Mozambique - King Solomon Gold Project

Download PDF: TECHNICAL REPORT ON THE KING SOLOMON GOLD PROJECT, MOZAMBIQUE, AFRICA - February 28, 2010

GEOPHYSICS DATA FROM GROUND MAGNETIC SURVEY AT KING SOLOMON GOLD PROJECT REVEAL STRONG ANOMALIES ASSOCIATED WITH PRIOR ROCK SAMPLES; CONFIRM POTENTIAL FOR HOSTING LARGE-SCALE MINERALISATION

A ground magnetic survey covering an area of approximately 11 sq. km over its King Solomon Gold Project in Mozambique has now been successfully concluded. The data has been collected, processed and a detailed interpretation has been prepared by the Geophysics Division of Remote Exploration Services (“RES”) of Cape Town, S.A.. The high resolution ground magnetic survey utilizing 50 m line spacing was completed utilizing grids over the three most encouraging targets identified to date, namely the Mankombiti, Kazito and Eiland targets. The magnetic data strongly support the mapped geology and have revealed a marked coincidence between the anomalous zones delineated in the survey and the sampled areas reflected in prior strong rock sample results reported by the Company. RES modeled the anomalous zone at depth and concluded that the mineralized zone is essentially continuous at surface and appears to continue at depth.

These three target areas have revealed the most anomalous grab rock sample as well as gold in soil sample results, as well as exceptional anomalous base metal results (see Press Release dated October 14, 2009). The highest values obtained from any single sample reported therein were No. 038L: 12.75 g/t Au, 4.55 % Cu, and 255.5 ppm Ag. The King Solomon Project is located within the central parts of the Mesoproterozoic Fingoe Belt in western Tete Province, Mozambique. These rocks consist of metavolcanics, metasediments and intrusive granitic and gabbroic rocks. The license is the subject of the Earn-in and Joint Venture Agreement dated July 10, 2009 (the “Agreement”), with Swiss-based Opti Metal Trading Limited (“Optimetal”), covering exploration, development and exploitation of Prospecting License No. 884L held by Optimetal’s Mozambique subsidiary (the “License”). The License covers an area of approximately 230 km 2 in the center of the Fingoe Belt, adjacent to permits which are the subject of existing earn-in and joint venture Agreements between the Company and Manica Minerals Ltd. and African Eagle Resources plc (AIM: AFE), respectively, covering an aggregate of 1359 sq.km.

Recognition of an extensive skarn setting for the gold mineralization has encouraged the Company in its exploration efforts. Recent site visits by two independent geological consultants, including Dr. Peter Christopher of Vancouver who is preparing a Technical Report in accordance with N.I. 43-101, has supported this view while also demonstrating the additional importance of remobilization into structurally controlled shears.

The following briefly describes the three areas that were subject of the ground magnetic survey:

Mankombiti Prospect. This area forms a rugged, linear mountain and extensive pits and trenches as well as a number of deep shafts have been located along a fairly narrow contact zone between granites and metamorphosed carbonate rocks. Malachite, and in places chalcocite, bearing magnetite outcrops have been found and sampled along this zone. Gold in this zone is generally associated with base metal mineralization, including zinc, silver and bismuth, as previously reported. The magnetic survey importantly demonstrates continuity of dip towards the north and under the carbonate rocks, as well as extending the strike of the zone of mapped mineralization to over 4 km. This is well illustrated by the Analytical Signal (AS) image from the magnetic survey presented below.

Click Diagram to Enlarge
Diagram 1: Interpretation and Analytical Signal magnetic
image of the Mankombiti Target.

Kazito Prospect. Mapping of this area indicates that a number of malachite and tremolite-bearing, magnetite associated shear zones occur at or near the contact of a gabbro intrusive and calcite limestones. This contact zone can be mapped in the field for over 800 meters and the magnetic interpretation shows continuity of these zones below the overlying carbonate rocks. Additionally, a number of remnant magnetic bodies are identified which are regarded to be of potential importance for the location of further mineralisation.

Eiland Prospect. This zone is essentially a continuation of the Kazito area towards the north and again represents a mineralized contact with underlying gabbro sills. Sporadic shears are also identified and some of these sampled have revealed appreciable gold as previously reported.

Results of the magnetic survey, combined with previously sampled polymetallic mineralisation identified, suggests that further detailed mapping combined with sampling should identify higher grade ‘ore’ shoots with the potential to be uninterrupted with depth given the continuity expressed by the geophysical data. Further geophysical depth modeling of these zones is therefore now being completed. The geophysical survey has further allowed for confirmation of the lateral extent of the mapped mineralisation as well as the dip of the mineralized zones. All of the foregoing strongly support the proposed Phase 2 core drilling program now planned for early in 2010.

