Name of the Project
Kobada gold project.

Location
The project is located in the prolific Birimian greenstone belt, in southern Mali.

Project Owner/s
African Gold Group.

Project Description
The project has measured and indicated resources of 1.2-million ounces of gold equivalent grad­ing 1.1 g/t gold, and inferred resources of one-million ounces of gold equivalent grading 1 g/t gold.

African Gold Corp is targeting production of more than 100 000 oz/y and is running a parallel process for a 50 000 oz and 100 000 oz pro­cessing plant.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $126-million and internal rate of return of 55%, with a payback of 2.6 years.

Capital Expenditure
Preproduction capital costs are estimated at $45.4-million.

Planned Start/End Date
Construction is estimated at 18 months.

Latest Developments
Positive results from an ongoing exploration drilling programme at African Gold Group’s Kobada project have highlighted the continuity of the mineralisation at depth beneath the current pit design, and indicate that there is a presence of high grades to support potential future underground mining.

The drill programme has extended the depth of the oxide-sulphide boundary from an anticipated 110 m to 180 m at the northern extensions of the main shear zone, representing an increase of about 60%.

To date, the company has drilled 6 258 m of the combined diamond and reverse circulation drilling, with encouraging results continuing to show deeper-than-expected extensions of the orebody at depth, as well as additional mineralised zones outside of the known ore zones.

African Gold’s key goal for the first quarter of 2021 is to further demonstrate the considerable potential for an increased resource base at the Kobada gold project, as the company expects to incorporate the results of the drilling programme in the next mineral resource estimate update, to be published in early 2021.

CEO Danny Callow has said that, based on the results of the drilling campaign, the company will extend the drilling in the Phase 4 infill drilling campaign, and start to drill the extension of the main shear zone as a Phase 5 programme.

The 2021 drilling programme is focused on the newly identified shear zones at the Kobada, Faraba and Kobada Est concessions (Phase 3), and a conversion of the inferred resources to the measured and indicated category to expand the reserve base to more than one-million ounces as part of Phase 4.

Strike extension of the main shear zone at Kobada concession will comprise Phase 5.

Key Contracts and Suppliers
SENET (DFS).

Contact Details for Project Information
African Gold Group VP corporate development Daniyal Baizak, tel +1416861 2966.