Name of the Project
Kobada gold project.

Location
The Birimian greenstone belt, in southern Mali.

Project Owner/s
Canadian-listed gold company African Gold Group (AGG) owns a 90% interest in the project, with the Mali government retaining a 10% carried interest.

Project Description
The July 2020 definitive feasibility study (DFS) envisages the construction of a three-million-tonne-a-year plant, with production of 100 000 oz/y of gold over the first five years of operation and total gold production of 728 654 oz over a 9.4-year life-of-mine (LoM), based on current reserves.

The project will be a predominantly free-dig operation.

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 $226-million and internal rate of return of 41.1%, with a payback of 3.82 years.

Capital Expenditure
Initial capital costs are estimated at $136.1-million.

Planned Start/End Date
First gold is expected in the second quarter of 2022.

Latest Developments
African Gold Group reports a 44% increase in the measured and indicated mineral resources for its Kobada gold project to 1.71-million ounces.

This includes a 26% increase in the inferred resource to 1.43-million ounces, thereby bringing the total resource at Kobada to more than 3.1-million ounces.

The mineral resource estimate update is based on additional drilling completed on the Kobada main shear, which will form part of a revised definitive feasibility study, which is expected to be delivered by the end of September.

The drilling campaign was focused on the so-called gap area and the northern portion of the Kobada main shear, as well as testing the Gosso target for future potential.

Gosso target drilling confirmed that the mineralisation and grades are higher than that observed at the Kobada main shear, with an average grade of 1.11 g/t.

CEO Danny Callow has said that, with little additional drilling on the Phase 4A drill programme, African Gold has proven the continued significant upside of its Kobada asset.

Also, recent metallurgical testwork completed as part of the Kobada feasibility study revealed the sulphides are free milling and treatable through the same process circuit.

Key Contracts, Suppliers and Consultants
SENET (DFS); and Maelgwyn South Africa (metallurgical testwork programme).

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