INITIAL CORE DRILL RESULTS AT AFRICAN QUEEN’S NOYEM-NYANFOMAN GOLD PROJECT ON GHANA’S ASHANTI BELT ARE CONSISTENT WITH HISTORIC RESULTS AND CONFIRM POTENTIAL
Vancouver, British Columbia — AFRICAN QUEEN MINES LTD. (the “Company”) is pleased to announce that it has now received from Scientific Services Laboratories of Cape Town, S.A. the assay results from its 2012 diamond core drilling program at the Noyem-Nyanfoman Gold Project located within the Birim North District of the Eastern Region of Ghana (the “Project”). The Project comprises an area of approximately 29 sq km at the northeast extent of the Ashanti Gold Belt and is primarily associated with palaeoplacer gold mineralization which is hosted within the basal conglomerates of the Tarkwaian Group’s Banket Formation. The Tarkwa Gold Mine operated by Gold Fields Ltd. is also hosted within the conglomerates of the Banket Formation and has a combined gold resource of approximately 15 million ounces. Initial results from the Company’s drill program are consistent with reported historic results from predecessors of Newmont Mining Corporation (“Newmont”) and tend to confirm the presence in the region over a strike of at least 5.6 km of a relatively continuous gold-bearing reef varying in width from one to 5 m.
The Tarkwaian Group unconformably overlies the meta-volcanosedimentary sequences of the Palaeoproterozoic Birimian Supergroup which hosts the majority of Ghana’s mesothermal gold deposits, including AngloGold Ashanti’s 50 million ounce Obuasi Gold Mine and Newmont’s 8 million ounce Akyem Gold Deposit. Between 1996 and 1997, Bonsu Gold Holdings Ltd. (a subsidiary of Gencor Ltd. and predecessor to Newmont) drilled a total of 2,019.50 m of core from 27 drill holes along the line of strike of the conglomerates of the Banket Formation, which constitutes the Company’s Northern Limb target. The Bonsu program indicated a zone of elevated gold concentration within the Noyem Conglomerate Zone (“NCZ”). The objectives of the Company’s 2012 diamond core drill program were to: 1) validate the gold results from the Bonsu drill holes; 2) In-fill drill to reduce the drill spacing to 100–200 m; and 3) extend the drill grid towards the east at 100–200 m intervals. The Company presently has physical control of all drill cores from the historic Bonsu program.
During the Company’s diamond core drilling program a total of 1,981.50 m of core was drilled from 26 drill holes to a maximum depth of 150 m. Of the 26 drill holes, 24 intersected the mineralised NCZ, while the other 2 holes were abandoned before intersecting the NCZ due to drilling difficulties. A total of 889 samples, including 751 core samples, 52 duplicate samples, 50 standards and 36 blanks were submitted to Scientific Services Laboratories in Cape Town, South Africa for 50g Fire-Assay gold analyses. The control samples passed the Company’s internal QA-QC requirements.
6 of the 26 drill holes drilled during the 2012 diamond core drilling program were used to twin 6 (or 22%) of the 27 historic drill holes which were spaced roughly equidistantly across the 5.6 km strike length of the Northern Limb target. Considering the nuggety nature of palaeoplacer gold deposits, the comparison of the average widths and gold grades of the intersected mineralised NCZ between each pair of twinned holes showed reasonable correlations. Furthermore, the statistical comparison between the Bonsu and African Queen drilling datasets showed a relatively good statistical correlation, with the two drilling programs showing broad overlap of the zone of elevated gold grades. Therefore, both drilling datasets were combined for interpretative purposes.
Based on lithological, width and gold-grade variations observed within the mineralized NCZ of each drill hole, the Northern Limb target was sub-divided into three broad zones; namely the Western, Central and Eastern Zones, which extend over approximately 2.5 km, 2.0 km and 1.1 km respectively. High interest gold results recovered from the Company’s drilling program are presented along with the high interest gold results from Bonsu’s diamond core drilling program in Table 1.
Table 1. High Interest gold results recovered from the current African Queen and historic Bonsu drilling programs.
The results indicate that the Western and, in particular, the Central Zones of the Northern Limb target are the most prospective and further exploration drilling will be undertaken in the next phase to test the along-strike and down-dip potential of the mineralized NCZ which to date has not been tested below a vertical depth of 150 m. Commonly associated with palaeoplacer gold deposits are a series of narrow palaeo-channels hosting high gold values which typically form payshoots. Further sedimentological studies on the drill core are required to assist with defining areas where high-grade payshoots are likely to be present.
The mineralised NCZ extends to the east of the Northern Limb target where the stratigraphy has been folded to form a large synformal structure referred to as the Hinge Zone target. The Hinge Zone target is yet to be drill tested, but is considered to be prospective due to the extensive presence of flooded artisanal workings which were previously mined by small-scale miners.
The drill program was carried out on behalf of the Company’s Ghana operating subsidiary, AQ Ghana Gold Limited, and its JV partner, Akan Exploration Ltd. (“Akan”), by E-Drilling Ghana Limited and E. Global Drilling Corp., affiliates of Energold Drilling Corp. (TSX.V: EGD). The program was supervised on behalf of the Company by Remote Exploration Services (Pty) Ltd. of Cape Town, S.A., under the guidance of Senior Geologist, Mr. Conrad Ocker (B.Sc. Hon, Pr. Nat. Sci), and the Company’s Ghana exploration team. Overall project management was carried out by the Company’s Senior Consulting Geologist, Mr. Peter Siegfried (M.Sc., MAusIMM) and Vice President of Exploration, Dr. Andy Moore (Pr. Sci. Nat.), both of whom are Qualified Persons and have reviewed and approved the contents of this Press Release.
According to Irwin Olian, CEO of the Company, “We are delighted that initial results from our core drilling program at the Noyem-Nyanfoman Gold Project are consistent with historic results reported by Newmont’s predecessors and tend to validate the geologic model developed by our technical team. This should set the stage for accelerated development of the Project next year.”
The Akan Agreement:
The Company has entered into an Earn-In Joint-Venture (JV) Agreement (the “Akan Agreement”) with Marshall Islands’ private company – Akan Exploration Ltd. (Akan), under which the Company can earn up to a 75% interest in the Project by funding prescribed stages of exploration through to feasibility. Akan has the right to participate at its election on a pro-rata basis once the Company earns a 60% interest in the project. The Company is designated as the manager and operator of the Project.
The Company is an exploratory resource company with diversified mineral properties in Southern, East and West Africa. It 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. In Mozambique the Company has approximately 230 sq. km. under license for gold and metals under an agreement with another company. In Ghana it has 28.9 sq. km. under license for gold. In Kenya it has approximately 850 sq. km. under license for gold and metals, and a further 737 sq. km. of gold and other minerals licenses under agreements with two other companies. The Company’s operations in Mozambique are carried out through its subsidiary PAM Mocambique Limitada and its operations in Ghana are carried out through its subsidiary AQ Ghana Gold Limited. Its operations in Kenya are being carried out through its operating subsidiary AQ Kenya Gold Limited. 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. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, Canada on April 30, 2008 and received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.
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
Dubai - +971 55 997 0427
London - +44 (0) 7780 602 788
Germany - +49 (0) 21141 740411
U.K. - +44 (0) 870 490 5443
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.