March 17, 2011 12:19 ET

AXMIN Files NI 43-101 Technical Report Passendro Gold Project Revalidated Feasibility Study Report and AXMIN Closes Kofi Sale to Avion Gold Corporation of Walia Saakola and Walia West Concessions

TORONTO, ONTARIO--(Marketwire - March 17, 2011) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to announce that today it has filed the revalidated feasibility study summary report with respect to the Passendro Gold Project located in the Central African Republic ("CAR"), the results of which were released on January 31, 2011. A copy of the NI 43-101 compliant report has been filed with securities and regulatory authorities in Canada and can be found on both the SEDAR website at and the AXMIN website at The Feasibility Study was led by SENET (PTY) of South Africa ("SENET") and included a multidisciplinary team of independent consultants. Highlights of the robust project that will see an annual production of 205,000 ounces with an average cash cost of US$437/oz in the first three years, resulting in a rapid project payback of 2.2 years, are detailed below.

Feasibility Study Highlights  
  Assumed Gold Price US$1,100/oz
  Assumed Oil Price US$80/bbl
  Mine Throughput 2.8 mtpa
  Mine Life 8.3 years
  Development & Construction 24 months
  Strip Ratio 5.4:1
  Average Annual Production years 1-3 205,000 oz
  Average Annual Production (LOM) 163,000 oz
  Initial Capital Costs (excluding contingency) US$246 million
  Total Cash Costs (including royalties) (LOM) US$484/oz
  Average Metallurgical Recovery 94%
  Gravity Recovery 30%
  IRR (after tax & royalties, including contingency CAPEX) 32.1%
  NPV (after tax, 5% discount) US$340 million
  Operating Cash Flows US$493 million
  Payback Period 2.2 years

AXMIN Closes Kofi Sale to Avion Gold – Walia Saakola and Walia West Concessions

AXMIN is also pleased to announce that it has completed the sale of its interest in the Walia Saakola concession and the Walia West Concession, which formed part of AXMIN's Kofi Property, to Avion Gold Corporation (TSX:AVR) ("Avion").

On closing Avion paid AXMIN C$6,250 and 56,250 Avion common shares, representing 25% of the total consideration due to AXMIN for sale of these concessions. The remaining 75% will be paid to AXMIN in three equal tranches on June 11, 2011, March 11 2012 and September 11, 2012.

This press release has been reviewed by an in-house qualified person, François Auclair, M.Sc., VP Exploration of AXMIN, Member of the Ordre des Géologues du Québec and Fellow of Geological Association of Canada.


AXMIN is a Canadian exploration and development company with a strong focus on central and West Africa. AXMIN has projects in Central African Republic, Mali, Mozambique, Sierra Leone and Senegal. AXMIN is positioned to grow in value as it progresses its Passendro Gold Project towards development and builds on its project pipeline focusing on transitioning from an explorer to producer. 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 future plans and objectives of AXMIN; and statements regarding the ability to develop and achieve production at Passendro and to satisfy the terms of the Mining Licence as negotiated, 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 have been disclosed under the heading "Risk Factors" and elsewhere in AXMIN's documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities. AXMIN disclaims any intention or obligation to update or revise any forward-looking statements whether resulting from new information, future events or otherwise, except as required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • AXMIN Inc.
    George Roach
    President & CEO
    Direct T:+44 779 626 3999
    AXMIN Inc.
    Judy Webster
    Manager Investor Relations
    416 368 0993 ext 221