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April 10, 2002


  • RC drill program discovers three separate gold zones
  • Gold mineralization occurs in zones up to 50 metres in true width
  • Intersections include: 5.5 g/t Au over 40 metres
        3.1 g/t Au over 40 metres
        2.4 g/t Au over 50 metres

    Toronto, Ontario – April 10, 2002 – AXMIN Inc. (AXMIN) (AXM-CDNX) is pleased to announce the discovery of three separate gold zones located between 2.5 and 7.5 kms from each other in the northern sector of the Kofi permit in western Mali. The discoveries follow the completion of a 7,000m reverse circulation (RC) drilling program undertaken between February and March 2002.

    AXMIN has earned a 65% interest in the permit (with the ability to increase its interest to 80%) from joint venture partner African Selection Mining Corp. (YAF.U-CDNX). The discoveries are within 15 kms and 30 kms respectively of the late stage Loulo (Randgold Resources Ltd.) and Tabakoto (Nevsun Resources Ltd., NSU-TSE) projects, both of which are undergoing feasibility study.

    AXMIN's three new discoveries together emphasize the increasing potential of the Kofi permit to host substantial gold deposits. Over 15 anomalous areas remain untested across the permit, with work to date demonstrating the close correlation between underlying gold-bearing structures with the overlying gold-in-soil anomalies.

    The results from the program are described below, although it should be noted that assay values quoted should be considered as preliminary as they are based on 5m composite samples collected in the first instance to define the zones of mineralization. A systematic reassay of the gold zones is now in progress using 1m samples.

    The three gold zones are:

    Kofi South West
    Zone B

    The target zone was previously defined by AXMIN in 2000 on a single drill fence across a north trending soil anomaly of size 350m x 150m (threshold 100ppb Au), the southern edge of which is defined by the permit boundary separating the Kofi permit from that of the Loulo permit of Randgold Resources Ltd. Much of the anomaly lies across a ferricrete plateau.

    A total of 2,300m have now been drilled on seven fences, set mainly at 40m intervals and which have demonstrated continuity of potentially economic mineralization over a broad width, extending on a northerly trend from the permit boundary (where it forms the extension to the “Baboto” zone of Randgold) for at least 350m. The mineralization is open to the north, where a subdued soil anomaly and scattered float blocks suggest that it may continue for at least a further 200m.

    Following delineation of the mineralized zone by the shallow drilling, four deeper holes were set on three fences 80m apart to confirm the extension of structure and grade to a vertical depth of at least 80m.

    The underlying geology is interpreted from mapping and drill chips to comprise a sheared sequence of tourmaline bearing quartzites, sandstones and graywackes with gold mineralization associated with the development of quartz-pyrite stockworks lying at and close to the contacts between the tourmaline quartzites and sandstones. The depth of oxidation lies at about 40m, with the water table identified at a depth of about 80m.

    Preliminary geological modelling suggests that the gold system comprises a sub-vertical, northtrending Main Zone of at least 350m length which is open to the north (open, but crossing the permit boundary to the south) from which splays at least two West Zones, each with a strike length of about 100m. Taking a 0.5 g/t Au cut off, the Main Zone has an interpreted true width ranging from 25-50m while the West Zones gradually decrease in width from 20m-35m down to 8m along their length. The mineralization carries higher grades in its core that can be traced along the length of the structures, with true widths estimated from 6-15m. See attached Figures 1 and 2.

    The results from the 5m composite samples are set out below. A number of intersections within the range of 5-10m at 1-2 g/t Au were also reported, but are not included here given the preliminary nature of the assays. A complete report will be provided once the data from the one metre samples is received.

    Kofi South West
    Zone C

    Zone C is located about 2.5 kms west of Zone B, and lies across a ferricrete plateau, where a transported soil anomaly of approximately 500m x 250m (100 ppb Au threshold) locally overlies the identified gold system. The underlying geology is similar to that of Zone B, comprising tourmaline quartzites and sandstones, with a preliminary interpretation from drill chips indicating that gold is associated with quartz-pyrite stockworks lying in and at the contact with the tourmaline quartzite.

    The system was first located by AXMIN on a single drill fence during the year 2000 program. Six drill fences have now been completed at intervals ranging from 40 to 120m, with the centre of the system covered by 40m fences. A total of 1,568m was drilled.

