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August 14, 2002


Toronto, Ontario – AXMIN Inc. (AXM-TSX Venture) is pleased to announce the results for its exploration activities in the second quarter and year to date 2002. During the quarter, exploration activities were focused on projects in Central African Republic, Mali and Burkina Faso. Exploration expenditure during the second quarter was US$592,000, contributing to a total of US$1,142,000 during the first half of 2002.


  • Initial results from RAB drilling program in CAR, identifies new gold zone and extends the Main Zone mineralisation along strike
  • Resource Service Group estimates inferred mineral resources of 1.44 Mt grading 2.3 g/t Au at Kofi Permit in Mali
  • Work commences on the joint development prefeasibility study with High River Gold Mines Ltd. for gold mining in Burkina Faso
  • Large new gold zones identified from soil sampling in Mali
  • Successfully completed Cdn$2.2 million brokered private placement
"Results from exploration both during the quarter and over the year to date have been very encouraging, and I believe that the Company has achieved what it set out to do when completing the reverse take-over of Asquith at the end of last year," said Dr. Jonathan Forster, Chief Executive Officer of AXMIN. "The Company’s well balanced portfolio of gold exploration projects is now taking shape, with a production opportunity in Burkina Faso, an inventory of strategic gold resources starting to be built in Mali and exposure to what is starting to look like an exciting gold belt in the Central African Republic."

CENTRAL AFRICAN REPUBLIC – Bambari Permit, Passendro Project Area
In June, a 4,000 metre rotary air blast ("RAB") reconnaissance drill program was completed, the focus being the extensive gold in soil anomalies that lie at or close to the sheared contacts between the Archaean banded ironstones and greenschists within the Passendro project area. These typically form the strike extensions of both the Main and French Camp zones. Assay results for the Main Zone area, announced on July 25, 2002, demonstrate that the area has excellent potential to host multi-million ounce resources, with three major targets currently identified within a 2 kilometre radius (Main Zone, French Camp and Katsia). Moreover, assay results are awaited from areas that represent extensions to the French Camp zone. With extensive gold anomalies also identified at the Ao, Ndassima and Louba project areas in geological terrain very similar to that of Passendro, management believes that the Bambari Permit has remarkable potential for development into an exciting new gold belt.

The recent program was undertaken using a highly mobile RAB rig that completed vertical holes to depths of 20-25 metres, with holes set at 20 metre intervals on lines spaced either 320 or 160 metres apart. It is recognised that gold content and width of structure will not be identified by using vertical drill holes to test sub-vertical structures; rather, the gold "halo" around the primary structure can be outlined. Previous use of this technique has proven to be an effective tool in tightly delineating gold mineralised structures for follow-up reverse circulation ("RC") and core drilling. In general, values of around 0.4 g/t Au or greater in vertical RAB drilling into saprolite appear to indicate the presence of gold bearing structures with excellent potential for economic widths and grades.

A substantial follow-up RC and core drilling program is planned to start early in 2003 to take advantage of the dry season in the Central African Republic, with the objective of commencing resource definition drilling.

In summary, the new discoveries are:

Katsia; located about 1 kilometre to the east-southeast of Main Zone. RAB drilling intersected strongly anomalous gold mineralisation in two corridors; an eastern corridor of between 40-100 metres width, over a strike length of 800 metres, and a western corridor of about 20-40 metre width over at least 320 metre strike. The mineralisation in both corridors lies parallel to contacts between banded ironstones and greenschists, with a quartz and tourmaline association. Soil geochemistry indicates the possibility that the mineralisation might extend for a total distance of 1,500 metres.

Main Zone, South Extension; a single RAB line set 320 metres southeast of what is the currently known as the southern extent of the Main Zone. A strongly anomalous zone of gold mineralisation was identified over a width of 140 metres indicating the probable extension of Main Zone. The RAB fence falls within a soil anomaly, which extends for an additional 400 metres to the southeast. If continuity of mineralisation is subsequently demonstrated between Main Zone and Main Zone South, and if the soil anomaly reflects the ultimate size potential, then Main Zone could have a possible total strike length of 2,300 metres.

