African Queen Mines (CVE:AQ) shares moved higher Monday after last week announcing that initial assay results from its Odundu gold project in Kenya showed a near-surface body of gold-bearing mineralization.
The company said initial trenching and diamond drill results indicated a zone of “extensive, low-grade near-surface gold mineralization”, which is continuous over “significant thicknesses”.
It added that the best intersections obtained so far included 1.03 grams per tonne (g/t) gold over 26.35 metres and 1.08 g/t gold over 11.0 metres, in holes OD3 and OD4, respectively.
Exploration plans to determine the extensions of this mineralization toward the northwest and southeast are now being developed.
The Odundu project covers an area of roughly 97 square kilometres in the Kanango gold mining area in southwest Kenya near Lake Victoria.
It forms part of the gold rich Lake Victoria Greenstone Belt, extending from Tanzania and hosting known gold deposits including African Barrick Gold's (LON:ABG) Bulyanhulu and North Mara mines, and AngloGold Ashanti's (NYSE:AU) Geita mine.
Last month, African Queen said it would end development at its King Solomon project in Mozambique to focus on projects in Kenya and Ghana.
The company said it made the decision after "a thorough review of its portfolio of exploration properties" in Southern, West and East Africa, in order to reduce costs of operations and to prioritize projects for development in 2013.
This year, African Queen said it will focus exploration expenditures on its priority gold projects in Kenya at the Odundu target and at Ugunja, and in Ghana at the Noyem-Nyanfoman Gold project on the Ashanti Belt.
Shares in the company on Monday rose 15 per cent to 11.5 cents as of late morning.