Axmin deepens resource at Kofi (June 07, 2004)

Axmin (AXM-V) has intersected good gold grades on its Kofi project, 25 km northwest of Kniba in western Mali.

Four holes undercut Kofi Southwest Zone B, while two undercut shallow mineralization at Kofi Southwest Zone C.

One of the holes in Zone C intersected 31 metres grading 11.6 grams gold per tonne, as well as an 8-metre intercept of 1.9 grams gold. The other hole intersected 11.8 grams gold over 4 metres and several intervals ranging in width from 3 to 10 metres and grading 1.1-5.2 grams gold.

The drilling in Zone B was highlighted by an intersection grading 6.1 grams gold over 21 metres, including 7 metres of 14.2 grams gold. Other intersections ranged from 1.2 to 6 grams gold over widths of 2-55 metres.

The zones, which are about 3 km apart, contain quartz stockwork and quartz-carbonate-chlorite-pyrite breccia in fractured metasediments. Zone B is distinguished by areas of silica-hematite alteration with disseminated pyrite and arsenopyrite.

Zone B has an estimated inferred resource of 1.25 million tonnes grading 2.3 grams gold per tonne, based on selective mining and a cutoff of 1 gram gold.

Drilling has defined mineralization to a depth of 100-130 vertical metres.

The 331-sq.-km project area is covered by four exploration licences: Kofi, Kofi North, Netekoto and Walia West.

A subsidiary of Newmont Mining (NMC-T) has the right to earn a half-interest in Axmin’s approximate 80% interest in the properties by spending US$5.5 million over three years (Axmin holds a 94% interest in Walia West). Following this, Newmont can increase its interest further.

To hold its interest in the property, Axmin has entered into joint-venture agreements with African Selection Mining and Socit financire et d’exploration de l’or au mali. In the event of mining, the government of Mali will also own 10-20% of the properties.