African Gold Group

Overview

African Gold Group (TSXV:AGG) is a Canadian gold development company currently pursuing projects in resource-rich West Africa. The company is focused on its Kobada gold project in Southern Mali, West Africa. This low capital project is fully permitted, features low operating costs and presents significant upside, with the potential to produce more than 100,000 ounces of gold per annum. With a focus on gold development, African Gold Group has a first-mover advantage by being one of the few construction-ready projects in West Africa.

Kobada gold project is located in Southern Mali in the Sikasso administrative region, near the border of Guinea, and is considered to be a mining-friendly environment with strong government support that is well-aligned for the country’s long term stability. In August 2020, the African Gold Group announced a partnership with SAFE Ltd to enable provenance and transparency of its supply chain process to address changes in conflict minerals regulation and strengthen awareness of local distribution processes.

Mali is Africa’s third-largest gold producer, with gold exports accounting for nearly 70 percent of Mali’s total exports in 2016. With a long history of gold production, the country has a highly developed and active mining culture, with major international companies operating in the region for decades. African Gold Group operates in the prolific Birimian Greenstone Belt and covers over 460 square kilometers across Mali and Burkina Faso. Easy access to water and drilling areas through nearby highway and pontoon river crossing makes this jurisdiction investor-friendly, with many major producers present in the region.

The company is currently focused on becoming Africa’s next mid-tier producer, with favorable prospects for success in the region. In 2020, the company continued exploration drilling over multiple zones to increase resource targeting and reserve ounces. Over the long-term, this optimizes mine life and can establish a longer, potentially higher annual output.

With a proposed three-phase approach to producing a rapid increase in resource extraction, the African Gold Group is well prepared for growth and gold exploration. Starting in 2020, expected phases should include a resource upgrade, a strike extension of the main shear zone and an increased resource from newly identified shear zones all by H1-2021.

The company has an exciting and positive outlook for its ready-to-build projects and mining exploration projects. Through an extensive drilling program, the Company has established a global resource base of 2.3 million ounces of gold. To date only 15 percent of identified shear zones on the Kobada property have been drilled. In addition, the company is currently back drilling to expand gold resource discoveries by targeting three highly prospective areas within their mining permit.

In the space of 12 months, the company has transformed from a smaller scale operation to a larger mining company. A recently completed DFS revealed a 100,000 ounce production profile with a cost of C$782 per ounce all-in sustaining cost, the lowest quartile in West Africa. African Gold Group’s management team has the company strategically positioned for efficient and successful mining, and the company has a highly experienced board of directors and a diverse shareholder portfolio.

Strategic partnerships include Canaccord Genuity (TSX:CF) as financial advisors, as well as Nero Resource Fund and IXIOS Asset Management as shareholders with extensive expertise in the mining industry. Institutional shareholders own around 18 percent of the company and are located across the globe. Additionally, management and insiders own around 17 percent of the shares in issue through a mix of shares, options and warrants.

In their mission for sustainable and environmentally friendly mining, the company has strategic partnerships with DRA NEXUS and SENERGY to build and install a highly efficient hybrid power mining operation. Powered through photovoltaic solar panels, thermal generators and a battery energy storage system, the Kobada gold project is predicted to see a 40 percent reduction in diesel use, which offers approximately C$5 million per year in cost savings.

Likewise, the project is expected to see significant pollution through emissions reduction by over 14 million kg in carbon dioxide emissions and over 5 million liters in heavy fuel oil use. In an ongoing commitment to environmental sustainability, the African Gold Group is also focused on recycling water to extend its mining operations for years to come.

African Gold Group’s Company Highlights

• Focused on the exploration and development of gold platforms in West Africa, with holdings in West Africa’s prolific Birimian Greenstone Belt.
• Operates in the Sikasso administrative region in Mali, which is a mining friendly location with established international interest and strong government investment.
• The Kobada gold project has the potential to produce 100,000 ounces of gold per annum.
• African Gold Group is working towards sustainability and environmentally friendly solutions to mining with strategic partnerships with hybrid-power-focused companies and efforts in significant pollution reduction and water recycling.
• In 2020, the company delivered DFS on time and 20 percent below budget, highlighting the Kobada gold project as a robust project with significant potential for financial and explorative growth.