December 06, 2006 11:05 ET

AXMIN Inc.: An 82% Increase in Mineral Resources and New Discoveries at Kofi Project, Mali

TORONTO, ONTARIO--(CCNMatthews - Dec. 6, 2006) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to announce an 82% increase in the mineral resource estimate at the Kofi Project in western Mali to 1.56 Mt grading 2.8 g/t Au 140,000 oz (indicated mineral resource) plus 4.06 Mt grading 3.0 g/t Au, 389,000 oz (inferred mineral resource) from the Kofi SW Zones B and C prospects, and the first round of drilling at the Kofi South prospect. In addition, shallow rotary airblast ("RAB") drilling has identified three new gold zones along a 1,000 metre northerly extension to the Kofi SW Zone C resource with potentially economic intercepts which include 4.4 g/t Au over 28 metres. A 10,000 metre reverse circulation ("RC") drilling program has recently commenced with the objective of continuing to increase mineral resources at Kofi South, Kofi SW and other new zones.

Chief Executive Officer, Dr. Jonathan Forster, comments "This new resource demonstrates the highly rated prospectivity of the Kofi area. The first phase of systematic drilling at Kofi South, although prematurely curtailed in June due the onset of the wet season, has already generated an important addition to the total mineral resource inventory. I am confident that there is excellent potential to continue to add resources, not only from these existing near surface deposits, but from depth and importantly from new zones that are continuously being identified as our exploration progresses. Our objective is to rapidly add sufficient resources to warrant scoping engineering studies for a stand alone development project, to follow on behind the Company's feasibility study in progress on the Passendro Gold Project in the Central African Republic."

The Kofi area is crossed by the same structures that host the 9 million ounce Loulo Gold Mine of Randgold Resources Limited, located less than 15 km to the south of Kofi. Kofi SW Zones B and C, and the Kofi South prospect lie within a 5 km radius and have been tested systematically to depths of typically between 60-100 metres. Widths and grades of the gold zones indicate that exploitation should be possible by means of open pits.

The in situ mineral resource has been estimated by independent consultants SRK Consulting (UK) Ltd. and is stated at a 1 g/t Au cut off grade. Grade interpolation was carried out using a combination of Ordinary Kriging (Zones B and C) and Inverse Distance (IDW3). The estimates have been prepared under the guidelines of National Instrument 43-101 and accompanying documents 43-101.F1 and 43-101.CP.

Indicated Resources
Domain Type Tonnes Grade Gold
(Kt) (g/t Au) (k.oz)

Kofi SW Zone B Oxide 440 2.2 32
Transition 270 2.0 17
Sulphides 250 2.7 22
Sub-total 960 2.3 71

Kofi SW Zone C Oxide 130 2.6 11
Transition 110 3.2 12
Sulphides 360 4.0 46
Sub-total 600 3.6 69

Total Indicated Oxide 570 2.3 43
Transition 380 2.3 29
Sulphides 610 3.5 68
Total 1,560 2.8 140

Inferred Resources
Domain Type Tonnes Grade Gold
(Kt) (g/t Au) (k.oz)

Kofi SW Zone B Oxide 170 1.7 9
Transition 230 1.5 11
Sulphides 200 1.6 11
Sub-total 600 1.6 31

Kofi SW Zone C Oxide 250 7.8 63
Transition 180 7.4 43
Sulphides 480 3.6 55
Sub-total 910 5.5 161

Kofi South Oxide 460 2.4 36
Transition 630 2.6 52
Sulphides 1,460 2.3 109
Sub-total 2,550 2.4 197

Total Inferred Oxide 880 3.8 108
Transition 1,040 3.1 106
Sulphides 2,140 2.5 175
Total 4,060 3.0 389

A 5,000 metre shallow (to maximum 30m vertical depth) reconnaissance RAB drilling program was recently completed to test approximately 1,000 metres of possible northerly extensions to the Kofi SW Zone C deposit beneath an extensive laterite plateau. The zone is highlighted by ground geophysics (induced polarisation) which has defined a clear NNE trending structure along which a total of 10 fences have been completed, typically between 80-160 metres apart. Three new gold zones, each of approximately 200 metres strike length (similar to that of Kofi SW Zones B and C), have been identified. Each zone is defined by intercepts of 5-10 metres and grades typically in excess of 1.4 g/t Au. This includes one intercept of 4.4 g/t Au over 28 metres and (in a previously drilled hole) one intercept of 3.3 g/t Au over 11 metres. Experience from drilling of prospects at Kofi indicates that there is potential for grades and widths to increase with depth.

As well as the new RC program, a further 5,000 metre RAB program has commenced on a fourth major prospect area called Kofi SS with a surface area of some 8 km x 2.5 km where previous shallow reconnaissance drilling has identified numerous gold bearing structures. This RAB program is designed to establish initial geometry for the first four of these structures, in preparation for a follow up systematic RC program later in the season.

Grade calculations are based on a 0.5 g/t Au lower cut off to define the mineralised structure, with no upper cut. 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.

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)