African Gold Group (OTC Other: AGGFF; TSX-V: AGG) continues to work, unabated, at the Company’s Kobada, Mali gold project. No disruption in work programs or staffing has been experienced as a result of recent events in Bamako, Mali.
African Gold Group (TSX-V: AGG; OTC: AGGFF) was covered recently in a new initiating research report authored by Toronto based securities firm: Pope & Company. We have included a brief excerpt from the report as well as a link to the full report below:
“We believe AGG is an attractive gold play with positive economics indicated by the PEA for a 100,000 oz Au gold producer, with poten-tial for higher production if oxide exploration upside is realized. At roughly $40/oz Au for the Inferred Resource, with potential for more, AGG has significant upside. Based on observations from our recent site visit, our modelling estimates the potential to define an additional 2.5 to 3.0 M oz of Au.”
African Gold’s Northern Step Out Hole Intercepts 1.83 g/t Gold Over 70 Meters, Mineralization ContinuesMarch 20, 2012
African Gold Group (OTC Other: AGGFF; TSX-V: AGG) reports significant near surface (oxide) drill results from Northern step out holes, including the following highlights:
- KBRC12-006: 70 m @ 1.83 g/t Au & 45 m @ 1.79 g/t Au, ended in mineralization;
- KBRC12-003: 27 m @ 0.47 g/t Au & 84 m @ 1.26 g/t Au, ended in mineralization;
- KBRC12-004: 21 m @ 1.07 g/t & 9 m @ 1.80 Au; and
- KBRC12-005: 21 m @ 1.15 g/t Au.
According to Dr. Kevin Downing, Vice President of Exploration, “We continue to remain focused on development of the near surface oxidized resource at our Kobada gold project. Today’s results clearly show the continuing presence of robust gold mineralization extending as far as 200 meters north of our current Zone 1 resource, where highlight hole KBRC12-003, collared directly on strike from KBRC11-189, intercepted 70 meters at 1.83 g/t Au and 45 meters at 1.79 g/t Au. Both of these holes ended in mineralization. In addition to demonstrating a strike extension of at least 200 meters north, the holes released here define a mineralized corridor that exceeds 100 meters in lateral width that is associated with an oxidation depth in the magnitude of 100 vertical meters. The mineralization contained within these northern step out holes is well distributed down several of the holes, and is as strong as any gold mineralization encountered in the Zone 1 resource to date.”
African Gold Group (TSX-V: AGG; OTC Other: AGGFF) was written up in the March 19, 2012 edition of the Caesar’s Report. To view this highly detailed and thorough report which highlights the Company’s flagship Kobada project in Mali (with many near term catalysts such as an updated 43-101 resource report and start-up of a pilot gold plant and Feasibility Study), just click on the graphic below:
Here are a couple vids from the Cambridge House Metals Conference in Vancouver. On the actionable front, please note companies in the 3-minute splice that might have actionable events in coming days and weeks. In the RECAP video, for instance, you’ll see a few company posters and presenters at their exhibit hall booths. Jot down their names. I think one or two will see bust-out assays or sizeable additions to their compliant resources in short order. (More actionables in second half of this article.)
My ownership list for the great continent of Africa includes PMI Gold (PMV), Stellar Diamonds (STEL in London), Tigray Resources (TIG), Canaco (CAN), Great Basin Gold (GBG), Platinum Group Metals (PLG), Ivanhoe Nickel & Platinum and West African Iron Ore (WAI). Oh, and one hapless and disorganized tantalum prospector in Mozambique that has melted down in value, and not UP: Noventa (NTA).
THOM CALANDRA is a principal of Torrey Hills Capital and a lifelong journalist. He co-founded CBS MarketWatch and FT MarketWatch. (Also, co-founder of Stockhouse’s Ticker Trax) His reviews of natural resources companies are found on this Baby Bulls, at the Cambridge Cafe, on GATA.org and on Stockhouse. Also: The Gold Report, 321Gold.com and other publishers of metals material. Thom is an investor and a speaker for Cambridge House in Canada and the New Orleans Investment Conference. Thom also speaks in San Francisco, New York and in Europe. He lives with his family in California.
BabyBulls (ACCRA, Ghana) – Three companies, including our own African Gold Group (OTC Other: AGGFF; TSX-V: AGG), participated in a wheelchair donation program in West Africa this month. The wheelchairs go to needy residents of areas where metals prospectors and miners work. In this case, the good news came to 260 chairs in Mali and 260 in Ghana.
A longtime friend, Gordon Holmes of The Gold Report, spearheaded the wheelchair idea a few years ago via a winery he owns up the freeway from where I live in northern California.
“Each shipping container holds 260 chairs,” Gordon told me today (Thursday).
I got to experience the wheelchair spirit in November, when Great Panther Silver, another of our Torrey Hills clients, and Endeavour Silver chipped in to donate a bunch of them near Guanajuato in Mexico. The emotion was intense.
African Gold Group Resumes Drilling at Kobada, Focused on Significant Increase and Upgrade of 43-101 Resource as Part of Feasibility StudyDecember 13, 2011
African Gold Group, Inc., (TSX-V: AGG.V; OTC Other: AGGFF) announced today that drilling has resumed and is well underway at the Company’s Kobada, Mali gold project. Post rainy season drilling, commencing November 2011, through to July 2012, is referred to as the 2012 drill campaign. The 2011 drill campaign, commencing November 2010 through to July 2011, focused 100% on step-out exploration drilling along strike, to the north and south of the Zone 1, 43-101 deposit. In addition, 2011 step-out drilling also tested off trend targets that resulted in the announcement of the discovery of new gold zones located at Foroko North (4.3 km north of Zone 1 deposit), The Termite Zone (1.5 km south-east of Zone 1 deposit) and the Gosso Zone (5 km east of Zone 1 deposit).
