AXMIN Inc.
TSX VENTURE : AXM

AXMIN Inc.

November 20, 2006 11:27 ET

AXMIN Discovers Potentially Major High Grade Lump Iron Ore District at Bambari-Bakala Permits, Central African Republic

TORONTO, ONTARIO--(CCNMatthews - Nov. 20, 2006) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to report the discovery of a district containing continuous high grade iron ore extending along a 30 km range of hills within the Bambari-Bakala permits in the Central African Republic. 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. The individual bodies (which probably form part of two continuous horizons broken by cross-cutting streams) range up to 4 km long and from 300 to 1,000 metres wide forming hills ranging from 150 up to 240 metres in height.

Dr Jon Forster, Chief Executive Officer said "This is potentially a major discovery of a new high grade lump hematite iron ore district which may contain multiple deposits. The grade and dimensions of these iron ore bodies as indicated by our reconnaissance mapping and sampling would appear to be of a similar scale to the major deposits to those currently in production in Brazil and Australia and to those under development at Simandou in Guinea. The key task now is to drill representative holes across the formations to establish the grade and widths at depth, after which AXMIN must evaluate the optimum route to advancing their exploration and development and to getting the value of this discovery recognised in the market."

Following the discovery of high grade iron mineralisation at Topa Hill (press release dated February 13, 2001), the more recent rise in the market price for iron ore and recognition of the need for further commercial deposits to supply an increasing world market AXMIN has conducted a second reconnaissance mapping and sampling campaign designed to define the extent of the high grade iron ore bearing horizons. The new ores extend along an almost continuous linear ridge starting approximately 3 km southwest of Topa Hill and extending south-southeast for 30 km. Smaller but still very substantial sub-parallel ridges hosting similar iron ores are present to the northeast. Aeromagnetic survey results indicate that the horizons are probably continuous across the covered stream banks that separate the segments of the ridge. The character of the new ores are essentially identical to those reported from Topa Hill comprising either massive lump hematite or "biscuit Blue" a re-cemented fragmented and finely banded form of specular hematite typical of high grade iron deposits such as Simandou in Guinea. On Topa Hill, as reported previously, detailed ground magnetics defined two sub-parallel iron rich units each between 300-400 metres wide and up to 2 km in length yielding samples with an average grade of 66.7% iron. The sampling of the new deposits shows extensive areas of similar grade with patches of lower grade material. Using all the data the median percentages of iron, silica, alumina, manganese, phosphorous and potassium are 64.38, 1.45, 1.16, 0.01, 0.13, and less than 0.01 respectively.

Gold exploration conducted in parallel with this program has confirmed that the iron mineralisation and the gold mineralisation are mutually exclusive; that is to say, the numerous centres of gold mineralisation recognised so far on the Bambari-Bakala permits, including the Passendro Gold Project which is currently the subject of a feasibility study, do not overlap with the area of a potential iron ore development. AXMIN's licences specifically include both iron and gold.

In order to advance this important discovery AXMIN has established a wholly owned subsidiary company to undertake the exploration and, if justified, development of the iron ore deposits. The initial objective will be to establish that the iron ore extends to depth with similar grades and characteristics and to establish the potential widths and hence the tonnage potential. In the past AXMIN has hosted site visits by and discussions with major iron ore producers. However, the Company considers that the interests of both its shareholders and the country, for a timely decision on whether a commercial development is possible, are best served by undertaking at least the next stage of exploration using its own teams experienced in this area.

The Bambari-Bakala permits are located approximately 1,500 km from the sea, whilst clearly a challenge this distance is not regarded as an insuperable obstacle to development. For comparison the Carajas deposits, located in Brazil required the construction of a 900 km railway and port.

Whole rock analysis on the surface samples was carried out at the independent OMAC Laboratories Ltd. in Ireland, by metaborate fusion / ICP-AES. This press release has been reviewed by an 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 www.axmininc.com.

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)
    or
    AXMIN Inc.
    Judith Webster
    Manager - Investor Relations
    (416) 368 0993 (Canada)
    E-mail: ir@axmininc.com
    Website: www.axmininc.com.