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MINING | African Gold Group
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The next platform for g
ICAN GROUP
growth in West Africa
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MINING | African Gold Group
African Gold Group (AGG) is a West Africa-focused Canadian exploration and development company listed on the TSX Venture Exchange, with a primary focus on the Kobada Gold Project in Mali – a low cost operation with 122 km² of prospective exploration concessions in the prolific Birimian Greenstone Belt. The company recently appointed a new corporate leadership pairing in Stan Bharti and Danny Callow, two seasoned mining engineers with a range of complementary skillsets. Throughout his career, COO Callow has taken through to construction several greenfields and brownfields operations across Africa for large corporates, while CEO Bharti has garnered a reputation for developing undervalued assets over the last 30 years. “Stan had a couple of very good hits in the West African gold space,” says Callow. “He’s highly entrepreneurial, a great mentor and likes to let the operational guys get on with their work. Coupled with myself on the operational side, I think we make a very good CEO/COO team.” After coming on board in August, Callow recommended initiating an update to the 2016 feasibility study for the Kobada project to include additional data from drilling, geological trenching and regional geology work, ahead of a bankable feasibility.
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MINING | African Gold Group
The original feasibility indicates a total
metallurgical test work, and encompasses
resource of over 2 million ounces (Moz)
an infill drilling campaign that resembles
at Kobada, however this estimation only
a significant opportunity to upgrade the
accounts for drilling from a 4 km portion of
reserve at Kobada.
the main shear zone of the property, which is about 12 km in length.
“One of the things I’ve been pushing for is to undertake this final phase of drilling before
“That tells me that we have enough to start,
moving to construction so we can upgrade
but we also believe there is a lot more in the
the resource where we can and make sure
ground, which can give us a phased approach to have incorporated all of the geological to growing this project from a 50,000 oz per
information available to us. This will give us a
annum operation to 100,000 oz and beyond,” much better understanding of the structural Callow declares.
The phased approach
geology, which is important when we go into the design of the open pit and the type of crushers and mills that we need.”
Phase 1 of the pathway to production is designed to enhance confidence in resource
The processing method also needs to be
modelling, mining engineering and advanced confirmed by AGG, which was seen in the
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2016 study to be gravity concentration only.
listed company out of Toronto I think it’s an
The company is currently undertaking test
important baseline to have.”
work to ensure all stratigraphic boundaries across the orebody are incorporated and
The current ESIA has already been approved
amenable to low cost gravity concentration.
by the Malian government and the Kobada mine is fully permitted, so the Phase 2 drive
Moving into Phase 2, AGG will deliver a
is all about optimising the existing metrics. In
bankable feasibility by April 2020, which
fact, once the bankable feasibility is delivered
will identify an accurate capital costing
in April, AGG can theoretically push the
for the project along with all key long lead
button on construction of the mine.
items and other crucial aspects of the plant design. Phase 2 will also usher in an updated
“I have always worked on the philosophy
environmental social impact assessment
that when you have enough resource to start
(ESIA).
construction of a mine, you should look at a phased approach. We are looking at a 50,000
“I am pushing for the ESIA to be upgraded
oz Phase 1 and then an additional 50,000 oz
to IFC and World Bank guidelines. Even
Phase 2.
though that’s not a requisite for Mali, as a
MINING | African Gold Group
“The advantage of that is the whole plant
“My opinion on exploration is you should
is designed in a modular fashion so you
never stop drilling while you have good
can easily add to it. At the same time, you
prospects. If you can drill enough to replace
can often fund Phase 2 with cash flow from
every single oz that you take out the ground
Phase 1, and that’s what we’ve done very
with another oz, you extend the life of mine
successfully in the past.”
and also give yourself the opportunity to grow the size of the production.”
This approach makes perfect sense at the Kobada mine, where there is significant
Local procurement
opportunity for resource growth through
Callow and Bharti believe in utilising
additional exploration. Looking to the longer
local partners as much as possible when
term, Callow sees a third phase taking place
developing projects, particularly in
that will poke holes in some of the other
Africa where there is an onus on mining
shear zones within the licences that are
companies to ‘do good’ by supporting local
prospective for mineralisation.
ResourceGlobal GlobalNetwork Network Resource responsibility (CSR) in the Kobada region, and these actions have been a key focus for Callow during the last 12 years of his career. “CSR is part of our social licence to operate and very often can determine the success or failure of a project. If you think that you can just come into a country, set up base, take all of the resources out the ground and 15 years later leave without leaving a footprint behind, then you will fail. “In its simplest form, CSR is looking to identify and employ skills from the local community, because what that does is bring money into the local community. The community then begins to improve and develop, and it becomes a self-sustaining model.” The COO describes the snowball effect precipitated by mining companies employing locally and supporting local enterprises; These small-scale ventures start bringing in more materials and grow into larger supply chains, which in turn supports key
enterprises providing additional goods and
stakeholders in the project vicinity.
services, which leads to the community becoming less dependent on the mine.
At Kobada, AGG has used a local Malian driller and a local construction company for
Another vital part of AGG’s CSR strategy
the camp, among other in-country suppliers
centres on maintaining full transparency
and contractors. The company’s EPCM
with stakeholders in the local communities
partner has been a rare exception to the rule,
through regular communication. This
coming out of South Africa but boasting a
consultation is as much about keeping
strong reputation for delivering gold projects
locals updated of the latest project updates,
in West Africa.
as it is about discovering what the local communities need from AGG in its role as a
Local procurement and community uplift form key tenets of AGG’s corporate social
steward.
MINING | African Gold Group “Rather than just assuming what is needed by the community, we sit down with them, explain how much is in the CSR budget and ask what they would like us to get involved in. “That way we can deliver sustainable projects, because at some stage the mine is not going to be there anymore, but if we’ve got thriving agriculture and other little businesses, when we leave those guys can carry on.”
Sitting down with the chief Grounding this point in the context of the Kobada project, Callow refers to a recent meeting with the Kobada Chief Dantoume Diawara and his village elders to discuss the progress of the project and AGG’s plan moving forward. “Clearly this was the first time this chief has experienced someone sitting down with him and explaining what we’re going to do and when. I outlined our commitments to local employment and local procurement and pledged to visit him on a quarterly basis to provide key updates.” a boardroom table with a PowerPoint In turn, the chief thanked Callow for
presentation, is so important. Instead we sat
employing 12 semi-skilled labourers from the
on plastic chairs with the chief on his veranda
village to help with clean up and preparation
and began a two-way relationship, instead of
for the upcoming drilling campaign, and
just telling him what we will do.”
underlined his commitment to managing the relocation of artisanal miners around the
In conclusion, AGG is running full steam
Kobada concessions.
towards a bankable feasibility for the Kobada project in April next year, at which point it
“I think that meeting with the local people
will be ready to commence construction of
in a very informal way, not sitting around
the mine. But, the development doesn’t end
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there, as the company’s phased approach
world’s most prospective regions for gold
will see it add increased capacity through
exploration right now. The company would
subsequent resource growth.
certainly look to consolidate into other West African jurisdictions should any opportunity
AGG is also interested in additional
fall in the right investment bracket.
opportunities across West Africa – one of the
TSXV:AGG
ab j
Published by Anderson Murray Media Ltd
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