AGG’s 2012 drill program is focused on achieving two primary goals that pertain to the completion and submission of a positive Feasibility Study for the Kobada (Mali) gold project:
1. Increase the strike length of the 43-101 Zone 1 deposit from 1.7
kilometers (contained within Section 1100S - 2800S) to 3.15 kilometers
of strike length (contained within Section 650S - 3800S), representing a
potential 185% increase in (relative) strike length.
2. Upgrade the classification of the 43-101 resource from the Inferred
category to the Indicated category as a result of drilling on a 50 meter
x 50 meter grid, from Section 650S through to Section 3800S (3.15
kilometers of strike).
African Gold Group, Inc. Positive Auger Drill Results Escalate Potential for Increasing Zone 1 Strike Extension A Further 400 Meters NorthNovember 29, 2011
African Gold Group, Inc., (TSX-V: AGG; OTC: AGGFF) annouced today that auger drilling at it’s Kobada gold discovery in Mali, Africa has intercepted highly anomalous gold values located on Section 700S. Section 700S represents a 400 meter step-out to the north of the 43-101 inferred resource estimate that contains AGG’s Zone 1 gold deposit. The anomaly is clearly intercepted by projecting the orientation of the Zone 1 deposit 400 meters north, along strike, through Section 700S. AGG interprets the interception of the anomaly on Section 700S as escalating the potential for extending the Zone 1 deposit a further 400 meters north, along strike.
In the release, African Gold Group President, Michael A. Nikiforuk stated “We reiterate our comments contained within our November 15, 2011 press release, that being, we are most encouraged by the significant gold anomaly generated on Section 700S by our auger drill program. We have no doubt that our Zone 1, 43-101 resource holds the potential to extend up to an additional 400 meters north of the current boundary located on Section 1100S. Our near term goal is to include the potential tonnes and ounces of Au contained within this area. Of even greater significance is the blue sky potential that is being amply demonstrated by the mineralized intercepts encountered as much as 1.5 km north of our resource’s current northern boundary. We remain open along strike, in both directions and at depth. We have encountered new discovery zones at Foroko North, Gosso and the Termite Zone. We have drill tested less than three per cent of our 218 sq km footprint and are confident that Kobada will continue to grow.”
African Gold Group, Inc. Northern Step-Out Hole Intercepts 112 Meters of 2.14 g/t Au-Hole Ends in Mineralization-Kobada, MaliNovember 15, 2011
African Gold Group, Inc. (TSX-V: AGG: OCT: AGGFF) reported today the analytical results for six near surface (oxide), reverse circulation (RC), step-out drill holes, from the Company’s Kobada, Mali gold project. All six holes represent northern step out holes that were collared up to 100 meters north of the Zone 1 deposit including step-out hole KBRC11 coming in at 112 meters of 2.14 g/t gold which ends in mineralization.
On July 14, 2011 AGG announced the results of a positive NI 43-101 Preliminary Economic Assessment (the “PEA” or the “Study”) that evaluates the potential of an open pit, bulk mining model, utilizing a gravity recovery process plant, at the Company’s Kobada (Mali) gold project. The PEA incorporates and includes drill data up to the end of December, 2010. There is no drill data from the 2011 campaign included in the PEA. More specifically, the PEA does not incorporate drill data for the northern extension holes that hold potential to extend Zone 1 up to 2 kilometers north of the Zone 1 deposit, in addition, the PEA does not incorporate the 2011 southern holes that hold potential to extend Zone 1 up to 1.55 kilometers south of the Zone 1 deposit, nor does the Study include any potential from the newly discovered Foroko North deposit, the newly discovered Termite Zone or the recently announced Gosso discovery zone the latter three discovery zones being separate and distinct structures from Zone 1.
Project Economics – Base Case
The PEA estimates an after-tax Net Present Value (NPV) of US$216.9 million from commencement of construction and an after-tax Internal Rate Of Return (IRR) of 90.57% using a base case of US$1,100 per ounce of gold and a discount rate of 5%.
African Gold Group (OTC Other: AGGFF; TSX-V: AGG) has completed 17 near surface (oxide), reverse circulation (RC), step-out drill holes, from the Company’s Kobada, Mali gold project. All 17 step-out drill holes were collared approximately 5 kilometers south-east of the Zone 1 deposit. The drill holes being reported in this release represent the first drilling ever undertaken in this area of the Kobada gold project. AGG has named this new gold discovery zone the Gossokorodji (“Gosso”) Target.
Near Surface (Oxide) Drill Highlights From the Gosso Step-Out Holes Include:
- In drill hole KBRC11-138, 15 meters of 0.62 g/t gold;
- In drill hole KBRC11-140, 42 meters of 1.50 g/t gold, including 1 meter of 11.82 g/t gold;
- In drill hole KBRC11-142, 4 meters of 2.34 g/t gold; and
- In drill hole KBRC11-134, 28 meters of 0.67 g/t gold.
According to Michael Nikiforuk, President of African Gold, “Our team is extremely encouraged with the results of our “wildcat” step-out drilling at Gossokorodji. As previously stated, the “Gosso” target evolved from our 2010 airborne survey that was flown over the entire Kobada footprint. Gosso represents one of seven geophysical targets that exhibit geophysical characteristics that are similar to the Zone 1 deposit. Six of the target areas have coincident radiometric potassium anomalies interpreted as granitoid intrusions with hydrothermal alteration. All of the target areas have shown evidence of historical and/or current artisanal mining. To date, we have drill tested two of the seven geophysical targets: Foroko North, located 4.3 km’s north of the Zone 1 deposit, resulting in the discovery of a new gold zone announced on October 14, 2010 and now Gosso, located approximately 5 km’s south-east of the Zone 1 deposit.”