AMN - MALI: Better than expected Kobada gold results

African Gold Group has received better than expected results from the phase-1 drilling campaign at the Kobada Gold Project in Mali, including 5.34 g/t over 6.0 metres and 1.67 g/t over 21.60 metres. An updated mineral resources estimate is expected later this month.

The phase-1 drilling campaign focused on confirming and upgrading the confidence level of the resource in the feasibility study from 2016 and the previously established structural mineralisation model.

AGG drilled 34 drill holes totalling 5,302.8 metres of core during the first phase.

The results from this campaign returned better than expected grades within the central zone of the Kobada main shear and reinforced the predictiveness of the geological model.

High-grade intersections over a greater thickness together with additional resources in the satellite ore bodies is expected to complement the resource model favourably.

Highlights include:

• 1.65 g/t gold over 4.90 metres, including 3.09 g/t over 2.5 metres;
• 12.60 g/t over 1-metre;
• 5.34 g/t over 6.0 metres, including 29.70 g/t over 1.05 metres;
• 1.59 g/t over 11.0 metres, including 19.0 g/t over 0.8 metres;
• 1.40 g/t over 5.0 metres, including 6.39 g/t over 1-metre;
• 11.60 g/t over 1.55 metres and 5.96 g/t over 1-metre;
• 26.50 g/t over 1-metre;
• 1.67 g/t over 21.60 metres, including 11.9 g/t over 2.0 metres and 7.14 g/t over 1.1 metres; and
• 1.45 g/t over 19.0 metres, including 4.96 g/t over 1.82 metres and 13.20 g/t over 1.3 metres.

"The very compact high-grade intersections over several metres in the area of the future open pit are very encouraging," said vice-president exploration Dr Andreas Rompel.

"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 on 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 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.

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 this phase over the coming weeks.

Continuous mineralisation north of the central zone is expected to further confirm AGG's view that the Kobada project is larger than previously suggested in the 2016 feasibility study.

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