Mali | African Gold Limited

MALI - KEDOUGOU-KENIEBA PROJECT

Gold production dominates Mali’s natural resource sector, with Mali being the third largest gold exporter in Africa. Gold is by far Mali’s most important export, comprising nearly 70% of total exports in 2017. Gold panning form artisanal miners contribute approximately 10% of gold exports. Over two million people, representing more than 10% of the population, depending on the mining sector for income. Mali also has other mineral prospects as the majority of the territory remains largely unexplored and unmapped. Mali has a demonstrated history of discovery and the ability to deliver value by building mines.

Figure. African Gold Permits in west Africa showing simplified geology and some of the +1Moz gold mines and deposits.

Kedougou-Kenieba Project, Mali

The Kedougou-Kenieba Project area is located in within the Kenieba Gold Province in Western Mali, West Africa, approximately 560 km west of the Capital of Mali, Bamako. With all, except one, of the west Mali permits being located on or in the hanging wall to the Senegal Mali Shear Zone (SMSZ), which is considered the most prospective zone in the KKI. The majority of the large world class gold deposits in Mali are located in the hanging wall and in close proximity to the SMSZ which include Fekola (5.2Moz; B2Gold), Loulo (14Moz; Barrick), Gounkoto (5.4Moz; Barrick), Yatela (3Moz; IAMGold/AngloGold Ashanti) and Sadiola (13Moz; IAMGold/AngloGold Ashanti).

Figure: A1G Project/Permit on simplified geology and only the most significant gold deposits

Figure: A1G Kedougou Kenieba inlier projects over simplified KKI geology and significant gold deposits

Falémé Project

Falémé Sub-Project consists of four exploration permits (Bourdala, Boubou, Tintinba and Diokeba). Falémé is located centrally 45km to the north of Barrick's 14Moz Loulo-Gounkoto Mine and 40km to the south of the 13Moz Sadiola Mine (IAMGold/AngloGold Ashanti).

All the acquired permits have significant demonstrated gold anomalism either in the form of artisanal gold workings, gold-in-soil anomalies and or historic drill intercepts.

Until October 2019, no more than 25 shallow drill holes had been completed at Falémé. Most of those historical holes had returned significant intercepts, structures and alteration.

Best historical intercepts at Falémé included:

Damba Massa Prospect

24m @ 2.01 g/t Au; 5m @ 8.6 g/t Au; 2.1m @ 5.63 g/t Au; 3m @ 2.83 g/t Au; 2.3m @ 3.40 g/t Au; 1.6m @ 5.00 g/t Au; 2.9m @ 2.37 g/t Au

TD Prospect

5.5m @ 2.9 g/t Au within a broader 23m @ 1.0 g/t Au; 9m @ 1.04 g/t Au within a broader 26m @ 0.58 g/t Au; 64m @ 0.23 g/t Au; 7m @ 4.2 g/t Au; 4.3m @ 4.3 g/t Au

Bourdala West Prospect:

2m @ 4.09 g/t Au

In December 2019, A1G completed a total of 11 RC holes for an aggregate of 1,554 metres and 76 shallow AC holes for an aggregate of 3,050 metres. Results are considered encouraging and included:

TD Prospect - results from two RC drill holes drilled 75 meters apart into this prospect confirmed and expanded on historical intercepts (figure 5). Mineralisation is typically, but not always associated with quartz-tourmaline veins within silica ± sericite ± pyrite ± arsenopyrite alteration in meta-sediments.

Results included:

19FARC012 20m @ 1.19 g/t Au from 55m incl. 4m @ 4.40 g/t Au
- 1m @ 1.33 g/t Au
- 1m @ 1.07 g/t Au
- 16m @ 0.63 g/t Au from 78m incl. 1.0m @ 1.73 g/t Au
- 1m @ 1.44 g/t Au
- 10m @ 0.21 g/t Au from 98m
- 6m @ 3.08 g/t Au from 114m
19FARC011 8.0m @ 1.39 g/t Au from 54m incl. 5.0m @ 2.10 g/t Au

Damba Massa Prospect – results from 10 RC holes covering 600m of strike length confirmed the presence of a large (>1km strike) gold system. At Damba Massa, gold mineralisation is typically associated with quartz-tourmaline veins within silica ± sericite ± pyrite ± arsenopyrite alteration within moderately sheared meta sediments and quartz-feldspar porphyries.

Results included:

19FARC002 1.0m @ 1.03 g/t Au from 35.0m
- 9.0m @ 0.35 g/t Au from 67.0m
- 6.0m @ 0.43 g/t Au from 108.0m, incl. 1.0m @ 1.42 g/t Au
- 1.0m @ 1.02 g/t Au from 116.0m
19FARC003 8.0m @ 0.65 g/t Au from 85.0m, incl. 3.0m @ 1.03 g/t Au
- 4.0m @ 0.44g/t Au from 100.0m
- 2.0m @ 0.73 g/t Au from 148.0m
19FARC004 8.0m @ 0.18 g/t Au from 2.0m
- 12.0m @ 0.42 g/t Au from 43.0m, incl. 1.0m @ 1.01 g/t gold
- 1.0m @ 2.43 g/t Au from 69.0m
- 7.0m @ 0.21 g/t Au from 75.0m
- 6.0m @ 0.22 g/t Au from 84.0m
- 3.0m @ 0.21 g/t Au from 93.0m
- 3.0m @ 0.44 g/t Au from 99m
19FARC007 33.0m @ 0.35 g/t Au from 20.0m, incl. 3.0m @ 1.09 g/t Au
- 5.0m @ 0.79 g/t Au from 63.0m
- 43.0m @ 0.34 g/t Au from 83.0m
19FARC008 2.0m @ 1.26 g/t Au from 18.0m
- 2.0m @ 51.27 g/t Au from 56m, incl. 1.0m @ 102.38g/t Au
- 2.0m @ 0.37 g/t Au from 62.0m
19FARC010 8.0m @ 0.38 g/t Au from 40.0m, incl. 2.0m @ 1.04 g/t Au

Regional Prospects- After the Autumn 2019 rainy season, A1G completed infill soil sampling on coincident geochemical-structural-magnetic-geological targets. Aircore Drilling following-up on the soils sampling program consisted of ten traverses drilled over a strike of 17km to provide an initial assessment of the regolith, geology and geochemistry and potential alteration and mineralisation.

These first pass wide spaced traverses show that mineralisation is open along strike. Of the 76 air core holes drilled 30 holes returned anomalous intercepts (+100ppb Au). Eight separate anomalies need infill drilling and are still open along strike.

Results from this shallow wide spaced reconnaissance AC drilling are considered extremely encouraging with the discovery of at least three new mineralised systems under thin laterite cover. The three most significant targets returned:

19FAAC078 10m @ 0.91 g/t Au from 26m

19FAAC069 20m @ 1.15 g/t Au from 4m

19FAAC077 12m @ 1.10 g/t Au from 0m

Figure: Falémé Project Area, Bourdala Permit. Damba Massa Prospect RC drilling December 2019. Location of historical and recent holes and significant drill results.

Figure: Falémé Project, Bourdala Permit. TD Prospect RC drilling December 2019. Location of historical and recent drilling and significant results.

Figure: Falémé Project– BouBou and Bourdala Permits. 2019 Drilling significant results with historical RC and soils sampling.

Sitakili Permit

Sitakili Permit is located less than 25 km from the operating gold plants at Loulo 14 Moz (Barrick Gold) and Tabakoto (Algom Resources). The Tabakoto-Kofi ore haulage road passes approximately 5 km to the east of the Sitakili permit. Primary high-grade gold mineralisation has been intersected in sporadic reverse circulation (RC) drilling and diamond drilling (DD). Generally, gold mineralisation at Sitakili is related to quartz-carbonate veins and veinlets in bands and stockworks hosted within a felsic dyke that is interpreted to have intruded pre-existing structure along a NNE-trending fold axis analogous to the Tabakoto Gold Mine (+2.1Moz), situated on-trend about 20 km to the south.

