November 26, 2003
UPDATE ON ACTIVITIES AND THIRD QUARTER REPORT 2003
Toronto, Ontario – AXMIN Inc. (AXM-TSX Venture) is pleased to announce the results for its exploration and corporate activities for the third quarter ended September 30, 2003. The full interim report is available on SEDAR and AXMIN’s website. This release also contains updates on current exploration programs and other developments.
Highlights for the third quarter include:
- Central African Republic (“CAR”): Initial core drill program confirmed potentially economic gold mineralisation on three adjacent prospects - French Camp, Katsia and Main Zone
- Mali: Signed joint venture agreement with Newmont to explore AXMIN’s projects
Subsequent to the end of the third quarter:
- CAR: 15,000 metre drill program underway to establish resources and test new targets - 11 new core holes completed at French Camp; drill moves to test two new targets
- Burkina Faso: Bouroum-Taparko feasibility study submitted to local government
- Financing: Raised Cdn$10.5 million in brokered private placement
Exploration Expenditure
During the third quarter exploration expenditure was US$610,000, contributing to a total of US$1,526,000 for the nine months ended September 30, 2003. Of the exploration expenditure incurred during the third quarter US$440,000 related to the Bambari Permit in the CAR which is now the primary focus of AXMIN’s exploration activities. During the third quarter AXMIN has made significant advances on all three of its key projects.
Bambari Permit, CAR
The third quarter saw the completion of a 2,143 metre core drilling program on the Passendro project area with the objective to test open pittable gold mineralisation at the French Camp, Katsia and Main Zone prospects. The drilling at French Camp identified a coherent zone of strong gold mineralisation over an initial strike length of at least 150 metres and true thickness of 18 to 35 metres. All drill intercepts have previously been reported and include 5.6 g/t Au over 24 metres, 4.9 g/t Au over 41 metres, 3.9 g/t Au over 30.5 metres and 3.2 g/t Au over 34.4 metres. Drilling at both of the other prospects also returned potentially economic intercepts including 3.2 g/t Au over 33 metres at Katsia as well as 6.0 g/t Au over 10.2 metres, 2.5 g/t Au over 25.7 metres and 9.9 g/t Au over 4.5 metres at Main Zone. In addition, preliminary cyanide leach tests on oxide and sulphide material from French Camp indicated gold recovery in excess of 94% for both types of material.
Collectively these results confirmed that the Passendro project area, which hosts multiple strong gold mineralising systems, warranted follow up to both define resources on the three established prospects as well as to test many remaining soil geochemical targets that are already known within a 5 km radius.
Update
A follow up drill program comprising 15,000 metres of combined core and reverse circulation ("RC") drilling commenced in late October. The first phase of the current core drilling program at the French Camp prospect, comprising a total of 11 holes, has been completed and the first batch of samples are at an independent laboratory. The core rig has now been moved to make the initial test of two new exploration targets located 1 to 2 km north before it is scheduled to commence drilling at the second established prospect Katsia. Once at Katsia the core rig will be able to follow up on the 1,200 metre rotary air blast ("RAB") drilling that has already been initiated to assist in outlining the extensions to the gold mineralisation previously defined.
An additional core rig and a RC rig are currently being prepared for shipping to CAR to be available for drilling in early 2004. This increased capacity will allow for greater flexibility in testing targets both within the Passendro project area 5 km radius and in the outside areas that were identified in previous regional geochemical programs.
Kofi project area, Mali
It was announced during the third quarter that a subsidiary of Newmont Mining Corporation had entered into a joint venture agreement to explore AXMIN’s Kofi project area. Under the terms of the agreement Newmont has the right to earn a 40.625% interest in the Kofi project and a 47.22% interest in the adjacent Walia West permit. Newmont has the right to earn its interest by expenditure of US$5.5 million over a three year period, with a minimum of US$1 million in the first year. AXMIN will remain as manager of exploration during this period. Once Newmont has earned its initial interest it may elect to earn a further 20.31% interest in Kofi and 23.61% interest in Walia West by carrying AXMIN through to completion of a bankable feasibility study.
Update
Despite continuing heavy rains in an unusually prolonged rainy season mobilisation of geological teams into the field commenced in early November. It is planned that in early 2004 an aggressive 10,000 metre RC drill program will commence, both to extend the known deposits and to test the many new targets identified from both magnetics and geochemistry.
Bouroum Permit, Burkina Faso
A 3,028 metre core drilling program was completed during the third quarter at Bouroum on the F12, Welcome Stranger and Bissinga deposits. The drilling was designed to increase the confidence level in the resources as well as provide samples for metallurgical and engineering testwork.
Update
On October 31, 2003 High River Gold Mines Limited announced that it had submitted a feasibility study to the Burkina Faso government for the combined Bouroum-Taparko project, which draws on open in-pit reserves of at least 110,000 ounces from Bouroum. At the same time High River announced that it had taken a positive decision, subject to Board approval, to proceed with development with first production possible in late 2005.
In a separate development, AXMIN recently acquired 8% of the Bouroum project from Channel Resources Ltd.. The original agreement between the two parties remains unchanged with AXMIN able to earn 65% by submission of a bankable feasibility study, and the remaining 27% to be purchased at a price determined by the combination of gold price and reserves established in the bankable feasibility study.
Financing and other
On November 12, 2003 AXMIN closed a brokered private placement of 15,000,000 Units at a price of Cdn$0.70 per Unit, for total gross proceeds of Cdn$10,500,000 (the "Offering"). Each Unit consists of one common share plus one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to purchase one additional common share of AXMIN at a price of Cdn$1.00 expiring on November 12, 2004. The Company was encouraged that its major shareholder, Addax Mining & Metals Limited ("AMM"), purchased 4,285,714 Units in the Offering.
On November 10, 2003 AMM elected to convert the two outstanding shareholder loans plus accrued interest into common shares of the Company. Accordingly the Company issued 8,571,843 common shares in the Company in full and final settlement of these loans.
AXMIN is a mineral exploration company with a strong focus on gold in highly prospective properties across Africa, principally in the Central African Republic, Burkina Faso and Mali. |
