I don't believe that the mentioned "African Gold Zimbabwe" is AFG, but the article does demonstrate rapid resurgence of E&P in Zimbabwe:

Mining Giants Plan Massive Diamond Prospecting

The Herald (Harare)

January 22, 2004
Posted to the web January 22, 2004

Harare

MINING giants, De Beers Zimbabwe Prospecting Limited and Circle Three Mining Corporation are proposing a massive diamond prospecting project that will see the two companies prospecting for the mineral in Gweru, Harare, Bulawayo and Kadoma mining districts.

The two mining companies intend to prospect for diamond in areas covering a total of 448 180 hectares.


Another company, African Gold Zimbabwe, has also undertaken to prospect for gold on two areas measuring 120 550 hectares within the Harare and Gweru mining districts.

De Beers Zimbabwe Prospecting Limited, Circle Three Mining Corporation and African Gold Zimbabwe have applied to the Mining Affairs Board for an exclusive prospecting order for 12 areas under the four mining districts.

In the latest issue of the Government gazette, the Mining Affairs Board said De Beers, Circle Three Mining and African Gold Zimbabwe intend to prospect for diamonds and gold over an area of approximately 568 730 hectares from the three areas.

"The applicants intend to prospect for diamond within the areas, which have been reserved against prospecting pending determination of this application.

"Prospecting authority is sought upon registered base mineral blocks within the reservation," read part of the notice.

One of the two diamond prospecting projects to be undertaken by Circle Three Mining measures 65 000 hectares and is bounded by a line commencing on the Zimbabwe-Zambia border approximating five kilometres.

All areas, which have been earmarked for prospecting are within the 15 000 hectares and 65 000 hectares range and are mostly in the traditional mineral bearing areas of the country.

The proposal to prospect for diamond in the country comes at a time when the US$41 million Murowa Diamond Mine has started to operate following the successful relocation of 141 families which were on the mining site.

Mining is one of the sectors which has been depressed over the last five years but some of the players in the industry have said investors should look at non-traditional minerals.

An example that is often given is that of platinum, which is fast becoming the world's most lucrative mineral.

The mining of diamond in Zimbabwe is also fast gaining pace and it is expected that some of the mining projects would create a lot of employment.

Relevant Links

Southern Africa
Mining
Zimbabwe

Thursday Closing Market: mining stocks glitter on soaring gold prices
Published: 17:30 Thr 24 June 2004
By Dylan Lobo, Market Reporter

A late spurt lifted the FTSE 100 above the 4,500 mark, with miners shining as gold prices soared to a two-month high of $400 an ounce on the New York Mercantile Exchange.

Rio Tinto, up 45p to 31.25, paced the rally in the sector and was the strongest blue chip after confirming sales contracts to supply an extra 40 million tonnes of iron to Chinese steel mills over the next ten years.

Xstrata, up 17.5p to 713.5p, Anglo American, up 31p to 11.38, and BHP Billiton (BLT), up 12.5p to 472.25p, were also prominent features on the Footsie leaderboard.

Graham Birch, the AAA-rated manager of the Merrill Lynch Gold and General fund, believes that the commodity prices were forced down by the overselling on miners in April and early May. Birch feels that the cycle has run its course and sees a rally in the sector, with the long-term outlook for commodity prices good.

Food for thought: very nourishing!!

Citizens of Vietnam And China Will Be Rubbing Their Hands With Glee At The Strength In The Gold Price.

At the Minesite Forum earlier this week Joe Baylis, President and CEO of Olympus Pacific with its two gold projects in Vietnam, gave a fascinating insight into the attitude to gold in that country. Housing, he said , is priced in taels of gold which are bars weighing just under an ounce - an interesting thought for Chancellor Brown to ponder as UK property prices continue to soar. The actual purchase may take place in US$s or Vietnamese dongs, but gold is the basis of valuation and there is so much dealing in these tael bars that they tend to be priced at a slight premium to the world gold price. Gold , therefore, plays a vital role in the savings and investments of the Vietnamese people . Further evidence of the respect for gold is demonstrated by the government which cools down the economy by encouraging the import of gold whenever inflation appears to take a hold. In April the import tax was lowered from 3 per cent to 1 per cent on gold bars and from 1 per cent to 0.5 per cent on gold grains.

