|By Marketwired .||
|July 9, 2014 09:48 AM EDT||
TORONTO, CANADA -- (Marketwired) -- 07/09/14 -- African Gold Group, Inc. ("AGG" or the "Company") (TSX VENTURE:AGG) is pleased to report on the progress of its Kobada feasibility study, as well as a recent initiative by the Malian Government to curtail illegal mining activities during the rainy season.
On June 6, 2014, the Malian Government announced that an Inter-Ministerial Order had been issued empowering local and regional Malian authorities to take immediate action in order to curtail illegal mining activity during the rainy season. The objective of the Malian Government was primarily to ensure that there is sufficient agricultural activity to allow for a sustainable food supply. Agricultural activities can suffer labor shortages during periods of high artisanal mining activity. A secondary, but no less important motivation, was to reduce the risk associated with illegal mining activities during a period when the ground is soaked with rain and unstable which can make for a treacherous working environment for artisanal workers and foster conditions ideal for the spread of disease.
RECENT EVENTS AT KOBADA
A characteristic of the Kobada Gold Project is the substantial extent of gravity recoverable coarse gold mineralization close to the ground surface. Illegal miners have coveted the Kobada Gold Project as a highly profitable target for their illegal activities. Last week, the Malian Gendarmerie's intervened with a mandate to implement the Inter-Ministerial Order and protect the Kobada Project from illegal mining. Sadly, this intervention resulted in violence between the government forces and the illegal miners, resulting in the death of one Gendarme and injuries to several other people.
Company employees and contractors safely evacuated and have since returned to Kobada, but the Company's pilot plant, drill equipment and exploration camp, were damaged.
The Malian Government has confirmed its support to the Company and immediate action is being taken to allow for the continuation of the feasibility work in a safe environment.
Officials representing the Canadian Embassy in Mali have been most helpful in providing the Company with advice and support and have intervened at the highest levels of Government on the Company's behalf, for which we are most appreciative and thankful.
IMPACT ON THE KOBADA FEASIBILITY STUDY
The current work at Kobada was primarily focused on the collection of a bulk sample for further metallurgical test work. Fortunately, most of this work had been completed and the Company anticipates that samples of Lateritic and Saprolitic ore will be air freighted to Australia next week. Material damages will be evaluated but at this time, are not expected to seriously impact the ongoing work.
The Company remains confident that the results of the Kobada Feasibility Study will be delivered prior to the end of 2014.
The Company advises that the Malian Gendarmerie continues with their investigation at Kobada, as well as arresting the instigators of the violence.
About African Gold Group
African Gold Group is a Canadian exploration and development company with a strong focus on West Africa. African Gold Group is positioned to grow in value as it progresses its Kobada Gold Project through a feasibility study, development and into production. For more information regarding African Gold Group visit our website at www.africangoldgroup.com.
On Behalf of the Board:
Declan Franzmann, President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact included herein, including without limitation, statements regarding future plans and objectives of African Gold Group; and statements regarding the ability to develop and achieve production at Kobada are forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from African Gold Group's expectations have been disclosed under the heading "Risk Factors" and elsewhere in African Gold Group's documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities. African Gold Group disclaims any intention or obligation to update or revise any forward looking statements whether resulting from new information, future events or otherwise, except as required by applicable law.