African Queen finds mineralization zones at Odundu

2012-07-11 13:16 ET - News Release

 

Mr. Irwin Olian reports

AFRICAN QUEEN ENCOUNTERS BROAD ZONES OF MINERALIZATION AT ITS ODUNDU PROPERTY IN KENYA'S RONGO GOLD FIELDS

African Queen Mines Ltd. has encountered broad zones of mineralization at its Odundu property in Kenya's Rongo goldfields in its trenching program and in the initial holes drilled to date in its continuing core drilling program. The project covers an area of approximately 97 square kilometres in the Kanango gold mining area of the Migori district of Nyanza province in southwest Kenya near Lake Victoria. It is situated about 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 extending from Tanzania and hosting known world-class gold deposits including African Barrick Gold's Bulyanhulu and North Mara mines, within approximately 100 kilometres of the project, and AngloGold Ashanti's Geita mine.

Trench results (see news release dated April 3, 2012) have now been received and the first five core drill holes (OD1 to OD5) totalling 1,043 metres have been completed at the project. The assay results of trench channel samples received from ALS Chemex Laboratories confirm both low-grade and higher-grade gold mineralization over a strike of 567 metres. Of particular interest from the trenching program is that gold mineralization within the main Odundu shear zone exposed by trench B1 assayed 3.33 grams per tonne (g/t) gold (Au) over 28 metres. Within the same mineralized zone values of 4.40 g/t over one metre, 10.00 g/t over 2.2 metres and 29.30 g/t over one metre were also recorded. Gold assay results obtained from trench D include 33.00 g/t Au over one metre and 0.93 g/t over 18 metres. Trench E recorded an assay value of 3.85 g/t over three metres.

Out of the 10 initial planned core drill holes, five holes, namely OD1 to OD5, totalling 1,043 metres, have been completed by Kenya-based Akili Minerals Services Ltd. on behalf of the company. The drilling completed so far indicates that the anomalous northwest-southeast-trending shear zone that has been traced over the property for approximately three kilometres is mineralized at depth within the confines of the drilling. This shear zone was initially discovered through the company's preliminary field reconnaissance work and later delineated through airborne and ground geophysics programs (see news release dated Feb. 16, 2012). The core drilling indicates that the mineralization is hosted by a wide, intensely sheared rhyolitic-feldspar porphyry with basaltic and tuffaceous horizons. Significant quartz-carbonate and sulphide (pyrite/pyrrhotite) mineralization is visible within this shear zone. The mineralization observed in the drill cores is indicative of widespread hydrothermal alteration and hydraulic fracturing common to many other gold deposits in Archean greenstone terrains.

Geological cross-sections and computer modelling of these drill holes indicate that the mineralized zone trends northwest-southeast and dips steeply toward the northeast. Drill intersections with significant chlorite-quartz-carbonate and variable sulphide mineralization were recorded in holes OD2 through OD5 over uncorrected widths of 105 metres, 89 metres, 82 metres and 62 metres at vertical depths of 117 metres, 89 metres, 53 metres and 92 metres, respectively. The entire drill cores of holes OD1 to OD5 have been logged, split and sampled, with the samples recently sent to Genalysis Laboratory Services Ltd. in South Africa for gold and multielement analysis. Hole OD6, positioned approximately 85 metres along strike, will explore the southeast extension at depth. The drilling program and overall exploration initiatives of the project are being overseen by the company's senior technical team.

The company's rights to the project arise from an earn-in and joint venture agreement with Kenya-based Abba Mining Company, under which the company may earn up to an 85-per-cent interest in the project by financing prescribed optional stages from exploration through feasibility. The company is designated as manager and operator of the project on behalf of the joint venture partners. The project is being managed on behalf of the company on-site by senior exploration and consulting geologist Mike Othitis (PGeol, AIPG, MA, Bsc) who is a qualified person and has reviewed the contents of this press release. General project oversight is being provided by senior consulting geologist Pete Siegfried (MSc, MAusIMM) who is also a qualified person.

According to Irwin Olian, chief executive officer of the company: "We are delighted that trench sample results and drill cores from initial holes at Odundu confirm the presence of broad zones of mineralization. We will gain much more information from assays pending from samples from these drill cores, but it is certainly exciting to encounter mineralization over broad zones that is consistent with our structural model derived through our geochemical and geophysics data from initial exploration activities over the past year."

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