- Large landholding in a prolific West African gold belt
- Feasibility Study indicates low-cost production
- Recent drilling has found high-grade gold outside the known resource area
What African Gold Group does:
African Gold Group, Inc (CVE:AGG) is on track to become Africa’s next mid-tier gold producer with the company targeting production of 100,000 gold ounces per year from its Kobada Gold Project in Mali, West Africa, by 2Q 2022. West Africa has a long history of developing high-grade gold mines.
African Gold Group has a landholding that encompasses more than 460 square kilometres (km2 )across Mali and Burkina Faso in West Africa`s prolific Birimian Greenstone Belt, while less than 15% of the identified shear zones in Kobada property have been drilled.
The company also has an option on a second project, the Madougou Gold Project in Burkina Faso.
Mali is Africa’s third-largest gold producer, with a long and successful history of gold production. Well-established mining companies, such as AngloGold Ashanti and IAMGOLD, have been operating in the country for decades.
African Gold Group CEO Danny Callow is the former head of African Copper Operations for Glencore PLC and the former chief executive officer of Katanga Mining, who has over 25 years of experience in building and operating mines in Africa, and he has overseen more than $2.5 billion in greenfield and brownfield mining projects from conception through to full production.
How is it doing:
On 09 Feb 2021 Proactive reported:
African Gold Group plans to raise C$4 million gross from a private placing to advance infill and exploration drilling at its flagship Kobada project in southern Mali.
The non-brokered financing is for up to over 26.7 million units at C$0.15 each.
Each unit comprises one company share and one half of a share purchase warrant, with each whole warrant entitling the bearer to acquire one additional company share at an exercise price of C$0.25 for two years from issue.
Closing of this offering is expected to occur on or around February 19 this year.
African Gold Group is on track to become Africa’s next mid-tier gold producer, with the company targeting production of 100,000 gold ounces per year from Kobada by the second quarter of 2022.
Other exploration locations have also been identified on the Kobada, Farada and Kobada Est concessions, offering the potential for an increase in resource.
Last week, the company said it had now completed two drill phases - 3A and 4A - at the site, which was aimed at upgrading the oxide resources to the higher confidence indicated and measured category and to initially prove the presence of mineralisation at the neighbouring Gosso shear zone.
The West Africa-focused mining group told investors it aims to include these drill results into the updated resource estimate for Kobada, which is on track for early this year.
Inflection points:
- Targeting initial gold production at Kobada in 2022
- Additional exploration and infill drilling to expand the current resource
- Updated resource/reserve estimate expected by March 2021
What the boss says:
Following the start of its Phase 3 drill program in September 2020, African Gold Group CEO Danny Callow said in a statement: “The delivery of the robust DFS, demonstrating a project with potential to produce 100,000oz per annum, with highly favourable financial deliverables, was a major milestone in the ongoing development of our flagship, ready for construction, Kobada Gold Project.”
He added: “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.”
Contact Sean at sean@proactiveinvestors.com
