January 22, 2008 09:46 ET

AXMIN Announces Program Budgets for First Half of 2008

TORONTO, ONTARIO--(Marketwire - Jan. 22, 2008) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to provide an update on the Company's exploration and development budget for the first half of 2008 as well as corporate highlights. Details include:

- Restructuring of management and building of the Passendro Gold Project mine management team

- Appointment of Mario Caron as President and Chief Executive Officer ("CEO")

- Key members of the mine development team recruited

- A US$12.8 million exploration and development budget planned for Q1 and Q2 2008

Corporate Highlights

As AXMIN transitions from explorer to producer on its Passendro Gold Project in Central African Republic ("CAR"), the Company announced several key corporate developments in the last quarter of 2007. Most importantly Mr. Mario Caron has taken the helm as President and CEO with Dr. Jonathan Forster remaining as Head of Exploration (press release December 24, 2007). In addition, AXMIN announced the recruitment of key members of the mine development team namely, Richard Quarmby as Technical & Business Development Manager and Chris Moleski as Site Project Manager (press release October 22, 2007).

The new President and CEO, Mario Caron states "I am excited to lead the AXMIN team as it enters its next phase of growth as an African developer and producer, and along with the support of our major shareholder, AOG Holdings BV, we will be working together to build AXMIN into a significant producer."

"Jon Forster and his team have done a phenomenal job in building AXMIN's current asset base from grassroots discovery to a three significant projects one of which is on the cusp of development, and we expect to continue that growth with Jon remaining as Head of Exploration" said Mario Caron. "My mandate for this year is to expand AXMIN's presence in the financial community, to look at opportunities to increase our asset base and to ensure that our path to production is achieved as expeditiously as possible and I look forward to updating you on our progress as the year unfolds."

First Half 2008 Exploration and Development Budget - US$12.8 million
US$12.8 million budget is to be implemented in the first six months of 2008. The second half budget and programs will be developed in the context of the Passendro Gold Project development. The budget covers AXMIN's main assets in CAR, Mali and Sierra Leone, see table below for details.

Country Project Detailed Budget
Central African Republic Passendro Gold Project $3.0 million
Passendro Exploration $1.2 million
CAR Exploration $2.4 million
Topa Iron Ore Prospect $0.6 million
Sub Total $7.2 million
Mali Kofi Gold Project $3.0 million
Sierra Leone Komahun Gold Project $2.0 million
Sierra Leone Exploration $0.6 million
Sub Total $2.6 million
Total Budget $12.8 million
Note all amounts are in US dollars

Central African Republic:

Passendro Gold Project

US$3 million has been budgeted to allow for the completion of the Passendro Gold Project's feasibility study. The study is led by project manager SENET (PTY) Ltd. of South Africa and is incorporating a multidisciplinary team of industry specialists.

Passendro Mine Exploration

The US$1.2 million budget provides for approximately 3,700 metres of core and 15,000 metres of reverse circulation ("RC") drilling to explore extensions of existing pits and nearby brownfields exploration within a three km radius of the proposed plant.

Regional Exploration

The bulk of the CAR regional US$2.4 million budget will focus on exploration along the 140 km long Bambari-Bakala belt with the objective of adding resource supply to the Passendro Gold Project. Smaller follow up programs are also planned for Sosso Polipo and Pouloubou permits. A total of 8,000 metres of core, 10,000 metres of RC and 8,000 metres of rotary air blast ("RAB") has been planned in the first half of 2008.

Topa Iron Ore Prospect

A budget of US$600,000 has been set aside from for exploration at Topa Iron Ore Prospect which consists of at least two ranges of hills, typically over 200 metres high, extending for 30 km along strike. To date 116 samples from this iron bearing horizon have a median grade of 64.38% iron with low silica, potassium, alumina, phosphorous and manganese (press release November 20, 2006). The grade and dimensions of the Topa iron ore range of hills appear to be of a similar scale to the major deposits currently in production in Brazil and Australia and to the Simandou deposit in Guinea that is currently under development. The key task now is to drill representative holes across the formations to establish the grade and widths at depth, to that end AXMIN has planned 4,000 metres of core and 5,000 metres of RC drilling in the first half of 2008.


Kofi Gold Project

Exploration drilling in 2007 at Kofi Gold Project in Mali resulted in a 109% increase in the indicated mineral resource ounces now at 293,000 ounces (3.60Mt at a grade of 2.5 g/t Au) and inferred ounces remain essentially unchanged at 368,000 ounces (5.26Mt at a grade of 2.2 g/t Au) (press release December 11, 2007). AXMIN has planned an aggressive US$3 million exploration program at Kofi that includes 30,000 metres of RC, 6,000 metres of core and 14,000 metres of RAB drilling in addition to further ground geophysical programs. Target areas will include extensions to existing resource centres and as well as new exploration on the northern extensions of Kofi SW and Kofi South structures. The Dabara structure 10 km to the southeast of Kofi SW will also be targeted along with highly prospective prospects in Walia West and Walia Agra areas 8 km northwest of Kofi SW.

Sierra Leone:

Komahun Gold Project

The total budget for Sierra Leone is US$2.6 million in the first half of 2008, of that US$2 million will be earmarked for Komahun Gold Project in Nimini Hills with the remaining US$600,000 to be split between the Gori Hills, Makong and Matatoka licences. In the last quarter of 2007 AXMIN experienced a delay in shipment of some of its core samples to the laboratory, due to a temporary industry wide ban on sample exports which has now been lifted. The Company will then integrate both the 2007 and new data from the current 2008 drill program into the resource update which is expected mid year. A total of 11,000 metres of core is planned for the first half of 2008.


AXMIN, a gold exploration company, offers dynamic growth with a track record of finding and developing mines in Africa. AXMIN is one of only a few companies of comparable or even larger size that has such a potential to develop multiple gold mines in west and central Africa. For more information regarding AXMIN visit our website at

This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of AXMIN, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from AXMIN's expectations are disclosed under the heading "Risk Factors" and elsewhere in AXMIN documents filed from time-to-time with the TSX Venture and other regulatory authorities.

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.
    Mario Caron
    President & CEO
    (416) 368-0993
    AXMIN Inc.
    Judy Webster
    Manager Investor Relations
    (416) 368-0993