AXMIN Inc.
TSX VENTURE : AXM

AXMIN Inc.

September 18, 2008 07:30 ET

AXMIN Inc.: Komahun Project, Sierra Leone Resource Update Significant Increase in Grade and Ounces

TORONTO, ONTARIO--(Marketwire - Sept. 18, 2008) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to report significant increase in mineral resource ounces and grade at the Komahun Gold Project, Nimini Hills JV, Sierra Leone. In addition for the first time the mineral resource estimate includes an Indicated Mineral Resource of 370,000 tonnes grading 9.1 g/t Au (110,000 ounces) and an Inferred Mineral Resource of 3.1 million tonnes grading 4.3 g/t Au (435,000 ounces). This compares to the previous Inferred Mineral Resource estimate of 4.9 million tonnes grading 2.5 g/t Au (392,000 ounces) (press release October 5, 2006).

Mario Caron, President and Chief Executive Officer comments "The increase in both global resources and in particular the grade at Komahun will have a significant impact on the potential for future development as an underground mining project. Development should also be facilitated by mineralised widths which mostly range from 2.5 to 7 metres and the steep surface topography which can be beneficial for easy access by adit and decline. AXMIN has initiated a third party scoping study that will investigate production levels in the range of 60,000 to 80,000 ounces per annum and in addition will help to guide the next round of exploration."

The mineral resource estimate has utilized all drilling to date totaling 168 core holes, for a total of 22,370 metres. The bulk of the resource lies within the central 300 metres strike length of the Komahun structure where modeling has been taken to depths of up to 400 metres from surface. To view the Geology and Collar Plan of the Komahun Project, please visit the following link: http://media3.marketwire.com/docs/axminb.jpg.

In this central zone, the mineralisation occurs within three sub-vertical structures with modeled widths ranging from 1.5 to 12 metres, but typically within the range of 2.5 to 7 metres and is open at depth. Gold is associated with quartz-sulphide veins and disseminated sulphides within a 50 metre wide, northeast-southwest trending shear zone located predominantly in Archaean age amphibolites, banded ironstones and talc schists. Correlation of the sub-vertical lithologies is facilitated by the thin banded ironstone units that form well defined markers. Mineralisation is sub-parallel to lithology and consists of predominantly unweathered sulphide material. Preliminary metallurgical testwork on the sulphide mineralisation suggests that recovery levels in excess of 90% may be achievable (see press release August 27, 2007).

The in situ mineral resource estimate at a plus 1.8 g/t Au cut off was undertaken by independent consultant, SRK Consulting (UK) Ltd ("SRK"), using robust three dimensional interpretations with grade interpolation carried out using Ordinary Kriging. The cut off grade reflects modeling parameters suitable for underground mining. The estimates have been prepared under the guidelines of National Instrument 43-101 and accompanying documents 43-101.F1 and 43-101.CP.



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Category Tonnes Grade Contained Gold
(million) (g/t Au) (oz)
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Indicated Mineral Resource 0.37 9.1 110,000
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Inferred Mineral Resource 3.10 4.3 435,000
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The Komahun Gold Project lies within the Nimini Hills licences which are 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.

This press release has been reviewed by an in-house qualified person, Dr. Jonathan Forster, Fellow of the Institute of Materials, Minerals and Mining in the United Kingdom; Independent SRK consultant Mr. Martin Pittuck, MSc, C,Eng, MIMMM, Principal Resource Geologist is a Qualified Person under the National Instrument 43-101, and is responsible for the Komahun Gold Project mineral resource estimate.

About AXMIN

AXMIN is a Canadian exploration and development company with a strong focus on central and west Africa. AXMIN's goal is to rapidly move its Passendro Gold Project in the Central African Republic towards production. AXMIN is positioned to grow in value as it develops its project pipeline in parallel pursuing new opportunities to increase its asset base. For more information regarding AXMIN visit our website at www.axmininc.com.

This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of AXMIN, 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 are disclosed under the heading "Risk Factors" and elsewhere in AXMIN documents filed from time-to-time with the TSX Venture and other regulatory authorities. AXMIN disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • AXMIN Inc.
    Mario Caron
    President & CEO
    (416) 368-0993 ext 223
    or
    AXMIN Inc.
    Judy Webster
    Manager Investor Relations
    (416) 368-0993 ext 221
    Email: ir@axmininc.com
    Website: www.axmininc.com