African Gold Group, Inc.
TSX VENTURE : AGG

African Gold Group, Inc.

November 16, 2010 09:02 ET

African Gold Group, Inc. Step-Out Holes Intercept 102 Meters of 1.00 g/t Au from Surface, Ending in Mineralization and 45 Meters of 1.57 g/t Au-Kobada, Mali Continues to Grow

TORONTO, ONTARIO--(Marketwire - Nov. 16, 2010) - African Gold Group, Inc., (TSX VENTURE:AGG) ("AGG" or the "Company") is pleased to report the analytical results for 4 near surface step out, reverse circulation ("RC") drill holes from AGG's Kobada, Mali gold project.

These 4 holes, drilled on section 2700S, represent a step out of approximately 100 meters south of section 2600S, representing the southern extremity of the mineralized envelope that contains AGG's historical 43-101 initial resources estimate of approximately 740,000 oz's Au at an average grade of 1.25 g/t Au (visit www.africangoldgroup.com).

Table 1 below depicts the significant intercepts from the four near surface, step out drill holes being reported in this release. A drill hole location map can be viewed by activating the link: http://media3.marketwire.com/docs/AGGDHPM.pdf.

TABLE 1

Section   Hole
ID
  From
(m)
  To
(m)
  L
(m)
  Au
(g/t)
  EOH
(m)
  Degrees
TN
  Hole
objective
2700S   RPA10-007   5   20   15   0.6       290   Southern Step Out
        31   102   71   0.63   102       Hole Ended In
Mineralization
2700S   RPA10-007A   4   7   3   1.38       195   Southern Step Out
        26   29   3   0.44            
        38   41   3   0.49            
        70   102   32   0.56   102       Hole Ended In
Mineralization
2700S   RPA10-008   1   4   3   0.34       290   Southern Step Out
        13   58   45   1.57            
    including   20   21   1   11.56            
        69   104   35   0.68            
        112   116   4   0.34   117        
2700S   RPA10-008A   0   102   102   1.00   102   195   Step Out, Ended In
Mineralization
Notes:       
       
  1)   In-fill holes drilled a N290° azimuth are perpendicular to Zone 1 strike
       
  2)   In-fill holes drilled in other azimuth are designed to test for the density of occurrence of mineralized tension gashes perpendicular to Zone 1 strike
       
  3)   Significant drilled intercept have a minimum length of 3m at 0.3 g/t or the product "Length X Grade" greater than 0.9 g.m/t
       
  4)   Up to 5m of horizontal "waste" included within mineralized intercept

AGG believes the significance of today's 4 step out holes, drilled on section 2700S, should be viewed within the context of the 6 step-out holes the Company reported on August 31, 2010. Collectively, these 10 holes represent three distinct fences, drilled 50 meters apart on sections 2700S (today's release), 2750S and 2800S (Aug. 31, 2010 release). Activate Link to view August 31, 2010 press release. http://africangoldgroup.com/index.php?option=com_content&view=category&id=47&Itemid=100

When the four step out holes being reported today are examined within the context of the six step out holes reported on Aug 31 (2010), we are conclusively demonstrating that this new zone of gold mineralization is:

  • considerably outside of the current 43-101 resource model;

and

  • a revised 43-101 model should reflect a substantial increase in tonnage and ounces Au, derived from the inclusion of the southern extension of Zone 1, alone.

Table 2 below depicts the significant intercepts from four of six near surface, step out drill holes drilled on section 2750S and 2800S, reported in AGG's August 31, 2010 press release.

TABLE 2

Section   Hole ID   From (m)   To (m)   L (m)   Au (g/t)   EOH (m)   Degrees TN   Hole
objective
2750S   RPA10-005   15   32   17   1.06       290   Test for southern
extension
2750S   RPA10-005   38   41   3   0.55            
2750S   RPA10-005   50   53   3   0.53           Hole ended in
mineralization
2750S   RPA10-005   73   110   37   1.47   110        
2750S   including   82   87   5   7.48            
2750S   RPA10-006   2   17   15   0.37       290   Test for southern
extension
2750S   RPA10-006   35   53   18   1.18            
2750S   RPA10-006   62   67   5   0.64           Hole ended in
mineralization
2750S   RPA10-006   76   102   26   1.09   102        
2800S   RPA10-002   20   23   3   1.57       290   Test for southern
extension
2800S   RPA10-002   66   95   29   0.67            
2800S   RPA10-002   112   115   3   0.31   119        
                                 
2800S   RPA10-003   0   17   17   1.65       290   Test for southern
extension
2800S   RPA10-003   31   75   44   2.11   75        
2800S   including   35   38   3   19.30           Hole Ended In
Mineralization

"We are most encouraged with these southern step out holes and eager to continue expanding the southern potential of Zone 1. The collective results of our drilling on sections 2700S, 2750S and 2800S clearly demonstrates we are wide open to the west and south of the current 43-101 resource model. Also, we note our holes are quite often ending in mineralization and therefore, we remain open at depth. Further drill testing of this region will represent one of our highest priorities commencing in January, 2011," states AGG President and Director, Michael A. Nikiforuk.

Under the guidelines of National Instrument 43-101, the qualified person for the Kobada Gold Project is Mr. Pierre Lalande, P. Geo. Mr. Lalande is a member of the Association of Professional Geoscientists of Ontario and has reviewed and approved the contents of this news release.

Sampling - QA/QC Program

RC cuttings are recovered at the bottom outlet of the RC rig cyclone into 50-kg capacity poly-weave bags to recover the cuttings from each 1 meter of drill penetration. Each one meter sample weighs an average of approximately 19 to 23 kg. Each sample is passed through a 3-tier Jones Riffler (1 to 8 split), the samples are riffled twice to obtain from 3 to 5 kg of cuttings which are put in a numbered sample bag. Each bag is sealed and dispatched to the ALS Chemex laboratory located in Burkina Faso. The remaining 14 to 18 kg of cuttings (field rejects) are stored in camp under tarps to protect the bags against the elements. 

Original samples are analyzed using Leachwell on 2 kg of pulp. Leachwell is a bottle roll cyanidation procedure with the addition of a catalyst to speed up gold dissolution. A QA/QC program is in place and includes: blank (1 in 20 samples), duplicates (1 in 20), standards (1 in 20), external lab checks (1 in 30) and two different analytical procedures check (1 in 100).

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: 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

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

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