African Gold Group, Inc.
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- William Watkins
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1 -1- BCE Place, Canada Trust Tower, 27 th Floor, 161 Bay Street, Toronto, Canada M5J 2S1 e.mail : info@africangoldgroup.com website : African Gold Group, Inc. TSX-V: AGG AFRICAN GOLD GROUP, INC. CELEBRATES ACQUISITION OF COVETED MANSO ATWERE CONCESSION AT ASANKRANGWA HOLDINGS IN GHANA PIT SAMPLING SURVEY TO BEGIN IMMEDIATELY PRESS RELEASE TORONTO, CANADA, OCTOBER 25, 2007 African Gold Group, Inc., ( AGG or the "Company ) is pleased to report that it has secured final government approval of its acquisition of the Manso Atwere gold mining concession from Gyampo Mining Co. Ltd., ( GMCL ) located at Manso Atwere in the Ashanti region of the north-east section of the Asankrangwa gold belt in Ghana, West Africa. The acquisition of the 7.2 sq. km Manso Atwere concession represents the 5 th distinct gold concession controlled by AGG in the northern Asankrangwa gold belt and increases AGG s consolidated land position in the area from 449 sq. km to sq. km. This region has a significant history of gold production, is the subject of extensive ongoing artisanal mining and is rapidly gaining in significance due to the recent gold discovery at the nearby Essase concession. Please see the link to the attached regional concession map depicting AGG s total regional holdings and the location of Manso Atwere within the region. Attach map link here. The Manso Atwere concession has been the subject of much local (Ghana) interest and speculation due to a four year court battle, waged in Ghana, over title to this coveted ground. AGG has remained an interested bystander throughout the legal proceedings, as it had originally secured an agreement in 2003 to acquire the license from GMCL, the defendant in the court proceedings. AGG is pleased to report that the Ghana court(s) and subsequently the Ghana Minerals Commission have awarded the Manso Atwere title to GMCL, resulting in AGG and GMCL finally concluding their agreement. It is interesting to note that a direct consequence of the protracted battle for control of the license was to unintentionally create a dramatic increase in local artisanal mining activity within the Manso Atwere concession. Literally hundreds of artisanal miners have converged on the concession, over a period of three to four years and excavated a pit that measures approximately 110 meters in length, 30 to 40 meters in width and 20 to 30
2 meters in depth. (please see link to attached photo). This artisanal mining initiative has exposed the hanging and footwalls within the pit, revealing the orientation of mineralized quartz reefs. AGG will move immediately to channel sample the pit and test selected grab samples as an initial exercise and will report sample results in a separate release. In addition AGG will commence regional surface work within the immediate vicinity of its Asankrangwa Holdings and commence with the compilation of all historical exploration data, in a collective bid to establish drill targets at Manso Atwere, as soon as possible. Of further significance, this area of the Asankrangwa gold belt has a significant history of exploration as well as gold mining (please see the regional map above depicting AGG's combined Asankrangwa Holdings): -2- The Esaase concession formed part of Bonte Gold Mines and is now controlled by Keegan Resources. On November 20, 2006, Keegan announced results from the first four of thirty diamond drill holes currently being drilled on the Esaase concession. Highlights include 85 meters of 2.07 g/t Au, 12 meters of 9.76 g/t Au, and 36 meters of 1.2 g/t Au. AGG's Assuowunu concession is contiguous and on strike with the Esaase concession. Continued drilling by Keegan has defined a mineralized strike length at Essase that is measured in kilometers. Bonte Gold Mines produced approximately 500,000 ounces of alluvial gold from 1992 to 2002 from its concessions on the western flank of AGG s Asankrangwa Holdings. Immediately to the south of AGG's Manso Atwere concession, Resolute Resources mined approximately 30 million tonnes of ore grading 2.0 g/t Au from a number of pits at Nkran Hill, Adubiaso, Akwasiso and Abore. To the immediate north, at Mpesetia, AngloGold Ashanti produced approximately 100,000 ounces of gold from open pit operations. All of the above sources of gold are believed to be structurally controlled and these structures are known to extend onto AGG holdings. 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 nine 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 and on and through the Company's offices at: BCE Place, Canada Trust Tower, 27 th Floor, 161 Bay Street, Toronto, Canada M5J 2S1 On Behalf of the Board: Michael A. J. Nikiforuk President, Director FOR FURTHER INFORMATION PLEASE CONTACT:
3 African Gold Group, Inc. Michael A. J. Nikiforuk (416) The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. -3-
4 540000E 6 40 N N N LEGEND 1.15 g/t Au / 1m 240,000 Mt@ 2.4 g/t 30,000 m³@ 1.0 g/m³ 392,800 m³@ 0.42 g/m³ resource 1.0 g/t / 36 m (trench) E Manso Atwere concession Other AGG concessions Other concessions Forest reserve Trench Selected trench intersection Adit Gold in soil anomalies Mine (current or past producer) GYEMERA FOREST RESERVE Lode mines - tonnage and grade Alluvial mine - volume and grade Alluvial resource - volume and grade Lode resource and/or grade over length E E E 1 50 W MPESETIA AngloGold-Ashanti g/t resource N 6 30 N N Keegan Resources Inc. Esaase Concession 2.07 g/t Au over 85 metres (Nov. 20, 2006) BONTE 25,000,000 m³@ 1.0 g/m³ BILPRAW g/t prod Birewu Assuowunu 72,740 m³@ 0.14 g/m³ 0.4g/t Au / 4.0m 1.2g/t Au / 8m 1.4g/t Au / 2m 11.8 g/t Au / 5.0m 2.24 g/t Au / 10.6m Moseaso Manso Nkwanta Topey 0.75 g/t Au / 10m 957, g/t resource 3.29 g/t / 35.1m trench 1.88 g/t / 36.0m diamond drilling 307,500 m³@ 0.45 g/m³ 1.2g/t Au / 16.0m 1.15 g/t Au / 1m Twedee N N ADUBIASO ABORE NORTH NKRAN HILL Pre-production resource g/t (indicated) g/t (inferred) 1,245, g/m³ resource Dome Beposo g/t / 4.0m (trench) 8.86 g/t / 2.0m (trench) AKWASISO 400, g/t Pre-production (includes Adubiaso) g/t (proven/probable) g/t (measured/indicated) g/t (inferred) 6.7g/t Au / 8.0m Edubia 2.20 g/t / 46.0m (trench) 5.87 g/t / 12.0m (adit) 1.06 g/t / 47.5m (reverse circulation) 2.44 g/t / 15.0m (reverse circulation) Dwabosso 980, g/t resource 6.36 g/t Au / 12.0m (RC) 2.27 g/t Au / 14.0m (RC) Yawkurom North 392,800 m³@ 0.26 g/m³ resource Asaman West 208,000 m³@ 0.42 g/m³ resource Manso Atwere 0 3km UTM Zone 30N COMPILATION MAP Northern Asankrangwa Belt
5
African Gold Group, Inc.
-1- BCE Place, Canada Trust Tower, 27 th Floor, 161 Bay Street, Toronto, Canada M5J 2S1 e.mail : info@africangoldgroup.com website : www.africangoldgroup.com African Gold Group, Inc. TSX-V: AGG AFRICAN
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