African Gold Group, Inc. (TSX-V:AGG) said its newly updated mineral resource estimate increases the measured and indicated resource by 44% at its Kobada Gold Project located in southwestern Mali, Africa.
In a statement, Danny Callow, CEO of African Gold Group 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,”
Drilling at the Gosso target confirmed that the mineralization produced grades that are higher than those observed at the Kobada main shear with an average grade of 1.11 gram per tonne.
READ: African Gold Group says metallurgical testwork confirms Kobada’s excellent potential as new mine in Mali
“Confidence in the geological model continues to increase with every exploration campaign and holes drilled over the Kobada Gold Project,” the company noted.
Recent metallurgical test work completed as part of the feasibility study has revealed the sulphides are free milling and treatable through the same process circuit. The mineral resource update is based on additional drilling completed on the Kobada main shear from September 2020 until January 2021. This data will also form part of a revised definitive feasibility study - expected to be delivered by the end of September.
“With very little additional drilling on the Phase 4A drill programme, 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,” Callow said.
He added: “From this new drilling, we have added additional shallow, easily accessible inferred resources, and through further targeted drilling programmes, in Phase 4B and 4C we believe there is substantial further upside in resource growth. We have always stated that there is significant upside in Kobada, and with more than 50 km of shear zones still untested with the drill bit, we believe we are sitting on a substantial world-class resource.”
The 2020 drill campaign ran between September 2020 and January 2021 and consisted of 43 drill holes totaling 6,364 meters (m). Of those, four drill holes (522 m) were completed at the Gosso target and the remaining 39 drill holes (5,842 m) were done in the “gap” area and northern extents on the northern domain of the Kobada main shear.
The goal of the 2020 drilling campaign was to confirm the geological model and improve the confidence in the model, and to convert additional oxides to the measured and indicated resource categories.
African Gold also noted that the increase in the mineral resource estimate this year was facilitated by higher gold prices which increase the reasonable prospects of eventual economic extraction by allowing for a larger and deeper resource pit to include more sulphides.
-- Includes additional quote from Danny Callow --
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