Axmin (AXM.V)/Newmont(NEM)'s Kofi in Mali (31m@11.6g/t earlier)
AXMIN Inc.-Kofi Project Area, Mali: New Gold Zones Identified; Drill Program Planned
9/21/2004 10:01:16 AM
TORONTO, ONTARIO, Sep 21, 2004 (CCNMatthews via COMTEX) -- AXMIN Inc. (AXM-TSX Venture) is pleased to announce the results of the reconnaissance drill program and the schedule for the next phase of drilling at the Kofi Project Area in Mali, planned for late October and to be funded by a subsidiary of Newmont Mining Corporation (NEM-NYSE & ASX; NMC-TSX). The reconnaissance reverse circulation ("RC") drill program has identified six new mineralised zones, with results including 6.6 g/t Au over 8 metres, 9.0 g/t Au over 5 metres and 16.6 g/t Au over 2 metres. The objective of the next phase of drilling is to follow up on the gold discovery made earlier in the year at the Kofi SW Zone C prospect which included an intercept of 11.6 g/t Au over 31 metres.
In accordance with the terms of the joint venture agreement over the Kofi Project Area, Newmont has fulfilled its requirement to expend a minimum of US$1 million in the first year. Under the terms of that agreement Newmont has the right to earn an initial 40.625% interest in AXMIN's Kofi Project and an initial 47.22% interest in the Walia West permit by expenditure of US$5.5 million over a three year period. The Kofi Project Area permits are strategically located between and along the borders of the Loulo (Randgold Resources Limited) and Tabakoto (Nevsun Resources Ltd.) deposits where separate developments are currently underway.
The next exploration phase costing US$500,000 is scheduled for completion by early 2005. This will include about 2,500 metres of both core and RC drilling which will run in parallel with ground geophysics and detailed mapping with the objective to identify extensions to, and additional zones similar in character to Zone C.
Reconnaissance RC Drill Program
During the reconnaissance drill program seven prospects were tested by shallow (mainly 40 metres, with some holes between 80-110 metres) RC holes, each of which is defined by anomalous (greater than 50ppb Au) soil geochemistry with strike lengths in excess of 500 metres. Of these prospects, gold mineralised structures were identified within a 3 km radius at five separate locations within the Kofi SS area.
Drill fences were set, in the main, 400 metres apart reflecting the first pass, reconnaissance nature of the program. The mineralised zones will be evaluated for follow up at a later stage. To date a total of 12 gold bearing structures have been identified on the Kofi Project by drilling, with at least a further six prospects yet to be tested.
A summary of all the mineralised intersections from the reconnaissance drill program are shown in the table below.
Hole Total North East Azimuth Declin. From To Inter- Grade
No. Depth Co-ord Co-ord (deg) (deg) (m) (m) val (g/t
(m) (m) Au)
---------------------------------------------------------------------
KSSC 41 80.0 1445061 253837 90 -50 63 65 2 3.2
KSSC 56 90.0 1443041 252251 90 -50 16 21 5 1.0
50 55 5 1.7
KSSC 62 80.0 1442500 252200 90 -50 10 14 4 1.3
30 32 2 1.4
KSSC 74 80.0 1441785 253883 90 -50 3 11 8 6.6
KSSC 75 65.0 1441786 253935 90 -50 38 43 5 3.5
KSSC 103 80.0 1439582 252948 90 -50 38 45 7 1.8
KSSC 104 80.0 1439582 252999 90 -50 24 26 2 4.2
73 75 2 16.6
KSSC 105 80.0 1439582 253050 90 -50 2 7 5 9.0
KSSC 119 80.0 1438721 253346 90 -50 44 50 6 1.6
KSSC 76 110.0 1455106 251658 270 -50 36 39 3 4.9
Hole Total North East Azimuth Declin. From To Inter- Grade
No. Depth Co-ord Co-ord (deg) (deg) (m) (m) val (g/t
(m) (m) Au)
---------------------------------------------------------------------
KSSC 77 100.0 1455110 251589 270 -50 23 27 4 3.1
60 69 9 1.0
KSSC 78 100.0 1455110 251537 270 -50 47 49 2 5.5
61 63 2 5.5
KSSC 23 40.0 1457219 248610 115 -50 0 6 6 1.3
KSSC 32 40.0 1457020 248607 115 -50 9 13 4 1.6
KSSC 62 40.0 1456715 248757 115 -50 35 40 5 2.7
KSSC 63 40.0 1456712 248783 115 -50 18 22 4 1.1
KSSC 65 40.0 1456679 248826 115 -50 0 5 5 1.5
Only intercepts greater than 2 metres in length and greater than
1 g/t Au have been included in this table
Analytical work was carried out at the independent Abilab Laboratories Ltd. in Bamako, Mali. The samples are subject to a full sample preparation followed by a 50 gram fire assay with an AA finish. Blanks (5%) are being used to monitor laboratory performance during first pass analysis. This press release has been reviewed by an in-house qualified person, Dr. Jonathan Forster, Fellow of the Institute of Materials, Mining and Metallurgy ("IMMM").
AXMIN is a mineral exploration company with a strong focus on gold in highly prospective properties across central and west Africa.
For more information regarding AXMIN visit our website at www.axmininc.com.
AXMIN Inc.
Jon Forster
Chief Executive Officer
+44 (0)1233 665600 (UK)
+44 (0)1233 643728 (UK) (FAX)
or
AXMIN Inc.
Judith Webster
Manager - Investor Relations
(416) 368-0993 (Canada)
Email: ir@axmininc.com
