April 10, 2006 04:30 ET

AXMIN Increases Indicated Category Resources By 44% at Passendro Gold Project, Central African Republic

TORONTO, ONTARIO--(CCNMatthews - April 10, 2006) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to announce that it has increased and upgraded the indicated resources at the Passendro Gold Project to 1.54 million ounces grading 2.6 g/t Au, of which some 77% lies within the oxide zone. At the same time the inferred gold resources have been largely maintained and now comprise 1.04 million ounces grading 2.0 g/t Au. Included within the indicated resource is over 750,000 ounces in the Katsia and French Camp deposits which grade in excess of 3.6 g/t Au and would be the preferred feed for the first several years of production. The Passendro Gold Project is located in the centre of the Bambari greenstone belt within the 100% owned Bambari-Bakala Permits, Central African Republic. The updated resource estimate, prepared by independent consultants SRK Consulting ("SRK"), was based on drilling that focused primarily on building ounces in the indicated category.

The ongoing pre-feasibility study for the Passendro Gold Project, expected to be completed by the end of April, will use these revised resource numbers which include results of assays that were available up to late December 2005. Drilling has continued since that time and will continue throughout 2006 with the objective of defining at least 2 million ounces of similar or better grade in the indicated category from the surrounding drill targets already identified. The definitive feasibility study, which began in January 2006, is scheduled for completion in early 2007 and will include resources defined up to at least December 2006. To date only the central 10 km of the 120 km greenstone belt included in AXMIN's permits have been drill tested. Over 14 geochemical anomalies are currently identified along this strike length the closest of which is Ndassima, currently the subject of exploration drilling.

Chief Executive Officer, Dr Jonathan Forster states "With a substantial indicated resource now available AXMIN will be pushing forward with the feasibility study targeting an increased production profile that we anticipate may rise to 200,000 ounces per annum. The geological team has done a great job of delineating a 1.54 million indicated and 1.04 million inferred resources at the Passendro Gold Project from first discovery in very short time. This is a very extensive greenstone belt comparable in length to Golden Star's Mampon-Prestea belt or to Newmont's Ahafo belt both in Ghana where similar widespread and multi-pit resources are feeding a central plant. As we continue to define resources within the very significant and extensive anomalies around the Passendro Gold Project we expect that the life and size of the development may be substantially increased."

CAR Exploration Update

AXMIN continues with its aggressive drilling campaign in 2006, drilling non-stop with its six wholly owned drill rigs (3 core, 2 reverse circulation ("RC") and 1 rotary airblast ("RAB")), to be augmented shortly by a man-portable core rig. Two core rigs and one RC rig are dedicated to the reserve infill drilling at Passendro for the definitive feasibility study. Meanwhile one RC rig and one core rig are scheduled for follow up exploration drilling at the Ndassima grid which has been accelerated to ensure that any possible resources can be defined in time to be included within the definitive feasibility study. The RAB rig will focus on exploring other gold anomalous targets along the Bambari greenstone belt with the intention that this will allow more rapid and precisely targeted follow up exploration using angled RC and core drilling.

In addition drilling is underway on AXMIN's recent discoveries at the Pouloubou Permit with initial assays expected later in April 2006.

The detailed summary statement of mineral resource estimate for Passendro is as follows, with the cut off grade taken at 1.2 g/t Au except at Main Zone where the distribution of mineralisation and the high recoveries indicated for heap leach processing warrant a 0.8 g/t Au cut off:

Passendro Gold Project - Mineral Resource Table, April 2006

Indicated Mineral Inferred Mineral
Resource Resource
Tonnes Grade Ounces Tonnes Grade Ounces
Mt g/t Au Au Mt g/t Au Au
Katsia Oxide 2.83 3.8 346,200 0.22 2.9 19,900
Sulphide 1.31 3.9 162,500 0.52 2.5 41,800

Zone Oxide 8.54 1.9 511,500 4.52 1.6 224,700
Sulphide 0.52 2.2 36,900 6.37 1.6 326,700

Camp Oxide 1.21 3.7 143,500 0.10 3.4 10,400
Sulphide 1.51 2.6 125,700 0.81 2.3 58,300

Bacanga Oxide 1.67 2.5 133,700 0.10 2.8 9,500
Head Sulphide 0.32 2.5 26,300 1.53 2.5 122,100

Baceta Oxide 0.50 2.5 39,600 2.10 2.5 168,800

Barbacoa Oxide 0.21 2.1 14,200 0.55 3.4 59,700

total Oxide 14.96 2.5 1,188,700 7.59 2.1 493,000
Sulphide 3.66 3.0 351,400 9.23 1.9 548,900

Total 18.62 2.6 1,540,100 16.82 2.0 1,041,900

The revised mineral resource estimate has been based on some 51,000 metres of RC and 11,000 metres of core drilling completed across the resource blocks, using assays that were available up to late December 2005. The mineral resource estimate has been compiled in accordance with National Instrument 43-101 by independent consultants SRK Consulting of the United Kingdom, under the supervision of Dr John Arthur (CGeol, CEng). SRK's report will shortly be available on the SEDAR website. All indicated resources were established from drilling on 40 metre fence spacings and to a maximum vertical depth of 120 metres, with higher grades reduced where appropriate using statistical methodology. SRK considers that the grade, continuity, and geometry of these estimates are such that there is a high likelihood that a substantial portion of the reported indicated mineral resources have the potential to be exploited economically.

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.

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

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
    +1 (416) 368-0993 (Canada)