African Gold Group Inc (CVE:AGG) (OTCMKTS:AGGFF) (FRA:3A61) hailed more positive results from metallurgical testing on sulphide material from its Kobada project in Mali, which means the company can convert some of its existing resources into reserves.
Also in Wednesday's statement, the company updated on corporate matters and management changes, including the appointment of a new chief financial officer.
READ: African Gold Group reveals positive metallurgical results indicating high gold recoveries from its Kobada project in Mali
The metallurgical findings have provided "great confidence" that the Kobada sulphides can be treated easily through the company's existing gravity and carbon-in-leach (CIL) process with very good recoveries, it said.
CEO Danny Callow noted that there appeared to be no need to change the gravity and CIL process circuit to accommodate the sulphides.
"Work is underway to optimise the grinding requirement of the sulphides versus oxides, and these results are due out soon," he said.
"This is the best we could have hoped for in terms of optimising the sulphide testwork, and this means that the process plant design already completed to an advanced detailed engineering level can accommodate the sulphides.
"We are confident that we have a substantial sulphide resource below the oxides, and the results of this testwork will enable us to quickly convert a portion of the existing measured and indicated sulphide resources into reserves. Apart from a huge oxide upside opportunity, the addition of sulphides treatable through our existing plant design adds more value to the size of the Kobada project."
Experienced corporate finance executive Paul Bozoki becomes the company's new finance chief, replacing Ryan Ptolemy, the company revealed.
"Additionally, the company would like to announce that it has agreed to part ways with Kenny Choi, the former Corporate Secretary of the company and Dr. Andreas Rompel, the former Vice President Exploration.
"Mr. Ptolemy, Dr. Rompel and Mr. Choi will remain available to ensure a smooth transition," said the company, thanking all three for their "invaluable contributions" since joining AGG in 2018.
African Gold also said it had terminated its services agreement at 65 Queen Street West and relocated its registered head office to 100 King St W #1600, Toronto, ON M5X 1G5.
Shares ticked up 4.35% on the day to C$0.12 each.
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