African Gold Group (AGG.V) has released the results of a new resource calculation on its Kobada gold project in Mali. The total resources have now increased to in excess of 3 million ounces in a global estimate consisting of 1.71 million ounces of gold in the measured and indicated category at an average grade of 0.86 g/t gold and an additional 1.43 million ounces of gold in the inferred resource category at an average grade of 1.06 g/t gold.
Excluding the sulphide mineralization, the resource contains 1.04 million ounces of gold at 0.9 g/t with an additional 580,000 ounces of gold at 1.08 g/t gold, so the sulphide hosted ounces make up about half of the total resources at Kobada. The total resource will now be used to complete an updated definitive feasibility study which should be completed by the end of this year. On top of the current 3.14 million ounces, there is additional resource potential to be added to the current deposit, but with about 1.5 million ounces in the oxide and transitional layers and 1.2 million ounces in the ‘pure’ oxide categories, African Gold Group can start working on a scenario whereby the initial phase of a development plan will include the oxide layers as this should be relatively cheap to get into production and the cash flows could subsequently be used to develop the sulphide resources, should the September feasibility study show a clear path forward.
Disclosure: The author has no position in African Gold Group. Please read our disclaimer.
