African Gold Group Finalizes Comprehensive Metallurgical Test Work Returning Significant Improvements in Gold Recovery to 96% From 80%

TORONTO, May 05, 2020 (GLOBE NEWSWIRE) — African Gold Group, Inc. (TSX.V:AGG)(OTCQX:AGGFF)(“AGG” or the “Company”) is pleased to provide an update from the comprehensive metallurgical test work program, undertaken as part of the definitive feasibility study (the “DFS”).

Metallurgical Testing Highlights:

  • Confirmed the potential for consistent gold recovery of 96% across all ore types, up from 80% previously
  • Simplified, compact process plant flowsheet, minimizes the requirement for expensive and long lead process equipment
  • Tried and tested process flowsheet, simple to operate and cost-effective, in terms of capital and operating costs
  • Flexibility to exceed 100,000oz per year of output as determined by input feed grade
  • Extremely low hardness and abrasiveness of ore, resulting in very low power requirement and reduced wear on liners and mill media
  • Low deleterious elements resulting in low reagent use and low operating cost
  • Highly flexible process able to treat varying ore grades and ore types with no significant increase in reagent consumption
  • No need for oxygen-enhanced sparging in the leach tanks, eliminating the requirement for an oxygen plant

“The Phase 2 metallurgical test work has concluded a very comprehensive, but fast-tracked test work programme on time and under budget,” comments Danny Callow, Chief Operating Officer of the Company. “The focus for the DFS is to develop a low capital, low maintenance, robust and flexible process route, whilst ensuring that comprehensive analysis of composite ore from the open pit zone was undertaken. I am very pleased that the test work has proven the processability of our Kobada Gold Project ore, through a proven process technology, consistent with most oxide operations in West Africa. This is a major step towards finalising the DFS by Q2-2020 and completing the process plant design.”

As a component of the DFS, the Company completed a definitive metallurgical analysis on composite ore samples across the mineralized zones. As an update to the 24th February 2020 announcement, African Gold Group Finalizes Optimised Flowsheet, the Company is pleased to confirm that the Phase 2 program has been completed on time and under budget.

Phase 1 involved investigating the optimum treatment route by assessing possible gold recovery methods. Phase 2 metallurgical test work involved optimizing the processing flowsheet to obtain the parameters for maximum gold recovery. Variability comminution and recovery test work was also conducted to establish the degree of variability within the ore zones with respect to their metallurgical response using the optimum conditions determined in Phase 2.

The test work was completed by Maelgywn Mineral Services (“MMS”) in South Africa, who was retained by SENET, the Company’s project manager for the DFS. Upon the completion of the comprehensive metallurgical test work program, SENET will finalize the design of the ore processing plant for the Kobada Gold Project.

“We are very pleased with the outcome of the test work for the Kobada Gold Project,” commented Phil Bundo, SENET’s Process Director. ”The results show exceptional gold recoveries with very low leach residence times, and very low reagent consumptions. This allows us to fast-track the design for a typical West African oxide process plant, which will save us significant engineering design time. The results of the test work show that the process plant will be capable of handling all oxide ore type blends, whilst maintaining a high gold recovery and low operating costs.”

The Company is aiming to deliver the DFS in Q2-2020. Despite the delays due to the lockdowns and access restrictions due to the current COVID-19 pandemic, the Company has continued to work remotely to complete the study within the committed timelines. Total costs of the Company for the DFS are expected to be delivered under budget.

About Maelgywn Mineral Services

MMS is a privately owned limited company registered in England and Wales. It was founded in 1997 with its headquarters in Cardiff, Wales. The company is established as a world leader in the development and implementation of innovative cost-effective technologies and processes in the field of mineral, chemical, and waste processing. It has had many patents granted and has won a number of national innovation awards for its technology.

About African Gold Group

African Gold Group, Inc. (TSX.V:AGG)(OTCQX:AGGFF)(“AGG” or the “Company”) is a Canadian listed exploration and development company on the TSX Venture Exchange (TSX-V: AGG) with its focus on developing a gold platform in West Africa. Its principal asset is the Kobada Project in southern Mali. For more information regarding African Gold Group visit our website at www.africangoldgroup.com.

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 timeline for delivery of the DFS, design of the Kobada Gold Project mine, results from the Company’s metallurgical testing program, gold recovery, process plant flowsheet, expected output of the Kobada Gold Project mine, hardness, and abrasiveness of ore, reagent use and operating costs and other design elements of the Kobada Gold Project mine and other statements with respect to the future plans or intentions of the Company. 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”, “aims”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state 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 the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of exploration activities; regulatory risks; risks inherent in foreign operations; 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.


Disclosure:

1) This Article contains "forward looking information" within the meaning of applicable Canadian securities legislation. 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", “aims”, "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state 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 the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of exploration activities; regulatory risks; risks inherent in foreign operations; and other risks of the mining industry. Although the author 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.

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