October 25, 2007 10:50 ET

AXMIN Intersects High Grades at Komahun Project, Nimini Hills, Sierra Leone

TORONTO, ONTARIO--(Marketwire - Oct. 25, 2007) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to announce the outstanding results from a 2,300 metre core drilling program testing the main structure at the Komahun Project, in Sierra Leone, to depths of 240 metres, with results including 11.7 g/t Au over 21.5 metres, 8.2 g/t Au over 21 metres, 2.4 g/t Au over 30 metres, 5.8 g/t Au over 15 metres and 45 g/t Au over 4.9 metres.

Chief Executive Officer, Dr. Jonathan Forster comments "The results from this round of deeper drilling at Komahun are particularly encouraging with good continuity of high grade gold mineralisation both along strike and to depth in the tested main part of the structure. The strong grades demonstrate clear potential for continuation of the structure to depths compatible with longer term underground mining and in conjunction with extensions to the south gives continued upside for resource expansion through continued exploration."

This round of drilling has focused on the central 300 metres of strike length of the main Komahun mineralised structure, on fences mainly 80 metres apart. Gold mineralisation is controlled by a NE-SW trending shear zone of 800 metres strike length and is associated with disseminated arsenopyrite in silicified amphibolites, quartz veins and Banded Ironstone Formations ("BIF"). Despite the presence of arsenopyrite, initial testwork (press release August 27, 2007) indicates gold in both the oxides and sulphides yield high recoveries (93-99%), by conventional cyanide leach processes. The Komahun structure has a relatively simple 30 metre wide vertical geometry containing up to three parallel mineralised zones, each ranging in typical width from 2-12 metres.

An independent consultant has recently visited the site for the NI 43-101 confirmation, with the objective of producing new mineral resource calculations incorporating all the 2007 drill data (press release August 27, 2007). The previous mineral resource (press release October 05, 2006) comprised inferred mineral resources totaling 4.9 million tonnes grading 2.5 g/t Au (392,000 contained ounces gold). A new drill campaign comprising at least a further 2,000 metres of core drilling is scheduled to commence shortly with the objective of further increasing resources both at depth and in particular along the recently discovered southern structure which geochemistry indicates may extend as a target for up to 4 km to the south.

Hole No. Total East North Azim. Declin. From To Inter Grade
Depth Co-ord Co-ord (deg) (deg) (m) (m) -val (g/t
(m) (m) Au)
Main Structure
NWKD094 220.0 262132 949635 320 -67 28.0 29.5 1.5 1.6
and 34.0 35.5 1.5 1.0
and 149.5 152.5 3.0 1.6
NWKD095 67.7 262373 949856 320 -55 62.7 67.6 4.9 45.0
incl 64.2 67.6 3.4 62.8
NWKD096 140.5 262132 949645 320 -58 92.5 95.5 3.0 1.4
NWKD098 170.5 262187 949705 320 -56 76.0 86.5 10.5 1.0
and 115.0 116.5 1.5 2.1
and 122.5 152.5 30.0 2.4
and 158.5 160.0 1.5 1.3
NWKD099 253.5 262198 949699 320 -66 124.0 128.5 4.5 1.8
and 166.0 169.0 3.0 3.4
and 178.0 193.0 15.0 5.8
and 211.0 217.0 6.0 2.4
NWKD100 102.0 262373 949854 320 -60 78.0 99.0 21.0 8.2
NWKD101 210.0 262253 949749 320 -64 115.0 123.0 8.0 7.1
incl 118.0 120.5 2.5 18.8
and 138.8 141.0 2.2 14.5
and 149.7 151.7 2.0 3.7
NWKD103 250.0 262253 949748 320 -68 164.5 186.0 21.5 11.7
incl 176.0 179.0 3.0 56.5
and 215.0 219.5 4.5 2.7
and 236.0 239.0 3.0 1.1
NWKD106 210.0 262284 949786 320 -69 136.0 140.5 4.5 20.5
incl 136.0 137.5 1.5 47.4
and 170.5 191.5 21.0 2.0
NWKD107 250.0 262373 949804 320 -66 188.9 206.5 17.6 4.6

Note - Intercept intervals are not true widths

The Komahun Prospect lies within the Nimini Hills Gold Project which is held under a joint venture agreement with AFCAN Barbados Limited, a subsidiary of Eldorado Gold Corporation (TSX:ELD)(ASX:EGO). Under the terms of the joint venture, Eldorado has elected not to participate in ongoing exploration expenditures. As a consequence AXMIN may increase its level of ownership in the project from 60% to 80% by completing a bankable feasibility study.

Grade calculations are based on a 0.5 g/t Au lower cut off to define the mineralised structure, with no upper cut. Analytical work is being carried out at the independent OMAC Laboratories Ltd. in the Republic of Ireland. The drill samples are subject to a full sample preparation followed by a 50 gram fire assay with an AA finish. Blanks, standards and duplicates are being used to monitor laboratory performance during the analysis. This press release has been reviewed by in-house qualified person Dr. Jonathan Forster, Fellow of the Institute of Materials, Minerals and Mining in the United Kingdom.

AXMIN is a mineral exploration company with a strong focus on gold in highly prospective properties across central and West Africa. For more information regarding AXMIN visit our website at

Safe Harbour Statement

Certain statements contained herein, as well as oral statements that may be made by the company or by officers, directors or employees of the company acting on the company's behalf, that are not statements of historical fact, may constitute "forward-looking statements" and are made pursuant to applicable and relevant national legislation (including the Safe-Harbour provisions of the United States Private Securities Litigation Reform Act of 1995) in countries where AXMIN is conducting business and/or investor relations. Forward-looking statements include, but are not limited to, those with respect to the price of gold, the estimation of mineral reserves and resources, the realization of mineral reserves estimates, the timing and amount of estimated future success of exploration activities, AXMIN's hedging practices, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risk, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "does not expect", "is expected", "budget", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or equivalents or variation, including negative variation, of such words and phrases, or state that certain actions, events or results, "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and ore densities or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, delays in obtaining government approvals or financing or in completion of development or construction activities. Although AXMIN has attempted to identify important factors that could cause actual actions, events or cause actions events or results not to be anticipated, estimated or intended, there can be no assurance that forward looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Except as may be required by applicable law or stock exchange regulation, the company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • AXMIN Inc.
    Jon Forster
    Chief Executive Officer
    +44 (0)1233 665600 (UK)
    +44 (0)1233 643728 (UK) (FAX)
    AXMIN Inc.
    Judith Webster
    Manager - Investor Relations
    (416) 368-0993 (Canada)