Anomalous values were also obtained from short RAB drill fences testing the northwestern extension of Main Zone. Although results were not as clearly defined as those to the south, there remains good potential to identify new gold bearing structures for up to a strike length of 1,600 metres northwest of Main Zone.

Work during the second quarter focused on the evaluation of resources identified by the drilling undertaken during the first quarter at Kofi SW Zones B and C, as well as the completion of semi-detailed soil geochemical sampling and mapping programs on the Netekoto and Satifara permits.

Kofi Project Area
The work has identified the first resources to come out of the Kofi project in Mali. It is believed that given the large number of targets on the Kofi and Netekoto permits, AXMIN should be able to rapidly start growing the resource base.

Assaying of RC drill samples collected at 1 metre intervals from Kofi SW Zones B and C, as well as at Kofi SE closely replicated the initial results using 5 metre composite sampling. This 1 metre assay database was used by independent consultants, Resource Service Group Pty Ltd. ("RSG") from Australia, to estimate resources for Kofi SW Zones B and C. Under the supervision of the qualified person Mr Colin Jones (Member of the Institute of Australian Mining and Metallurgy) the following Inferred Resources at a 1 g/t Au lower cut off grade were reported, based on multiple indicator kriging. RSG prepared an estimation of the mineral resources only, not a mineral reserve. As such the report does not discuss economic viability, but the lower cut-off grade used reflects possible economic conditions. The report by RSG can be viewed on www.sedar.com.

The results of the estimate are tabulated below1:

Kofi SW Tonnes Grade Total contained ounces gold
Zone B   1.25 Mt   2.3 g/t Au   91,000 oz Au
Zone C   0.19 Mt   2.5 g/t Au   15,000 oz Au
Total   1.44 Mt   2.3 g/t Au   106,000 oz Au
Inferred Resources
1tonnes and ounces to the nearest 1,000 ounces

Potential for expanding resources at Zones B and C remains high, with mineralisation tested to a vertical depth of only 30 metres at Zone C, and to depths of variably 40-80 metres at Zone B where mineralisation also remains open to the north. The depth of oxidation is typically between 25-60 metres.

Work to date has demonstrated that significant gold resources can be found on the Kofi permit where a combination of favourable structure and lithology come together, and that soil anomalies remain the best guide to discovery. For this reason, detailed soil geochemistry with associated geological mapping was completed during the quarter over four target areas on the Netekoto Permit. These targets lie between 10-20 kilometres north and northeast of Kofi Zones B and C.

The four areas tested at Netekoto, totalled 10.4 sq km, which were covered by systematic soil geochemistry at a line spacing of 200 metres, with samples collected at 50 metre intervals along each line. Soil anomalies, taken at the 50-ppb threshold level were identified at each of the target areas with a strong north-south structural control. The four main anomalies each have a length of between 1,400 to 2,200 metres and width approximately 200 metres.

These four anomalous areas at Netekoto will be reviewed in conjunction with known anomalous areas on the Kofi Permit to establish priorities for the next RC and RAB drilling program. The program is scheduled for the dry season in early 2003, with the objective to both add to the resources at Kofi Zones B and C as well as the identification of new resources elsewhere on the Kofi and Netekoto permits.

Satifara Permit
The permit lies approximately 10 kilometres west of the 540,000 oz per annum Sadiola Gold Mine of Anglogold Ltd and IamGold Inc. AXMIN conducted its first systematic sampling program on the Satifara permit during the quarter. An area of 12 sq km was subject to soil geochemical sampling and mapping, with samples collected at intervals of 50 metres along lines set 200 metres apart.

The program identified a strong soil anomaly with a 5,000 metre strike length (50 ppb Au threshold) orientated north-south and lying along a structure identified from satellite imagery. The anomaly is underlain by Birimian sandstones, quartzites, greywackes and siltstones intruded by granites and diorites. Quartz tourmaline sandstones of very similar appearance to that at Kofi have also been recognised.

