Africa West Minerals Corp. ("Africa West" or the "Company") is pleased to announce that, further to its news release dated February 10, 2010 and as approved by both the Company's shareholders and the TSX Venture Exchange, it will implement a consolidation of its issued shares on the basis of two old shares for one new share (with outstanding options and warrants and the respective exercise prices adjusted accordingly). Concurrent with this consolidation, the Company will also change its name to "Advance Gold Corp." Effective Monday, May 3, 2010, common shares on a consolidated basis will commence trading on the TSX Venture Exchange in the name Advance Gold Corp. under the trading symbol "AAX".
The Company's transfer agent will mail to registered shareholders a Letter of Transmittal to enable shareholders to exchange existing share certificates of the Company for share certificates representing shares of Advance Gold Corp. on a consolidated basis. No action is required by non-registered shareholders, who hold securities of the Company through an intermediary, to effect consolidation of their beneficially held securities.
Further details with respect to the consolidation are disclosed in the Company's Management Information Circular dated March 11, 2010, as electronically filed with regulators on March 22, 2010 and available for viewing through the Internet on the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
The Company will continue to focus its efforts on project generation. The Company's current and long-term business objective is to attract and engage partners to finance exploration and development on its projects, thereby maintaining a close and undiluted share structure. The Company currently has about 1,700 square kilometres of gold exploration properties located in Kenya, Tanzania and Liberia. The following is a summary of the Company's current projects:
Red Rock Resources PLC has agreed to earn in up to a 70% interest in the Company's 320-square-kilometre Ngira-Migori project, located in southern Kenya. Red Rock is currently exploring and evaluating the Mid-Migori and Macalder mine properties adjacent to Africa West's Ngira-Migori project. Red Rock's public disclosure documents indicate that this adjacent property holds an NI-43-101-compliant resource estimate completed by Kansai Mining in 2006 which established that the four main zones of gold mineralization contained 33 million tonnes of 1.10 grams per tonne gold for 1,172,000 ounces indicated resources.
Previous exploration work at Ngira-Migori has included reconnaissance geological mapping and soil sampling over the central portion of the property where current artisanal mining is taking place. The soil sampling has indicated several areas of gold in soil anomalies. Mineralization in this area is characterized by gold in quartz reefs as well as gold associated with massive to disseminated sulphides. The lithology of the area includes greywacke, tuffaceous volcanics and banded iron formation.
Africa West owns 100% of the Rosterman mine which was acquired from the government of Kenya in 2008. Historical records indicate that the Rosterman mine operated between 1935 and 1953 and recovered over 250,000 ounces of gold at an average grade of 13.6 grams per tonne. Africa West has compiled a significant amount of historical data on the Rosterman and has produced a three dimensional development plan of the mine. The next stage of work at Rosterman will entail the preparation of a report prepared in compliance with National Instrument43-101 to propose the next stages of evaluation and development.
Sigalagala and Bukuru Gold Exploration Properties
These two 100% owned properties have a combined size of 48 square kilometres and are in close proximity to the Rosterman gold mine property. The two areas contain over 10 colonial mine sites that exploited gold between 1930 and 1950. Most of these sites had developed shafts and extensive underground workings. The geology in this Kakamega greenstone region of Kenya is Archean-aged with a structural setting similar to the Abitibi in Canada. Africa West is in the process of documenting the historical data associated with the colonial aged mines. A technical report will be commissioned on these two properties in concert with the Rosterman property.
The 823-square-kilometre Ugunja licence is located at the western edge of the Kakamega greenstone belt, adjacent to the border with Uganda. This area contains similar geology and structure as the Rosterman mine, located 25 kilometres to the east. Previous work on the Ugunja licence includes local soil and termite mound sampling which has identified several areas of anomalous gold. The eastern half of the project area represents the highest priority for further soil sampling, mapping and trenching. This large project area requires a $200,000 two-phase program to define drill targets.
The Sotik project is a 483-square-kilometre property that is in application with the Kenya government. The project area lies on the eastern edge of the Nyanzan greenstone belt in Southern Kenya. This project area has not seen any modern exploration and requires a first phase regional mapping and sampling program to prioritize any follow-up work.
Nyakagwe Gold Exploration Project
The Nyakagwe gold exploration project is located six kilometres northwest of Barrick's Bulyanhulu gold mine and contiguous with Lakota Resources' Tembo project. Africa West Minerals, through its wholly owned subsidiary Gold Rim Exploration Inc., is earning 100% interest in the Nyakagwe project by bringing the property to the mining licence category. The project consists of 46 primary mining licences that have been put together by a local artisanal mining co-operative. A prospecting licence has recently been granted adjacent to and surrounding the Nyakagwe group which will increase the landholdings in a strategic area.
As previously announced, a 1,400-metre Aircore and RC drilling program was completed in 2008 that confirmed gold mineralized quartz reefs at depth. Hole NY012 intersected quartz reef from 22 metres to 26 metres down the hole and returned 7.03 grams per tonne gold over four metres including 17.75 grams per tonne gold over one metre.
The technical content of this news release has been prepared under the supervision of Jeffrey Ackert, Vice-President, Business Development and Exploration of the Company, who is a Qualified Person under National Instrument 43-101.
For additional information, please contact:
James T. Gillis, President
Telephone: (250) 314-0186
Jeffrey S. Ackert, VP Business Development and Exploration
Telephone: (613) 851-7699
This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Africa West believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Africa West's management on the date the statements are made. Africa West undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, except as required by law.
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