African Gold Group, Inc.

TSX VENTURE : AGG


African Gold Group, Inc.

February 11, 2014 09:00 ET

African Gold Group, Inc., Reports 65% Increase in Gold Grade From Bulk Metallurgical Test Results at Kobada, Mali

Results Support Significant Nugget Effect

TORONTO, ONTARIO--(Marketwired - Feb. 11, 2014) - African Gold Group, Inc., ("AGG" or the "Company") (TSX VENTURE:AGG) is pleased to report the analytical results for the first 50 bulk metallurgical test samples that were comprised of composites of reverse circulation ("RC") drill intervals that were specifically selected to emulate the Kobada deposit, from surface down through to fresh bedrock.

Each bulk sample consisted of drill cuttings from one or more RC drill holes, within a specific horizon or layer of mineralization emanating from drill intervals that ranged between 30 to 50 meters in length and weighed between 0.8 up to 1.5 metric tonnes.

HIGHLIGHTS

  • Average calculated gold grades of the 50 individual bulk composite samples, processed through the gravimetric pilot plant, yielded gold grades 65% higher than the average given gold grade, based on 2 kg Leachwell analysis, from the identical drill interval.

  • 28 of the 50 bulk composite samples were classified as waste, averaging 0.085 g/t Au, based on 2 kg leachwell analysis, of the drilled interval(s). The calculated average grade of the bulk samples processed through the gravimetric pilot plant, for the identical drill interval(s), averaged 0.299 g/t Au, representing a 252% increase in gold content from the identical drill interval(s).

  • Pilot plant test results continue to confirm that increasing "sample support" (volume of material) and "aliquot" (the actual amount of material analyzed) is highly beneficial for improving the overall grade of mineralization of the Kobada deposit, a characteristic of the "nugget effect."

  • Pilot plant test results continue to confirm that a Bulk Mining model applies to Kobada and that all material contained within the (mineralized) structural corridor is envisioned to be processed through a gravimetric gold recovery plant - including material that is defined as waste, based on drill sample support and Leachwell analysis.

Table 1 Illustrates the analytical results for the calculated gold grade based on processing the individual composite bulk samples through the onsite Pilot Plant; the comparative average analytical results from RC drilling for the identical drill interval(s), based on 2 kg leachwell analysis and the ratio of the Pilot Plant calculated grade relative to the given grade, based on 2 kg leachwell analysis, for RC drilling over the identical drill interval.

TABLE 1
Given Grade: Calculated Grade: Ratio:
Lab Results From Based On Pilot Plant
RC Drilling Based On Processing Bulk Analysis/RC
Bulk Sample 2 KG Leachwell Samples Thru Pilot Drilling
Composite ID Analysis (g/t Au) Plant (g/t Au) Analysis
KBPP12-081 0.026 0.085 3.3
KBPP12-079 0.01 0.071 7.1
KBPP12-112 0.028 0.082 2.9
KBPP12-103 0.439 5.090 11.6
KBPP12-111 0.496 0.873 1.8
KBPP12-091 0.223 0.896 4.0
KBPP12-063 0.032 0.122 3.8
KBPP12-008 1.103 1.375 1.2
KBPP12-047 0.451 1.326 2.9
KBPP12-044 0.54 0.493 0.9
KBPP12-048 1.431 2.348 1.6
KBPP12-037 0.012 0.196 16.3
KBPP12-045 0.156 0.681 4.4
KBPP12-014 0.04 0.080 2.0
KBPP12-046 0.101 0.214 2.1
KBPP12-069 0.488 0.684 1.4
KBPP12-108 0.038 0.124 3.3
KBPP12-086 0.212 0.228 1.1
KBPP12-061 0.018 0.298 16.5
KBPP12-109 (1) 0.096 0.360 3.7
KBPP12-121 0.782 0.220 0.3
KBPP12-089 0.378 0.406 1.1
KBPP12-092 0.798 0.532 0.7
KBPP12-095 0.488 0.746 1.5
KBPP12-059 0.017 0.446 26.3
KBPP12-065 0.361 0.416 1.2
KBPP12-094 0.624 0.754 1.2
KBPP12-072 3.314 0.873 0.3
KBPP12-090 0.144 0.243 1.7
KBPP12-006 0.967 0.465 0.5
KBPP12-027 0.388 0.615 1.6
KBPP12-023 0.187 0.737 3.9
KBPP12-085 0.436 0.390 0.9
KBPP12-106 0.113 0.631 5.6
KBPP12-018 0.096 0.065 0.7
KBPP12-028 0.039 0.311 8.0
KBPP12-062 0.026 0.541 20.8
KBPP12-002 0.134 0.288 2.1
KBPP12-142 0.504 0.581 1.2
KBPP12-146 0.022 0.072 3.3
KBPP12-124 0.637 0.699 1.1
KBPP12-128 0.036 0.069 1.9
KBPP12-138 0.19 0.355 1.9
KBPP12-153 0.072 0.159 2.2
KBPP12-104 0.091 0.155 1.7
KBPP12-154 0.051 0.564 11.1
KBPP12-152 0.171 0.296 1.7
KBPP12-113 0.384 0.510 1.3
KBPP12-125 0.364 0.991 2.7
KBPP12-126 0.57 1.635 2.9

