African Queen Mines (CVE:AQ) said Wednesday that the terms of its exploration license for the Odundu property in southwest Kenya's Rongo Gold Fields has been extended for another two years.
The company said the Mines and Geological Department of the Republic
of Kenya has now renewed special license No. 287, granted to the
company’s joint venture partner Abba Mining, for a further period of two
years to January 22, 2014.
The original license was issued to Abba in January 2010, for an initial term of two years.
In addition, African Queen said the boundaries of the license were
changed to reflect the settlement agreement entered into by Abba and B
& M Mining Company earlier this year, by reducing the area covered
by the license by 15 square kilometres to 97 square kilometres.
The news today allows the company to move forward with its drilling and exploration programs at Odundu for the next two years.
“We are delighted to have the full support of the Kenya Mines and
Geological Department for our Odundu project and other exploration
projects in Kenya," said CEO Irwin Olian.
The Odundu property covers an area of approximately 97 square
kilometres in the Kanango gold mining area of the Migori District of
Nyanza Province near Lake Victoria.
The project is situated some 380 kilometres by road from the capital
city of Nairobi and 60 kilometres north of the border with Tanzania,
forming part of the rich Lake Victoria Greenstone Belt that hosts gold
deposits including African Barrick Gold's Bulyanhulu and North Mara Mines and AngloGold Ashanti's Geita Mine.
Earlier this month, the company said that Alkili Minerals Services
has initiated its 2,000 metre core drilling program at the Odundu
The company previously completed a program of regional exploration
including mapping, sampling trenching and ground and airbourne
geophysics on the property.
In February and March of this year, seven trenches totaling 520
metres and covering a northwest-southeast strike of approximately 580
metres were excavated perpendicular to the main shear zone.
Broad zones of mineralized material were recorded in all seven
trenches, as wide as 40 metres. Gold assay results obtained from samples
from the main artisanal pit located between trenches A1 and B1 ranged
between 2.12 grams per tonne (g/t) gold and 35.0 g/t. Intermediate
values recorded within this range were 2.43 g/t, 3.0 g/t, 8.33 g/t, and
9.70 g/t gold, the company said.
Initially, six core drill holes totaling approximately 1,300 metres
have been positioned to test the gold mineralization within an anomalous
area of the northwest-southeast trending shear zone traversing the
This shear zone was initially discovered through the company's
preliminary field reconnaissance work and later delineated through
airborne and ground geophysics programs.
The remainder of the drilling program, provisionally set at 2,000
metres with plans to expand based on results, will test the extensions
of the shear zone and other prospective targets within the property.
Under a joint venture agreement with Kenyan-based Abba Mining
Company, African Queen can earn up to an 85 percent interest in the
project by funding prescribed optional stages from exploration through
The company is also the manager and operator of the property.
Vancouver-based African Queen is exploring its properties in
Mozambique, Ghana and Kenya for gold and other metals and it is
undertaking exploration in Botswana and Namibia for diamonds, gold and
Its operations in Kenya are being carried out through its operating subsidiary AQ Kenya Gold Limited.