Today we have released results of the next set bonanza gold grade results from our Segele mine development project.

“These new results support our belief that we can maintain peak production for longer than calculated in our original scoping study”

Jørgen Evjen, CEO at Akobo Minerals AB

Specifically, the results, from laboratory testing, inspection, certification and verification solutions company, ALS (Ireland), show:

• New resource extension significant intercepts:
  • 24.4g/t over 5.88m (including 142g/t over 0.7m, and 44.8g/t over 0.7m); and
  • 17.8g/t over 4.38m (including 67g/t over 0.7m)
• New infill drilling results including:
  • 56.0g/t over 6m and
  • 23.0g/t over 1.7m
• In July 2021, the company also released results including 45.3g/t over 0.48m and 13.8g/t over 1.43m
• The mineralisation is still open at depth

Explaining Gold Grade: For underground mining, the World Gold Council defines high quality results as between 8 and 10 grams per tonne, and low quality as between 1 and 4 grams per tonne. There is no exact definition of what is considered as high or low grade. The list below is therefore an estimate as to what may be expected.

Underground Mine:
- Low grade 0 - 5 gold grams per tonne
- Average grade 5 - 8 gold grams per tonne
- High grade 8 + gold grams per tonne
- 'Bonanza' grade 31.1 grams per tonne

Results from an additional 30 holes (approximately 2000 samples) are expected to be delivered within 10 days and will include all samples needed to perform an updated resource estimate. There have been major delays at the ALS laboratory in Ireland lately, affecting the delivery of results and Akobo Minerals’ ability to issue a full resource update. Once the outstanding results are received, the data will be handed to SRK (Australasia) to complete the mineral resource update.

Akobo Minerals released the result of its first Segele mineral resource estimate in April 2021, with an inferred mineral resource totalling 52,410oz at an average grade of 20.9g/t. That resource estimate covered a gold mineralization in a narrow high-grade shoot from 30m at the shallowest to 130m at the deepest. These new assays have demonstrated that the high-grade gold mineralization extends to at least 240m below the surface – and quite possibly deeper.

Figure 1: Schematic cross section of the Segele Mine Development project, looking west

Jørgen Evjen, CEO of Akobo Minerals, said: “We eagerly anticipate the full results of the mineral resource estimate from geology and resource specialist, SRK, which will be undertaken as soon all results are in from ALS. The engineering design within our scoping study shows that the Segele mine should be a high-margins operation, with an all-in production cost of around $250 per ounce. We anticipate limited mining production to begin at the end of 2022, with production peaking in mid-2023.”

He concluded: “These new results support our belief that we can maintain peak production for longer than calculated in our original scoping study. We eagerly await the new estimate.”

Table 1: Significant intersections from the Segele gold deposit (calculated using a 1g/t low cut-off, maximum 1m internal waste and no high cut)

NEW RESULTS REPORTED TODAY
Resource extension drilling, to be incorporated into the Segele mineral resource estimate

PREVIOUSLY REPORTED RESULTS
Not yet included in the Segele mineral resource estimate

NEW RESULTS REPORTED TODAY
Infill drilling from within the Segele mineral resource estimate, but not yet included

PREVIOUSLY REPORTED RESULTS
Already included in the Segele mineral resource estimate