African Gold Group, Inc. Discovery of New Gold Zone Located Up to 1.5 km South-East of Main 'Zone 1' Deposit Intercepted at Kobada, Mali
TORONTO, ONTARIO -- (Marketwire) -- 02/03/11 -- African Gold Group, Inc., (TSX VENTURE: AGG) ('AGG' or the 'Company') is pleased to report the analytical results for 30 near surface (oxide) drill holes. All holes were collared approximately 300 to 600 meters east and up to 1.5 km south of the Kobada gold projects main 'Zone 1' gold deposit. Four widely spaced fences were drilled at azimuth 290 degrees over a total of 840 meters of strike length. In addition, a single fence of six north directed holes were drilled at azimuth 17 degrees over approximately 330 meters of strike length to evaluate potential gold bearing east-west (E-W) striking tension gashes.
The newly discovered zone of gold mineralization has been aptly named, 'The Termite Zone,' due to geochemical sampling and analysis of large termite mounds located within the region that returned anomalous values of gold that resulted in the establishment of the drill targets that are being reported in this release.
Near Surface (Oxide) Drill Highlights Include:
KBRC10-025: 12 m @ 2.70 g/t Au
KBRC10-023: 8 m @ 1.25 g/t Au
KBRC07-108: 3 m @ 9.16 g/t Au
KBRC10-026: 26 m @ 0.61 g/t Au
KBRC10-027: 9 m @ 0.96 g/t Au
KBRC10-029: 15 m @ 0.6 g/t Au
KBD045: 30 m @ 0.6 g/t Au
The assay results depicting the 30 near surface (oxide) step-out drill holes from within the newly discovered Termite Zone are listed in Table 1 below:
TABLE 1
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Section Hole ID From To L (m) Au EOH Degrees Hole Objective
(m) (m) (g/t) (m) TN
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3000S KBRC10-023 108 124 16 0.73 126 290 Testing Geochem
Anomaly -
Termite Zone
including 116 124 8 1.25
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3000S KBRC10-025 87 95 12 2.7 126 Testing Geochem
Anomaly -
Termite Zone
113 116 3 0.53
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3320S KBRC10-020 47 50 3 0.51 290 Testing Geochem
Anomaly -
Termite Zone
78 81 3 0.38 108
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3320S KBRC10-021 18 22 4 0.87 126 290 Testing Geochem
Anomaly -
Termite Zone
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3320S KBRC10-022 69 73 4 1.11 290 Testing Geochem
Anomaly -
Termite Zone
83 86 3 0.35
112 115 3 0.30 126
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3340S KBRC10-031 58 61 3 0.87 17 Testing Tension
Gash - Termite
Zone
97 100 3 0.54 116
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3450S KBRC10-029 0 15 15 0.60 125 17 Testing Tension
Gash - Termite
Zone
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3520S KBRC10-028 21 26 5 0.58 17 Testing Tension
Gash - Termite
Zone
46 49 3 0.35
74 77 3 0.37
109 112 3 0.45 125
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3600S KBRC10-027 23 26 3 0.92 17 Testing Tension
Gash - Termite
Zone
38 47 9 0.96
99 102 3 0.35 125
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3650S KBRC10-026 101 125 24 0.62 125 17 Testing Tension
Gash - Termite
Zone
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3700S KBRC10-016 12 16 4 4.45 126 290 Testing Geochem
Anomaly -
Termite Zone
14 15 1 12.28
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3350S KBRC10-018 97 108 11 1.17 126 290 Testing Geochem
Anomaly -
Termite Zone
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3350S KBRC7-108(i) 85 88 3 9.16 100 290 Testing
Orpaillage
Anomaly -
Termite Zone
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3350S KBRC7-109(i) 0 5 5 1.564 100 290 Testing
Orpaillage
Anomaly -
Termite Zone
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3350S KBRC7-110(i) 53 56 3 0.41 100 290 Testing
Orpaillage
Anomaly -
Termite Zone
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3600S KBD43(i) 37 53 16 0.473 100 290
93 97 4 0.465
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3600S KBD44(i) 27 57 30 0.595 100 290
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3840S KBD46(i) 63 69 6 1.403 100 290
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KBRC10-24, 30, 15, 17, 19 & KBRC07-107 & KBD42, 45, 47, 48, 49 & 50 no
significant mineralization
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Notes:
1) In-fill holes drilled other than 290 azimuth are designed to test for
the density of occurrence of mineralized tension gashes perpendicular
