AXMIN Inc.: Reverse Circulation Drilling Confirms Kofi South Discovery, Kofi Project, Maliadmin
Wednesday, August 9th 2006
AXMIN Inc. is pleased to report that a follow up reverse circulation (“RC”) drilling program has confirmed the continuity of potentially economic grades and widths of gold mineralisation over at least 1,000 metres of strike length within the previously announced Kofi South gold mineralised structure, within the Loulo area of Mali. The 1,000 metre long mineralised structure remains open at both ends and at depth, in addition there are parallel structures all of which lie within the 5,000 metres Kofi South anomaly. Results include 6.3 g/t Au over 15 metres, 2.9g/t Au over 25 metres, 2.4 g/t Au over 25 metres, 2.7 g/t Au over 15 metres, 4.3 g/t Au over 9 metres and 13.1 g/t Au over 7 metres.
The 4,240 metre RC drilling program targeted a single structure identified from the previously reported shallow rotary air blast (“RAB”) program over the central 1,000 metre section of the 5,000 metre long Kofi South prospect. RC drill holes were set on fences 80 metres apart, and were completed to vertical depths of about 60-70 metres. A number of the follow up holes successfully tested the structure to 90-100 metres vertical; however, the deeper drilling part of the program was terminated early due to the onset of the rainy season and will be completed later this year.
The main mineralised zone has now been confirmed on each section over the full length of the tested structure, with typical grades of potentially economic width and strength. On the basis of the drilling to date the mineralisation appears to have a true thickness of 10-15 metres over much of its length with swellings locally to 30 metres or more. The mineralisation is associated with disseminated and fracture hosted sulphides, within a sub-vertical structure that lies at the contact between massive quartzites and finer grained greywackes and phyllites.
In addition the previously announced RAB drilling (see press release June 27, 2006) indicated that several parallel gold mineralised structures exist over a strike length of at least an additional 1,000 metres to the south of the zone reported above. The first RC and core holes set to test this southern extension, some 700 metres to the south, returned intercepts of 1.2 g/t Au over 40 metres (RC hole KSC 535), 10.8 g/t Au over 2.3 metres and 17.2 g/t Au over 4.0 metres (both from core hole KSD 86). Initial interpretation suggests that these are separate structures indicative of a powerful and substantial mineralised system with similarities to the immediately adjacent Loulo property of Randgold Resources Limited. Moreover, one drill hole (KSC 516) tested a separate structure, located about 140 metres west of the main structure and returned an intercept of 28.5 g/t Au over 5 metres, from a down hole depth of 50 metres. This hole lies within the 200 ppb Au surface geochemical signature and is unconstrained to the north and south.
Chief Executive Officer, Dr Jonathan Forster comments “The results from the RC drilling program are extremely encouraging, not only by confirming the continuous nature of gold mineralisation at depth along this substantial structure, but also by highlighting the excellent upside potential from both parallel structures and the equally long zone immediately to the south. In addition, by analogy with the style of gold mineralisation identified by AXMIN at Kofi SW Zones B and C, it is possible that we will see similar “pinch and swell” structures through this extensive zone which may comprise broad zones of 100-200 metres strike length with strong grades. Indeed some of our drilling to date may well have already snagged such zones. The next round of drilling planned for later this year will both infill and expand our knowledge of this substantial discovery by drilling the full 2,000 metres strike length of the anomalies defined by our RAB drilling. In conjunction with the previously announced resources this drilling has the potential to make a major contribution to our continuing resource growth at Kofi Project.”
Grade calculations are based on a 0.5 g/t Au lower cut off to define the mineralised structure, with no upper cut. Analytical work is being carried out at the independent Abilab Laboratories Ltd. in Bamako, Mali. The drill samples are subject to a full sample preparation followed by a 50 gram fire assay with an AA finish. Blanks, standards and duplicates are being used to monitor laboratory performance during the analysis. The majority of the drill results represent 5 metre composite samples of 1 metre intervals collected at the drill rig. Assay of individual one metre samples in mineralised zones is in progress. This press release has been reviewed by 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 www.axmininc.com.
Safe Harbour Statement
Certain statements contained herein, as well as oral statements that may be made by the company or by officers, directors or employees of the company acting on the company’s behalf, that are not statements of historical fact, may constitute “forward-looking statements” and are made pursuant to applicable and relevant national legislation (including the Safe-Harbour provisions of the United States Private Securities Litigation Reform Act of 1995) in countries where AXMIN is conducting business and/or investor relations. Forward-looking statements, include, but are not limited to those with respect to the price of gold, the estimation of mineral reserves and resources, the realization of mineral reserves estimates, the timing and amount of estimated future success of exploration activities, AXMIN’s hedging practices, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risk, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “does not expect”, “is expected”, “budget”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or equivalents or variation, including negative variation, of such words and phrases, or state that certain actions, events or results, “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and ore densities or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, delays in obtaining government approvals or financing or in completion of development or construction activities. Although AXMIN has attempted to identify important factors
that could cause actual actions, events or cause actions events or results not to be anticipated, estimated or intended, there can be no assurance that forward looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Except as may be required by applicable law or stock exchange regulation, the company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements.
A Map of the Kofi South Geological Interpretation can be viewed on CCNMatthews’ website at http://www.ccnmatthews.com/docs/kofi%20south.pdf.
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Contacts: 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)
Source: Axmin Inc.