AXMIN Inc. (AXM-TSX Venture) is a gold exploration company with a track record of finding and developing mines in Africa. AXMIN's strategy is to focus on newly democratic countries where it has the opportunity to acquire highly prospective ground as an early entrant.
In June 2010, AXMIN announced the completion of the acquisition of AfNat Resources Limited, at the same time the Company announced a restructuring of management and the Board, George Roach was appointed President and CEO. Shortly thereafter, in August 2010, AXMIN was awarded a 25 year Mining Licence (ML) for its Passendro Gold Project and two 3-year renewable exclusive Exploration Permits that ring-fence the ML and cover 90 sq km of strike along the prolific Bambari greenstone belt.
The Passendro Gold Project is located in the centre of its 90 km long Bambari permits, located in north-central Central African Republic (CAR). Passendro has as of June 2009, a NI 43-101 Indicated mineral resource of 2.03 million ounces Au (31.5 Mt grading 2.0 g/t Au) and Inferred mineral resource of 1.10 million ounces Au (21.7 Mt grading 1.6 g/t Au). In January 2011, AXMIN announced the results of its revalidated Feasibility Study, which indicated a robust project with a NPV at 5% discount of US$340 million, an IRR of 32% and a low cash cost of US$484/oz over a mine life of 8.3 years. In addition, the first three years provide an average annual production of 205,000 ounces with a cash cost of US$437/oz resulting in a rapid project payback of 2.2 years. With the feasibility study in hand, AXMIN has all the documentation it needs t secure the debt financing to develop Passendro project.
Highlight of the 2011 FS is detailed below:
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Assumed Gold Price
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US$1,100/oz
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Assumed Oil Price
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US$80/bbl
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Mine Throughput
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2.8 mtpa
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Mine Life
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8.3 years
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Development & Construction
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24 months
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Strip Ratio
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5.4:1
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Average Annual Production years 1-3
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205,000 oz
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Average Annual Production (LOM)
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163,000 oz
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Initial Capital Costs (excluding contingency)
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US$246 million
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Total Cash Costs (including royalties) (LOM)
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US$484/oz
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Average Metallurgical Recovery
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94%
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Gravity Recovery
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30%
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IRR (after tax & royalties)
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32.1%
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NPV (after tax, 5% discount)
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US$340 million
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Operating Cash Flows
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US$493 million
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Payback Period
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2.2 years
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In Q4 2011, AXMIN sold its 100% interest in its Sierra Leone assets, consisting of the Nimini Hills East and West licences and the Matatoka Licence to Polo Resources Limited for a total consideration of US$16.5 million, thereby strengthening its balance sheet and allowing the Company to focus all of its resources on the the development of the Passendro Gold mine.