to Zone 1 strike
2) Significant drilled intercepts have a minimum length of 3m at 0.3 g/t
or the product 'Length X Grade' greater than 0.9 g.m/t
3) Up to 5m of horizontal 'waste' included within mineralized intercept
4) (i) denotes historical regional drill holes that preceded AGG's 2010
drill campaign
'We are most encouraged with the development potential of the southern region of our Kobada gold project. On November 16th, 2010 AGG announced the results of Zone 1 southern extension drill holes that were collared to the south of the most southerly extent of the 43-101 mineralized envelope. One of the highlight holes included hole RPA10-008A, which intercepted 102 meters of 1.0 g/t Au. This hole intercepted gold from the collar and ended in mineralization at the completion depth of 102 meters. Similarly, on August 31, 2010 we announced southern extension holes RPA10-003, -005 and -006 which intercepted, 44m @ 2.11 g/t Au, including 3m @ 19.30 g/t Au; 37m @ 1.47 g/t Au, including 5m @ 7.48 g/t Au and 26m @ 1.09 g/t Au, respectively. All three of these Zone 1 southern extension holes ended in mineralization. In addition, our 2010 drill program has also confirmed that the most northern region of the Zone 1 deposit remains open along strike.
The Termite Zone represents a separate and distinct structure that lies up to 1,500 meters south of and between 300 to 600 meters east of the North 20 degrees East (N20E) trend of the Zone 1 main gold deposit (http://media3.marketwire.com/docs/termite_zone_drill_collars_traces_%20fig01_feb3.pdf).
At present, our understanding of the Termite Zone region has yet to reach a level from which we can draw conclusions about the ultimate potential of the area. It may be that the mineralization intersected at depth in KBRC10-018 and KBRC10-026 are connected, as low angle veins have also been observed in Zone 1. If this is the case, we may be at the north end of another pod of mineralization. Regardless, all tonnes and ounces that emanate from the Termite Zone could be accurately categorized as incremental ounces that will ultimately complement the main Zone 1 gold deposit. Our Kobada gold project continues to grow,' states AGG President, 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).
Corporate Update
AGG's 2011 drill campaign at Kobada, Mali is well underway. The Company has recently completed a significant trench program that is anticipated to guide southern extension drilling an additional kilometer south of the RPA10-003 zone which itself is 200 meters south of the southern extent of the 43-101 mineralized envelope. A complete update of the ongoing exploration and development work at Kobada will form the basis of a separate press release, in the near future.
AGG's 2011 Asankrangwa, Ghana exploration program is well underway and the Company remains confident that it will achieve its drill commencement target date of April, 2011. An update on Ghana progress, including a discussion on the 11 newly identified structural targets that were identified in the high resolution helicopter airborne geophysical survey, will form the basis of a separate press release, in the near future.
The Company is pleased to advise that Dr. Kevin Downing, senior structural geologist, has been appointed Vice President, Exploration. Since joining AGG, approximately one year ago, Kevin has demonstrated exemplary leadership, diligence in the understanding and advancement of our Kobada gold project and a desire and dedication to move our Company forward. Kevin will continue to report to AGG Director, Mr. Pierre Lalande, P. Geo. and to AGG President, Michael Nikiforuk.
Finally, the Company is pleased to report that as per its press release of January 20, 2011, $225,000 of directors and officers loans have been repaid to the Company, leaving an outstanding loan balance of $70,000 that is fully secured and it is anticipated will be repaid, in the very near term.
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 eleven gold concessions that are consolidated in four distinct standalone exploration projects, of which three projects (Asankrangwa, Mankranho & Nyankumasi) are located in Ghana and one project (Kobada) is 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.
Contacts:
African Gold Group, Inc.
Michael A. J. Nikiforuk
(416) 644-8892 ext 101
info@africangoldgroup.com
www.africangoldgroup.com