Stellar AfricaGold Mill Construction Update

Tickers: XTSX:SPX
Tags: Mining

Vancouver, January 8 / TheNewswire / 2018 – John Cumming, President and Chief Executive Officer of Stellar AfricaGold Inc., (TSX-V: SPX) ("Stellar" or the "Company") announces:

BALANDOUGOU GOLD PROJECT MILL CONSTRUCTION UPDATE

Stellar is developing the promising gold potential of the advanced exploration stage B3 Zone of its 100% controlled Balandougou Gold Project in Guinea, including the installation of a 150 tonnes per day ("tpd") gravity separation plant based on design parameters defined by SGS South Africa and manufactured by Henan Xingyang Mining Machinery Manufactory, a branch of XKJ Solution Group of Zhengzhou, China, to process a 15,000 tonnes bulk sample.

Construction crews and management supervisors have returned to work after a brief seasonal holiday break. The gravity plant equipment, structural steel footings and structural steel supports have been delivered to the mine site and final assembly and installation is underway.

Picture 1 – 150 tpd Gravity Plant – View from floor showing the upper vibrating feeder and primary crusher


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Picture 2 – Five tonnes per hour ("tph")ball mill


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The concrete foundation and the steel reinforced concrete slab to support the heavy components of the mill are complete. Installation of steel infrastructure and supports for upper vibrating feeder and primary crusher is also complete. The cylinder washing machine is in place as is the 10-metres ore conveyer running from the feeder to the washing machine. Workers are currently preparing the steel structures to support the secondary crusher and the ball mill which complete the milling line.

Picture 3 – 150 tpd Gravity Plant

View from loading platform showing the upper vibrating feeder and 20-30 tph cylinder washing machine


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Picture 4 – 150 tpd Gravity Plant

Steel workers at work on ore conveyer with Knelson concentrators model STL60, capacity, 25-35 tph (right)


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A 40′ shipping container, which will be repurposed into a secure ‘gold room’, is on site for transformation and installation of a shaking table Model 6S with capacity to process 30-60 tpd of gold concentrate from the Knelson Concentrator. The gold room will also house the high frequency smelting furnace.

The entire milling plant installation will be powered by a 250 KW YTO Diesel Generator set.

To alleviate any potential water supply problems and completely eliminate the high cost of transporting water from local sources, two 100-metres deep water wells have been drilled near the mill and are now operational. The initial flow tests for both wells are completed and together the two wells are supplying between 10-15,000 litres of water per hour, i.e. combined well steady flow rate. Stellar had previously built a 1.5 million litre reservoir which is being filled from the wells. The mill requires up to 30,000 litres per hour of water flow of which about 75% will be recycled and reused, therefore there will be abundant water supply for milling operations from the well flow and the reservoir. Any net decline in the reservoir level at the end of the day will be replenished overnight.

Final materials and accessories including air conditioning units and other electrical supplies, stoves and sanitary fixtures for the five support buildings are on site. Construction of sleeping facilities, kitchen and cafeteria, and bathrooms, showers and laundry is 90% completed. Day workers either reside or are accommodated in local villages, and military and guards are housed at Stellar’s original exploration camp nearby.

Picture 5 – Staff Camp Site – Building 1 (staff accommodation and office) of 5 buildings total.

The mill camp has sleeping accommodation for up to 12 people.


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Picture 6 – 1.5 million litre water reservoir before filling


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Stellar has extracted and stockpiled the first 15,000 tonnes of gold-mineralized oxide material from an identified extraction trench and this material is ready for processing as an initial bulk sample once commissioning of the plant begins. All construction is expected to be completed by the end of January and mill commissioning will commence immediately thereafter. Processing of the 15,000 tonnes bulk sample is expected to take approximately 4 months.

ABOUT STELLAR AFRICAGOLD INC.

Stellar AfricaGold Inc. is a Canadian gold exploration Company based in Montreal, Quebec, with operations concentrated mainly in West Africa and in Quebec.

The Company is currently developing the promising gold potential of the advanced exploration stage Balandougou project in Guinea, including a 15,000 tonne bulk sample program. (see News Release March 1, 2017) The Company also owns the Namarana project in neighbouring Mali. In Quebec, the Company owns 100% of the Opawica Project in the Chibougamau mining camp.

The technical content of this press release has been reviewed and approved by independent consultant Greg Isenor, P. Geo, a Qualified Person as defined in NI 43-101.

For further information please contact:

John Cumming, President & CEO, Stellar AfricaGold Inc.,

4908 Pine Crescent, Vancouver, BC, V6M 3P6, or

Maurice Giroux, VP Exploration, Stellar AfricaGold Inc.,

1035 West Laurier Street, Suite 201, Montreal (Quebec) H2V 2L1.

Tel.: 514-866-6299 Email: mgiroux.stellar@gmail.com

Additional information is available on the Company’s website at www.stellarafricagold.com.

On Behalf of the Board

John Cumming, LLM,

President & CEO

This release contains certain "forward-looking information" under applicable Canadian securities laws concerning the Arrangement. Forward-looking information reflects the Company’s current internal expectations or beliefs and is based on information currently available to the Company. In some cases forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "budget" or the negative of those terms or other comparable terminology. Assumptions upon which such forward-looking information is based includes, among others, that the conditions to closing of the Arrangement will be satisfied and that the Arrangement will be completed on the terms set out in the definitive agreement. Many of these assumptions are based on factors and events that are not within the control of the Company, and there is no assurance they will prove to be correct or accurate. Risk factors that could cause actual results to differ materially from those predicted herein include, without limitation: that the remaining conditions to the Arrangement will not be satisfied; that the business prospects and opportunities of the Company will not proceed as anticipated; changes in the global prices for gold or certain other commodities (such as diesel, aluminum and electricity); changes in U.S. dollar and other currency exchange rates, interest rates or gold lease rates; risks arising from holding derivative instruments; the level of liquidity and capital resources; access to capital markets, financing and interest rates; mining tax regimes; ability to successfully integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; laws and regulations governing the protection of the environment; employee relations; availability and increasing costs associated with mining inputs and labour; the speculative nature of exploration and development; contests over title to properties, particularly title to undeveloped properties; and the risks involved in the exploration, development and mining business. Risks and unknowns inherent in all projects include the inaccuracy of estimated reserves and resources, metallurgical recoveries, capital and operating costs of such projects, and the future prices for the relevant minerals.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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