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African Queen Mines Ltd. (TSX.V - AQ) is an exploratory resource company with diversified mineral properties in Southern, East and West Africa. It is exploring its properties in Botswana and Namibia for diamonds, and it is exploring its properties in Mozambique, Kenya and Ghana for gold and other metals.
African Queen Mines enters earn-in and JV deal with Kenyan partner over Rongo Gold fieldMay 17 2010, 9:47am
African Queen Mines (TSX-V: AQ) has entered into a earn-in and JV (joint venture) agreement with Kenya-based Abba Mining over the exploration, development and exploitation of the Rongo Gold Field project in Kenya.
The license, which was granted to Abba by the Kenyan government, grants full and exclusive rights to prospect and explore for all minerals for an initial period of two years within an area of approximately 112 sq km (square kilometres).
Under the terms of the agreement, African Queen can earn up to an 85% interest of the project by funding prescribed optional stages from exploration through feasibility. The company will also have to make three payments to Abba to secure its rights under the Agreement of US$100,000 each.
The project is located 380 km (kilometres) by road from the capital city of Nairobi, forming part of the Lake Victoria Greenstone Belt extending Tanzania and hosting known world-class gold deposits including African Barrick Gold’s Bulyanhulu and North Mara mines and AngloGold Ashanti’s Geita mine.
The License area is comprised primarily of Archaean age metavolcanics of the Nyanzian System. The region has historically recorded gold production with Migori, one of the earliest gold mines in Kenya and known for its Archaean lode gold production.
The Company carried out a comprehensive site examination in April, 2010, as well as a due diligence review of the license and project. Visible gold was seen in some of the rock chip samples taken in the area.
Historic grab samples taken from the artisanal workings have reported grades in excess of 2 g/t (grammes per tonne) gold and as high as 96 g/t gold. The objective of the Phase 1 Exploration Program is to assess the overall geologic structure of the license area and the likelihood of a commercially viable gold deposit within the License area, as well as to identify discreet drill targets for a Phase 2 core drilling program. The costs for Phase 1, estimated at up to US$200,000 will be paid by African Queen. The Company earns a 25% interest in the project by paying all costs of Phase 1.
“The geology is exciting and we have developed a strong relationship with our JV partner Abba as well as the government of Kenya in the past few months during our preliminary studies and due diligence review...Together with the King Solomon Project in Mozambique and Noyem Project in Ghana, Rongo now gives the Company a third very promising gold project with potential to host a commercial, large scale deposit...we are striving to build a portfolio of long-term hard assets for our shareholders in a period of deteriorating confidence in governments and paper currencies around the world,” said Chief Executive of African Queen Irwin Olian.