Large-scale artisanal workings occur at the localities of Kirchon, Grand Filon, Makandja, and Djimissi. Artisinal mine pits and stopes are up to 15 m wide and extend along strike for in excess of 2 km. Mine openings are typically 10-15 m deep, with some small shafts (utilising water pumping equipment) extending to about 25 m to selectively mine high-grade saprolite zones. Most of the workings appear to be relatively recent; local community suggest they were mostly opened up in the last 10 years. Significantly, the historical drilling (last done in 2005) is believed to have been completed prior to the artisanal “discovery” of the primary zones at Kirchon and Makandja, suggesting the extensive workings now evident at these locations remain relatively untested by drilling. More significant historical drill results included:

Grand Filon Prospect:

4 m @ 28.9 g/t gold from 129.0 m
9 m @ 5.9 g/t gold from 95.0 m

Kirchon Prospect:

6.6 m @ 115.5 g/t gold

A1G completed a total of 16 RC holes for an aggregate of 1,980 m in November-December 2019. Holes were designed to provide a preliminary assessment of a portion of the Kirchon and Grand Filon prospects. Three main mineralised corridors are currently being mined by artisanal miners namely Djimissi, Kircho/Makandja and Grand Filon. The artisinal miners appear to focus entirely on alluvial gravels and on quartz lode systems.

Grand Filon Prospect - all 4 holes drilled by African Gold over a strike length of 550 metres eastern lode intersected mineralisation typically, but not always associated, with quartz veining and quartz feldspar porphyries (exception of hole 8) within a package of sheared meta-peltites, meta-arenites and meta-wackes. All mineralized zones appear to remain open along strike and down dip.

Results included:

19SIRC008 1.0 m @ 1.34g/t gold from 82m

19SIRC009 1.0 m @ 3.11g/t gold from 37m

19SIRC009 6.0 m @ 3.35g/t gold from 53m, incl. 3.0 m @ 5.49 g/t Au

19SIRC010 3.0 m @ 2.34g/t gold from 117m

19SIRC010 6.0 m @ 5.8g/t gold from 126m, incl. 3.0 m @ 10.77g/t

19SIRC011 6.0 m @ 1.97g/t gold from 42m

19 SIRC011 1.0 m @ 1.29g/t Au

Kirchon / Makandja Prospect - all 12 holes drilled over a strike length of 2,500 metre of the 3,600 m mapped (defined by artisanal mining) mineralised lode system intersected mineralisation. The eight holes were drilled into the Eastern lode system intersected multiple zones of mineralization typically, but not always, associated with quartz veining and quartz feldspar porphyries within a package of sheared meta-peltites, meta-arenites and meta-wackes. Mineralisation intersected in the 3 holes targeting the Central Structure and the 1 hole targeting the Western / Makandja Structure were sometimes but not always associated with quartz veining within sheared and altered sediments but no porphyries.

Eastern Structure

19SIRC006 3.0 m @ 3.07g/t Au from 41 m & 2.0 m @ 4.71g/t Au from 49 m

19SIRC013 9.0 m @ 5.17g/t Au from 54.0 m & 5.0 m @ 1.54g/t Au from 108m

Central Structure

19SIRC014 1.0 m @ 1.33g/t Au from 51.0m

19SIRC015 5.0 m @ 1.23g/t Au from 55.0 m

Western / Makandja Structure

19SIRC016 3.0 m @ 1.54 g/t Au from 7 m & 4.0 m @ 0.61 g/t Au from 12 m & 1.0 m @ 1.13g/t Au from 18 m & 1.0 m @ 8.12g/t Au from 24 m and

Figure: Sitakili Project. Prospects showing regolith on LandSat image, location of artisanal mines trends, rock chips, selected drill results and target areas.

Figure: Sitakili Permit. RC drilling November – December 2019, location of historical and recent holes. Significant results from A1G drill campaign on satellite imagery.

