HomeExplorationAfrican Gold Group announces 66% reserve increase

African Gold Group announces 66% reserve increase

African Gold Group has announced results of its 2021 DFS for the Kobada Gold Project in Southern Mali. The DFS was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) and will be filed by the Company during October.

Danny Callow, CEO of African Gold Group, commented:

“Over the past two years we have worked tirelessly to demonstrate that the Kobada Gold Project has the potential to be one of the largest new gold projects in West Africa. Since the implementation of management changes in August 2019, and with new drilling campaigns totalling around 18,000 metres, we have managed to increase our reserve base by 144% (66% increase over the 2020 DFS).

With our updated 2021 DFS we have shown that Kobada has the potential to produce over 1.2 mln oz of gold over a 16 year mine life while delivering solid economics with post-tax NPV5% of US$355 million and an IRR of 38%.

Kobada is a predominantly free-dig operation, requires limited blasting, and processing of ore will be through a very simple and proven gravity plus CIL plant with recoveries over 95% in both oxides and sulphides. The inclusion of sulphides in this updated DFS, which are free milling and easy to process, opens significant future opportunities within the sulphide resource as well as continuing growth possibilities in the oxides.

“We are confident in the capital estimates as compared to recent similar completed projects in the region, and these costs remain very competitive for a project of this size. The potential to produce significant free cash flows after tax and low capital expenditure highlights very attractive economics of our Kobada project.

“Based upon our detailed understanding and integrity of the current resource, on only 4 km of our 55 km of identified shear zones we believe that there continues to be significant potential to increase our 3.1 Moz total resource substantially further. Kobada is now positioned as a great construction opportunity, in a prolific gold-producing area of West Africa”