African Gold Group (AGG) has reported the commencement of a 10,000 m-drill program at its flagship Kobada Gold Project located in Southern Mali.
The phase III program has been planned to increase resources via strike length extension drilling and to upgrade specific inferred resources to the indicated resource. AGG will continue developing the Kobada Gold Project, based on the delivery of its highly robust Definitive Feasibility Study at $1,530/oz. gold in July 2020.
The 2020 work schedule will target the following:
- The 10,000 m-drill program composed of roughly 160 holes, using reverse circulation (RC) as well as diamond drilling rigs at the Kobada main shear zone—its northern extension and the Gosso target.
- Gosso target—a mineralized fault zone situated 5 km to the East of Kobada main shear zone with established mineralization in high-grade grab samples (results are shown below).
- Extension of the main shear zone—demonstrates strike extension northward along continuous mineralized zone for a minimum of another 4 km.
- Resource upgrade—the 575,000 oz. inferred resources in oxides were upgraded to the indicated and measured resource category with an aim to realize 1 Moz of reserves.
Based in southern Mali, the Kobada Gold Project is AGG’s flagship asset with the probable capacity to yield 100,000 oz. of gold (Au) per year. The earlier drilling campaigns worked on defining a 2.3 million-ounce resource, and 75,500 oz. oxide reserve, and only targeted the 4 km of 30 km of shear zones detected on the concession.
The upside prospect of the Kobada Gold Project will be targeted in several phases, with Phase III targeting the change of inferred ounces to indicated and measured resources and later into reserves, and drilling along the Kobada shear was also targeted to further expand the strike of the resource.
The delivery of the robust DFS, demonstrating a project with potential to produce 100,000 oz. per annum, with highly favourable financial deliverables, was a major milestone in the ongoing development of our flagship, ready for construction, Kobada Gold Project.
Danny Callow, Chief Executive Officer and President, African Gold Group, Inc.
Callow continued, “Despite some of the recent challenges in Mali, we have succeeded in mobilising and commencing exploration drilling. We look forward to re-commencing targeted exploration drilling to bolster the properties significant blue-sky potential by expanding resources and proving the upside potential of what could be a 3 to 5 million ounce deposit.”
AGG granted the contract to a Malian drilling company Etasi Drilling in accordance with its policy of using leading local service providers. This collaboration has allowed quick mobilization of the drilling fleet to site, more than 10 km of roads, and drill platforms have been set up, and AGG has begun the drilling operation.
We are very keen to advance the exploration drilling on our Kobada Gold Project. In particular, we are looking forward to new discoveries along the parallel shear which is untested by drilling so far, and to upgrading the oxide resources to get the reserves to over 1 million ounces.
Dr Andreas Rompel, Vice President Exploration, African Gold Group, Inc.
Extend Strike North Along Continuous Mineralized Zone
- Last three holes of Phase II campaign intersected excellent results to the north of the resource shell on the main shear zone. Highlights comprise:
- 23.80 m at 1.57 g/ton Au from 110.50 m to 134.30 m
- 22.20 m at 5.25 g/ton Au from 78.40 m to 100.6 m
- Historical artisanal workings indicate the extent of the mineralized zone for several kilometers.
- Step-out drilling is projected to boost strike length of current resource pit.
- Drill plan will pursue the continuity of the main shear zone into Faraba concession.
Conversion of 575,000 oz. Inferred Oxides
- In-fill drilling of oxides in gap regions to change to indicated and measured.
- Near mine shallow resource drilling.
- Target high confident conversion to reserves to extend the life-of-mine to more than 10 years.
Develop Understanding of Gosso Potential Through Drilling
- A test pit has been mined on the Gosso target, situated ~5 km to the east of the Kobada Gold Project’s resource pit.
- At the Gosso target, mineralization seems to be identical to the main shear zone in its structural control and strengthens the prospect of numerous mineralized oxide and sulfide deposits in the closer neighborhood of AGG’s Kobada shear.
- The Gosso target has exhibited positive gold value assay results from grab samples procured earlier in 2020.
- Sample #207470 yielded 1.10 g/ton Au
- Sample #207471 yielded 3.16 g/ton Au
- Sample #207473 yielded 4.60 g/ton Au
- Sample #207475 yielded 1.87 g/ton Au
- The Gosso target will be drill tested to assess the mineralization and its range along the shear.
- AGG aims to primarily diamond drill to the north and the south to collect information about the structures that define the gold mineralization, moving away from the known fault location in the outcrop, and later follow up with RC drilling to estimate the grade.
Etasi & Co Drilling SARL (ETASI) has been designated to carry out the Phase III drilling program at Kobada Gold Project located in Southern Mali. ETASI is the successor firm to AMCO, who carried out the AGG’s Phases I and II programs during the 2019–2020 drilling program. AGG anticipates a similarly high level of productivity by AMCO as proven before.