African Gold Group Inc has told investors that its exploration permit for Kobada-Est had been renewed and extended for three years until October 6, 2024, opening the door to further expanding the resource at its flagship Kobada project in Mali.
The Kobada-Est concession covers over 7,000 hectares (Ha) and is one of a group of permits on the western flank of the Bougouni basin. It forms part of what is believed to be 55 kilometres (km) of shear zone strikes.
Recent trenching there generated positive results. One of the three trenches at the Kobada-Est Shear zone was 30 metres (m) long, 22m of which was mineralised at 1.1 grams per ton (g/t) gold.
READ: African Gold Group posts updated DFS for Kobada project in Mali, which shows "very attractive economics"
"The renewal of the Kobada-Est permit opens up highly prospective exploration rights which have already shown very positive gold mineralisation anomalies through regional exploration techniques," said Danny Callow, CEO of African Gold Group, in a statement.
"The recent renewal of our Faraba permit in September 2021, consolidates our ownership of the full 25,000 hectares of highly prospective ground, which includes our 3.1 million ounce total resource, and 1.25 million ounce reserve on our Kobada mining permit, in only 4 km of strike," he noted.
"We have consistently outlined the significant upside potential at our contiguous permits and the renewal of these permit opens up the opportunity to increase the size of the overall resource. There is no doubt that there remains substantial upside to these numbers, as we continue to explore and develop these permitted exploration areas," Callow added.
African Gold noted that limited exploration has been completed at the Kobada-Est permit area so far because the focus has been on upgrading and increasing the Kobada resource and exploratory drilling at the Gosso target but additional work will be carried out in 2022 to improve the Kobada-Est deposit.
The firm's advanced stage Kobada project in southern Mali, was the subject of a 2020 definitive feasibility study and is targeting gold production of 100,000 ounces (oz) per year.
Contact the writer at giles@proactiveinvestors.com