A day after the Forum it was announced that citizens of Beijing, the capital of Vietnams mighty neighbour China, were now able to buy and sell gold bars through a bank. Remember it was only in October 2002 that the Shanghai Gold Exchange formally opened for business after a gap of 50 years. A month later small sized gold bars were put on sale in Beijing through several department stores and early in 2003 the State Council confirmed further de-regulation of the gold market by altering the rules governing both domestic and international participation in the gold fabrication market within China. The initiative by the China Merchants Bank with repurchasable gold bars provides Chinese citizens with a new investment tool and it will be rolled out through China with Shentzen as the next stop.

China Merchants Bank is a marketing agent for CGS Ltd, a joint venture between China and Hong Kong, which manufactures the 99.99 per cent pure bars in three sizes, 2 ozs, 5 ozs and 10 ozs. The price of the bars is based on the spot price in London and Shanghai and there is additional commission of US$13.13 on a purchase and US$7.47 on a sale. The move was preceded by a test run in Chengdu, which is the capital of Sichuan province, back in November 2003. According to the China Daily the initial demand did not set the world on fire as only 135 ozs of gold in these bars was purchased from 5 branches in the first day. However, as Chairman Mao said, the longest journey starts with a single step.

Clearly the test went well once Chinese investors realised that the gate had been opened even further, but no data is available. Nor has it been disclosed how much gold has been handed over by CGS to CMB to get the new market going. As a guide to its potential it is interesting to note that the Shanghai branch of the Bank of China launched a paper gold business called Gold Treasure last November. Apparently volume growth for this investment instrument has grown by 40 per cent month on month which is rather more than can be said for Gold Bullion Securities which is listed on the London Stock Exchange. And another thought. If China Merchants Bank thinks it can achieve a yield of 5 per cent on a buy-sell transaction on a gold bar once customers catch on, surely UK banks could offer the same service.

Mind you the buying power of the British public is as nothing compare with the potential of China. If 1 in 20 Chinese bought a single 2 oz gold bar over the next five years they would mop up 128.8 million ounces of gold which is equivalent to 4,155 tonnes. This is equivalent to 1.6 times the worlds annual production of the metal. Add to this the growing appetite in Vietnam and other countries in the Far East and it is not hard to see why Germanys announcement that it might sell 17 per cent of its 3,500 tonnes of gold reserves under the Central Banks Gold Agreement, which is being renewed in September, was greeted with a yawn by the market. France is also considering selling 500 tonnes, but again no firm decision has been made. When western politicians see the view taken on gold by China, the industrial power house of the world, opinions may well change. Only the Netherlands has gone firm with a proposed sale of 100 tonnes and that is a drop in the proverbial ocean.

AFG will be one of the sponsors on Las Vegas Gold conference in Sep

http://www.iiconf.com/vegas04/default.aspx#sponsor

The Case For Gold.

(Extracted from the Annual Report of Golden Prospect PLC, A 25% Shareholder In Minesite)

The gold rally over the past two years has largely been an anti-dollar phenomenon but with all the increased geopolitical tension and general financial worries, gold really has assumed the status of an insurance policy against bad times. Its safe haven status has been restored and investor appetite for this dependable alternative asset class is steadily increasing. Although historically a volatile asset to own, gold has proved itself time and again in periods of financial stress and geopolitical turmoil. What we can say about todays climate is that the only certainty is continued uncertainty, i.e. the dollar is still stressed out, inflation is gathering pace, terrorism breeds investor caution and the general unrest will not go away. Interest rates are rising, consumer debt is exploding, house prices are teetering on the edge of a big fall almost everywhere and industrial equities on both sides of the Atlantic are witnessing waning support. Seasoned market investors are holding cash, buying gold and inflation linked bonds.

There are still huge imbalances in the US economy and these will need to be corrected at some point, creatingfurther degrees of financial strain. Some pundits believe that the growing deficits in the US could eventually result in the creditor nations deciding that they no longer want to hold US dollars. If that day comes, the greenback is going to plummet.

Furthermore, to quote from many economic forecasts, it is quite possible that we will soon see a breakdown of the triangular relationship between gold, the dollar and the euro. There have already been indications in recent months that gold may move in an independent direction and if it starts climbing again in all currencies, this will be the most potent bull signal of all. Investment funds would pour in!

