Nov 6 2019
African Gold Group, Inc. (AGG) provided an update related to its project deliverables at Kobada Mine Site.
I am happy to report an update on the schedule for completion of our current work program to deliver a definitive feasibility study and updated ESIA to meet IFC and World Bank guidelines. We have recently provided an update of work completed over the past three months since August 1, 2019, which has all been achieved on schedule, but it is equally important to review the deliverables between now and the project deadline date at the end of April 2020.
Danny Callow, Chief Operating Officer, African Gold Group, Inc.
Geological Resource Model and Drilling
Regardless of the very heavy rains, AGG has succeeded in mobilizing and commencing drilling at the Kobada project on the planned 15,000 m of diamond drilling. This necessitated substantial logistical solutions that were arranged by the company and its partners.
Three drilling machines have been drilling at a rate of 1 m per hour more than anticipated. With the start of a fourth rig by early November, it is estimated that the drilling program would be completed before the schedule.
Recent estimates for the completion of the drilling program have been advanced to December 12th, 2019, from January 16th, 2020, which will give AGG more time to examine the updated structural resource model, produced over the last three months.
All of the drill pads for the entire planned drilling program have been prepared to enable quick relocation for drilling on new holes, which also allows movement of rigs during the night.
According to the updated enhanced drilling program deadline, it is expected that the final geological resource model will be ready by mid-January 2020, over one month ahead of schedule.
Metallurgical Testwork
As an important component of delivering a Definitive Feasibility Study, AGG put together an all-inclusive metallurgical testwork program to test different process routes for producing gold. The purpose of this is to establish an enhanced flowsheet covering capital expenditure and gold recovery from the total mineralogy across the orebody.
In the initial schedule, it was visualized that metallurgical testwork could only start upon recommencement of drilling and preparation of new metallurgical samples. As part of the preliminary geological analysis on site, it was learned that a complete representation of mineralogy in the orebody was available in the over 29,000 m of core on site.
This facilitated a fast track method for the preparation and transport of samples to South Africa for metallurgical testing.
The complete spectrum of metallurgical testwork presently being performed was started ahead of schedule, and results from the preliminary tests can be expected in mid-November. Based on the updated timetable, it is estimated that by early-January 2020, a totally defined enhanced process model will be complete and accessible. This is well ahead of the original cutoff date to meet the April 2020 target.
Infrastructure
As was seen in the earlier shareholder update, work is advancing well on the renovation of the old camp and setting up of the new camp. In spite of difficult logistical issues, heavier than anticipated rainfall, and more scope modifications to the infrastructure program, AGG’s partners EGTF have done very well.
With operations at 95% on the new camp, it is anticipated that offices would be shifted to the new office facility by November first week, accommodation units by November second week, and full camp completion and delivery by November third week. This is ahead of agenda and budget.
When we started in early August on Kobada, it was in the middle of the rainy season. Whilst many operators would have waited for the rains to subside, AGG and its partners dug in their heels and mobilized to site. This is in the spirit of getting the job done, and it has paid off for us.
Danny Callow, Chief Operating Officer, African Gold Group, Inc.
Callow continued, “We commend all of our partners, Senet, AMCO, MINXCON, EGTF and our local teams on site and in Bamako for their extraordinary effort so far, and intend to keep ahead of the schedule to deliver the feasibility study on a very tight timeline. We are using highly experienced operators and personnel who understand the conditions and have had experience of operating in Mali, and our decision to use these partners is now starting to pay dividends.”
By fast tracking the early part of the project, we will be in a position to deliver phased updates to the markets as drilling information becomes available, as well as updated metallurgical testwork results. These are the two key variables for a successful project and therefore are receiving the most focus at the moment.
Danny Callow, Chief Operating Officer, African Gold Group, Inc.
AGG plans to provide a ready-for-construction Definitive Feasibility Study and ESIA by the end of April 2020.
Financing Update
AGG reports that, further to the news releases dated August 22nd, 2019 and on October 7th, 2019, it has been given an extension from the TSX Venture Exchange concerning the duration of its formerly announced private placement. The outside date when the final acceptance of the Private Placement will be approved by the TSX Venture Exchange has been extended to December 4th, 2019.