AXMIN Inc.
TSX VENTURE : AXM

AXMIN Inc.

June 29, 2011 16:14 ET

AXMIN Inc.: Phase I Drilling Program Indicate Open Pit Potential at Komahun Plus Promising Early Stage Results at Western Zone

TORONTO, ONTARIO--(Marketwire - June 29, 2011) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to announce further results from the Phase I drilling program (10 holes), which consisted of 34 holes (5,077 metres), plus new trenching results at its 100% owned Nimini Licences in Sierra Leone. Both the drilling and trenching results confirm the potential for near-surface economic gold mineralisation at Komahun and strengthen the possibility that the deposit is open along strike to the east and down dip. In addition, the newly discovered Western Extension, Hole NWKD 193, intersected 3 metres of 2.01 g/t Au close to surface and confirms the project upside for near-surface mineralisation in this area.

President and CEO of AXMIN, Mr. George Roach, comments, "Komahun continues to surprise us with more than 35 g/t Au over 10 metres in surface trenching and good results from the near-surface drilling, indicating the potential for open pit resources at the Main Zone. We are very pleased with the positive results of our initial phase of drilling and if the trend continues in the next phase of drilling we will expect to see an increase in resources at the Main Zone and be in position to further define the project upside at both the Western Extension and Sendekor prospects."

Komahun contains an 110,000 ounce measured and indicated resource, 0.4 Mt with an average grade of 9.1 g/t Au, plus a 435,000 ounce inferred resource, 3.1 Mt at an average grade of 4.3 g/t Au. The next phase of drilling, planned to re-start in the fall will focus on depth extensions at Komahun Main Zone, potentially further defining the Western Zone and exploring the large Sendekor prospect. The Sendekor prospect, located 4 km to the southwest of Main Zone is defined by a banded iron stone formation ("BIF"), elongated geochemical anomaly (+60 ppb) and pitting over a 2.8 km length. It is expected that the Company will initiate a resource update in the first quarter of 2012.

Drilling Details

The Main Zone was investigated with 15 core holes (one repeat) for 2,556 metres, drilled to both tighten the spacing between some of the previous intersections and to continue to explore the eastern strike and down dip extensions of the deposit. Near-surface results include Hole NWKD 196, which intersected 12 metres of 3.07 g/t Au from surface and confirms and enhances the strong mineralisation observed close to surface in Hole NWKD195a and NWKD 195b (see press release June 1, 2011). These results combined with the recent trenching results, which include 35.48 g/t Au over 10 metres in trench AX101 and 3.73 g/t Au over 10 metres in trench AX100, suggest that open pit resources at Main Zone could be uncovered as drilling continues in the fourth quarter.

In addition, Hole NWKD 202 intersected 3.01 metres of 2.09 g/t Au at shallow depth, which continues to indicate the potential that the deposit remains open along strike to the east. More drilling will be required in a next phase to better understand this hypothesis.

The Western Extension, located approximately 500 metres northwest of the Komahun Main Zone, defined by a northeast-southwest trending gold in soil anomaly approximately 500 metres along strike, has been investigated by a series of pits and trenches. During this phase of drilling, the zone was tested by 17 shallow core holes for 2,242 metres along 500 metres of strike. In the newly discovered Western Extension, Hole NWKD 193 intersected 3 metres of 2.01 g/t Au close to surface and confirms the potential for near surface mineralisation in this area.

All intersection lengths reported in this Press Release are core length. See attached map for locations of drill holes, and refer to the tables below for trenching and drill assay results.

To view the map associated with this release, please visit the following link:

http://media3.marketwire.com/docs/axminmp.pdf

Main Zone Trench Results
TrenchLength
(m)
UTMEUTMNAzimuth
(deg)
From
(m)
To
(m)
Interval
(m)
Gold
(g/t Au)
AX10031262358949842140029291.34
including1020103.73
AX10163.52623509498781401.025.025.014.47
including8.018.01035.48
Drill Results Table
HoleEOH
(m)
Dip
(deg)
Azimuth
(deg)
From
(m)
To
(m)
Interval
(m)
Gold
(g/t Au)
Comments
Main Zone
NWKD195b167-62320111.15115.24.050.9Infill
NWKD196116-553201.013.012.03.07Infill
including2.57.55.07.07
and79.081.252.252.39
NWKD199251-66320244.35248.54.152.99Infill
NWKD 200284-66320161.0164.73.71.96Infill
NWKD204263-60320146.4159.312.91.1
and174.0176.82.86.58
Main Zone – Eastern Extension
NWKD201154-45320102.5103.81.54.4840m east extension
NWKD202116-46.532084.487.53.12.09
Western Extension
NWKD192149-4514026.429.12.71.17
NWKD193182-4514047.03.02.01
NWKD194137-45140102.9105.32.43.49

Quality Control Procedures and Qualified Persons

All soil samples were sun dried and sieved to collect a 150g sample of less than 180 micron diameter grains at AXMIN Nimini exploration camp and sent to independent ALS Labs Bamako (Mali) for assaying.

All drill holes were collared in HQ diameter size and width was reduced to NQ size core with depth, at angle varying from -45 to -70. Recuperation within the clayish lateric section varied from 50 to 70%, while in the saprolite and hard rock, recuperation was usually better than 95%. The HQ and NQ core is measured by AXMN geologists at the Nimini camp and then split into 2 halves. Half the sample is sealed and sent to Kankan Guinée accompanied by an AXMIN geologist and handed over to an ALS representative. The half split core sample in Bamako is crushed and pulverised to 200 mesh (80 micron) and a 50 gram split is analysed by fire assay with an AA finish. Blanks, standards and duplicates are being used to monitor laboratory performance during the analysis.

This press release has been reviewed by an in-house qualified person, François Auclair, M.Sc., AXMIN VP Exploration, Member of the Ordre des Géologues du Québec and Fellow of the Geological Association of Canada, Qualified Person under the National Instrument 43-101.

About AXMIN

AXMIN is a Canadian exploration and development company with a strong focus on central and West Africa. AXMIN has projects in Central African Republic, Mali, Mozambique, Sierra Leone and Senegal. AXMIN is positioned to grow in value as it progresses its Passendro Gold Project towards development and builds on its project pipeline focusing on transitioning from an explorer to producer. 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 future plans and objectives of AXMIN; and statements regarding the ability to develop and achieve production at Passendro, to revalidate the BFS and to satisfy the terms of the Mining Licence as negotiated, 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 have been disclosed under the heading "Risk Factors" and elsewhere in AXMIN's documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities. AXMIN disclaims any intention or obligation to update or revise any forward-looking statements whether resulting from new information, future events or otherwise, except as required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • AXMIN Inc.
    George Roach
    President & CEO
    Direct T: +44 779 626 3999

    AXMIN Inc.
    Judy Webster
    Manager Investor Relations
    416 368 0993 ext 221
    ir@axmininc.com
    www.axmininc.com