Evaluation Of Kobada North Gold Resource, Mali, Using Two Different Drill Directions

Abstract

The 22.5 km2 Kobada project which is located in the Kangaba Cercle of the Koulikouro region of Mali, is owned and operated by African Gold Group Inc. (AGG), a Canadian junior exploration company (Fig. 1.1 shows perimeter for 22.5 km2; fig. 1.9 shows perimeter for consolidated permit of 215 km2). Notably the permit hosts a soil anomaly greater than 500 ppm arsenic that extends over 12 km of strike length and one kilometre of width, which is offset to the west of extensive artisanal surface saprolite and placer gold mining activity. Most importantly just about two kilometres of this strike length host the Kobada gold zone referred to as “Kobada Zone 1” which has over 1.6 million oz (oxide) gold in 59.1 million tonnes grading 0.87 g/t at the 0.3 g/t cut-off and still expanding in both directions along strike and at depth. Historically, the major drilling direction in the Kobada zone 1 have been on azimuth 290⁰. However recent structural investigations indicate that whilst the Kobada Shear Zone exhibits a N20E (easterly dipping) strike, the mineralisation most actually occurs in quartz vein swarms with an average strike orientation that is E-W (azimuth 190⁰-200⁰), confined within the boundaries of the Kobada Shear Zone. There is an area in the northern most 400m of the current resource where it is covered with drill information of both orientations by which the project sets out to test which drilling direction will yield the most gold resource. Gold mineralisation has been constrained by the development of wireframes modeled at a 0.2 g/t Au lower cut-off grade at an average dip of 74o respectively for both drilling directions. For subsequent analysis and estimation, two geostatistical domains, the saprolite (modelled at an average dip of 74o ) and the duricrust domain (a roughly flat lying horizontal hard pan on top of the saprolite) have been used. Variography was completed on the 2m composite for the duricrust and saprolite domains for each drilling direction. Using the ordinary kriging methodology, drilling to the west is relatively continuous and hence more viable than drilling south, with the west yielding in excess of 15,000 ounces more in the various respective grade cut offs. Geological and structural models have been recommended as well as closing in the drill spacing to help establish more confidence in the resource estimate.