AXMIN Inc.: Successful Definition and Infill Drilling Program and Discovery of Two New Zones Passendro Gold Project, Central African Republic
Tue Jul 29, 11:33 AMTORONTO, ONTARIO--(Marketwire - July 29, 2008) - AXMIN Inc. (TSX VENTURE: AXM.V) is pleased to provide an update on drilling activities completed through the first half of 2008 where the focus has been on further infill and extension drilling in the immediate vicinity of the Passendro Gold Project, Central African Republic, where a feasibility study has been completed on the 200,000 ounce per annum project (see press release April 2, 2008). This program also included exploration drilling at targets within haulage distance of the project. The highlights of the campaign include:
Exploration - New zone discovered at Mbourou East, with intersections including 3.4 g/t Au over 18.0 metres and 2.7 g/t Au over 10.0 metres. - New zone discovered at Yagba, with intersections including 6.8 g/t Au over 4.5 metres and 1.8 g/t over 9.0 metres. Passendro Gold Project - Main Zone mineralisation is extended another 500 metres to the northwest, intersections including 6.0 g/t Au over 6.0 metres, 1.3 g/t Au over 16.5 metres and 2.9 g/t Au over 4.5 metres. - Infill and definition of inferred resources within and proximal to the Main Zone pit with intersections including 11.6 g/t Au over 4.0 metres, 2.9 g/t Au over 10.0 metres, 52.7 g/t Au over 1.5 metres, 16.3 g/t Au over 1.6 metres and 2.3 g/t Au over 13.5 metres. - Potential unification of the two Katsia open pits with infill drilling on the intervening inferred resources, intersections including 40.0 g/t Au over 1.5 metres and 2.6 g/t Au over 10.3 metres. - Potential unification of the two Main Zone North pits with infill drilling, intersections including 9.2 g/t Au over 3 metres, 2.1 g/t Au over 11 metres, 4.8 g/t over 4.5 metres and 10.8 g/t over 1.5 metres. - The public consultation process for the draft Environmental and Social Impact Assessment ("ESIA"), as part of the Mining Licence application, has been completed and Golder Associates are incorporating the comments into the final document which will be issued next week. In parallel, AXMIN is continuing to negotiate with officials of the Central African Republic and we are confident that we will reach a satisfactory conclusion to ensure the granting of the Mining Licence in a timely manner. President and Chief Executive Officer, Mario Caron comments "We are encouraged that the drilling activities of the first half of 2008 will achieve the objective of expanding our near and in-pit resource base, with focused drilling on data gaps. This has the potential to simplify and combine open pit designs, thereby possibly reducing the overall stripping ratio. The new data will be remodeled at a later date. In addition, the more recent transfer of efforts to regional exploration is generating some early rewards, with two new mineralised zones already emerging. These and other promising zones along the belt will be the focus of AXMIN's next exploration campaign." Exploration Mbourou East; the prospect is located about 16 km to the east-southeast of the proposed Passendro plant site, and is initially believed to comprise a 400 metre long east-west structure defined by soil geochemistry (less than 50ppb Au threshold), a trench (1.6 g/t Au over 40 metres) and a 2,000 metre shallow reconnaissance reverse circulation ("RC") drill program, systematically completed on fences spaced at 40 metres and to vertical depths of about 30 metres. First assays demonstrate that a banded iron formation ("BIF"), intruded by granitic rocks, is host to gold mineralisation with potentially economic grades and widths. Assays from the RC program are listed below. A 500 metre core program has now been completed and assays are awaited. Yagba; the prospect is located about 10 km to the east-southeast of the proposed Passendro plant site and comprises a sequence of BIF and amphibolites that have been tested by 3 core holes (about 300 metres). The west-northwest trending gold mineralisation has to date been traced over a strike length of about 200 metres, and remains open in all directions. Gold mineralisation is hosted within silicification close to the contact between the BIF and amphibolite, with preliminary testing to a vertical depth of about 70 metres. Further results are awaited.
