African Queen finds 20 mining work sites at Ugunja

2012-08-02 11:11 ET - News Release


Mr. Irwin Olian reports


African Queen Mines Ltd.'s fieldwork in its phase 1b exploration program at the Ugunja gold project has been progressing in a very positive manner, leading to identification of a number of drill targets and revealing the presence of visible gold near surface, as well as structure with potential to host commercial deposits. The Ugunja project encompasses approximately 370 square kilometres in the Busia, Siaya and Kakamega areas (the Lakeland district) located north of the shores of Lake Victoria in western Kenya. It is situated approximately 100 kilometres to the northwest of the company's Odundu project in the Rongo goldfields, also on the Lake Victoria greenstone belt, where core drilling is presently under way (see press release dated July 12, 2012).

Work to date at Ugunja has included stream sediment and termite mound sampling, rock sampling, trenching, mapping and ground geophysics surveys. Visible gold has been identified in several samples of a quartz vein located in the Rariada area of the property. The vein, which reaches 80 centimetres in width in places (trench UTr-12-02), occurs along a structure that can be traced for 240 metres. The vein consists of refractured smokey and black quartz, with traces of disseminated pyrite and sulphides along the selvages. A section of the trend was worked by the British in the 1930s. One splay structure can be traced for at least 40 metres and carries two 15-centimetre to 35-centimetre veins. Four trenches totalling 71 metres are completed on the main structure and a five-metre-long trench on the splay quartz vein. A total of 99 samples has been collected from this site. The samples are being prepared in Kisumu, Kenya, by Kenya Mineral Services Ltd. and will be shipped to Intertek-Genalysis Laboratory Services in Perth, Australia, for gold analyses.

During the current prospecting campaign, approximately 20 gold mining work sites have been located so far, including six British colonial workings of varying extent from surface exposure to open cast and shafts. Black quartz similar to that described above is found at several of these sites. Additional trenching is planned on several of these different locations.

The property, covering 370 square kilometres of the Ndori/Siaya greenstone belt, is underlain by Kavirondian metasediments and Nyanzian metavolcanics, and is the western extension of the Kakamega gold trend. It has been affected by large regional shear zones, which created abundant tension fractures and structures, allowing gold-bearing quartz veins to form. Ugunja's low-grade metasedimentary rocks, chiefly argillites, sandstones and conglomerates, overlie Nyanzian-age greenstones, which include banded iron formation (BIF) and dominantly metabasaltic lithologies.

The company has also recently completed 13 square kilometres of ground magnetics surveys over the Ligega area and the prospective BIF-style mineralization of the Samias Hills, two areas with gold anomalies identified by the 2011 termite-mound soil sampling survey. The geophysical survey has proved very successful in locating regional and potential gold-bearing structures, as well as distinguishing between rock types.

Under the terms of its earn-in and joint venture agreement with Kenya Discovery Ltd., the company, through its wholly owned operating subsidiary AQ Kenya Gold Ltd., may earn up to an 85-per-cent interest in the Ugunja project by financing prescribed optional stages from exploration through feasibility. The company serves as manager and operator of the project.

According to Irwin Olian, chief executive officer of the company: "We are delighted that preliminary exploration results from both our Ugunja and Odundu projects in western Kenya are generating positive results with identification of highly prospective drill targets. Kenya is becoming an increasingly important focus of African Queen's exploration activities and we look forward to much success in Kenya in the future."

The project is being managed on behalf of the company on site by senior exploration geologist Marthe Archambault, PGeo, who has reviewed and approved the contents of this press release, with general project oversight by Pete Siegfried, MSc, MAusIMM. Both are qualified persons under National Instrument 43-101.