November 17, 2005 10:59 ET

AXMIN Inc.: First Drill Results Confirm Gold Mineralisation At Nimini Hills Project, Sierra Leone

TORONTO, ONTARIO--(CCNMatthews - Nov. 17, 2005) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to announce results from the first five drill holes at the historic Koamahun Prospect within the Nimini Hills West permit, Sierra Leone. Two adjacent structures have been tested with results including 9.5 g/t Au over 5 metres, 7.4 g/t Au over 6.75 metres, 46.5 g/t Au over 2.35 metres and 66.6 g/t Au over 2 metres. Drilling is in the vicinity of earlier surface trenching where trench results include 2.55 g/t Au over 24 metres (Trench 001) and 5.81 g/t Au over 46 metres (Trench 012) (not previously announced).

Chief Executive Officer, Dr Jonathan Forster comments "These first results from Kaomahun are particularly gratifying as they represent the discovery of a third AXMIN project where we will carry out resource definition drilling in 2005-06 to complement the successful resource exploration already achieved at the Bambari Permits in the Central African Republic and at the Kofi Project in Mali. Moreover, initial reconnaissance exploration across not only other parts of the Nimini Hills licences but also across other licences held by AXMIN in Sierra Leone, within a 50 km radius, has demonstrated the likelihood that further drill targets will be established over the coming field season."

The diamond core drilling targeted two adjacent northeast trending structures at the Koamahun Prospect, with the "eastern extension" lying some 300 metres to the east of the main structure (please refer to the plan map at Provisional results from five of these boreholes are reported below; results from the remaining eight holes are pending and will be reported shortly upon the receipt of assays. Trenching and the high resolution air-borne magnetic survey has shown that the mineralisation is primarily hosted by magnetite rich, silicified amphibolite adjacent to talc schists. Drilling has tested a total of some 700 metres of strike length, with five fences on 80 metre spacing and a further three fences on 160 metre spacing.

The main structure is defined by a strong (greater than 200ppb Au) 800 metre long gold in soil anomaly open to both the northeast and southwest. Drilling indicates that gold mineralisation lies within 3-4 close-spaced sub-vertical structures within a 20-30 metre true width corridor defined through systematic trenching. Individual structures have a true width of 1-5 metres. This corridor is currently tested to a maximum vertical depth of 100 metres. The eastern extension has a similar appearance although to date two gold zones have been identified within a 10 metre wide corridor.

Hole No. Total East North Azi- Declin. From To Inter- Grade
Depth Co- Co- muth (deg) (m) (m) val (g/t
(m) ord ord (deg) (m) Au)
(a) (a)
NWKD001a 100.65 262224 949777 320 -60 49.85 52.20 2.35 46.5
58.05 64.80 6.75 7.4
76.00 77.00 1.00 9.2
94.00 96.00 2.00 1.0

NWKD002 65.88 262264 949856 140 -60 18.00 20.50 2.50 5.1
(N.B. Assays awaited from 0-18 metres)

NWKD003 121.28 262150 949741 320 -60 70.80 80.00 9.20 2.4
85.00 87.00 2.00 4.5
99.00 104.00 5.00 9.5


NWED002 70.30 262431 949570 140 -60 4.00 8.00 4.00 3.0
24.00 26.00 2.00 3.4

NWED003 70.65 262483 949507 140 -60 0.00 4.30 4.30 1.0
18.00 20.00 2.00 66.6
(a) GPS - UTM Zone 29 North, WGS 84 datum

Whilst further assay results are awaited from the laboratory a field program is in progress aimed at both extending the strike length of the Koamahun structure, through surface geochemistry and trenching, and at identifying new drill targets. Exploration will shortly expand to include surface programs on the other AXMIN projects in Sierra Leone.

AXMIN, the project manager, may earn a 60% interest in the Nimini Hills project from a subsidiary of Eldorado Gold Corporation (ELD-TSX; EGO-ASX) by expenditure of US$2.25 million over a three year period, and has fulfilled its minimum expenditure payment of US$0.5 million in the first year. Thereafter Eldorado has the right to participate on a pro rata basis or if it elects not to then AXMIN can earn an additional 20% by producing a Bankable Feasibility Study. The monies spent on Eldorado's behalf to earn this additional 20% will be recovered by AXMIN from Eldorado's share of future production.

Core samples have been prepared at the independent Alex Stewart Laboratory facility in Sierra Leone, and 50 gram pulps subject to gold analysis by fire assay at the independent OMAC Laboratories Ltd. in Ireland. This press release has been reviewed by an in-house qualified person, Dr. Jonathan Forster, Fellow of the Institute of Materials, Mining and Metallurgy ("IMMM").

AXMIN is a mineral exploration company with a strong focus on gold in highly prospective properties across central and west Africa.

To view a map of the Nimini Hills, Koamahun Prospect Trenching & Drilling Plan please click on the link below:

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)
    AXMIN Inc.
    Judith Webster
    Manager - Investor Relations
    +1 416 368 0993 (Canada)