African Gold Group Releases Dill Results from Kobada, Mali; Shares Dip Slightly Mid-Morning

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African Gold Group, Inc., (AGG.V) today reported the analytical results for 72 near surface (oxide), reverse circulation (RC) drill holes, from the Company's Kobada, Mali gold project.

Highlights include

KBRC12-084 Intercepts 69 metres of 2.37 g/t Au;

KBRC12-066 Intercepts 20 metres of 1.63 g/t Au & 9 metres of 20.96 g/t Au

Project Economics - Base Case

The Kobada PEA estimates an after-tax Net Present Value ( NPV ) of US$216.9 million from commencement of construction and an after-tax Internal Rate Of Return ( IRR ) of 90.57% using a base case of US$1,100 per ounce of gold and a discount rate of 5%.

The Kobada project base case is for processing 20,000 tonnes per day for a total of 7,000,000 tonnes per year in a gravity process plant that is projected to recover 85% of the gold contained in 41,750,000 tonnes of lateritic material assaying 0.64 g/t Au, for average annual production of 126,600 ounces of gold for the first five years of operation. The average annual operating cost is calculated to be US$8.27/t for the first five years of operation with a CAPEX of US$122,500,000. The project produces gold at the direct cost of US$470.90 per ounce.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: IRR , NPV

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