African Gold has reported 'substantial' gold mineralisation in nine additional holes drilled in its Konongo gold property in the Ashanti Gold Belt in Ghana. This follows the 'noteworthy' discoveries in the first five holes announced last month.

African Gold said that all nine holes contain good gold grades. Three of the new holes contain grades of 10 grams or greater over widths of five metres or greater.

The company said a number of other holes have been completed and are currently being analysed. Drilling continues and the results will be reported in the near future.

'The current drilling programme is on one of nine ore bodies on our licence, all showing similar geological characteristics,' commented John Teeling, the company's co-chairman.

'We estimated a gold resource of 900,000 ounces. This looks easily obtainable and may be conservative,' he added.