African Gold Group (AGG.V) has announced more details on its bulk sample program at the Kobada gold project in Mali, Africa. Not entirely unexpected, the company is able to show the bulk samples generally yield a much higher gold content than what the assay results from the drill holes revealed. 82 tonnes of the bulk sample were treated through African Gold Group’s pilot plant in Mali, and the average grade was 0.51g/t which compares favorably with the 0.31g/t of the assay results.
It gets even more interesting, as the higher the cutoff grade is, the higher the difference is between the bulk sample grade and the assay data. This nugget effect should have a very positive effect on the economics of Kobada, and we’re looking forward to see the feasibility study on the Kobada project, which is expected later this year. The feasibility study will be based on the currently known resource estimate and will not include the nugget effect, meaning the feasibility study will very likely underestimate the economics of the project.
Disclosure: The author holds a long position in African Gold Group. Please see our disclaimer for current positions.