    Preliminary geological modelling of the gold mineralization indicates that it comprises a single lens with a strike length of about 160m, closed to the north and south. At its centre (0.5 g/t Au cut off), the lens has a maximum true width of about 40m. Two higher grade zones have been recognized within the lens over a strike length of about 100m. Drilling has so far tested the system to a vertical depth of only 30m.

    The full set of results from the 5m composite samples are set out below:

    Kofi South East

    The Kofi South East prospect lies about 7.5 kms east of Kofi South West Zone B and is defined by an area of 1200m x 1000m where at least three parallel N-S orientated soil anomalies (100ppb Au threshold) occur. The main anomaly is interpreted to overlie a major north-south structure, and has a strike length of 1200m. This has been partially tested on a reconnaissance basis by four drill fences, three of which are set at 200m intervals, and the most northerly set at 100m from the preceding fence. A total of 2000m was drilled with holes set to a vertical depth of 30m

    A new north-trending gold discovery has been made associated with the main anomaly. The gold mineralization identified on three fences set 200m apart (400m strike length) remains open to the south where soil anomalies suggest that the structure could extend for at least a further 400m.

    A preliminary interpretation indicates that the true width of the mineralized envelope (0.5 g/t Au cut off) ranges from 50m in the north to about 10m in the south, with the following mineralized intercepts (5m composite samples) on each line:


    The discoveries follow a systematic 7,000 m RC drilling program which commenced in February this year and targeted broad gold-in-soil anomalies. The program was initiated as a first pass reconnaissance tool, based on shallow (40m long) inclined (-50 degree) drill holes set at 20m intervals along east-west oriented drill fences. The style of the program enables broad zones of anomaly to be tested both rapidly and efficiently with holes overlapping so as to not leave gaps on any one section.

    The sampling methodology is also designed for rapid, efficient appraisal of the anomalies with drill samples collected at 1 metre intervals. Each sample was thoroughly homogenized and a 500 g sub sample split out using a riffle splitter before being mixed with four further samples from subsequent individual metre samples to give a composite 5m sample. This sample was subsequently reduced to 1 kg weight by further splitting. First pass analysis by 50 g fire assay was conducted at the independent Abilabs laboratory in Bamako, Mali where internal laboratory quality control procedures utilizing standards, blanks and the preparation of duplicates were undertaken.

    Once mineralized zones are defined, 1m samples are then collected from archived sample material across the gold bearing zones for re-assay using full, internal and external quality control procedures at Abilabs with check assays to be performed at the OMAC laboratory in Ireland. This part of the program is in progress and will be reported once all data has been received and collated.

    An independent qualified person, Mr. Colin Jones (Member of Australian IMM) of consultants Resource Service Group Ltd of Australia visited site during the drill program and reviewed both drilling and sampling techniques and has reported that the work was completed to a high standard.

    New Director Appointed

    Following the resignation of Michael Mills as a Director of AXMIN, the Board of Directors has appointed Michael Ebsary as a Director.

    Mr. Ebsary (aged 40), is a Canadian and British national. He graduated from Queen's University with an MBA in finance and accounting after having obtained a B.A. in Mathematics. After working in the retail banking sector in Canada with the Bank of Nova Scotia, Mr. Ebsary transferred to London and worked in the corporate banking team of the Bank of Montreal.

    In 1989, Mr. Ebsary joined Occidental Petroleum Corporation, in the treasury department, working primarily on structured finance for the U.K. North Sea and other areas in Asia. Following the sale of its North Sea assets by Occidental to Elf Aquitaine, Mr. Ebsary was named as Treasurer for Elf Enterprise PLC, a joint venture between Elf and Enterprise and thereafter as Treasurer for all of Elf’s upstream activities in the U.K. He was transferred to Elf’s head office in Paris in 1994 and was responsible for the project finance activities for Elf where the focus was primarily on financing the company’s African activities. Mr. Ebsary joined Addax Petroleum, the upstream arm of the Addax & Oryx Group, in 1999 as Chief Financial Officer and has recently been named as Chief Financial Officer for investments covering the upstream, downstream and mining activities of the group.

    The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

    For further information contact:

    Jon Forster
    Chief Executive Officer
    AXMIN Inc.
    T: (416) 368-0993/ +44-1233-665600
    F: (416) 368-8957 / +44-1233-643728
    E-mail: info@axmininc.com