African Gold Group, Inc. (TSX-V: AGG) (“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.

The positive result of the metallurgical testwork 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 testwork 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 utilising 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 testwork programme has 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.