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African Gold shares rise on step out drill results from Kobada


African Gold Group (CVE:AGG) reported Thursday encouraging drill results from its Kobada gold project in Mali, potentially expanding the resource at the property.

The results from 27 near surface step out holes, which were drilled to the north of the Zone 1 deposit, showed encouraging intercepts nearly 2,000 metres north on trend from the established resource. The NI 43-101 compliant resource for Zone 1 is 740,000 ounces of gold at an average grade of 1.25 g/t, at a 0.3 g/t gold cut-off.

Highlights from the results include 10 metres at 5.7 g/t gold, including 1 metre at 25.45 g/t gold and 1 metre at 19.06 g/t gold in hole KBRC11-025. The hole also intercepted 15 metres at 4.79 g/t gold, including 2 metres at 30.8 g/t gold.

Meanwhile, hole KBRC11-019, located in the 1100S area, returned 34 metres at 2.08 g/t gold, including 1 metre at 45.8 g/t gold. The company said holes in this area represent a step out of 400 metres north of Zone 1, and indicate near surface oxide mineralization that occurs over widths of at least 80 metres and to vertical depths of up to 100 metres.

In addition, hole KBRC11-003 contained 39 metres of greater than 0.5 g/t gold mineralization. This hole was located in the 400N area, almost 2,000 metres north of the Zone 1 deposit resource.

African Gold said that additional drilling will be completed on the northern extension areas that were tested this year. The company targeted zones with ancient local gold diggings, where artisanal miners excavated caverns up to 100 metres long by 30 metres wide.

"At present, we remain drilling as far as 1,300 meters south of the 43-101 resource and remain optimistic that the combination of our northern and southern step out holes will ultimately result in the significant expansion and growth of our Kobada gold project," said vice president of exploration, Dr. Kevin Downing.

African Gold's shares rose nearly 6% as of 10:54am EST on Thursday to $0.92.

Quick facts: African Gold Group, Inc.

Price: 0.21 CAD

Market: TSX-V
Market Cap: $31.28 m

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