REPEAT - African Gold Group Files NI 43-101 Technical Report for Kobada Gold Project

TORONTO, July 13, 2020 (GLOBE NEWSWIRE) -- African Gold Group, Inc. (TSX-V: AGG) (“AGG” or the “Company”) is pleased to announce that an updated technical report under National Instrument 43-101 for the definitive feasibility study on Kobada Gold Project has been filed on SEDAR (www.sedar.com), pursuant to the June 17, 2020 press release. 

"We are very excited to deliver this DFS update, which shows a marked improvement over the 2016 Feasibility Study. We are pleased to announce significantly improved project economics on the back of a large jump in mineral reserves, based on a solid foundation of additional drilling, an updated resource model and a comprehensive metallurgical test work program,” comments Danny Callow, Chief Executive Officer of AGG.

"We have worked tirelessly, despite the impact of COVID-19 to deliver this study on time and 20% below budget. Our flagship Kobada Gold Project has been increased to a 100,000 oz per annum operation. Based on the limited exploration drilling on only 4 km of the 30 km of identified structural shear zones on the property, we believe there is significant potential to improve the resources and reserves further with limited additional exploration. We have an advanced process plant design, we are fully permitted, and we are ready for the next phase of construction."

Highlights include:

• Average annual production of 100,000 ounces of gold per annum for the first 5 years of operation.
• Total gold production of 728,654 ounces over 9.4 years life of mine, based on current reserves.
• Average total operating cash costs US$704/oz for the Life of Mine (“LOM”).
• LOM All-In Sustaining Cost (“AISC”) of US$782/oz.
• Pre-tax NPV_5% of US$283.9 million with an IRR of 45.5% and a post-tax NPV_5% of $226 million with an IRR of 41.1% at US$1,530/oz gold. 
• Kobada Gold Project capital expenditure of US$125 million (plus a contingency of US$11 million).
• Total project capital expenditure payback of 3.82 years from start of production, based on a US$1,530 per ounce gold price.
• Total project net cash flows after tax and capital expenditure of US$327 million.
• A separate standalone 11 MW Hybrid Solar/Thermal Power Plant to supply power to the Kobada Gold Project will be funded by an independent power producer with power purchased at a very competitive kWh rate and significantly reduced greenhouse gas emissions.
• Total proven and probable mineral reserve has increased to 754,800 ounces of gold, a 48% increase from the mineral reserve estimate in the 2016 feasibility study of the Company with respect to the Kobada Gold Project (the “2016 Feasibility Study”).
• Pit constrained mineral resource estimate in the inferred category increased to 1,138,810 ounces of gold with an average grade of 1.33 g/t Au, representing an 11.2% increase in resource and 37% increase in average grade.
• High measured and indicated resource to reserve conversion rate of 84%.
• Updated 2020 mineral reserve estimate represents, an increase of 48% in ounces and 114% in tonnes compared with the 2016 Feasibility Study.
• Further potential remains to significantly increase the resource and reserve along strike and depth at the Kobada Gold Project.

Qualified Persons