Property Descriptions

AFRICAN QUEEN MINES LTD. (the “Company”) entered into an Earn-in and Joint Venture Agreement dated July 10, 2009 (the “Agreement”), with Swiss-based Opti Metal Trading Limited (“Optimetal”), covering exploration, development and exploitation of Prospecting License No. 884L held by Optimetal’s Mozambique subsidiary (the “License”). The License covers an area of approximately 230 sq.km. in the center of the Fingoe Belt, now called the “King Solomon Project,” adjacent to permits which are the subject of existing earn-in and joint venture Agreements between the Company and Manica Minerals Ltd. and African Eagle Resources plc (AIM: AFE), respectively, covering an aggregate of 1359 sq.km.

Under the terms of the Agreement, the Company may earn up to an 85% interest in the License and related Project by funding prescribed stages from exploration through feasibility. Optimetal has the right to participate at its election pro-rata after the Company has reached 51% ownership interest. The Company is designated as manager and operator of the Project. Phase 1 of the Project, now getting underway, is a ground exploration program comprised of soil and rock sampling, mapping, trenching and sample analysis, together with additional studies including ground geophysics as the parties shall agree. The objective of Phase 1 is to assess the overall geologic structure of the License area and the liklihood of commercially viable hard-rock gold deposits within the License area, as well as to identify discreet drill targets for a Phase 2 reconnaissance core drilling program. The costs for Phase 1, estimated at up to U.S. $300,000, are being shared equally by the parties. By paying its 50% share of said Phase 1 costs, the Company will earn a 25% interest in the Project.

Over the past three years, the Company and its predecessor, Pan African Mining Corp., have been exploring a number of gold targets in Tete Province, Mozambique, under the joint ventures previously noted. Exploration has been focused on the bimodal suite of volcanic and volcanoclastic lithologies, metasediments and late stage granites of the Mesoproterozoic age Fingoe Group. During this time, the Company’s understanding of the regional geological controls and setting has advanced significantly, with the result that the License constituting the King Solomon Project, while outside the immediate area of investigation, was identified as being highly prospective for potential gold mineralisation. Accordingly, the Company has now entered into the Agreement with a view toward including the License within the overall Fingoe Regional Project area under study and evaluation.

A number of historical gold and copper showings are recorded within the License for the King Solomon Project, some of which have been mined in the past. Many of these showings are observed in the field to be associated with magnetite and malachite. These magnetite showings formed the focus of previous investigations during Portuguese colonial times. Although very little documented data is available, it appears that iron ore as well as gold and copper were targeted by these explorers. Mention of the Messeca iron ore deposit is made by various authors and is located within the License Area.

A review of the geology which underlies the License Area shows a predominance of carbonate lithologies. These rocks are regarded to be important in the genesis of potential gold deposits within this geological setting due to their reactive nature. Plotting of the documented historical showings reveals a clear association at the contact of these carbonate units with both intrusive granitic and intrusive gabbroic rocks. A number of skarn reaction zones are noted in the area and therefore the association of gold with these alteration rock types is strongly suggested. In one area extensive zones of grossular garnet as well as tremolite and magnetite are present over 2 km of strike and it is anticipated that other similar alteration zones exist in the area.

Malachite Mineralization in Magnetite – King Solomon Project

FURTHER ROBUST ROCK SAMPLES FROM AFRICAN QUEEN’S KING SOLOMON PROJECT CONSISTENT WITH INITIAL RESULTS; CONFIRM POTENTIAL FOR SIZEABLE COPPER-GOLD-SILVER POLYMETALLIC REGIONAL SYSTEM

A second round of assay results have been received from Scientific Services Laboratories (South Africa) for a further 62 grab rock samples collected as part of the Phase 1 exploration program on its King Solomon Project on the Fingoe Belt in western Tete Province, Mozambique. Of the latest 62 samples collected, 11 reported gold values > 3 g/t Au, 5 reported copper values > 10 % Cu, and 4 reported silver values > 200 ppm ag. Zinc was present in many of the samples, ranging nearly 40% Zn in the case of one sample. The highest values obtained from any single samples were No. 055L: 11.20 g/t Au, 23.3% Cu and 256.0 ppm Ag; and No. 038L: 12.75 g/t Au, 4.55 % Cu and 255.5 ppm Ag. These samples were collected from outcroppings from the Kazito and Makombiti prospects within the 10 km anomalous mineralized zone and are believed to represent fairly typical examples of the mineralization exposed.

