Vancouver, Canada — MININGREVIEW.COM — 07 January 2009 – African Queen Mines Limited – a Canadian company which explores, acquires and develops mineral properties in various parts of Africa – has abandoned its plans to develop a mine at the historic Braganza gold deposit in Mozambique.
The company said in a statement issued here that the decision had been made because of disappointing exploration results and the current financial crisis. As a result it planned to relinquish its rights to earn up to 75% interest in the Braganza gold mine project in the Manica province to its joint venture partner, Bobcat Mining Limited.
The statement explained that during the past two years, the company had carried out exploration activities on the project, including detailed mapping and sampling, ground magnetic and IP surveys of the area, trenching, channel sampling of old adits, and limited reconnaissance drilling.
It said trench sampling and limited reconnaissance drilling did not provide encouragement for the existence of a commercially viable primary deposit in the area. On the contrary, results just received indicated a disappointing tenor of gold below surface.
CEO Irwin Olian commented: “Results from Braganza to date simply do not justify further expenditure of time, energy and funds on the part of the Company. It appears that the Portuguese did a very efficient job of mining all of the productive, higher-grade zones at Braganza decades ago” he added.
“In this rather difficult economic environment it is important that we prioritise our projects with a view toward committing our resources to those projects most likely to add value long-term for our shareholders. We remain very excited about our diamond projects in Botswana and Namibia, which will be the principal focus of our activities in the coming months,” said Olian. “At the same time, we will be evaluating results from our other three gold projects in Mozambique with a very sharp pencil to ensure that our efforts there are being optimised.”