TORONTO, Dec. 08, 2020 (GLOBE NEWSWIRE) — African Gold Group, Inc. (TSX-V: AGG) (“

AGG

” or the “

Company

”) is pleased to provide an update on the ongoing drilling campaign at its flagship Kobada Gold Project in Southern Mali. To date, the Company has only drilled approximately 8% of the identified shear zones on the property, and this current drilling campaign is targeting highly prospective extensions to strike length, and conversion of inferred oxides to measured and indicated ounces. Most recent high-grade drilling results continue to show far deeper than expected extensions of the oxide orebody at depth as well as additional mineralised zones outside of the known ore zones.

Highlights

• 
  Significant new drill intersects
  
  
  at the main shear zone of the Kobada
  
  
  G
  
  
  old
  
  
  P
  
  
  roject. Drilling highlights include:
  

○

1


.09


g/t Au over


43


.


5


0 m from


111


.0 m to


154


.


5


0 m (Drill hole KB20_PH4A_


12


)

▪ Including 9.10 g/t Au over 1.0 m, 9.93 g/t Au over 1.0 m and 9.39 g/t Au over 1.0 m

○

1.


16


g/t Au over


1


7


.0 m from


5


3


.0 to


7


0


.0 m (Drill hole KB20_PH4A_14)

▪ Including 9.07 g/t Au over 1.0 m

○

4.86 g/t Au over 17.0 m from 64.0 to 81.0 m (Drill hole KB20_PH4A_16)

▪ Including 46.10 g/t Au over 1.0 m

• 
  T
  
  
  he boundary between the oxidised lithologies and the unaltered (sulphide) lithologies
  
  
  are
  
  
  being intersected
  
  
  consistently
  
  
  at deeper levels
  
  
  and
  
  
  are conducive to adding more volume to the
  
  
  i
  
  
  nferred
  
  
  m
  
  
  ineral
  
  
  r
  
  
  esource
  
  
  .
  

• 
  The drill program has extended the depth of the oxide-sulphide boundary from
  
  
  1
  
  
  1
  
  
  0
  
  
  m to
  
  
  1
  
  
  8
  
  
  0
  
  
  m at the northern extensions of the main shear zone, representing ~60% increase.
  

• 
  High grade g
  
  
  old mineralisation
  
  
  , plus numerous recent strong intersections consistently reported from outside the
  
  
  mineral resource estimate in the
  
  
  
  NI 43-101 Technical Report on Kobada Gold Project
  
  
  
  dated June 17, 2020 (the “2020 DFS”) will be incorporated in the next mineral resource estimate update on track for Q1 2021.
  

• 
  Drillin
  
  
  g
  
  
  continu
  
  
  es
  
  
  along
  
  
  the main shear zone
  
  
  (Phase 4)
  
  
  , the Gosso target
  
  
  (Phase 3)
  
  
  ,
  
  
  and
  
  
  the northern
  
  
  extension
  
  
  of
  
  
  the main
  
  
  Kobada
  
  
  shear zone
  
  
  (Phase 5)
  
  
  as part of the 10,000
  
  
  m drilling programme announced in
  
  
  September
  
  
  (
  
  
  see press release
  
  
  dated
  
  
  September 14, 2020
  
  
  )
  
  
  .
  
  

Danny Callow


,


C


hief Executive Officer


of


AGG


commented:

“With every hole that we drill in our infill drilling programme, we are seeing positive results that support our thesis for expanding the resource, both in terms of depth extensions and grade. We are very happy with the progress being


made and


expect


to continue to see


good results as we near year-end.”

Overview of


D


rilling


P


rogramme

Drill rigs have been operating since early September 2020, and despite heavy rains, the Company has made very good progress in its exploration drilling programme. To date, 3,640 m have been drilled, of which 1,960 m were reverse circulation drilling (“

RC

”) and 1,680 m were diamond drilling (“

DD


”

). The assay results from the infill drilling campaign on the Kobada main shear zone have confirmed that to date, large portions of the geological model and the anticipated grade of the inferred oxide mineral resource correlate positively with the 1.34 g/t mean grade currently used in the existing inferred resource estimate. In addition, the boundary between the oxidised lithologies and the unaltered (sulphide) lithologies has been repeatedly intersected at deeper levels than anticipated. These results are conducive to adding more volume at depth to the inferred mineral resource in the oxides.

The drilling campaign to upgrade a portion of the inferred oxide mineral resources is part of a three-phase drilling campaign. The objective of the current drilling campaign is to upgrade the Inferred oxide resource to a higher confidence category, test the northern extension of the Kobada shear beyond the last known occurrence in the northern parts of the Kobada concession and the initial drill-testing of the neighbouring Gosso shear zone (see press release dated October 20, 2020). It comprises an initial 6,720 m at a split of 70% RC holes (4,704 m) and 30% DD holes (2,016 m).

Figure 1: Plan view of drilling campaign at Kobada. Solid lines represent holes drilled to date:


https://www.globenewswire.com/NewsRoom/AttachmentNg/6796b561-7462-49fd-b37c-9096078d366d

Figure 2: Drill hole KB20_PH4A_12 and 14, confirming mineralisation close to surface and an additional newly discovered mineralised zone:


https://www.globenewswire.com/NewsRoom/AttachmentNg/8ecf4a3a-aa16-46dd-883b-5d3814760833

About African Gold Group

African Gold Group is a TSX Venture Exchange (TSX-V: AGG) listed exploration and development company with a focus on building Africa’s next mid-tier gold producer. The Company has a highly experienced


b


oard and management team with a proven track record in the African mining sector operating mines from development through to production. AGG’s principal asset is the Kobada Project in southern Mali, which is in an advanced stage of development having completed


the 2020 DFS


and


is targeting gold production of 100,000 oz per annum by Q2 2022. As well as the initial


Kobada Gold P


roject, other exploration locations have been identified on the Kobada


, Farada and Kobada Est concessions


, offering potential for an increase


in


resource. For more information regarding African Gold Group visit our website at



www.africangoldgroup.com



.

Q


ualified Person

The scientific and technical information contained in this press release has been reviewed, prepared and approved by Dr. Andreas Rompel, PhD, Pr. Sci. Nat. (400274/04), FSAIMM, Vice President Exploration of AGG, who is a “Qualified Person”

as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”)

and by Mr. Uwe Engelmann (BSc (Zoo. & Bot.), BSc Hons (Geol.), Pr.Sci.Nat. No. 400058/08, MGSSA), a director of Minxcon (Pty) Ltd and a member of the South African Council for Natural Scientific Professions.

For more information:

Danny Callow

President and Chief Executive Officer

+(27) 76 411 3803


[email protected]

Scott Eldridge

Non-Executive Chairman of the Board

(604) 722-5381


[email protected]

Daniyal Baizak

VP Corporate Development

(647) 835-9617


[email protected]

Camarco (Financial PR)

Gordon Poole

Nick Hennis

+44 (0) 20 3757 4997


[email protected]

Cautionary statements

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding, the Company’s drilling and exploration programmes, expectations of increase in resources or reserves at the Kobada Gold Project, timeline for delivery of future mineral resource estimates and extensions of orebody depth and length. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”.  Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of AGG to be materially different from those expressed or implied by such forward-looking information, including but not limited to: receipt of necessary approvals; general business, economic, competitive, political and social uncertainties; future prices of mineral prices; accidents, labour disputes and shortages and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Table 1: Assay results from the mineralized zone

Cumulative Mineralization Widths

Significant


Intersections (


above


1 g/t Au)