GOLD: African Gold offers feasibility for Kobada project

MALI – Toronto-based African Gold Group says the results of the definitive feasibility study for its Kobada gold project are robust using a gold price of US$1,200 per oz. The study contemplates mining oxide ore from two open pits. Proven and probable reserves are 12.7 million tonnes grading 1.25 g/t Au and containing 511,000 oz of gold. All-in sustaining costs will be US$788 per oz at a gravity (phase one) and grinding-leaching (phase two) plant that recovers 50,000 oz/y over an eight year mine life. Total pre-production capital will be US$45.4 million, and sustaining capital will be US$36.7 million. The project will have a net present value at a 5% discount of US$86 million and an internal rate of return of 43%. Payback on the initial capital investment will take 2.6 years. More detailed information about the Kobada gold project is available in the February 2015 corporate presentation at AfricanGoldGroup.com.