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January 7, 2002


AXMIN Inc. (“AXMIN”) (AXM-CDNX) is pleased to announce that it has secured 90 day options to acquire interests in two licences totalling over 1,750 sq kms in Burkina Faso from Channel Resources Limited (“Channel”). AXMIN has previously undertaken check drilling on one of these licences that has confirmed the presence of a high grade body of gold mineralisation which may have the potential to support the development of a mine at current gold prices.

The option agreements are with Channel (CHU-TSE) over the Bouroum licence (275 sq kms), and with Channel and its partner Solomon Resources Limited (SRB-CDNX) over the Bombore licence (1497 sq kms).

Bouroum Permit
Channel has previously disclosed in its Annual Information Form for the fiscal year September 30, 2000 that resource estimates on the Bouroum Permit total 12.4Mt at 1.3 g/t Au (518,000oz) located in three different zones, within which occurs a higher grade section totalling 147,000oz of gold at 6.96 g/t using a 2 g/t cut off.

AXMIN Limited, a wholly owned subsidiary of AXMIN, conducted a 475m reverse circulation drilling programme for confirmatory purposes at Bouroum in December 2000. The programme tested the central portion of the high grade zone with the following results. Samples were analysed at two metre intervals, using fire assay at the Performance Laboratory facility in Ghana with check assays at OMAC Limited in Ireland.

Prospect Hole Number From To Metres True Width Grade Zone
WS FB 217 no significant result    
WS FB 218 26m 28m 2m 1.8m 13.00g/t Main
WS FB 219 42m 60m 18m 16.2m 12.65g/t Main
F12 FB 220 12m 24m 12m 10.8m 6.33g/t Hanging wall
F12 FB 221 16m 26m 10m 9.0m 3.28g/t Hanging wall
F12 FB 222 36m





Hanging wall

F12 FB 223 24m





Hanging wall


Drilling reported by Channel and as yet unchecked by AXMIN indicates the presence of additional high grade bodies as well as areas open for further exploration in the vicinity of the existing prospects.

AXMIN intends to complete an independent review of the resource estimates at Bouroum in conjunction with scoping metallurgical and engineering studies during the option period.

The terms of the Bouroum option agreement give AXMIN a 90 day option period on payment of Cdn$20,000 to review data and conduct physical work on the property. If AXMIN elects to exercise the option, a payment of Cdn$55,000 will be due to Channel, with a further payment of Cdn$75,000 six months later. No further payments are due. AXMIN can earn a gross 65% interest by carrying Channel to the conclusion of a feasibility study with a minimum expenditure of US$250,000. If the study is positive, AXMIN will then buy out the remaining Channel interests in the proven and probable reserve categories incorporated in the study, as audited by an independent qualified person. The buy out price will be US$10/oz at a gold price of less than US$300/oz, escalating at a rate of US$1/oz for each US$25/oz increase in the gold price, up to a maximum of US$15/oz (i.e. spot gold price at, or greater than US$400/oz). AXMIN may withdraw from the permit at any time without penalty.

Bombore Permit
Channel disclosed in its Annual Information Form for September 30, 2000 that the following resources had been calculated on the Bombore licence:

Oxide resources at a cut off of 0.7g/t
Indicated 9.76Mt at 1.5 g/t (471,800oz)
Inferred 12.4Mt at 1.46g/t (579,700oz)
total 22.2Mt at 1.5 g/t (1,050,000oz)

As at Bouroum prior drilling by Channel indicates the presence of high grade bodies which AXMIN believes may be located at sites of favourable structural intersections. AXMIN intends to test a number of old soil targets in the vicinity of the prospects and to follow up on isolated high grade drill holes and bedrock gold intersections.

The terms of the option agreement over the Bombore Permits have been agreed with partners Channel and Solomon Resources Limited, and is subject to the approval of the Channel shareholders on or before March 31, 2002. The terms are similar to those described above for Bouroum but with an initial option payment of Cdn$10,000; a payment of Cdn$40,000 is due if the option is exercised after the 90 day period, with no further payments. There will be a minimum expenditure of US$750,000 over a three year period on Bombore with US$150,000 during the first year. AXMIN may elect to withdraw from the permit at any time without penalty.

Chief Executive Officer, Jonathan Forster said “The Bouroum and Bombore properties offer the opportunity to achieve near term production and to provide a catalyst for the development of similar properties in the surrounding areas. They provide an important adjunct to AXMIN’s already strong portfolio of advanced exploration properties in the Central African Republic, Mali and Ghana.”

The Canadian Venture Exchange has neither approved nor disapproved the contents of this press release.

For further information contact:

Jon Forster
Chief Executive Officer
T: +44-1233-665600
F: +44-1233-643728
E-mail: info@axmininc.com

Michael D. Coulter
T: 1 416 368 0993