Central Bank selling of bullion is also drying up.Whereas previous Central Bank gold sales contributedto a weakening in the gold price and negative sentiment within the investment community, the signing of the new agreement to limit sales over the next five years has provided some additional stability and positive sentiment to the gold market has returned. Even more importantly the European Central Bank confirms that gold will remain an important element of the global monetary reserves.

The supply demand equation is also going golds way.Capital costs of new mining projects are soaring and there is a lack of new mining projects coming on stream. By and large, major discoveries have not been made in the sector for some years, so the upshot is that new big supplies are not being found. Moreover, short term interest rates, although increasing, have not risen high enough to result in more hedging and gold producers are unlikely to hedge gold in a bull market environment. In the past, mining companies have used low gold lease rates to sell gold forward in order to raise money to finance the construction of new gold
mines, but we now believe that the large, global gold producers will continue to unwind their hedge booksat an increasing pace.

Factor in a huge boom in China, India, Russia and Brazil and the ultimate buying power of gold that this will eventually produce, together with the continued erosion of confidence in the dollar, then demand must exceed supply for some many years to come. It may be worth recalling that gold last hit its zenith in the late 1980s when inflation was rising and the world had suffered two major oil price shocks. Just as America inflated away the reckless spending then so it can be expected to do the same again to address todays looming fiscal problems. The FEDs usual way out of this problem in the short run is to print money. These current financial events, the rise in oil price and other deteriorating economic trends are all building a case for significant inflation down the road and thereby the most excellent environment for physical gold and gold equities.

African Gold starts drilling at Konongo/Owere project in Ghana
AFX


LONDON (AFX) - African Gold PLC said drilling has started at the AIM-listed company's 960,000 ounce Konongo/Owere gold project in Ghana.

The company plans to increase the resource base significantly beyond the 960,000 oz, defined by RSG Consultants in a due diligence report in early 2004,

already defined at Konongo/Owere, it said.

The four-phase drilling programme is designed to take the reserve base to a level which will sustain a long-term, stand-alone mining operation within two years.

'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,' said co-chairman John Teeling.

newsdesk@afxnews.com

jc
===

Boys and girls this is what we have been waiting for. The real test of how much the company is worth will soon become apparant.

10.20% so far. it seems we have reach the bottom too. Gold price is on the up again.

I think we also need to have a broader picture of where Gold is heading. Take a look on the outlook coming from Merrill Lynch, one of the best (if not the best) fund managers in the world. Also the FTSE World Gold benchmark supports this. Thanks

http://www.mlim.co.uk/shared/pdfs/mlf/ut-gold-fs-uk.pdf?silo=individual-investors

13th July 2004



AFRICAN GOLD, THE AIM LISTED GOLD PRODUCER, ANNOUNCES THE START OF DRILLING AT THEIR KONONGO/OWERE PROJECT IN GHANA





The Directors of African Gold are pleased to announce the start of a four phase, diamond drilling programme at the companys 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.



The company plans to increase the resource base significantly beyond the 960,000 oz, (defined by RSG Consultants in a due diligence report in early 2004), already defined at Konongo/Owere. The four phase drilling programme is designed to take the reserve base to a level which will sustain a long-term, stand-alone mining operation within two years.



Gold at Konongo / Owere occurs in the same host rocks and structural setting as the Obuasi (Anglo-Gold/Ashanti) and Prestea Gold Mines (Golden Star Resources) in the Ashanti Gold Belt.



An evaluation of the massive data base on the historic Owere/Konongo Mining Lease area is identifying numerous, untested gold-anomalous prospects which will be evaluated on a prioritized basis.



John Teeling, co-chairman, commented, 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.


This is good news...Great potential... buy at 7p.

Weak dollar = Good for Gold.



European exporters could fuel a euro rise
Tue 13 July, 2004 12:17



By Justyna Pawlak

LONDON (Reuters) - European corporates are getting nervous about recent strengthening of the euro and may start piling on new protection against currency risk soon, which could accelerate any further rally in coming months, some bankers say.

A strong euro means that European exports are more expensive outside the euro zone and that hurts their manufacturers' profits.

