African Gold Group Completes Phase 1 Drilling Campaign at Kobada Gold Project With Better Than Expected Results Including 5.34 g/t Gold Over 6.0 m and 1.67 g/t Gold Over 21.60 m

TORONTO, Jan. 29, 2020 (GLOBE NEWSWIRE) -- African Gold Group, Inc. (TSX-V: AGG) (“AGG” or the “Company”) is pleased to report the final results for the Phase 1 drilling campaign at the Kobada Gold Project. The Phase 1 drilling campaign focused on confirming and upgrading the confidence level of the resource in the feasibility study from 2016 (the “2016 Feasibility Study”) and the previously established structural mineralization model. The Company expects to issue an updated mineral resource statement in February 2020.

The results from the Phase I drilling campaign returned better than expected grades within the central zone of the Kobada main shear and reinforced the predictiveness of our geological model. High-grade intersections over a greater thickness together with additional resources in the satellite orebodies is expected to complement the resource model favourably.

Highlights include:

• Drill hole KP19_P1_03 returned 1.65 g/t gold over 4.90 m, including 3.09 g/t gold over 2.5 m
• Drill hole KP19_P1_11 returned 12.60 g/t gold over 1.0 m
• Drill hole KP19_P1_12 returned 5.34 g/t gold over 6.0 m including 29.70 g/t gold over 1.05 m
• Drill hole KP19_P1_17 returned 1.59 g/t gold over 11.0 m, including 19.0 g/t gold over 0.8 m
• Drill hole KP19_P1_17 returned 1.40 g/t gold over 5.0 m, including 6.39 g/t gold over 1.0 m
• Drill hole KP19_P1_18 returned 0.94 g/t gold over 49.0 m, including 2.11 g/t gold over 5.71 m
• Drill hole KP19_P1_18 returned 11.60 g/t gold over 1.55 m and 5.96 g/t gold over 1.0 m
• Drill hole KP19_P1_20 returned 26.50 g/t gold over 1.0 m
• Drill hole KP19_P1_21 returned 1.67 g/t gold over 21.60 m, including 11.9 g/t gold over 2.0 m and 7.14 g/t gold over 1.1 m
• Drill hole KP19_P1_31 returned 2.67 g/t gold over 5.61 m, including 5.25 g/t gold over 2.61 m
• Drill hole KP19_P1_33 returned 1.58 g/t gold over 15.06 m, including 12.40 g/t gold over 1.4 m
• Drill hole KP19_P1_36 returned 12.30 g/t gold over 1.0 m and 3.14 g/t gold over 1.5 m
• Drill hole KP19_P1_37 returned 1.45 g/t gold over 19.0 m, including 4.96 g/t gold over 1.82 m and 13.20 g/t gold over 1.3 m  

“The very compact high-grade intersections over several metres in the area of the future open pit are very encouraging,” says Dr. Andreas Rompel, Vice President Exploration of the Company. “We are very pleased with the completion of the Phase 1 drilling program and are keenly expecting the revised resource model and more positive results from Phase 2. The Kobada ore body is exhibiting significant upside potential and our focus now is on targeting extensions to the main shear zone where the drilling has been focused, but also to explore other shear zones on the concession. To date we have still only drilled approximately 4km of the main shear zone, in which the updated resource will be targeted. There are an additional 26 strike kilometres of identified shear zones, exhibiting identical geological characteristics to the Kobada shear. Based upon the work done to date, it becomes obvious that there is great potential to significantly increase the Kobada resource on the back of additional exploration drilling.”

The Phase 1 drilling campaign, which focused on confirming and upgrading the confidence level of the previous Mineral Resource, has confirmed a strong correlation with the geological model of the 2016 Feasibility Study. AGG drilled 34 drill holes totaling 5,302.8 metres of core during Phase 1. The returned assays were tested by fire assay with AAS finish in the accredited SGS laboratory in Bamako, Mali. The laboratory operates a quality system according to the ISO 17 025 standards.

AGG has implemented quality assurance and quality control (QAQC) protocols for the drilling campaign to ensure consistent quality. Every 10th sample is either a blank sample, certified reference material (CRM) of various grades or duplicate samples.

All samples were core samples of HQ or NQ size. The laterite, saprolite and transition zones were drilled HQ size and the harder, less weathered sulphide zone was drilled using NQ. Overall core recovery throughout Phase 1 was approximately 85% in Saprolite and 95% in fresh/hard rock.

Phase 2 Drilling Campaign

The Phase 2 drilling campaign is already 75% complete and is progressing to the north of the central zone with the aim to expand the total Mineral Resource. The Company is anticipating the assay results for Phase 2 over the coming weeks. Continuous mineralization north of the central zone is expected to further confirm our view that the Kobada project is larger than previously suggested in the 2016 feasibility study.

“The completion of Phase 1 ahead of schedule, and commencement of Phase 2 drill programme is an exciting advancement of the Kobada project,” says Danny Callow Chief Operating Officer of AGG. “Not only have we updated and gained significant confidence as a result of Phase 1 drilling, the upside potential from Phase 2 and the Gosso target is potentially huge. As part of the definitive feasibility study work, we intended to upgrade the resource model, the ESIA and deliver a very robust study document that will allow us to move quickly into construction on this project. Everything we have seen so far points to a better than expected orebody, which is easy to mine and process, with oxide ore close to surface and mineralized throughout the Phase 1 holes. I am excited to start to deliver key components of the DFS throughout this first quarter and the resource model due at the end of January is the first key document.”

Qualified Persons

The scientific and technical information contained in this press release has been reviewed, prepared and approved by Dr. Andreas Rompel, PhD, Pr. Sci. Nat. (400274/04), FSAIMM, Vice President Exploration of AGG, who is a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101“) and by Mr. Uwe Engelmann (BSc (Zoo. & Bot.), BSc Hons (Geol.), Pr.Sci.Nat. No. 400058/08, MGSSA), a director of Minxcon (Pty) Ltd and a member of the South African Council for Natural Scientific Professions.

About African Gold Group

African Gold Group is a Canadian listed exploration and development company on the TSX Venture Exchange (TSX V:AGG) with its focus on developing a gold platform in West Africa. Its principal asset is the Kobada Project in Mali.

Assay standards:

Samples <3.0kg are dried in trays, crushed to a nominal 2 mm using a jaw crusher, then <1.5 kg is split using a Jones type riffle. The reject sample is retained in the original bag and stored. The split is pulverised in a LM2 to a nominal 85% passing 75um. Approximately 200g sub-sample is taken for assay, with the pulverised residue retained in a plastic bag. All the preparation equipment is flushed with barren material prior to the commencement of the job. A 50g sub sample is fused with litharge-based flux, cupelled and prill dissolved in aqua regia and gold determined by flame AAS - Detection Limit 0.01ppm.

For more information:

Stan Bharti
Chairman
(416) 861 2267

Cautionary statements

This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, management’s, the Company’s development and exploration plans for the Kobada project, expectation of grade and resources at the Kobada gold project, expectation of drill results at the Kobada project, the timeline for the completion of the Phase 2 drilling program, the definitive feasibility study and the updated resource model, expectations for mineralization and location of extensions at the Kobada gold project and expected mining methods at the Kobada gold project,  and other statements with respect to the future plans or intentions of the Company. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", “aims”, "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of exploration activities; regulatory risks; risks inherent in foreign operations; and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Table 1: Significant Intersections (Above 1 g/t)

Table 2: Mineralization Zones