African Queen Reaches Accord with Nyanfoman Chief at Noyem-Nyanfoman Gold Project in Ghana, Leading to Relinquishment of First Group of Small-Scale Licenses
AFRICAN QUEEN MINES LTD. (the 'Company?) is pleased to announce
that it has now signed an accord with the Nyanfoman Chief, Nana Ansah
Sasraku Nipa Pepprah IV, in respect of development of its
Noyem-Nyanfoman Prospecting License LVB 10244/1995 on Ghana′s renowned
Ashanti Belt. Documentation has been executed providing for the
relinquishment of licenses and/or applications covering four separate
small scale mining licenses aggregating approximately 88.78 acres on or
in close proximity to the Noyem A reef, with a view toward facilitating
development of a potential large scale mining project on site.
The Company has identified a total of 26 adverse small-scale mining
claims that it deems to be potentially in conflict with development of
the project. Negotiations have been underway for many months concerning
disposition of these small-scale licenses and relinquishment of this
first group of four licenses should set the stage for further
settlements in the near future. In consideration for their
relinquishment of rights, a one-time cash payment is being made by the
Company to each of the small-scale mining groups involved in the
transaction, namely, Nana Ansah Sasraku Mining Group, Kwadzo Frimpong
Mining Group, Ntoboase Bethel Mining Company Ltd. and Nyanfomang Youth
Mining Group. In addition, the Company′s Ghana operating subsidiary, AQ
Ghana Gold Limited, may purchase certain mining equipment on site and
will endeavor to hire to the greatest extent possible the small-scale
miners who are relinquishing their mining rights. The transaction is
subject to final approval by the Ghana Minerals Commission ('MinCom?)
under the Minerals and Mining Act 2006, Act 703. MinCom has been
involved in the discussions to date.
According to Irwin Olian, CEO of the Company, 'The current settlement
marks an important milestone for African Queen and sets the stage for
accelerated exploration and development of the Noyem-Nyanfoman Gold
Project, with core drilling slated for later this year. We are very
grateful for the cooperation and assistance of the Nyanfoman Chief, Nana
Ansah Sasraku Nipa Pepprah IV. His vision of a large-scale gold project
benefitting his community and the region as a whole contributed to this
initial settlement and should lead to strong cooperation between the
Company and its joint venture partner, Akan, with the local community
going forward. In addition, we are very appreciative of the highly
professional contributions of our Ghanaian team on site, headed by
Michael Kotoka, Country Manager and Senior Geologist, who worked
tirelessly with the local community leaders to achieve an accord.?
The Noyem-Nyanfoman Gold Project. The License currently covers an
area of approximately 28.9 sq. km. located within the Birim North
District of Ghana′s Eastern Region, approximately 130 km. NW of Accra.
It is at the northeastern end of Ghana′s well-known, gold-producing
Ashanti Belt, near Newmont′s Akyem deposit which is presently under
development for production with a stated resource in excess of 8 Million
oz Au. In addition to its close proximity to Accra which facilitates
access, the Project is bisected in a NE-SW direction by a tarred road.
It has long been host to large numbers of artisanal miners and a dispute
with the small scale miners and local community has been ongoing for
many years prior to the Company′s involvement with the project. The
Company′s Phase 1 ground exploration program is presently underway with
a view toward identifying drill targets for a core drilling program to
be carried out this year.
The Akan Agreement. The Company′s rights to the Project are
subject to an Earn-In and Joint Venture Agreement (the 'Akan
Agreement?), with Marshall Islands′ private company Akan Exploration
Ltd. ('Akan?), under which the Company may earn up to a 75% interest in
the Noyem Gold Project by funding prescribed stages from exploration
through feasibility. Akan has the right to participate at its election
pro-rata after the Company has reached 60% ownership interest. The
Company is designated as manager and operator of the Project and holds
the License on behalf of the joint venture partners, subject to full
consultation with Akan on all material aspects of the Project.
About African-Queen
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 licenses in Botswana
comprise approximately 2890 sq. km. of diamond prospects. 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 the southern African net 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.
'Irwin Olian?
Irwin Olian
Chairman & CEO
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.
African Queen Mines Ltd.
Irwin Olian, 604-899-0100
President
and CEO
tigertail@africanqueenmines.com
Fax:
604-899-0200
or
Carrie Howes, Corporate Communications
carrie@africanqueenmines.com
Germany
- 49 (0) 21141 740411
U.K. - 44 (0) 870 490 5443
Canada - 1
416 900 3634