Home  |  Contact Us


News > 2005 > Nov 23, 2005

News Releases

Nov 23, 2005

Update on Passendro pre-feasibility study and proposed cdn$20 million private placement

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Toronto, Ontario – Nov 23, 2005, AXMIN Inc. (AXM-TSX Venture) is pleased to provide an update regarding the ongoing pre-feasibility study on the Passendro Gold Project in the Central African Republic and to announce that RBC Capital Markets has been retained as agent for a proposed Cdn$20 million private placement of common shares.

The Passendro Gold Project is located within AXMIN’s 100% owned Bambari Permits in the Central African Republic. A pre-feasibility study is in progress targeting a production profile of 150,000 ounces per annum with a review of a carbon-in-leach ("CIL") processing route nearing completion. Although management believes this mining rate to be appropriate for the deposits, in accordance with National Instrument 43-101 only the indicated mineral resources, currently 1.072 million ounces (13.2 Mt grading 2.5 g/t Au, as reported on July 5, 2005), are to be incorporated in the pre-feasibility study. Accordingly, for the purposes of the study no benefit will be derived from either the inferred mineral resources of 1.109 million ounces (19.3 Mt grading 1.8 g/t Au, as reported on July 5, 2005) or from the ongoing resource delineation program. As a consequence of this resource restriction the study is currently pointing to an initial operating mine life of approximately 5.5 years, with approximately 83% of indicated resources being converted into reserves. CIL plant recoveries are expected to average about 87% and metallurgical testing indicates that there is a high proportion of free gold in the orebodies (45-55% in both oxide and sulphide). The testwork has also highlighted the possible amenability of the ore to heap leaching. Given these findings, the scope of the pre-feasibility study has recently been extended to include a heap leach alternative. Initial analysis suggests that a heap leach approach is likely to have lower capital requirements and hence may provide greater economic returns.

The heap leach alternative requires additional testwork to confirm the amenability of the ore to this process route. This additional testwork will take up to four months and will require that certain engineering aspects of the project be re-assessed. As such it is expected that the pre-feasibility will be concluded early in the second quarter of 2006. AXMIN anticipates completing the definitive feasibility study on the Passendro Gold Project during the first quarter of 2007, and that further resources will be incorporated into the mine plan through this period.

In order to finance the Passendro feasibility studies and to continue its successful drilling campaign at the Passendro Gold Project and to fund ongoing exploration elsewhere in the Central African Republic, Mali, Sierra Leone and Senegal, AXMIN has appointed RBC Capital Markets as sole agent to raise approximately Cdn$20 million by way of private placement of common shares of AXMIN on a best efforts basis. The Company’s major shareholder, Addax Mining Holdings BV, a subsidiary of The Addax & Oryx Group, has agreed in principle as part of this private placement to subscribe for at least that number of AXMIN common shares which maintains its pro rata shareholding in the Company, currently 45.23%. The private placement is expected to be completed in December 2005.

Chief Executive Officer, Dr Jonathan Forster comments: "We continue to be encouraged by the robustness of the Passendro Gold Project and our increasing confidence in the opportunity to develop AXMIN’s first gold mine. Additional testwork required to investigate the heap leach alternative will allow the Company time to add to and upgrade the resource inventory by progressing the infill drilling program required for the definitive feasibility study, whereby inferred resources may be reclassified as indicated resources, and by delineating new resources. In total, AXMIN has four drill rigs working on the Passendro Gold Project with ongoing positive results. Meanwhile, the Company has also instructed Golder Associates (UK) Limited to commence the environmental impact assessment for the definitive feasibility study reflecting the Company’s commitment to fast track the project towards development."

This press release has been reviewed by an in-house qualified person, Dr. Jonathan Forster, Fellow of the United Kingdom’s Institute of Materials, Mining and Metallurgy ("IMMM"). Mineral resources that are not mineral reserves do not have demonstrated economic viability.

AXMIN is a mineral exploration company with a strong focus on gold in highly prospective properties across central and west Africa.

This press release shall not constitute an offer to sell shares or the solicitation of an offer to buy the securities in any jurisdiction. The common shares of AXMIN have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States absent registration or applicable exemption from registration requirements of the U.S. Securities Act and applicable U.S. state securities law. The proposed transaction will be subject to TSX Venture Exchange approval.

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


For additional information please contact AXMIN Inc.:

 

Jon Forster

Judith Webster

Chief Executive Officer

Manager – Investor Relations

AXMIN Inc.

AXMIN Inc.

Tel: +44 (0)1233 665600 (UK)

Tel: +1 416 368 0993 (Canada)

Fax: +44 (0)1233 643728 (UK)

E-mail: ir@axmininc.com