Existing Shear Zone Structures Extended At Flagship Kobada Property

TORONTO - African Gold Group, Inc. reported the results of its ongoing exploration activities at the Kobada Gold Project in Southern Mali. A detailed study of the airborne magnetic and radiometric survey has delineated a total of 55 km of shear zone structures, an approximate 80% increase from the previously delineated 30 km.

Highlights: A reprocessing of airborne magnetic and radiometric survey has led to a re-interpretation of the structural inventory and resulted in a delineation of 55 km of shear zones across the Kobada, Faraba and Kobada Est concessions; Existing 1.2 Moz in M&I and 1.1 Moz in Inferred resources have been estimated along only 4 km of strike length of the Kobada shear zone; An additional 25 km of shear zones represent a potential for an increase in resources; Drilling continues in the main shear zone, the Gosso target, and the northern extension of the main Kobada shear zone as part of the 10,000 m drilling program announced; and The Company expects to deliver an updated mineral resource estimate during Q1 2021 to incorporate results from the Company’s ongoing drilling program.

Re-processing and interpretation of the airborne data was initiated during July 2020 and awarded to John Bell, a geophysicist, with in-depth knowledge of the Birimian geology. The report was received during October 2020 and its very detailed findings have allowed for a re-assessment of the structural inventory at our Kobada project and its neighboring concessions Kobada Est and Faraba.

The integration of various datasets, including soil geochemistry, radiometrics, various magnetic derivatives, satellite imagery and field observations led to the delineation of 55 km strike length of potentially mineralized shear zones. Known outcrops, historical artisanal excavations, soil sampling and tracing of shears along magnetic features and satellite imagery facilitated the delineation. AGG will test all targets for gold occurrence in the subsequent exploration programs.

Danny Callow, Chief Executive Officer said, “Since August 2019, AGG has analyzed all historical geological information to better understand the structural geology of the Kobada complex. These exciting results from a re-analysis of these datasets could increase the resource potential of the Kobada gold project and represent a significant milestone achievement for the company. With only 4 km of the shear zones drilled to date, the recent findings further confirm the belief of the management team that we have only scratched the surface of the true potential of the Kobada Gold Project. The 55 km of highly prospective shear zone structures identified by AGG have the potential to increase the resource of the AGG portfolio, and we have put together a detailed drill program to target these new areas. The recent better than expected drill results from the ongoing drilling program and delineation of new shear zones continue to strengthen our vision of building a long-term sustainable operation in West Africa and growing value for our shareholders. We now firmly believe that this has the potential to not only substantially increase the mine life as detailed in the 2020 DFS, but also the potential to increase the output from the current 100,000 ounces of gold per annum.”