The results of these 62 samples are consistent with and in some respects more robust than the results reported in our prior Press Release dated September17, 2009, for the 23 samples taken along strike and analyzed by Acme Analytical Laboratories Ltd. (Vancouver). The current samples not only confirm the presence at surface of significant gold mineralization (35% of the samples reported > 1 g/t au), but also the polymetallic nature of the vein mineralization. In addition to the high values of copper and silver associated with the gold mineralization, high zinc values were reported. The results of additional trench and soil sampling data are presently being awaited over a number of identified targets and will be analysed and reported as soon as available.

Two highly prospective targets are the focus of our initial exploration efforts, with a view toward commencing shallow scout drilling during the next month. These are the Makombiti and Kazito Targets. The former consists of a malachite-bearing, magnetite skarn developed on the contact of a calcite marble and granite intrusive. Extensive shearing is present along this contact zone and a number of deep adits have been identified. The Kazito Prospect is identified as a possible continuation of the Makombiti contact zone towards the northeast. Gabbroic intrusives are in contact with calcitic and dolomitic marbles. A number of cross cutting shears have been identified and are associated with siderite alteration.

GRAB SAMPLE RESULTS FROM KING SOLOMON PROJECT, MOZAMBIQUE

Note: This table includes the results of 62 samples assayed by Scientific Services Laboratories ( Cape Town, S.A.).

To date 85 grab samples have been analyzed and a total of 3 400 soil samples collected and submitted to laboratory. All 62 sample results presented in this press release have been analyzed by Scientific Services Laboratories of Cape Town, South Africa. Gold was analyzed using fire assay techniques, while the Cu, Pb, Zn, Ag and Mn values were completed by Atomic Absorption (AA).

Initial Phase 1 Assays

Initial Phase 1 assay results were reported September 17, 2009 from Acme Analytical Laboratories Ltd. (Vancouver) for the initial 23 grab rock samples collected as part of the Phase 1 exploration program on its King Solomon Project on the Fingoe Belt in western Tete Province, Mozambique. Of the 23 samples collected, 6 reported gold values > 3 g/t Au, 6 reported copper values > 3 % Cu, and 3 reported silver values > 50 ppm ag, with associated bismuth mineralization present in nearly all samples. The highest values obtained from any single sample were: 11.87 g/t Au, 3.67 % Cu, 56.3 ppm Ag, with 6.8 ppm Bi.

The samples were collected from disparate outcroppings over a strike extent of approximately 10 km and are believed to represent fairly typical examples of the mineralization exposed.

GRAB SAMPLE RESULTS FROM KING SOLOMON PROJECT, MOZAMBIQUE  

Note: This table includes the results of all 23 samples assayed by Acme Analytical Laboratories Ltd. (Vancouver).

Phase 1 Exploration Program is being conducted by Remote Exploration Services (“RES”) of Cape Town, S.A. on behalf of the joint venture partners. RES has been conducting field programs for the Company on the Fingoe Regional Gold Project from the initiation of the program in 2006. The Project is being managed on behalf of the Company by Senior Consulting Geologist Mr. Pete Siegfried (M.Sc., MAusIMM), a qualified person.

Bagging Samples from King Solomon Project

Work comprising the Phase 1 Exploration Program is being conducted by Remote Exploration Services (“RES”) of Cape Town, S.A. under the direction of C. Ocker on behalf of the joint venture partners. RES has been conducting field programs for the Company on the Fingoe Regional Gold Project from the initiation of the program in 2006. The Project is being managed on behalf of the Company by Senior Consulting Geologist Mr. Pete Siegfried (M.Sc., MAusIMM), a qualified person, who has reviewed and approved the contents of this Press Release. All sample results presented in this Press Release have been analyzed by Scientific Services Laboratories ( Cape Town) and submitted under the guidance of Mr. Siegfried. Overall sampling and laboratory protocols are overseen by Mr. Ardito Martohardjono, a Director, who manages the Company’s laboratory services. A site visit is scheduled in the near future by Dr. Peter Christopher, P.Eng. of Vancouver, who is preparing a Technical Report on the Project in accordance with N.I. 43-101.

According to Irwin Olian, CEO of the Company, “We are very excited with the initial grab sample results being returned on our King Solomon Project, which has become the focal point for our work on Mozambique’s Fingoe Belt through various joint ventures. Field work is ongoing and we are looking to accelerate exploration and move toward drilling as quickly as possible.”