Wednesday, 4 April 2012

African Queen Mines inks drilling contract for Odundu, 2,000 metre program to start shortly

African Queen Mines (CVE:AQ) said late Tuesday that it has secured a driller for its Odundu property in southwest Kenya's Rongo Gold Fields, with mobilization now underway.
The agreement with Kenya-based Alkili Minerals Services will see the completion of an initial 2,000 metre core drilling program at the property, which covers an area of roughly 97 square kilometres in the Kanango gold mining area of the Migori District 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 African Barrick Gold’s Bulyanhulu and North Mara Mines, and AngloGold Ashanti’s Geita Mine.
Mobilization is currently underway, with drilling slated to start shortly, the company said.
African Queen added that further metres could be added based on results received.
The initial holes are planned to range generally from 80 to 200 metres in depth, with a view toward confirming the gold mineralization associated with a prominent northwest-southeast trending shear zone, which was initially discovered through the company’s preliminary field work and further delineated through airborne and ground geophysics programs.
The drill campaign will also test extension from such a shear zone and other prospective targets within the region.
Gold in the shear zone at Odundu appears to be associated with rich sulfide mineralization, the company said, and has been explored over a strike of around 1.5 kilometres so far.
In February, African Queen reported what it called "favourable" results from ground geophysics and surveys at Odundo. The company said that positive sampling and geochemical results, combined with positive ground and airborne geophysics studies, pointed to a number of "highly prospective targets" that it planned to drill test.
“We are delighted to be moving forward with drilling at Odundu, which we view as an exceptional target," said CEO Irwin Olian.
"The convergence of positive geochemical and geophysics data from our initial exploration activities suggests a high probability of success in our upcoming reconnaissance drill program.”
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 feasibility.
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 other metals.
Its operations in Kenya are being carried out through its operating subsidiary AQ Kenya Gold Limited.
Last week, the company said it closed the second tranche of a private placement financing, raising a total of $2.41 million in proceeds. Funds will be used for the drill program at Odundu, as well as the current drill program at its Noyem-Nyanfoman project on Ghana’s Ashanti Belt, and for potential property acquisitions and working capital.

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