But many companies have scaled down their hedging of currency risk this year, hoping the single currency would fall steadily from its February record highs against the dollar and make it cheaper, or even pointless, to buy protection.

Many now feel they may have waited too long.

A spate of disappointing U.S. economic data, particularly on the labour market, has depressed the dollar and prompted some banks to forecast that the euro would now resume its uptrend.

"We have been getting more and more calls (from worried corporates) in the last two weeks," said Peter Fontaine, currency strategist at KBC in Brussels. "And since the (U.S.) payrolls numbers it really exploded."

On Monday, the euro hit a four-month high at $1.2436, compared with February's life record of $1.2927. It fell to $1.1759 in April when the prospects of imminent interest rate rises in the United States powered a broad rally in the dollar.

SELF-FULFILLING PROPHECY

Many analysts say the jury is still out on whether the euro will retest those record highs soon.

Global investors could go back to punishing the dollar, as they did last year, for the U.S. current account deficit.

But many analysts argue the external shortfall will be offset by further U.S. monetary tightening and economic recovery there, giving the dollar plenty of support.

Goldman Sachs, however, has revised up its three-month euro forecast to $1.2700 from $1.1600. It also expects the euro to hit $1.3200 in six months. The Reuters consensus forecast, published earlier this month, calls for the euro at $1.2200 in three months.

Currency market professionals warn that any further rise in the euro, especially above the $1.25 level could spark a wave of demand for euros from European corporates fearing that a renewed dollar decline would weigh on their profits again.

This in turn could speed up the very rise of the euro they fear.

"Many corporates are getting nervous," said Thomas Stolper, global market economist at Goldman Sachs in London. "They may not be acting yet but I would expect them to come in between $1.25 and, more aggressively, the old record highs."

Most European corporates buy currency forwards in order to hedge the risk of their future dollar revenues losing value as the dollar falls against the euro. These instruments allow them to buy dollars at a fixed exchange rate in the future.

"We expect corporate rate dollar selling to be one of the main constituents of the next leg of dollar weakness," said Stolper.

One foreign exchange salesman at a London bank said $1.30 would be a more likely trigger point to set of panic among European corporates about further euro gains and power a wave of new hedging.

However the run-up to the $1.30 level earlier this year was also marked by verbal intervention from the European Central Bank, which at the time helped deter the market from driving the euro higher.

COUNTER FLOW?

British exporters appeared less concerned that the pound will head for its 11-year highs set at $1.9140 on the same day in February as the euro's record peak. On Monday the pound hit a four month high around $1.8660, less than five cents below the February peak.

"Dollar sellers are not panicking yet," said one currency salesman from a UK bank.

"But that would change if we were to go through $1.90. At the moment there is still a bit of complacency since many firms have already hedged a fair amount of exposure this year."

Other London bankers add that while many European exporters are still waiting for a clearer trend in the euro, importers have been taking advantage of the U.S. currency's recent downtick to snap up the dollars they need to buy goods.

More importer demand would surface if the euro rose beyond $1.25, one FX salesman said.

more on Gold:

Gold to hold above $400 this year and next
Mon 19 July, 2004 13:24



LONDON (Reuters) - Gold prices are seen holding an average above $400 an ounce for the foreseeable future as the dollar stays weak and world security worries keep big investors hedging their bets on where money is safe, a Reuters poll shows.

The global survey of 24 analysts pointed to an average gold price of $404.50 a troy ounce in 2004, up 11.2 percent on 2003. Gains were then seen being pared to an average for 2005 of $402.50, up 10.6 percent on the 2003 level of $363.83.

Analysts' predictions for 2004 were down around 3.5 percent compared with a similar survey conducted in January as expectations of broader investment flows had disappointed.

"2004 promised so much and simply failed to deliver," Ross Norman of TheBullionDesk.com said.

Gold's broad uptrend started in 2001, when the metal was near 20-year lows.

The advance gathered momentum as dollar weakness, global security worries and producer buy-backs of reserves in the ground that they had sold on forward markets pushed world prices to a 15-year peak in early January 2004 of $430.50.

Producer buy-backs have since slowed, but the market should remain firm as the spotlight concentrates on the dollar, where weakness makes gold less expensive for holders of other currencies.

