AGF said in the statement the company targets an increase in JORC classified gold reserves from the current 2.4 million ounces to over 7 million ounces as a result of the drilling programme, after allowing for mining depletion.

The total exploration potential (JORC and Soviet classified) at AGF is currently identified as approximately 24 million ounces of gold and 480 million ounces of silver.

The total budget for the five-year programme is approximately US$22 million, of which US$2.5 million has been committed from current cash resources to be spent during the remainder of 2010.

Richard Shead, Executive Chairman, commented: "The exploration potential at AGF is substantial. I am delighted that we are now able to allocate the funds to commence this programme, which we believe should add significant value to the investment in AGF. Over the next 3 to 5 years we also plan to increase gold production at AGF to 300,000 ounces per annum, which, together with the targeted increase in gold reserves, should transform Oxus’ standing as a gold producer and explorer".