Walia Permit

The southern boundary of the Walia permit abuts the Loulo mining lease (Barrick Loulou Mine 14Moz). The Loulo milling complex is situated approximately 10km to the south of the permit.
The Walia Gold Project area hosts folded generally NNW-trending metapelite and metagreywacke lithologies, including gold prospective tourmaline altered sandstone and breccia, occurring to the east of the SMSZ. Second-order shear splays trend NNE-SSW, crosscutting the regional sedimentary layering and folding. Gold in soil and auger anomalies occur in proximity to gold prospective tourmaline alteration and structure at Walia. Very limited drilling has been done on the permit.

There are multiple high priority walk up drill targets in this permit. Systematic RC drilling will be taken to evaluate previously defined geochemical / drilling / geological targets. Regolith within the Walia permit is generally dominated by transported gravels (cuirasse) and colluvial deposits which mask the gold prospective sub-surface rocks. Some auger has been undertaken, however large portions of the permit have not been effectively sampled beneath cover and the permit remains largely underexplored. In areas that have been partially auger sampled, potentially five anomalies occur in proximity to interpreted gold prospective tourmaline alteration and structure. Anomalous RAB results occur at one of these prospects; the remaining areas not been tested by any form of reconnaissance drilling. Infill auger and/or immediate follow up AC drilling is warranted.

Auger sampling of weathered in situ material is a well-established technique in this terrane. It is proposed that systematic auger coverage be completed, initially east of SMSZ, and later extending over the entire Walia permit. There is a strong expectation that this initial auger program would generate targets for subsequent AC follow up drilling and eventual RC drill testing.

Figure: Walia Permit. Interpreted geology, gold-in-soil & auger geochemistry and airborne EM image.

Yatia Permit

The eastern boundary of the Yatia permit abuts the Tabakoto mining lease (Algom Resources). The Tabakoto Mill is situated approximately 5 km to the south-east of the permit boundary. The western boundary of the permit abuts the Kofi mining lease (Algom Resources).

The project area is generally underlain by gold prospective NNW trending Birimian-age meta-sediments, metavolcanics and granite. Artisanal gold mining occurs at two localities on the Yatia permit; Segala Ouest and Baroye. The 450m long artisanal mine camp at Segala Ouest is an extension of the NW-striking Segala Mine trend. The Segala deposit (0.8Mozs), located on the Tabakoto mining lease, is exploited by Algom Resources utilising open pit and underground techniques. Ore is transported to the Tabakoto Mill. Significant gold mineralisation has been intersected in drilling and trenching at a number of locations on the Yatia permit. Loulo-style alteration has also been intersected in limited drilling, historical drill results include:

10m @ 2.87g/t gold (trench)
2m @ 7.40 g/t gold from 79.0 metres
7m @ 1.95 g/t gold from 28.0 metres
1m @ 21.80 g/t gold from 17.0 metres
13 m @ 1.17g/t gold from 39.0 metres

The regolith setting is not well defined at Yatia. Large areas are expected to be masked by thin transported gravels and colluvium. The context of the systematic soil geochemistry undertaken to date requires more understanding before the next phase of exploration.

Figure: Yatia-Sud Permit showing regional geology overlying magnetic image; anomalous soils (>50ppb Au); historical drill collars and significant drill and trench results.

Samanafoulo permit

Covers Birimian greenstones of the KKI, in a structural setting similar to Sabodala (5.3 Moz)6, Massawa (2.6 Moz)7 and Mako (1.4 Moz). The permit is at an early stage of evaluation and very limited exploration work has been undertaken. Reconnaissance soil sampling by government agencies in the 1980's returned a number of anomalous results (max 279ppb Au) in wide spaced (1,000m x 250m) sampling. Interpretation of regional magnetics and geology has defined a significant structural/magnetic/geological target coincident with anomalous regional soil geochemistry.

During Q3 2019, A1G conducted an infill soil sampling program to refine and further define the historical anomalies. The program consisted of 226 BLEG soils samples on a 400m x 200m grid. The results defined a gold-in-soil anomaly in excess of 6km x 2 km. While there are small artisanal workings located on a quartz-tourmaline vein on the western side of the anomaly the basement source of the gold is presently unknown.