African Queen Mines abandons Mozambique project

Exploration & Development

Publishing Date: 06 Jan 2009 3:33pm GMT
Author: Mining Journal

Canada's African Queen Mines Ltd has abandoned its plans to develop a mine at the historic Braganza gold deposit in Mozambique due to disappointing exploration results and the financial crisis.

African Queen Mines said in a statement that it plans to relinquish its rights to earn up to 75% interest in the Braganza gold mine project in Mozambique's Manica province to its joint venture partner, Bobcat Mining Ltd.

"Results from Braganza to date simply do not justify further expenditure of time, energy and funds on the part of the company," chief executive, Irwin Olian said.

"It appears that the Portuguese did a very efficient job of mining all of the productive, higher-grade zones at Braganza decades ago."

The company still has rights to three other gold projects in Mozambique, in the western province of Tete.

African Queen Mines will now focus on its diamond projects in Botswana and Namibia, it said.

"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," Olian said.