Hole North East Azimuth Declin. From To Interval Grade
Co-ord Co-ord (deg) (m) (m) (m) (g/t)
Mbourou East
MRC002 483942 676908 35 -50 0 4.0 4.0 4.6
MRC004 483920 676871 36 -50 23.0 27.0 4.0 1.2
MRC010 483929 676895 36 -70 0 6.0 6.0 1.1
MRC010 and 14.0 24.0 10.0 2.7
MRC015 483857 676912 38 -50 2.0 20.0 18.0 3.4
MRC016 484029 676893 37 -50 6.0 15.0 9.0 1.9
MRC017 483833 676882 38 -50 35.0 41.0 6.0 1.3
MRC017 and 44.0 49.0 5.0 2.0
MRC019 483843 676900 38 -50 17.0 35.0 18.0 1.6
MRC020 483982 676826 35 -50 30.0 32.0 2.0 0.7
MRC027 483787 676964 36 -50 2.0 5.0 3.0 0.5
MRC035 483995 676843 35 -70 10.0 29.0 19.0 1.0
MRC042 483559 676779 50 -50 12.0 18.0 6.0 0.8
MRC043 484090 676838 35 -70 16.0 18.0 2.0 4.5
MRC049 483651 676773 36 -50 20.0 25.0 5.0 5.4
MRC050 484186 676841 35 -50 14.0 19.0 5.0 0.9
MRC056 484023 676883 36 -50 24.0 30.0 6.0 1.0
Yagba
NDC016 475816 678432 64 -60 26.0 35.0 9.0 1.8
NDC017 475892 678384 62 -60 94.2 98.7 4.5 6.8
Intercept lengths are core lengths
Passendro Gold Project On April 2, 2008 AXMIN announced its feasibility study results which included a 12% increase in its reserves which now stand at a total proven and probable reserve of 16.8 million tonnes of ore at an average grade of 2.4 g/t Au containing 1.3 million ounces of gold. These numbers were derived from data collected up to June 2007. In addition to this figure and contained within the engineered pits is an additional inferred resource of 1.04 Mt grading 2.12 g/t Au containing 71,000 ounces of gold. This additional inferred resource is held predominantly within the French Camp, Katsia and Baceta pits and it is expected that with further work these resources will be added to the overall reserves. Main Zone Approximately 11,000 metres of drilling (6,200 metres core, the balance RC) has been completed. The program focused on the infill of inferred and unclassified mineral structures over a 500 metre strike length at the north western end of Main Zone (to extend Main Zone mineralisation over some 2,200 metres), as well as selective testing of mineralisation to vertical depths of typically less than 100 metres within and adjacent to the main pit outlines of the feasibility study. This and future programs are targeting the conversion of areas of inferred resources, as well as continuing the exploration of areas of limited drill coverage in the immediate vicinity of the pits with the objective of eventually adding mineable reserves (see the following link for full set of drill results: http://media3.marketwire.com/docs/axm0729.pdf). Main Zone North Approximately 2,100 metres of drilling (300 metres core) has focused predominantly on the 300 metre gap between the two Main Zone North open pits as outlined in the feasibility study. The objective was to outline suitable mineralised structures that may in the future enable the two pits to be combined. The drilling successfully identified several parallel structures, with a weighted average grade of intercepts 1.4 g/t Au over potentially economic widths. Main Zone South Approximately 1,800 metres of drilling (1,000 metres core) successfully focused on unclassified mineralised structures in the hanging wall of the pit outlined in the feasibility study, as well as infilling some of the inferred resources within and adjacent to the pit outlines. Drilling was successful with the weighted average grade of intercepts being 1.8 g/t Au over potentially economic widths. Katsia A 750 metre program (400 metres core) tested unclassified structures and inferred resources at the northern end of Katsia as well as within the "gap" area between the two pits outlined at Katsia in the feasibility study. The program was successful, in particular in confirming correlation of structures across the two pits, with hole no. PDC 421 identifying multiple structures, including assays of 40 g/t Au over 1.5 metres and 2.6 g/t Au over 10.3 metres. These results provide potential for the two open pits to be merged into a single pit in the future. The balance of inferred ounces at the Passendro Gold Project lie at relatively shallow levels beneath and along strike from the other mineralised zones, of which French Camp (1.8 Mt at 2.0 g/t Au for 115,000 ounces) and Baceta (2.6 Mt at 1.9 g/t Au for 155,000 ounces) represent the largest individual blocks. No further drilling has yet been undertaken for conversion purposes. Analytical work is being carried out at the independent OMAC Laboratories Ltd. in Ireland. The samples are subject to a full sample preparation followed by a 50 gram fire assay with an AA finish. Blanks (5%), pulp duplicates (5%) and a suite of Geostats standard reference material are being used to monitor sample preparation and laboratory performance during first pass analysis. Further QA/QC work is carried out on a quarterly basis. This comprises check assaying 20% of all greater than 500 ppb samples using prepped coarse reject samples at OMAC and a second laboratory. Check assay batches are also routinely monitored using 5% blanks, standards and pulp duplicates. 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. About AXMIN AXMIN, a gold and iron ore exploration and development company, offers dynamic growth with a track record of finding and developing mines in Africa. AXMIN is one of only a few companies of comparable or even larger size that has such a potential to develop multiple gold mines in central and west Africa. 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 potential mineralization and reserves, exploration results and future plans and objectives of AXMIN, 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 are disclosed under the heading "Risk Factors" and elsewhere in AXMIN documents filed from time-to-time with the TSX Venture and other regulatory authorities. ContactsMario Caron AXMIN Inc.
President & CEO
(416) 304-6608
Judy Webster
AXMIN Inc.
Manager Investor Relations
(416) 368-0993
Email: ir@axmininc.com
Website: www.axmininc.com
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