AXMIN Inc.
TSX VENTURE : AXM

AXMIN Inc.

July 13, 2011 12:42 ET

AXMIN's Senegal Joint Venture Continues to Intersect High Grades at Gora;

Plus Drilling Confirms Potential for Second Regional Deposit at Toumboumba

TORONTO, ONTARIO--(Marketwire - July 13, 2011) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to announce that Teranga Gold Corporation (TSX:TGZ) ("Teranga"), formerly Mineral Deposits Limited, has released an exploration update on AXMIN's Senegal Permits, which are the subject of a joint venture between Teranga and AXMIN. Complete results of the exploration program can be found on Teranga's website at www.terangagold.com. Highlights of the release include:

  • Gora Deposit – drilling continues to return highly mineralised intersections – with the resource remaining open in all directions, results include 4 metre at 34.1 g/t Au, and 4 metres at 23.2 g/t Au.
    • A ground induced polarization ("IP") survey completed in June has delivered additional anomalies for further follow-up drilling.
  • Toumboumba Prospect - reconnaissance drilling has confirmed the potential for a new discovery of a second regional deposit at Toumboumba, where drilling continues to return ore-grade intersections.

Gora Project (Sounkounkou Licence, located 22 km northwest from Sabodala Mill)

High-grade drill intersections continue to expand the potential footprint of the deposit, while a recently completed IP survey has revealed additional anomalies along strike and parallel to the current resource which are targeted for follow-up drilling. Teranga is running a number of processes in parallel to efficiently develop Gora as quickly as possible, including the ongoing exploration program, permitting and feasibility level economic analysis with the objective of having production as early as late 2012.

The exploration program continues to expand this high-grade deposit. The current drill program, scheduled to be completed this summer, is expected to test for the limits of the Gora vein system along strike and at depth and include sufficient close spaced drilling to understand the short range variability of the gold grades within the deposit. Follow-up drilling to test the IP survey anomalies located both along strike and parallel to the current resource will require an expansion of the ongoing exploration program.

Toumboumba (Sabodala NW Licence located 10 km northwest of Sabodala Mill)

Toumboumba is the Company's latest discovery with potential to become the second regional deposit processed through the Sabodala Mill. The new discovery, located on AXMIN's Sabodala NW permit, is largely covered by a laterite plateau with little to no outcrop. The original rotary air blast ("RAB") program, which began in April, has been expanded to encompass the entire structural domain that may host similar styles of mineralisation. The expanded program also provides additional lines that are optimized to the mineralised structural trends. To date, 927 holes for 40,000 metres have been completed on nominal 100 x 50 metre grid. The current program will require a further 155 RAB holes for an estimated 6,200 metres which Teranga expects to complete by August.

Assays for a large number of drill holes are currently pending. However, results to date have identified a series of north-south trending targets that are related to quartz veining and alteration hosted within a granitic intrusive body (Figure 1). As results are received additional target trends are being identified, expanding the exploration potential at Toumboumba. Of the latest assay results 27 RAB holes returned significant intersections over 0.5 g/t Au including:

  • 2m @ 6.65 g/t Au from 16m from SNWRB0230
  • 4m @ 6.06 g/t Au from 8m from SNWRB0299
  • 2m @ 32.87 g/t Au from 38m from SNWRB0314
  • 3m @ 6.34 gpt Au from 30m from SNWRB0386

In addition, 51 RAB holes returned intersections in the gold anomalous range (0.1 g/t Au to 0.5 g/t Au). The targets identified by the RAB program are the subject of the current reverse circulation ("RC") drilling program.

To date, 33 RC holes (5,400 metres) have been completed, testing five north-south trending target zones defined by RAB drilling and historic surface gold geochemistry. RC drilling continues to return wide auriferous zones associated with hematite-carbonate-quartz alteration. Significant results to date include 11 metres at 5.18 g/t Au, 6 metres at 2.68 g/t Au and 3 metres at 17.15 g/t Au. A further 10 holes are planned to complete the preliminary testing of these trends.

The Company believes that at a minimum, Toumboumba could contain a near surface oxide resource, that may have potential for heap leach gold extraction. Significant upside remains at depth, which requires deeper drilling so that the oxide mineralisation can be better traced into fresh bedrock. If the near surface mineralisation continues at depth and can be confirmed in the other target zones, Teranga believes that Toumboumba could become a significant deposit for the Company.

This press release has been reviewed by François Auclair, M.Sc., PGeo, AXMIN VP Exploration, Member of Ordre des Géologues du Québec, Fellow of Geological Association of Canada.

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.

To view Figure 1: Toumboumba Prospect and RC holes completed to date, please visit the following link:

http://media3.marketwire.com/docs/Toumboumba.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