African Queen Mines said Thursday it has signed a contract for a core drilling program at its Noyem-Nyanfoman project on Ghana's Ashanti Belt, after legal settlements in the region cleared the way for accelerated exploration and development.

Mobilisation of rigs is to start before the end of January, with drilling slated to begin in mid-February, the company said.

An initial 2 000 metre program is planned, with further metres to be added by the company on a "result contigent basis", it added.

The company has executed a formal deal with E-Drilling Ghana and E.Global Drilling Corp, units of Energold Drilling, with the program to be overseen by African Queen's senior technical team and by consulting firm Remote Exploration Services.

The initial holes are to range from 100 to 200 metres in depth, and will focus on testing the gold mineralisation discovered by prior owners Newmont Mining Corp on the Noyem A reef on the eastern portion of the concession, where a historic inferred resource of around 1.1 million ounces of gold was established.

Source: Proactive Investors