AXMIN Inc.
TSX VENTURE : AXM

AXMIN Inc.

August 17, 2006 09:11 ET

AXMIN Inc.: Drilling Update-Pouloubou Permit, Central African Republic

TORONTO, ONTARIO--(CCNMatthews - Aug. 17, 2006) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to provide an update on exploration at the Pouloubou Permit in the Central African Republic, located approximately 150 km southeast of the Passendro Gold Project, where shallow reconnaissance reverse circulation ("RC") drilling has confirmed the presence of multiple strongly anomalous gold mineralised zones up to 50 metres in width. The drilling intersected several consistent zones averaging 0.3-0.5 g/t Au with spikes at 1-2 g/t Au. One of the main discovery areas was the Central zone of the Grengou-Loubou prospects which has a potential strike length of at least 2,000 metres with an indicative width of some 50 metres, much of which is currently untested. Deeper drilling is required to determine the depth of potential leaching. This is the first test of a small part of the property and exploration described below is currently underway to identify the extent of anomalies throughout the 1,000 sq km permit.

The 5,000 metre reconnaissance RC drilling program was designed to investigate the results of previous deep geochemical sampling which identified the potential for multiple zones of primary gold mineralisation in the prospects, Grengou, Loubou and Kangou (see press release November 22, 2005) that lie within a 2 km radius. The RC drilling has tested zones with angled holes to vertical depths of about 30-35 metres.

For a map of the Pouloubou Permit - Grengou - Loubou - Kangou Prospects - Central African Republic, please click on the link below:

http://www.ccnmatthews.com/docs/axm817.pdf

The Grengou-Loubou prospects lie at the heart of a network of drainages, which were heavily worked for alluvial gold both during the French colonial period and in more recent times. The primary gold zone is interpreted to strike NW-SE and follows a regional scale structure. The Central zone was drilled to a maximum vertical depth of 30 metres on four lines over 2,000 metre strike length. In part, access to the structure was denied to the drill rig due to the structure forming the steep flank to a heavily worked drainage. Nonetheless, soil geochemistry (100 ppb Au threshold) points to continuity of the zone between drill lines. The underlying geology recognised to date is indicative of a sequence of weakly metamorphosed argillites, of typically chloritic, sericitic and carbonaceous composition in conjunction with iron rich horizons interpreted as Banded Ironstones. Oxidation can be relatively shallow, to depths of about 30 metres, with a sulphide assemblage including arsenopyrite observed. Geophysical and geological mapping suggests that the sequence has been gently folded around a NE-SW axis.

Chief Executive Officer, Dr Jonathan Forster comments "The program has successfully delineated a priority target for follow up exploration, with the key task now being to identify whether there has been near surface depletion of gold, leaving behind the strongly anomalous values that have been recorded. Also, follow up work will seek zones within the current 2,000 metres of strike with higher grade potential. The next round of work will include an element of core drilling to provide better geological understanding and depth potential. Given the multiple structures of anomalous grade identified, positive results from the Grengou-Loubou prospects would provide great encouragement for the further testing of the other recognised structures."

In addition, ongoing exploration at Pouloubou has focused on stream sediment sampling within a radius of some 10 km of the Grengou-Kangou prospects. Initial results from visual observation of panned stream samples indicate the presence of significant amounts of gold in a number of drainages. This suggests the possibility for further primary sources of gold mineralisation yet to be identified.

Analytical work is being carried out at the independent OMAC Laboratories Ltd. in Ireland. The samples are subject to a full sample preparation followed by a 50 gram fire assay with an AA finish. Blanks (5%), pulp duplicates (5%) and a suite of Geostats standard reference material are being used to monitor sample preparation and laboratory performance during first pass analysis. Further QA/QC work is carried out on a quarterly basis. This comprises check assaying 20% of all greater than 500 ppb samples using prepped coarse reject samples at OMAC and a second laboratory. Check assay batches are also routinely monitored using 5% blanks, standards and pulp duplicates. 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 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
    +1 (416) 368-0993 (Canada)
    ir@axmininc.com