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African Gold Group boosts gold reserves by 66% at Kobada

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(Kitco News) - African Gold Group (TSX-V: AGG) today announced an updated mineral reserve estimate for its Kobada gold project in Mali.

The company reported that the project's proven and probable mineral reserves increased by 66% for a total of 1,252,522 ounces of gold, which is an increase of 497,772 ounces from the previous reserve estimate in the 2020 DFS.

The company added that this growth highlights significant upside potential at Kobada, with the updated mineral reserve estimates expected to increase already attractive economics.

As a result, the company pointed out that the project's life of mine has increased to 16 years, with the potential to deliver average production of 100,000 ounces of gold per annum for the first 10 years, and that the inclusion of sulphides within new pit shells opens the potential for a substantial sulphide resource below the oxides.

CEO Danny Callow commented, "We are delighted to announce these results from our upcoming 2021 DFS at the Kobada gold project in Mali. As well as the material increase in reserve, these results have demonstrated that there is clearly significant upside potential at Kobada in the short-term. With more than 50 km of shear zones yet to explore, as well as an additional estimate of more than 280,000 inferred ounces within the new pit shell that requires minimal drilling to convert into measured and indicated resource."

"Based upon just these near-term convertible ounces, there remains the potential to further increase the measured and indicated resources and thereby increase shareholder value," he added.

African Gold Group is an exploration and development company with a focus on building Africa's next mid-tier gold producer. The company's principal asset is the Kobada gold 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.

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