August 27, 2007 11:17 ET

AXMIN Extends Komahun Discovery, Reports Excellent Gold Recoveries and Plans Resource Upgrade at Komahun Project, Nimini Hills, Sierra Leone

TORONTO, ONTARIO--(Marketwire - Aug. 27, 2007) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to report results of reconnaissance core drilling on a new extension to the Komahun mineralisation at the Nimini Hills Gold Project in Sierra Leone. Results include 5.2 g/t Au over 12.0 metres and 3.0 g/t Au over 11.8 metres. Results from initial metallurgical test work on the main Komahun deposit demonstrate recoveries in the range 93-99% (for greater than 0.2 g/t Au samples) from both oxide and most importantly sulphide mineralisation.

In addition to the extension drilling reported above a 3,000 metre systematic core drilling program targeting the main Komahun structure at depths down to 200 metres (and locally on an infill basis) has been concluded and assay results are awaited. Once received the data will be provided to independent consultants to calculate and report new resources which currently stand at an inferred mineral resource of 4.9 million tonnes assaying 2.5 g/t Au (392,000 contained ounces of gold) (press release October 5, 2006). AXMIN may increase its interest from 60% to 80% in the Nimini Hills licence by completing a bankable feasibility study on the project.

Chief Executive Officer Dr Jonathan Forster comments "The new results reported above, and in detail below, have resulted from reconnaissance drilling located along strike from Komahun. They clearly demonstrate the potential to increase resources within this initial two kilometre long gold in soil (and trenches) anomaly that extends south from the main Komahun deposit. In addition the systematic core drilling which is targeting resource extensions below the previously reported main Komahun deposit has intersected the favourable horizon and we eagerly await assay results. Any increases at depth or along strike will to enable AXMIN to maintain its strategy of enhancing resources on both this and its Kofi Gold Project in Mali to provide a strong project pipeline of development projects to follow up its Passendro Gold Project in the Central African Republic where the bankable feasibility study is nearing completion. First indications of excellent gold recoveries from both oxide and sulphide mineralisation from Komahun is another very positive step in this process alleviating one of the main risks in any gold project namely the risk of refractory (low recovery or costly recovery) gold."

Drill Results

Reconnaissance drilling has focused on two target zones defined by soil geochemistry along strike to the south from Komahun (see attached map and on website). The first is located about 300 metres away, and the second a further 600 metres distant. Results have to date been received from the closest zone with core holes set on fences 80 metres apart. The gold mineralisation is interpreted to occur within a sub-vertical structure hosted within sulphide bearing amphibolite. The mineralisation has been traced to about 60 metres vertical depth so far over a strike length of about 120 metres and remains open to the south and at depth. Drilling is oblique to the north-south structure with no estimates of true width yet made.

Results to date are:

Hole No. East North Azim Declin From To Interval Grade
(co-ord) (co-ord) (deg) (deg) (m) (m) (m) (g/t Au)
NWKD 39 261797 949137 140 -55 34.0 44.5 10.5 2.5
NWKD 41 261787 949154 140 -55 81.2 93.0 11.8 3.0
NWKD 64 261796 949217 140 -60 48.0 55.5 7.5 1.7
and 66.0 78.0 12.0 5.2
includ- 70.5 73.5 3.0 15.8
NWKD 66 261815 949194 140 -55 31.0 34.0 3.0 5.4
NWKD 37 261866 949195 140 -55 3.1 7.6 4.5 13.9

Metallurgical Testing

Initial metallurgical test work has focused on the recovery of gold using standard cyanide extraction techniques. Ten core samples were selected from within the Komahun resource area. Eight samples were sulphide with mineralisation associated with pyrite, arsenopyrite and pyrrhotite and two were oxide. Of these samples two sulphide samples had grades below 0.2 g/t Au, the remainder lying within the range of 2.5 -30 g/t Au. The test work was undertaken by SGS-Lakefield in Johannesburg, South Africa with the results as follows:

Head Reagent
Assayed Calc. NaCN CaO Average
Hole No. From To Au Au kg/t kg/t Au
(m) (m) (g/t) (g/t) %
sulphide NWKD001A 51.20 52.20 2.53 2.46 3.32 0.26 93.7
sulphide NWKD001A 58.95 59.80 8.87 8.55 2.82 1.71 97.1
sulphide NWKD001A 62.80 63.80 11.35 11.56 2.62 0.32 93.5
sulphide NWKD001A 94.00 96.00 0.12 0.14 2.68 0.27 83.7
oxide NWKD002 18.50 20.50 8.62 8.64 2.30 0.28 99.4
oxide NWKD005 22.00 24.00 2.45 2.43 3.11 2.21 98.5
sulphide NWKD010 54.00 55.40 11.95 11.85 3.03 0.79 94.4
sulphide NWKD031 63.34 64.84 30.82 30.06 2.42 0.24 99.8
sulphide NWKD031 76.84 78.34 3.27 3.30 2.45 0.18 95.3
sulphide NWKD031 76.84 78.34 0.19 0.20 2.68 0.51 84.4

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. Assays are in the main from 5 metre composite samples. Analytical work is being carried out at the independent Abilab Laboratories Ltd. in Bamako, Mali. 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. Assay of individual one metre samples in mineralised zones is in progress. 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.

NOTE: To view a map of the Komahun Gold Prospect, Nimini Hills Project - Sierra Leone, please click on the following link:

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)