TORONTO, ONTARIO--(Marketwire - Nov. 15, 2007) - African Gold Group, Inc., ("AGG" or the "Company") (TSX VENTURE:AGG) is pleased to report that it has entered into a Joint Venture ("JV") Agreement with Randgold Resources Ltd ("Randgold") (NASDAQ:GOLD) to explore AGG's Bagoe East & West concessions in Mali, West Africa.
The Bagoe East and West concessions are located in the Sikasso region of Mali, approximately 50 kilometers from the Morila mine, one of the most significant gold discoveries on the African continent in recent times, jointly owned by Randgold Resources, AngloGold Ashanti and the Government of the Republic of Mali.
Historical exploration at Bagoe East and West was conducted by the Bureau de Rechereches Geologiques Et Minieres (BRGM) and Cominor SA, both former parastatal organizations of the French government.
The Bagoe East concession comprises 183 sq. km of land where most of the historical exploration was conducted on the Darabougou-Tofola anomaly, defined by 3,391 soil samples and soil radiometric and magnetometer geophysical surveys. This initial exploration work was followed by 3,796 meters of RAB drilling in 82 holes.
The Bagoe West concession comprises 183 sq. km of land where soil surveys outlined two main anomalous zones. The southern Djissan soil anomaly, oriented at 010 degrees, is continuous over 3.5 km. It corresponds to a sheared contact between intrusive and metasedimentary rocks. The Tiefala anomaly in the central portion of the claim, extends for 4 km in an E-W orientation. In 2003, the Djissan Anomaly was tested with 1,342 metres of AirCore drilling in 32 holes.
To view the Kobada Location Map please click on the following link:
"The consensus opinion of management, with respect to this JV agreement with Randgold Resources, is that we could not have envisioned a more logical scenario for the further exploration and subject to results, subsequent development of our Bagoe East & West concessions for the following reasons:
- First, the opportunity to partner with Randgold provides us with a
partner who knows and understands the regional geology and has a
track record of discovery and development as well as operating
experience in Mali.
- Second, when one considers Randgold's dramatic accomplishments, from
a start-up entity in the mid 1990's, to the world class operator they
have become today, we can only hope that their tradition of results
driven success continues with the development of our Bagoe assets,"
states AGG President, Michael Nikiforuk.
Under the terms of the JV Agreement, Randgold's participation interest in the JV shall be on a multi-phase earn-in basis, such that:
- Randgold shall solely fund exploration costs up to and including
completion of a Pre-Feasibility Study, assuming preliminary
exploration results meet Randgold's investment criteria. Upon
completion of a Pre-Feasibility Study Randgold shall acquire a 51%
Participation Interest in the Joint Venture and the Participation
Interest of AGG shall be 49%. Until such time as Randgold has acquired
a 51% Participation Interest in the Exploration Permits, such
Exploration Permits shall remain in the name of AGG.
- Following the completion of a Pre-Feasibility Study, Randgold, in its
sole discretion, can elect to solely fund all further exploration
costs up to and including completion of a Bankable Feasibility Study
to earn a 65% Participation Interest in the Joint Venture and the
Participation Interest of AGG shall be 35%.
- After acceptance by the Joint Venture Committee of the Bankable
Feasibility Study, Randgold and AGG shall contribute to all further
expenditure of the Joint Venture pro rata to their respective
African Gold Group, Inc., based in Toronto, Canada, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within West Africa. To date, the Company controls a total of ten gold concessions that are consolidated in five separate standalone exploration projects, of which three projects are located in Ghana and the remaining two are located in Mali, West Africa.
Additional Information is available on the Company's website at www.africangoldgroup.com and on www.sedar.com and through the Company's offices at: BCE Place, Canada Trust Tower, 27th Floor, 161 Bay Street, Toronto, Canada M5J 2S1
On Behalf of the Board:
Michael A. J. Nikiforuk, President, DirectorThe TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.