African Gold takes option on Konongo lease

Exploration company African Gold today announced it has taken on a 90-day option on the Konongo gold mining lease, which covers the northeast portion of the Ashanti Gold belt in Ghana.

African Gold said in a statement today that they believe there is outstanding potential in the Konongo lease.

A shallow resource of 860,000 ounces of gold at 2.33 g/t has already been defined by over 1900 drill holes.

The company said this resource is likely to grow substantially from drilling at depth and from extensions of the existing operations.

African Gold also named Adrian Lungan as Chief Operating Officer today. Lungan has previously worked for gold companies Placer Dome and Newmount Mining.

Irish chairman John Teeling said: "Adrian Lungan is joining African Gold at an exciting time. Not only is he leading the due diligence on Konongo, but he is examining a series of other gold projects in Africa brought to the board by directors and investors".