African Gold Group Inc (CVE:AGG) (OTCMKTS:AGGFF) (FRA:3A61) revealed encouraging results from metallurgical testing of sulphide material from its Kobada gold project in Mali on Tuesday.
Highlights from the test work include high average gold recoveries of 96.1%, according to a statement from the Toronto-based company.
Sulphide ore is free-milling, or non-refractory, the company added, and the current processing plant design is “well-sized” to treat additional sulphide ore.
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African Gold Group CEO Danny Callow told shareholders the company is confident that it has a “sizeable” sulphide resource sitting below the oxides at Kobada.
“Based upon the geological interpretation to date, this could be far larger than the current oxide resource,” Callow said in a statement.
“Whilst we believe we have significant upside in the oxides along strike, it made sense to test the ability to treat the sulphides, especially those that fall within the current open-pit shell and are classified as a resource.”
The CEO added that the group “could not be happier” with the results that indicate free-milling and optimal recovery through the existing gravity + CIL circuit already designed for the Kobada Gold Project oxides.
“We are confident that some of our existing 345,000 ounces of sulphides as per our latest resource statement will fall within our open-pittable reserves and therefore be added to the overall reserve number as we seek to update the technical report from our additional oxide drilling results and sulphide test work,” Callow added.
Kobada is an advanced project in southern Mali, with a targeted gold production level of around 100,000 ounces per year.
The company also clarified that all warrants issued under a previously announced C$4.6 million offering expire on February 24, 2023.
Contact Angela at angela@proactiveinvestors.com
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