AFRICAN Gold, which owns the Inez gold mine in Zimbabwe, is continuing to generate profits this year, according to chairman, Dr John Teeling.

The expansion project at the Inez mine, which will double output to 10,000 ounces a year is coming on stream, he told shareholders at yesterday's annual general meeting.first ore from the new east shaft was shipped to the mill last Monday. All the expansion, including the underground development, was being funded from the Inez cash flow, said Dr Teeling.

African Gold is also developing the Beehive/Babs mining project in Zimbabwe, which has a target production date in mid 1997. It is projected to produce more than 10,000 ounces a year. The group has acquired the Breslerton claims some four kilometres from Beehive. Dr Teeling said initial exploration has identified a high grade reef.

African Gold is evaluating a number of gold exploration properties which it has been offered.