Saturday 15th December 2018

Resource Clips

African Gold President Mike Nikiforuk on Mali assays of 1.02 g/t gold over 52m

Resource Clips - essential news on junior gold mining and junior silver miningAfrican Gold Group Inc TSXV:AGG announced results from its Kobada Gold Project in Mali. Highlights include 1.02 g/t gold over 52 metres (including 10.14 g/t over 1 metre), 3.08 g/t over 14 metres (including 25.44 g/t over 1 metre), 0.77 g/t over 47 metres, 1.56 g/t over 24 metres (including 17.52 g/t over 1 metre), 0.9 g/t over 35 metres and 6.99 g/t over 3 metres (including 19.08 g/t over 1 metre).

President/Director Mike Nikiforuk tells, “We think the news is most encouraging. The simple fact of the matter is, as we compile and analyze the results, we are seeing a corridor evolve that is approximately 100-linear metres in width. Our program is focused entirely on the oxide profile which averages 100-vertical metres from surface, and you can see that several of these holes have ended in mineralization, so our depth potential remains open. To move 600 metres and be in mineralization is most encouraging. As we move south and north along strike the object of the exercise is to ultimately expand the extent of mineralization which would impact on the extent of tonnage and therefore ounces.

“We want to emphasize that those lines that were drilled were roughly 200 metres apart, so this is a fairly wide step-out. We’re probing here. We don’t know if we’re going to be successful, but we know we’re spending money. We’re not going to drill on a tight grid and increase that burden without knowing that the mineralization is there. So it is exceedingly rewarding to still be encountering this extent of mineralization so far away from the known deposit. One of the things that we attempted to convey in the corrected release this morning was that those holes should not be viewed in isolation. They are part of a larger package of holes, and there will be further holes coming from that same region. However, we were getting a very clear sense that the market was getting frustrated with our lack of follow-up drill holes, so we put out what we had.

I think I can state with a great degree of confidence that we should be breaking ground not more than 30 months from today—Mike Nikiforuk

“When we started with this project in 2006,” Nikiforuk continues, “we had a known strike length of 1.1 kilometres. We just published a preliminary economic assessment July 13, and that resource is calculated over 1.7 kilometres: an increase of 600 metres. The focus shifted from the initial resource of a deeper fresh-rock resource to primarily an oxide resource. The first resource went to a depth of 260 vertical metres. This resource is now to a depth of only 160 metres. The reason we did that is because there are troughs within the deposit that are in oxide as deep as 160 metres. So we’re quite excited about the project’s potential to grow. We just have no doubt in our minds that the project has the ability to grow.

“We announced in our August 23 press release that the Minister of Mines for Mali has granted us a one-year extension to complete our feasibility study. Based on the positive PEA, the feasibility process is underway. Bumigeme Inc—the engineering group who did the PEA—has been engaged to prepare the feasibility. Roche Ltd is going to be involved in the preparation of the environmental study and the mine planning. Through the engineering groups we will be speaking with rePlan to commence the move into the village and things of that nature.

“There is a bit of a reprieve in the work initiative for weather conditions—which is an annual event that hits all of West Africa. We closed camp on July 27 for the annual rains. Our senior geologists will be departing Toronto October 19 to get back to Mali. So we will be resuming late October, early November, depending on access and so forth. We have a second drill rig planned to come on site in January 2012. One rig will be dedicated to geotechnical drilling, the other rig will continue with the exploration initiative. But the goal is to push this thing through feasibility and have that study on the minister’s desk on or about June 2012 with an application for an exploitation or mining license.

“I think I can state with a great degree of confidence that we should be breaking ground not more than 30 months from today. I would venture that we can improve on that; that is the goal. I just want to be reasonably conservative now, because it is a target that is a bit out there, and there are things that need to be done. But I think 30 months is at the outside of that time frame.”

Nikiforuk concludes, “One thing that’s incredibly important to the entire process moving forward is that we are contracting to bring in a pilot plant that will be capable of processing up to one tonne per hour. Our goal is to increase the diameter of the RC holes that we are drilling to generate up to 100 kilograms of material per metre drilled. So we will hive off two kilograms of that for lab analysis using LeachWELL as the protocol, and the balance of 98 kilograms will be processed through the pilot plant. We are contending that the larger the sample size—the larger the aliquot that’s being processed—the higher the grade. This is a nuggety deposit. All the work we’ve done to date clearly indicates that if you are analyzing a bigger sample, you have a better shot at capturing that nugget effect, and your grade will go up. When we announced the PEA we said this is a bulk-mining model, and everything in the mineralized corridor is going through the gravity plant, even that which is defined currently as waste. Because we do not believe it is waste.”

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Michael A.J. Nikiforuk
416.644.8892 x 101

by Greg Klein and Ted Niles

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