AXMIN Inc.
TSX VENTURE : AXM

AXMIN Inc.

July 05, 2005 09:32 ET

AXMIN Achieves Substantial Increase In Resources At Passendro

TORONTO, ONTARIO--(CCNMatthews - July 5, 2005) - AXMIN Inc. (TSX VENTURE:AXM) -

- 1.07 MILLION OZS OF INDICATED RESOURCE

- 1.11 MILLION OZS OF INFERRED RESOURCE

AXMIN Inc. (TSX VENTURE:AXM) is pleased to announce that it has more than doubled its indicated gold resources at Passendro to 1.07 million ounces grading 2.5 g/t Au. In addition, inferred gold resources have been increased to 1.11 million ounces, grading 1.8 g/t Au. Passendro is located within the 100% owned Bambari Permits, Central African Republic. The updated mineral resource estimate was prepared by independent consultants, SRK Consulting ("SRK").

Drilling with two wholly owned reverse circulation ("RC") rigs and two wholly owned core rigs will proceed through the forthcoming wet season, with the objective of both continuing to expand resources and to test new targets that are identified on an ongoing basis.

Chief Executive Officer, Dr Jonathan Forster states "By defining over two million ounces in all resource categories, we continue to demonstrate that the Bambari Permits have the growth potential to support a substantial gold mining operation. We will continue to take the project forward to development whilst also making new discoveries. The exceptional prospectivity of the Bambari Belt is highlighted by the discovery costs from the grassroots level of about US$6.50 per ounce, with anticipation that future growth in resources can be achieved with an equal, if not better, level of efficiency."

The detailed summary statement of mineral resource estimate for Passendro is as follows, with the cut off grade taken at 1.2 g/t Au except at Main Zone where the distribution of mineralisation warrants a 0.8 g/t Au cut off:



Indicated Mineral Inferred Mineral
Resource Resource
Tonnes Grade Ounces Tonnes Grade Ounces
Mt g/t Au Au Mt g/t Au Au
French oxide 1.21 3.7 143,500 0.10 3.4 10, 400
Camp
sulphide 1.51 2.6 125,700 0.81 2.3 58,300

Katsia oxide 2.01 3.3 213,400 0.71 2.6 59,900

Sulphide 0.91 3.5 101,800 0.89 2.9 81,700

Bacanga oxide 1.67 2.5 133,700 0.10 2.8 9,500
Head

sulphide 0.32 2.5 26,300 1.53 2.5 122,100

Main oxide 5.56 1.8 327,100 8.89 1.5 433,300
Zone

Sulphide - - - 6.18 1.7 333,900

Sub oxide 10.45 2.4 817,800 9.80 1.6 513,100
Total

sulphide 2.74 2.9 253,800 9.41 2.0 601,200

Total 13.20 2.5 1,071,500 19.21 1.8 1,114,100


The four sites of mineral resources are all located within a 3 km radius. Previous metallurgical studies (announced October 2, 2003) indicate that gold in both the oxide and sulphide zones appears to be amenable to conventional gravity and cyanide leach processes with recovery in excess of 90%. In addition, the indicated resource at Main Zone is estimated to depths of typically between 40 to 70 metres only. At Main Zone both mineralisation and waste is strongly oxidized, with the anticipation that the ore will be amenable to low cost mining and processing similar to lower grade operations throughout west Africa.

The revised mineral resource estimate has been based on some 36,000 metres of RC and 18,500 metres of core drilling completed across the resource blocks, using assays that were available up to late May 2005. The mineral resource estimate has been compiled in accordance with National Instrument 43-101 by independent consultants SRK Consulting of the United Kingdom, under the supervision of Dr John Arthur (CGeol, CEng). SRK's report will shortly be available on the SEDAR website. All indicated resources were established from drilling on 40 metre fence spacings and to a maximum vertical depth of 120 metres, with higher grades reduced where appropriate using statistical methodology. SRK considers that the grade, continuity, and geometry of these estimates are such that there is a high likelihood that a substantial portion of the reported indicated mineral resources have the potential to be exploited economically.

As announced on May 10, 2005 drilling at the Bambari permits will continue non-stop through to the end of the calendar year. Currently the drilling program is testing deeper targets on the central portion of Katsia deposit, with follow up drilling on the Baceta and Barbacoa mineralised zones within the Passendro project area. Uprating of resources at Main Zone from the inferred to the indicated category will continue, whilst in parallel further new drill targets will be prepared.

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 www.axmininc.com.

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)
    or
    AXMIN Inc.
    Judith Webster
    Manager - Investor Relations
    +1 416 368 0993 (Canada)
    ir@axmininc.com
    www.axmininc.com