------------
16+50S KB06-9 84.50 175.00 90.50 1.05
including 96.50 132.20 35.70 1.51
------------------------------------------------------------------------


The June-July, 2006 program resolved two issues confronting AGG: 1/ core recovery; 2/ geology. With respect to core recovery, BLY Mali has now developed a method that has improved recovery and presumably results, as witnessed by improvements in holes 6, 7, 8 and 9. With respect to geology, the orientation of the mineralization is more vertical than previously envisioned meaning that historical drilling by the previous owner(s) missed the target. AGG's drilling was short in a number of instances, as seen in the sections presented in the Company's August 23, 2006 press release.

Commenting on AGG's progress at Kobada, Director, Greg Hawkins stated: "Kobada is producing the results we had hoped for. We have stepped out 800 meters to the northeast from line 24+00S to line 16+00S and have demonstrated continuity in "Zone 1" to a depth of 300 meters with all indications for more mineralization beyond that level. Test work by the previous concession owner(s) was limited to 75 metres. In addition, our best mineralization is at the northerly and southerly extremities of the tested strike meaning excellent potential for extension along strike. With grades of greater than 1.0 g/t Au and true widths of 40.0 to 50.0 metres, we are starting to get a feel for the potential of "Zone 1". Higher cut off grades will also carry the economic potential to depth. Nine of the 14 (2005 / 2006) holes that have intersected the mineralized horizon to date have intersected narrow widths of greater than 10.0 g/t Au, ranging from 19.60 g/t Au over 0.55 metres to 29.43 g/t Au over 3.3 metres, suggesting the possibility of underground potential as well," concluded Hawkins.

The resumption of the minimum 10,000 metre program, which will include the introduction of a second more powerful drill rig, will focus on delimiting the "Zone 1" resource but also to test the remaining 11 kilometres of known strike that has yet to be examined in detail.

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 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.

Contact Information