"We are dollar bears, despite the fact that the second quarter of 2004 saw the dollar improve...We remain bullish on the gold price -- tempered to be sure," economist Martin Murenbeeld said.

"Issues such as debt -- government and household -- factor into our longer-term thinking and are gold-positive, while terrorism and its potential impact on oil prices are on average also gold-positive," he added.

BROADER INVESTMENT STALLS

Investment funds piled into commodities, including gold, in 2003 against the backdrop of a struggling dollar and heightened geopolitical tension.

But analysts said the market had been only partially successful in its efforts to attract new investors with products such as gold-backed securities traded on stock exchanges.

"The expectation of a sustained rally was based on the assumption that a retail and wholesale investment market would be launched and indeed gather momentum," TheBullionDesk's Norman said.

"The market has failed to inspire the investment community and so the indomitable laws of supply/demand are re-asserting themselves and gold is re-establishing itself in a rather uninspiring trading range."

Average 2004 price forecasts for gold in the poll range from $376.00 to $422.25, but even the low was above the average forecast for 2004 of $350 when a similar poll was conducted in July 2003.

Frederic Panizzutti of MKS Finance said economists' expectations of a slow but almost confirmed world economic growth cycle -- plus moderate, but increasing inflation -- should be positive for commodities prices.

"Geopolitical instability and concerns will be another source of support, in particular for precious metals," he added.

"These few but major factors should enable demand for precious metals to grow over time and generate additional price strength mainly in the last quarter of 2004," he said.

What was that last trade 350k BC?

Anyone got buying price thanks.

Consumer demand for gold increases
MoneyAM
The World Gold Council said consumer demand for gold rose in Q2 with increased consumption of jewellery and retail investment.

Institutional investment demand is thought to have fallen.

Consumer demand rose 11% in tonnage terms to 743 tonnes, and by 25% in US dollar terms, from the year earlier, said the organisation which is funded by the world's leading gold mining companies.

"The rise in demand was fuelled by strong economic growth, relative absence of price volatility, and continuing concerns over the long-term economic and political outlook," it said.

Demand for gold jewellery rose 8% on the year earlier to 664 tonnes even as gold prices increased 13%.

Net retail investment demand in key markets jumped by a third to 79 tonnes, the highest second-quarter figure since 1999 when demand was driven by concerns over the millennium bug.

While, industrial demand climbed 7% to 87 tonnes, the eighth consecutive quarterly gain, boosted by increasing demand for gold for electronic components.

Net central bank selling was half of that of a year earlier with planned central bank sales partly offset by purchases by Argentina, which bought 42 tonnes in the first six months of the year.

"The fact that consumer demand is up, for the second successive quarter, is good news for the gold industry," said James Burton, CEO of the WGC.

Consumer Demand in the Middle East was boosted by higher oil prices, while jewellery and retail investment consumption in India were buoyant and helped by the country's economic growth.

Consumer demand jumped by a third in Greater China, and by almost as much in China itself. The main cause of the increase was the effect SARS had on demand in the year-earlier quarter with jewellery buying 14% higher. Jewellery demand in Japan rose 10%, helped by the unexpected strength in the economy, while consumption in Vietnam surged more than 50%.

In the US, jewellery sales climbed 4% but trends in Europe remained generally negative, although the decline was less strong than in the past.

Institutional investment demand is thought to have fallen as some short-term holders, who had bought gold in earlier months when the price was rising, sold in the absence of any further price gain. However the selling back was less than in 2003 and evidence suggests that many buyers held onto their investment, the WGC said, adding that the relatively strong performance of the dollar also contributed to the decline.

Total gold supply fell 10% to 820 tonnes from the year-earlier quarter on lower Central bank supply and a dip in mine production.

Gold was above 400 and AFG ended up 13%. Is this a start to the next leg up?

This weeks Moneyam magazine, take-overs in junior mining sector "AFG clearly seen as potential take- over target". Taken from ADVFN site.

This will be going places just need to start getting the GOLD out of the ground or drilling results which state there is some there. Also gold holding up well above $400 so plenty of profit to be made. 20p is a reasonable target for medium term as stated on The T1PS.com website.

