AXMIN Inc.
TSX VENTURE : AXM

AXMIN Inc.

November 01, 2011 09:54 ET

AXMIN Signs Drilling Contract for Initial 5,000 Metre Program; Satellite Image Study Commissioned in Q2 2011 Delineates New Target Areas Along Bambari Greenstone Belt

TORONTO, ONTARIO--(Marketwire - Nov. 1, 2011) - AXMIN Inc. (TSX VENTURE:AXM) ("AXMIN" or the "Company") is pleased to announce its wholly-owned subsidiary in the Central African Republic ("CAR") has signed a drill contract with Compagnie Geofor Afrique of Cameroon for an initial 5,000 metre drill program. The core rig is being mobilized to site from Douala, Cameroon and AXMIN expects to begin the program in 4Q 2011. In addition, results from a comprehensive litho-structural study via satellite image analysis over the Company's wholly-owned 1,270 sq km gold exploration and mining permits delineated several regions, previously unexplored, along the Bambari belt that display geological conditions analogous to those hosting the Passendro gold deposits (see map below). AXMIN plans to further explore these areas on the ground and it is expected that they will generate drill targets to be tested in the first half of 2012.

President and CEO of AXMIN, Mr. George Roach, comments, "The funds AXMIN received from the partial divestiture of its Sierra Leone assets helped the Company to continue to focus its resources towards exploration at the Passendro Gold Project in CAR as well as the finalization of the debt facility negotiations. We are particularly encouraged by the latest Satellite Image Analysis that reinforces our belief that Passendro is not the only deposit along the 90 km Bambari greenstone belt that AXMIN controls but rather indicates that we are dealing with a gold district with the potential to be as prospective as the neighbouring belts in the DRC and Tanzania.

Our priority with the first 5,000 metre phase of drilling is to expand our reserve and resource base at Passendro. With focused drilling on data gaps, we hope to close out open-ended mineralisation and mineralised targets, potentially simplifying and combining open pits. It is our goal to ensure that the first three-year production rate of 205,000 ounces per annum at a cash cost of US$437/oz (see news release dated January 31, 2011), will be maintained for the life of the mine."

VIASAT – Satellite Image Analysis

The study was completed by VIASAT GeoTechnologies Inc. of Montreal, Canada. The objective of the study was to identify areas that display geological conditions that are similar to those hosting the Passendro gold deposits that were previously unexplored or underexplored by AXMIN. With the difficulty of access to parts of the permits, remote sensing methods allow for a rapid prioritisation of target areas and thus acceleration of the exploration process. These new areas are in addition to the known gold targets that AXMIN's previous exploration work has identified and will also be subject to drilling in the future.

The satellite image study was based on structural and lithological interpretations using Landsat 7 satellite imagery as well as the higher resolution (5 m) RapidEye images, and the Shuttle Radar Topography Mission digital elevation model. Previously acquired data (airborne magnetic survey, geological mapping, and soil geochemistry) were integrated with the satellite imagery to assist interpretation.

The study has improved AXMIN's understanding of the structure of the Bambari greenstone belt; and, in particular, it has traced extensions to major features (such as the Katsia Fault) with known association to gold mineralisation. Using spectral band analysis to resolve major lithological contrasts, a banded ironstone formation ("BIF") signature was recognised that suggests its presence in areas where it had not previously been mapped. This is noteworthy since BIF is known to be intimately associated with gold mineralisation in the Passendro area.

The satellite image study has highlighted a number of locations on AXMIN's permit area [see Figure 1] with strong gold potential that remain substantially or totally unexplored. There are additional areas where the image data is not as definitive but which also warrant examination. The most promising areas are:

  • Probable BIFs previously undocumented in the far north of the permit where geological mapping and airborne magnetic coverage are incomplete. This region (75 km2) is bounded by two thrust faults in the style of the Katsia Fault and extensive artisanal alluvial gold mining is reported
  • Two areas (total 100 km2) in the north central part of the permit with limited soil geochemistry coverage. They are transected by two major thrust faults parallel to and west of the Katsia Fault. Flexures on the two faults, together with a high fracture density, may represent zones of enhanced permeability for mineralising fluids
  • An area (35 km2) located in the central part of the permit some 15 km southeast of the Passendro deposits. The area contains soil geochemical anomalies that have only partially been tested. This region is favourably located on splays from the Katsia Fault.

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 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.

To view the Map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/BambariBelt.pdf.

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