African Gold announces Ghana project

African Gold has announced the start of a four phase, diamond drilling programme at the company's 960,000oz. Konongo /Owere Gold Project in Ghana.

The first phase will consist of 31 holes to test continuity of open mineralisation and to extend known mineralisation under the current open pit.

Earlier drilling has defined a high-grade, shallow (35m-deep) wide ore body underlying the old open pit and extending for over 1.25km. Grades encountered in the floor of the open pit are 20m @ 9.1g/t Au and 24m @ 4.4g/t Au.

This single reef has a defined gold resource of 243,000oz at an average grade of 4.48g/t Au. It is one of nine similar reefs all of which will be drilled by the company during the next two years.

John Teeling, co-chairman, said: ?We are at the start of an active programme in Ghana which should result in African Gold having multi million ounce gold resources and the potential for a large gold mine. The time is right, the gold price is strong, Ghana is a great gold province and we have good ground."