AXMIN Inc.
TSX VENTURE : AXM

AXMIN Inc.

June 01, 2011 10:21 ET

Initial Drilling at AXMIN's Komahun Project Indicate Resource Potential Upside

TORONTO, ONTARIO--(Marketwire - June 1, 2011) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to announce the initial results from the beginning of a proposed 10,000 metre core drilling program that is targeting resource expansion at its wholly-owned Komahun Gold Project in Sierra Leone. Of the first 34 holes (5,077 metres), 15 holes have targeted infill drilling and the eastern strike extension at the Komahun Main Zone, and 19 holes will focus on the newly discovered Western Zone, which is thought to be the faulted extension of the Main Zone. Initial results from infill drilling at Main Zone continued to deliver good grades and confirmed that the deposit is open to the east, results include, 6.08 g/t Au over 24.8 metres, and 3.53 g/t Au over 12.5 metres and 4.39 g/t Au over 13.5 metres. First results in the Western Zone, defined by a 500 metre southwest trending gold soil anomaly and trenching, include 17.33 g/t Au over 2.5 metres. Full results for this phase of drilling are expected shortly. All intersections lengths reported in this Press Release are core length, see attached map for locations of drill holes.

To view the map associated with this release, please visit the following link: http://media3.marketwire.com/docs/AXMmap61.pdf

President and CEO of AXMIN, Mr. George Roach, comments, "We are encouraged that the initial results of the drilling campaign confirm the resource upside potential that exists at Komahun. In line with previously announced plans to spin-off AXMIN's Sierra Leone assets into a publicly traded company, of which AXMIN will hold a controlling interest, we are pursuing an exploration program at Komahun to unlock the value of the asset held there. On completion of the spin-off, all funds advanced for the current exploration program at Komahun will be reimbursed to AXMIN, thereby allowing AXMIN to continue with its primary focus of developing the Passendro Gold project in Central African Republic."

Komahun contains 110,000 ounces measured and indicated resource with an average grade of 9.1 g/t Au, plus 435,000 ounces inferred resource at an average grade of 4.3 g/t Au. The next phase of drilling, planned to re-start in third quarter, 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 ridge ("BIF"), elongated geochemical anomaly (+60 ppb) and trenching over a 2.8 km length. It is expected that the Company will initiate a resource update in the fourth quarter this year.

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. Drilling continued to intersect good grades and has been successful in opening up the eastern strike extension of the Main Zone structure that was previously thought to be closed.

Drilling at Main Zone encountered typical Nimini type Banded Iron Formation ("BIF") contained within a sequence of amphibolites transitioning into the phlogopite schist footwall. Gold in the BIF and quartz veins often occurs as millimetres size flake and nuggets of free gold. Notwithstanding the excellent results, a series of samples are being reanalysed by screen fire assay.

HoleEOH
(m)
Dip
(deg)
Azimuth
(deg)
From
(m)
To
(m)
Interval
(m)
Gold
(g/t Au)
Comments
NWKD195a34-623201.025.824.86.08Infill
including1.08.57.519.06
NWKD195b167-623204.017.513.50.81Infill
and51.260.39.13.75
including52.055.63.68.28
NWKD197317-70320240.0252.512.53.53Infill, VG
including243.3246.02.75.28
including248.7251.22.55.98
and259.9269.59.63.11
including264.7269.54.85.52
and284.2301.717.51.47
including292.0294.22.23.49
NWKD198182-5732080.081.51.58.23Infill, twin hole
and143.0146.03.01.16
and158.0171.513.54.39
including167.0170.03.012.96VG
Eastern Extension
NWKD177154-45320143.5146.22.71.1840m east extension
NWKD178151-4532045.248.83.61.3340m east extension
and56.064.48.41.95
including56.058.02.02.16
including62.163.41.37.54
NWKD196,199, 200 & 204Results pending

The Western Structure is located approximately 500 metres northwest of the Komahun Main Zone and is defined by a northeast-southwest trending gold in soil anomaly approximately 500 metres along strike. The area was first uncovered during the 2009-2010 geological and geochemical programs and investigated by a series of pits and trenches. The zone was tested by 17 shallow core holes for 2242 metres along 500 metres of strike.

Drilling encountered various type of mineralisation including similar gold in quartz veins seen at the Main Zone, but also low grade gold mineralisation within the phlogopite schist. A number of mineralised zones which were uncovered will be followed up in the next round of drilling. The results of 2.34 g/t Au over 7.0 metres at the top of hole NWKD183 are contained within what appears to be a zone of angular to sub rounded quartz debris within auriferous lateritic clays.

The following results highlight the best results at from the Western Structure to date.

HoleEOH
(m)
Dip
(deg)
Azimuth
(deg)
From
(m)
To
(m)
Interval
(m)
Gold
(g/t Au)
Comments
NWKD182158-4514017.020.03.01.13Schist shear hosted
and150.5156.56.01.57Schist shear hosted
NWKD183107-5514007.07.02.34VG Quartz Vein
NWKD185152-45140118.5121.02.517.33VG Quartz Vein
NWKD191128-4514052.454.42.02.73Fault block offset
NWKD190-194, 205, 209 & 210Results Pending

Quality Control Procedures and Qualified Persons

All soil samples were sun dried and sieved to collect a 150g sample of < 180 μm 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
    T: 416 368 0993 ext 221
    ir@axmininc.com