African Gold losses pass €500,000 despite hopes

AFRICAN Gold has reported increased losses in its last financial year, but chairman John Teeling, said it was also a period of significant progress for the group in Botswana, Africa.

The group made pre-tax losses of over €573,590) against losses of €386,808 for the year to June 30, 2006.

Mr Teeling reported the group’s diamond discovery in Botswana was continuing to show promise.

The group has also announced that West African Diamonds is being split from the parent company, which will help create more value for shareholders. Other key points of the report included:

*A review of the AK8 discovery, in Orapa, Botswana indicated that further evaluation is required.

*Immediate exploration will go ahead, however, on three areas in Orapa under a recently acquired new license.

*Separate listing on AIM to go ahead for West African Gold, to unlock value.

*The management team has been strengthened.

Mr Teeling said substantial progress had been achieved.

“The focus of interest has clearly been on the AK6 diamond discovery in the Orapa area of Botswana, though other projects, within Botswana are also showing promise,” he said.

He added that operations in Sierra Leone and Guinea have developed to the point where a decision has been taken to create a separate AIM-listed company.

During the year Mr Teeling said the AK6 grew in strategic importance and the resource estimate of 40 million tonnes has risen to more than 60 million, and is still growing.