Figure 1 represents a graphic depiction of the results contained in Table 1 above. To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/agg_figure_01_feb11.pdf

"We are extremely pleased with the test results from this first batch of 50 bulk composite samples. Essentially, these test results exceeded our expectations by generating a 65% increase in reported gold grade from the identical drill interval(s). These results re-confirm that increasing sample support and aliquot size is highly beneficial for demonstrating the potential of improving the overall grade of mineralization of the Kobada deposit. All of which validates our investment in our onsite gravimetric pilot plant and the viability of our proposed Bulk Mining model for Kobada. In light of these highly positive results, AGG plans the initiation of another round of pilot plant tests, to commence in April. These tests will concentrate our efforts on near surface material, more specifically, the first 30 vertical meters from surface, which is comprised of a nearly equal proportion of lateritic hardpan overlying saprolite. Interestingly, we observe lab analysis of drill intervals from within this hardpan zone average less than the 0.3 g/t Au cut-off of AGG's 2013 resources update, while at the same time, this very same material has proven to be the preferred material for artisanal or local miners. We hypothesize that this first 10 meters of the Kobada deposit, containing the lateritic hardpan, is potentially significantly understated, based on 2 kg lab analysis of drill intervals. Our goal is to determine that much larger bulk samples, up to 10 tonnes in weight, could produce much higher gold grades, within the hardpan zone, relative to results derived from 2 kg leachwell of drill intervals," states AGG Director, Pierre Lalande, P.Geo.

The Nugget Effect

"On a technical note, a characteristic of the Kobada deposit is the significant amount of coarse gold that is contained within the deposit and surrounding environment. When one considers the extent of artisanal gold diggings, throughout Kobada, plus our preliminary metallurgical studies and the comparative results derived from our QA/QC programs, that form part of our drill campaigns dating back to 2005, one can conclude the collective evidence highlights the large statistical "nugget effect". It is important to increase both the "sample support" (volume of material) and "aliquot" (amount of material actually analyzed) to counteract the "nugget effect" at Kobada. Since 2009, AGG commenced both a higher grid density of drilling with larger diameter holes and employed analytical procedures using larger amounts of material subjected to analysis (Leachwell on 2,000 g versus Fire Assay on 50 g). Our 2012 Feasibility Study drill program increased drill density to 25 meter centers from the 50 meter centers (reported in 2011). All drill analysis was based on 2,000 g Leachwell and it is this protocol combination that has resulted in AGG reporting a 10% increase in gold grade, relative to our 2011 resource estimate," states AGG President, Michael A. Nikiforuk.

The analytical test results for the remaining balance of the composite bulk samples will be reported upon receipt of lab analytical results.

Sampling Protocol

Representative samples of the feed material, plant screen oversize and tails and entire concentrates were sent for analysis to Activation Laboratories by 100-mesh metallics screened fire assay on 1000-g aliquot. One sample in 20 was further analyzed by Leachwell on 2,000-g aliquot as part of the QA/QC program.

Qualified Persons

The bulk metallurgical testing program was executed under the supervision of Mr. Florent Baril, P. Eng., Metallurgical Engineer. Mr. Baril is the CEO of Bumigeme Inc., a consulting engineering group, located in Montreal, Canada. Mr. Baril is a Qualified Persons under National Instrument 43-101 and has approved the technical information contained in this release.

Updated Resource Estimate Highlights (June 18, 2013)

  • 2,306,000 Oz Au Measured and Indicated resources (contained within 80.61 million tonnes at 0.87 g/t Au using a 0.3 g/t Au cutoff) derived from drilling on 25m x 25m centers over a total of 3,200 meters of strike length between sections 600S and 3,800S, representing an 88% increase in infill drilled strike length relative to the 1,700 meters of strike length reported in the 2011 Inferred resource estimate.

  • 542,000 Oz Au Inferred Resource (contained within 17.88 million tonnes at 0.94 g/t Au, using a 0.3 g/t Au cutoff), predominantly contained from within the Sulphide portion of Zone 1. Included, 186,000 Inferred ounces reported for the Foroko North Deposit (5.16 million tonnes at 1.13 g/t Au at a 0.3 g/t Au cutoff). Foroko North is a satellite deposit situated on a separate and distinct structure from Zone 1. It represents one of seven airborne geophysical targets generated by the 2010 airborne survey.

  • Average grade of 0.87 g/t Au reported in the updated resources estimate represents a 10% increase in grade as compared to the average grade of 0.79 g/t Au reported in the 2011 resource estimate that formed part of AGG's PEA.

  • Further potential remains to significantly increase both the oxide and sulphide resources along strike and at depth for both Kobada, Zone 1 and Foroko North deposits and elsewhere on the 215 sq km concession where airborne geophysical and geochemical anomalies coincide with extensive areas of gold diggings.

Please activate the link to view the complete press release detailing AGG's updated resource estimate, published June 18, 2013:
http://www.africangoldgroup.com/index.php?option=com_content&view=article&id=311:african-gold-group-inc-updated-resources-estimate-for-kobada-gold-project-surges-to-23-million-oz-au-measured-a-indicated-a-540000-oz-au-inferred-gold-grade-increases-10-to-087-gt-au&catid=66:2013&Itemid=189

African Gold Group, Inc., based in Toronto, Canada, is focused on putting its Kobada, Mali gold project into production.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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