African Gold Group Inc. [AGG-TSXV; AGGFF-OTC] released an updated mineral resource estimate (MRE) for its Kobada gold project, located in southwestern Mali, Africa. The MRE update is based on additional drilling completed on the Kobada main shear from September, 2020, until January, 2021, which will form part of a revised definitive feasibility study (expected to be delivered by the end of September). Additionally, the company has engaged various advisers to outline potential corporate opportunities.
The drilling campaign was focused on the gap area and the northern portion of the Kobada main shear, as well as testing the Gosso target for future potential. The drilling has once again increased the confidence in the geological model even further and resulted in a substantial increase in the mineral resource estimate.
Highlights included a 44% increase in the measured and indicated mineral resource to 1.71 million gold ounces and a 26% increase in the inferred mineral resource to 1.43 million gold ounces. There is significant additional upside in the inferred mineral resource.
The Gosso target drilling confirmed that the mineralization and grades are higher than that observed at the Kobada main shear with an average grade of 1.11 g/t gold. Confidence in the geological model continues to increase with every exploration campaign and holes drilled over the Kobada gold project;
Recent metallurgical testwork completed as part of the feasibility study revealed the sulphides are free milling and treatable through the same process circuit. A revised Kobada definitive feasibility study expected by the end of September, 2021.
Danny Callow, CEO, said: “We are delighted to announce these phenomenal results from our Kobada gold project in Mali. With the inclusion of significant exploration drilling within our oxides and fresh rock, we have achieved a substantial increase in total resource to more than 3.1 million ounces, which includes a 44% increase in measured and indicated resource of 1.71 million ounces and a 26% increase in inferred resource of 1.43 million ounces.
“With very little additional drilling on the phase 4A drill program, we have proven the continued significant upside in our Kobada asset. These results are substantially better than those in the July, 2020, definitive feasibility study, and we are very excited to see this continued growth in measured and indicated resources. From this new drilling, we have added additional shallow, easily accessible inferred resources, and through further targeted drilling programs, in phase 4B and 4C, we believe there is substantial further upside in resource growth.”