AFRICAN QUEEN SIGNS EARN-IN AND JOINT
VENTURE AGREEMENT WITH OPTI METAL TRADING COVERING KEY ZONE AT FINGOE REGIONAL GOLD PROJECT IN MOZAMBIQUE
Vancouver, British Columbia — AFRICAN QUEEN MINES LTD. (the “Company”)is
pleased to announce that it has now entered into an Earn-in and Joint Venture Agreement dated July 10,
2009 (the “Agreement”), with Swiss-based Opti Metal Trading Limited (“Optimetal”), covering exploration,
development and exploitation of Prospecting License No. 884L held by Optimetal’s Mozambique subsidiary
(the “License”). The License covers an area of approximately 230 sq.km. in the center of the FIngoe Belt, now called the “King Solomon Project,” adjacent to permits which are the subject of existing earn-in and joint venture Agreements between the Company and Manica Minerals Ltd. and African Eagle Resources plc (AIM: AFE), respectively, covering an aggregate of 1359 sq.km.
Under the terms of the Agreement, the Company may earn up to an 85% interest in the License and related Project by funding
prescribed stages from exploration through feasibility. Optimetal has the right to participate at its election pro-rata
after the Company has reached 51% ownership interest. The Company is designated as manager and operator of the Project.
Phase 1 of the Project, now getting underway, is a ground exploration program comprised of soil and rock sampling, mapping,
trenching and sample analysis, together with additional studies including ground geophysics as the parties shall agree.
The objective of Phase 1 is to assess the overall geologic structure of the License area and the liklihood of commercially
viable hard-rock gold deposits within the License area, as well as to identify discreet drill targets for a Phase 2
reconnaissance core drilling program. The costs for Phase 1, estimated at up to U.S. $300,000, are being shared equally
by the parties. By paying its 50% share of said Phase 1 costs, the Company will earn a 25% interest in the Project.
Over the past three years, the Company and its predecessor, Pan African Mining Corp., have been exploring a number of
gold targets in Tete Province, Mozambique, under the joint ventures previously noted. Exploration has been focused on
the bimodal suite of volcanic and volcanoclastic lithologies, metasediments and late stage granites of the Mesoproterozoic
age Fingoe Group. During this time, the Company’s understanding of the regional geological controls and setting has
advanced significantly, with the result that the License constituting the King Solomon Project, while outside the
immediate area of investigation, was identified as being highly prospective for potential gold mineralisation.
Accordingly, the Company has now entered into the Agreement with a view toward including the License within the
overall Fingoe Regional Project area under study and evaluation.
A number of historical gold and copper showings are recorded within the License for the King Solomon Project,
some of which have been mined in the past. Many of these showings are observed in the field to be associated
with magnetite and malachite. These magnetite showings formed the focus of previous investigations during
Portuguese colonial times. Although very little documented data is available, it appears that iron ore as well
as gold and copper were targeted by these explorers. Mention of the Messeca iron ore deposit is made by
various authors and is located within the License Area.
A review of the geology which underlies the License Area shows a predominance of carbonate lithologies.
These rocks are regarded to be important in the genesis of potential gold deposits within this geological
setting due to their reactive nature. Plotting of the documented historical showings reveals a clear
association at the contact of these carbonate units with both intrusive granitic and intrusive gabbroic rocks.
A number of skarn reaction zones are noted in the area and therefore the association of gold with these
alteration rock types is strongly suggested. In one area extensive zones of grossular garnet as well as
tremolite and magnetite are present over 2 km of strike and it is anticipated that other similar alteration
zones exist in the area.
Work comprising the Phase 1 Exploration Program is being conducted by Remote Exploration Services (“RES”)
of Cape Town, S.A. on behalf of the joint venture partners.
RES has been conducting field programs for the Company on the Fingoe Regional Gold Project from the
initiation of the program in 2006. The Project is being managed on behalf of the Company by Senior
Consulting Geologist Mr. Pete Siegfried (M.Sc., MAusIMM), a qualified person.
According to Irwin Olian, CEO of the Company, “We are excited to be adding the highly prospective
Optimetal ground to the growing opportunity now developing at our Fingoe Gold Project. Our
exploration team is now at work on the new License area and we are looking forward to favorable
findings in the near future.”
The Company is an exploratory resource company with
diversified mineral properties in Southern Africa. It is exploring its properties in
Botswana and Namibia for diamonds, and it is exploring its properties in Mozambique
for gold and other metals. The Company licences in Botswana and Namibia comprise
approximately 11,800 sq km of diamond prospects. In Mozambique it has approximately
1350 sq km of gold and other metals licences under agreements with two other companies.
Its operations in Botswana are carried out through its operating subsidiary, PAM Botswana
(Pty) Ltd.; its operations in Namibia are carried out through its operating subsidiary PAM
Minerals Namibia (Pty) Ltd.; and its operations in Mozambique are carried out through its
subsidiary PAM Mocambique Limitada.
The Company has its executive offices in Vancouver, Canada.
ON BEHALF OF THE BOARD OF DIRECTORS OF
AFRICAN QUEEN MINES, LTD.
Chairman & CEO
For more information, contact:
President and CEO
Phone: (604) 899-0100
Fax: (604) 899-0200
Düsseldorf +49 (0) 1722 1234 47
London - +44 (0) 7780 602 788
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations.