November 22, 2006 10:33 ET

AXMIN Inc.: Passendro Gold Project, Central African Republic

New High Grade Structures Identified Feasibility Study Update

TORONTO, ONTARIO--(CCNMatthews - Nov. 22, 2006) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to provide an update on the feasibility study at the Passendro Gold Project in the Central African Republic ("CAR"), where engineering and environmental studies have progressed on schedule and over 40,000 metres of reverse circulation and core drilling has been completed on infill, extensional and sterilisation programs. As part of this, a deeper drill program is in progress on the Main Zone prospect with the objective of testing newly recognized higher grade gold bearing structures below the base of the currently planned pit floor. Results to date from this deeper drill program include 11.9 g/t Au over 12 metres, 7.0 g/t Au over 10.5 metres, 5.3 g/t Au over 6 metres and 3.0 g/t Au over 9 metres.

Chief Executive Officer, Dr Jonathan Forster comments "The feasibility study is progressing well, with no untoward issues identified to date. The detailed infill drilling that we have undertaken since the commencement of the feasibility study has been essential for planning purposes and has proved extremely valuable in resolving the controls on gold mineralisation. One result of this detailed feasibility drilling is that we have defined high grade gold bearing structures in the Main Zone. The Main Zone already contains 36% of Passendro's 1.1 million ounces of gold in probable reserves (being 13.74 Mt assaying 2.6 g/t Au (announced May 10, 2006)) even though the reserves in this area are contained in pits constrained mainly to a depth of less than 60 metres by the absence of prior deeper drilling. Selective mining of these structures could potentially permit us to substantially deepen the planned pit. The initial results from a new deeper drilling program are very encouraging and suggest we may indeed be able to selectively mine the very extensive Main Zone at a higher grade than previously reported and to a much greater depth than previously modeled."

The feasibility study has so far addressed transport and logistic details for mine development and supply, whilst core drilling has generated samples for metallurgical testwork which is being undertaken at the SGS-Lakefield facility in South Africa. The location of the process plant has been finalised and condemnation drilling has been successfully completed. A review of power sources has identified a proposed third party hydro-electric project located some 270 km to the south with plans for power generation approximately in line with the development schedule at Passendro. A letter of intent for power take-off has been signed with the project developers, although studies will continue in parallel on alternative standalone power supplies.

The draft terms of reference ("ToR") for the Environmental Impact Assessment ("EIA") have been prepared following conclusion of the baseline dry and wet season studies and in conjunction with ongoing socio-economic studies. The ToR will be submitted to the CAR government shortly.

Core and reverse circulation drilling has focused on the necessary infill programs, primarily at the Main Zone, Bacanga Head, Katsia and Barbacoa prospects. The Main Zone has previously been regarded as a shallow low-grade bulk mining proposition with an average grade of 1.93g/t. Au. However close-spaced drilling to vertical depths of 40-50 metres which has now been completed on 20 metres centres over 1,500 metres of strike length, within a corridor of width 300 metres has highlighted the presence of a higher grade (weighted drill average of about 3.5 g/t Au) footwall structure, with a dip of about 45 degrees towards the southwest, over a strike length of nearly 1,000 metres, as well as a series of higher grade hanging wall structures with individual strike lengths ranging from 150 to 300 metres. This new information indicates the alternative proposition of mining to much greater depth at a higher average grade with a potentially significant increase in the total reserve for this area.

Exploration to extend the known deposits and to test new areas has continued and will be reported on completion of the feasibility study planned for mid-2007.

The following table contains initial drill results from the deeper levels of Main Zone:

Total North East Azi- Dec- Inter- Grade
Hole Depth Co- Co- muth lin. From To val (g/t
No. (m) ord ord (deg) (deg) (m) (m) (m) Au)
Footwall Structure
PDC196 93.8 10520 10185 036 -65 69.1 78.1 9.0 3.0
PDC197 90.1 10560 10185 036 -65 55.6 60.1 4.5 8.1
and 76.6 82.6 6.0 5.3
PDC198 95.5 10600 10185 036 -65 70.7 81.2 10.5 7.0
incl 76.7 81.2 4.5 10.6
PDC273 104.2 9960 10140 036 -65 51.7 54.7 3.0 1.9
and 77.2 78.7 1.5 3.4
and 84.7 87.7 3.0 2.9
PDC323 111.2 10480 10180 036 -65 69.3 81.3 12.0 11.9
incl 76.8 81.3 4.5 29.1
Hanging Wall
PDC200 93.1 10620 10020 036 -65 82.7 93.1 10.4 2.6
PDC267 108.5 10120 9950 036 -65 56.0 63.5 7.5 2.1
and 66.5 83.0 16.5 1.4
PDC268 90.5 10200 9990 036 -65 68.1 74.1 6.0 2.2
PDC269 117.6 10160 9980 036 -65 50.1 59.1 9.0 1.5
PDC271 101.0 9980 10050 036 -65 41.0 53.0 12.0 2.0
and 60.5 63.5 3.0 3.1
PDC272 104.4 10020 10050 036 -65 81.6 87.6 6.0 1.6
PDC274 141.4 10160 10050 036 -65 84.5 98.0 13.5 1.1
PDC275 90.5 10480 10000 036 -65 56.0 59.0 3.0 4.1
PDC322 116.0 10400 10097 036 -65 57.5 59.0 1.5 1.3
and 89.0 92.0 3.0 3.5
PDC324 119.2 10480 10055 036 -65 61.9 63.4 1.5 4.8
and 118.2 119.2(i) 1.0(i) 3.2
(i) Hole ended in mineralisation

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

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)