The combination of the large size of the anomaly, coincident structural and attractive lithological controls, proximal intrusives and location close to the Sadiola Mine together emphasis that a reconnaissance RAB program is clearly warranted to test for primary gold mineralisation.

BURKINA FASO – Bouroum Permit
Our third area of focus is Burkina Faso where work commenced during the second quarter on acquisition of data for the joint pre-feasibility study linking the Bouroum permit of AXMIN and Taparko permit of High River Gold Mines Ltd. The study is scheduled for completion late 2002 / early 2003.

Information and samples relating to metallurgical and geotechnical testwork are in the process of being gathered and a scoping environmental study has been commissioned. In addition, preparation for a 2,500 metre combined RC and core drilling program at the F12, Welcome Stranger and Bissinga prospects has been completed, with detailed surface mapping and outcrop sampling undertaken, and drill sites prepared. It was confirmed that gold mineralisation occurs from surface, however there is only limited exposure. Surface sampling reported grades that include 10.5 g/t Au over 4 metres; 4.2 g/t Au over 4 metres; 3.3 g/t Au over 4 metres; and 5.1 g/t Au over 2 metres.

Artisanal miners are sporadically active, and have spread a thin surface quartz gravel over an area of approximately 400 metres by 30 metres representing discarded wall rock and quartz veins collected from underground. Systematic sampling of these gravels typically return grades within the range of 2-11 g/t Au.

Drilling for additional metallurgical, geotechnical and resource information was scheduled for start in July, but has now been temporarily postponed until mid-September due to the combination of drill rig breakdown whilst working for High River Gold Mines and the onset of the summer rains. This short delay is not expected to significantly impact the planned joint prefeasibility study. Elsewhere on the Bouroum property, a review of existing exploration data has also been completed, with prioritised targets established for follow-up once the rainy season ends.

SENEGAL – Sonkounko and Sabodala Northwest Permits
The two permits lie within 10 kilometres of each other in an area predominantly underlain by basic and intermediate volcanics, with intercalated greywackes of Birimian age. Both permits represent grassroot targets adjacent to granitic intrusives, and have now been subject to satellite and aerial photographic studies. An area of approximately 40 sq km has been initially targeted on each permit; the areas were subject during the quarter to systematic reconnaissance soil sampling on fences 400 metres apart, with samples collected at 50 metre intervals. On both permits, these initial surveys have identified substantial anomalies that will require more detailed follow up sampling and mapping prior to reconnaissance drill testing.

GHANA – Cape Three Points Licence
No further drilling was undertaken during the quarter on this licence where a near surface, small but high grade gold deposit has been delineated at Satin Mine. However, surface exploration at the Kouba prospect 14 kilometres to the southwest of Satin Mine has identified a zone of historic artisanal pits that lie on a north-south trend over a distance of at least 500 metres defining the line of a possible mineralised structure.

TANZANIA – Siga Hills Joint Venture
A 3,000 metre RAB drill program is scheduled to commence during the third quarter 2002 to further test zones of anomalous gold in soil, in an area underlain by a sequence of banded ironstones and meta-volcanics of Archaean age. Previous drilling by AXMIN over the 3,000 metre long soil anomaly indicated the possible presence of mineralised structures splaying off the main structure.

AXMIN Inc. will host a conference call with live audio webcast on Thursday, August 15, 2002 at 10:00am EST for investors and analysts. To access the simultaneous webcast, please visit AXMIN's website at www.axmininc.com or CNW’s website at www.newswire.ca/webcast for directions. Please note that the webcast allows participants to listen only.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy or this press

For additional information please contact:

Jon Forster Judith Webster
Chief Executive Officer Manager – Investor Relations
T: +44-1233-665600 Tel: +1-416-368-0993
F: +44-1233-643728 E-mail: ir@axmininc.com
E-mail: info@axmininc.com