Just a reminder where we are and where we are headed... 2014 YEAR-END CORPORATE UPDATE
The Company is pleased to provide stakeholders with a year-end corporate update, as AGG took definitive steps totransform the Companyfrom a greenfieldsgold explorer to a mine developer over 2014. Accomplishments funded and achieved by AGG in 2014 include:
- Employment of Declan Franzmann as President and CEO, Torben Michalsen as Construction and Infrastructure Manager and Misha Collins as Feasibility Study Co-ordinator. The Company now possesses the key personnel to form the nucleus of a mine development team.
- The Company secured the services of John Dunlop (BEng Mining, MSc(Mining), FAusIMM(CP)), Brian Wolfe (B Sc (Hons), P Grad Cert (Geostats), MAIG) and Tim Hughes (B Eng (Hons), P Grad Cert (Min Proc), FAusIMM) to act as independent Qualified Persons for the studies AGG embarked on during the year;
- Completion of 2014 drilling campaign at Kobada, with the collection of metallurgical bulk samples.
- Completion of gravity recovery test workby Gekko Systems, located a tBallarat, Australia between August and November 2014. Testwork clearly demonstrated the benefit of low cost pre-concentration, gravity concentration and concentrate leaching operations and confirmed the operating parameters determined in previous independent test work conducted in 2010;
- The Environmental and Social Impact Assessment for access roads and bridge upgrade was submitted in December. Government approvals for this infrastructure work are expected in January 2015.
- The Environmental baseline report and impact assessment for the Kobada concession has been completed by the Company's Malian Environmental consultant. A review process is underway prior to submission of the document to the relevant Government Departments;
- The Project's technical documentation to support the application for the mining (exploitation) license has been completed, translated to French and was submitted in December, 2014 for review by the Malian Government's Mining and Environmental Ministries;
- The Company has continued to meet regularly with local contractors and subsequent to the capital expenditure estimates detailed in the PEA, savings on particular capital expenditures are possible. This includes a saving of approximately US$850,000 on access roads as a result of recent government initiatives to improve access to the area, and savings of around US$700,000 on camp infrastructure through the use of standardized building layout and designs. The Company will continue to look for additional savings in pre-production capital requirements to be included in higher level studies; and
- Throughout 2014 the Company has continued regular dialogue with ministers and senior public servants in order to facilitate the permitting process and to keep stakeholders abreast of AGG's plans.
President and CEO of African Gold Group, Mr. Declan Franzmann, FAusIMM, comments:
"The inclusion of cash flow analysis accounting for taxes, royalties and dividend payments to the Government of Mali completes the financial assessment for the Kobada Gold Project. The Project displays robust economics, low capital cost,and provides a development route with opportunity fororganic expansion of theKobada resource base and production profile, which is achievable from cashflow. The Company's aim is to maximise the value of the Kobada Project and provide shareholders with a long term sustainable return on their investment.
On the Project development front, 2014 has been a year of great change for AGG as it honed the development strategy for Kobada and strengthened the minedevelopment team with the aim of gold production in 2016. I look forward with great anticipation to 2015, as the Company progresses through further milestonesand into the construction phase of the Project."
On Behalf of the Board of Directors:
Declan Franzmann
President and CEO