News ReleasesJun 27, 2006 AXMIN expands the kofi project, mali Toronto, Ontario – Jun 27, 2006, AXMIN Inc. (AXM-TSX Venture) is pleased to report positive reconnaissance drill results from Kofi South prospect, which highlight the potential to significantly expand existing resources. The intercepts include 2.6 g/t Au over 35 metres, 1.9 g/t Au over 20 metres, 1.7 g/t Au over 20 metres and 2.9 g/t Au over 10 metres. The Kofi Project Area in western Mali lies adjacent to the Loulo Mine licence of Randgold Resources Limited.
Exploration in 2006 has concentrated on the 5,000 metre long Kofi South prospect (see map on AXMIN’s website at www.axmininc.com) which is defined by soil geochemistry (50 ppb Au threshold). Within this a 2,000 metre long priority target was outlined by a soil geochemistry (200 ppb Au threshold). Shallow (maximum 40 metre vertical depth) rotary air blast ("RAB") drilling (12,000 metres) and shallow reverse circulation ("RC") drilling (3,200 metres), following up on intersections obtained in an earlier round of broad spaced reconnaissance RC drilling undertaken by AXMIN in 1999, has returned a total of 38 mineralised intercepts over a 2,000 metre strike length open in both directions. The intercepts range from 5-35 metres in length with the average grade of each intercept typically lying between 1-4 g/t Au. A tabulation of the new results from intercepts that are of economic significance from the Kofi South prospect is displayed on the AXMIN website. A systematic RC drill program, designed to permit the calculation of an initial resource during the second half of 2006, is in progress. This will test about 1,700 metres of this strike length to a target depth of about 100 metres. In addition a recently started core drilling program at selected locations along the structure will provide additional geological information on the mineralised structure which is thought to exhibit broader and higher grade swellings along its length, with a similar character to the mineralisation within the Loulo district of which Kofi is a part. Chief Executive Officer, Dr Jonathan Forster comments "Exploration across the Kofi South prospect has reached an exciting stage, with indications that we have located a large scale system over a strike length already exceeding 2,000 metres and with the potential to extend further. Kofi South, which lies about 8 km from Kofi SW Zones B and C where our previous drilling has defined a resource of 45,000oz at 3.2 g/t Au (indicated) plus 245,000 oz at 3.8 g/t Au (inferred) in structures that are a mere 200-250 metres in strike length, has excellent potential to host significantly larger resources. Moreover, Kofi South is not the only prospective target awaiting systematic drilling on the Kofi project. We have further anomalies with significant drill intercepts both along the extensions of the Kofi SW Zones B and C and along the large Kofi SS group of anomalies. Ultimately I believe that this highly prospective project could yield substantial resources from multiple zones that are capable of meeting our objective of defining sufficient resources to justify a stand-alone development project. Finally I would stress that this project lies in a highly mineralised district with existing infrastructure and two operating mills within 15 km of our prospects (Randgold’s Loulo and Nevsun Resources Ltd.’s Tabakoto operations)." Induced polarisation ("IP") ground geophysics, together with drilling at Kofi South, indicate that the best targets lie primarily along the N-S contact between a broad resistive unit to the west and a wide area of low resistivity to the east, with strong structural influence of major cross cutting NNE and NNW faults. This is very similar in style to Kofi SW Zones B and C and what we understand to be the controls on the Loulo deposits, a short distance to the southwest. Geological mapping and initial reconnaissance core drilling indicates that the resistive unit is a sequence of massive fine to coarse grained quartzites, in contact to the east with fine grained sandstones and shales. As at Kofi SW Zones B and C, initial observations indicate that mineralisation is hosted in the brittle lithologies by disseminated and cross cutting fractures infilled by sulphides. Grade calculations are based on a 0.5 g/t Au lower cut off to define the mineralised structure, with no upper cut. Analytical work is being carried out at the independent Abilab Laboratories Ltd. in Bamako, Mali. The drill samples are subject to a full sample preparation followed by a 50 gram fire assay with an AA finish. Blanks, standards and duplicates are being used to monitor laboratory performance during the analysis. All reconnaissance drill results represent 5 metre composite samples of 1 metre intervals collected at the drill rig. This press release has been reviewed by in-house qualified person Dr. Jonathan Forster, Fellow of the Institute of Materials, Minerals and Mining in the United Kingdom. The following table contains 2006 drill results for the Kofi South prospect to date:
KSB & KSEAB – RAB drill holes KSC – RC drill holes * Hole ends in mineralisation For more information regarding AXMIN visit our website at www.axmininc.com . Safe Harbour Statement Certain statements contained herein, as well as oral statements that may be made by the company or by officers, directors or employees of the company acting on the company's behalf, that are not statements of historical fact, may constitute "forward-looking statements" and are made pursuant to applicable and relevant national legislation (including the Safe-Harbour provisions of the United States Private Securities Litigation Reform Act of 1995) in countries where AXMIN is conducting business and/or investor relations. Forward-looking statements, include, but are not limited to those with respect to the price of gold, the estimation of mineral reserves and resources, the realization of mineral reserves estimates, the timing and amount of estimated future success of exploration activities, AXMIN’s hedging practices, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risk, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "does not expect", "is expected", "budget", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or equivalents or variation, including negative variation, of such words and phrases, or state that certain actions, events or results, "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and ore densities or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, delays in obtaining government approvals or financing or in completion of development or construction activities. Although AXMIN has attempted to identify important factors that could cause actual actions, events or cause actions events or results not to be anticipated, estimated or intended, there can be no assurance that forward looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Except as may be required by applicable law or stock exchange regulation, the company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements. # # # The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
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