TORONTO, May 07, 2020 (GLOBE NEWSWIRE) — African Gold Group, Inc. (TSX.V:AGG)(OTCQX:AGGFF) (“AGG” or the “Company”) is pleased to announce that SENET (Pty) Ltd (“SENET”), the Company’s contractor for the definitive feasibility study (the “DFS”), has completed the engineering assessment on an expanded throughput scenario at the Kobada Gold Project in Southern Mali. The expanded scenario suggests throughput could exceed the DFS target of 100,000oz per annum.

Process plant highlights:

• A 3 million tonne per annum ROM feed combined with a gravity circuit and a carbon-in-leach (CIL) section
• A 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
• Flowsheet design allows for ease of construction, reducing the project development schedule
• Low hardness and abrasiveness characteristics of ore, result in low overall power demand and reduced wear on liners and mill media
• Low deleterious elements result in low reagent use and low operating cost
• Flexibility to exceed 100,000oz per year
• Highly flexible process able to treat a variety of ore grades and types with no significant increase in reagent consumption

The positive result of the metallurgical test work has allowed SENET to design a plant offering the flexibility required to effectively treat all ore types from the Kobada Gold Project. Incorporating experience at other West African operations, the plant is designed with ease of construction and operation as a priority. The simplified flowsheet is expected to also reduce the construction schedule to roughly 18 months from 22 months. Overall power consumption is expected to be low given the soft nature of the ore at Kobada.

“Following on from our very successful metallurgical test work results, I am very excited to be able to report on our final process plant design,” comments Danny Callow, Chief Operating Officer of the Company. “Our flexible and robust oxide processing plant requires low power and uses proven technology able to treat our blend of saprolites and laterites. Our gravity and CIL process provides a 96% recovery of gold with low reagent consumption and low power requirement. All of these components contribute to a low all-in sustaining cost (AISC) and competitive capital cost. At current gold prices, we are keen to advance this project to construction as soon as possible. We have focused all of our energy on reducing the construction schedule from 22 months to 18 months and identifying suppliers who are experienced in project delivery in West Africa.”

By utilizing previous experience designing and building a number of West African process plants, SENET has been able to significantly reduce the construction schedule to an estimated 18 months. Some of this time saving is due to having completed a significant amount of the detailed engineering on the Kobada process plant, as well as identifying international suppliers able to provide the capital equipment in the shortest possible time.

“We are very pleased to be involved in the detailed design of the Kobada processing plant. Our experience in developing mines in West Africa for almost 30 years has enabled us to fast track the design of the Kobada plant. The positive results out of the test work program have allowed SENET to complete the Front End Engineering (FEED) for the entire plant. SENET has furthermore progressed large sections of the plant to a point of detailed engineering stage. We are delighted to be working with AGG in the further development of the project. The progress we have made in the last few months will no doubt allow AGG to develop the project rapidly. We are also exceptionally pleased that we were able to complete this work on time and significantly under budget given the challenging circumstances of Covid-19”,

says Hugo Swart, Operations Director of SENET.

About SENET

SENET is one of the leading project management and engineering firms in the field of mineral processing in Africa. For almost three decades SENET has provided project management, multidisciplinary engineering, procurement and logistics management, and construction services to the mining and mineral processing industry.

About African Gold Group

African Gold Group, Inc. (TSX.V:AGG)(OTCQX:AGGFF) 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, a timeline for delivery of the DFS, the construction schedule, 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, the all-in sustaining costs of the Kobada Gold Project 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.