Mugabe to seek mining shares


President Mugabe threatened firms with state intervention in 2000
The Zimbabwean state could take 50% stakes in mining firms, President Robert Mugabe has reportedly said.
The government is considering the move, reports claim, in an effort to crack down on what it says is the illegal use of foreign currency from exports.

The state-run Herald newspaper quoted Mr Mugabe as saying that the state did not yet have "absolute ownership" of the country's natural resources.

Zimbabwe has vast reserves of gold, platinum, nickel, copper and coal.

Controversial proposals

Earlier this year President Mugabe's government withdrew a controversial draft law which would have forced mining firms to sell a 49% share in their businesses to black Zimbabweans.

We cannot recognise absolute ownership of our resources - that must be corrected

President Robert Mugabe
A final version of the law has yet to be published pending a consultation process promised by the government.

"We are going to demand that government be given 50% shares in the mines," President Mugabe was quoted as saying on Tuesday.

"We cannot recognise absolute ownership of our resources. That must be corrected."

Zimbabwean state radio, also reporting President Mugabe's comments, said the measures were designed to prevent "illegal transactions" which had resulted in foreign currency earnt from exports being siphoned off.

It also said the move would apply specifically to firms involved in gold mining.

Golden share

Gold accounts for just over 50% of all mineral production in Zimbabwe and is one of the country's main foreign exchange earners.

The government said last month that Zimbabwe's mining industry was on track for financial recovery.

It said reforms had made it easier for firms to import raw materials while companies were able to retain more hard currency from their exports.

The collapse of Zimbabwe's economy over the past four years has left firms facing acute shortages of fuel and other raw materials while rising costs have curbed production.

Zimbabwe's economic output has fallen a third in the past five years, the International Monetary Fund said earlier this year

http://news.bbc.co.uk/2/hi/business/3657116.stm

African Gold PLC
27 September 2004

Contacts:

John Teeling + 353 (1) 833 2833
Adrian Lungan +233 (24465) 6485





PRESS RELEASE
AFRICAN GOLD PLC the AIM listed gold miner is pleased to
announce the following:



Significant gold mineralisation intersected in initial drill holes at Owere/
Konongo, Ghana.

Diamond drilling at our Owere/Konongo gold project in Ghana has
intersected significant zones of high-grade gold mineralisation.

The best intersections are from Hole OBAPC-05 where 12.06g/t Au was
intersected over a width of 16m and Hole OBACP-02 where 10.90g/t Au was
intersected over 12m.

Drilling confirms that substantial widths of highly-mineralised wall rock
exist in the mine workings.

Results of all holes have confirmed the presence, continuity and grade of
mineralisation in just one of nine such ore-bodies.

The Company is pleased to announce the results of initial drilling of the
Obenemase ore body at our Owere/Konongo Gold Mine in Ghana.

Hole No. Dip From(m) To(m) Interval(m) g/t Au

OBAPC-001 -47 134.0 137.0 3.0 5.68
144.0 145.9 1.9 5.63
190.0 192.6 2.6 3.55
OBAPC-002 -50 108.0 120.0 12.0 10.90
OBAPC-003 -45o 103.0 109.0 6.9 3.06
115.0 120.0 5.0 6.03
127.0 129.0 2.0 4.17
OBAPC-004 -53o 133.0 138.0 5.0 5.08
OBAPC-005 -46o 70.0 79.0 9.0 2.79
107.0 123.0 16.0 12.06

An initial thirty-hole drill programme is designed to test the grade and
continuity of gold mineralisation remaining in the wall rocks marginal to just
one of nine ore bodies at Owere/Konongo. The assay results obtained are from HQ
drill core and are the first received to date from Analabs in Ghana. In the
1930's, underground mining at Owere focused entirely on high-grade, gold-rich
quartz veins and the sulphide hosted high-grade, gold mineralised host rock was
left behind.

Previous drilling indicated the potential of the wall rocks to host an economic
ore body and the current programme is focused on converting inferred and
indicated gold ounces to measured ounces. An earlier study indicated a resource
of over 900,000 ozs in the area.

Drilling is ongoing and further results are expected in the very near future.

John Teeling co chairman said 'These are excellent results and fully support our
belief that we can turn the 900,000 oz indicated gold resource into a
significant gold mine.'

African Gold is an AIM listed company (AFG) with gold mining interests in Africa

www.africangoldplc.com