Axmin buoyed by Bambari results

Drilling by Axmin (AXM-V) at the Bambari property in the Central African Republic has traced mineralization at the French Camp prospect to a depth of 110 metres for at least 150 metres along a northwesterly strike.

Three core holes were drilled. Hole 21 yielded 24 metres (from 33.5 metres below surface) grading 5.6 grams gold per tonne, and 4.7 metres (from 66.1 metres) of 1.8 grams. Some 40 metres to the west, hole 23 cut several intervals, including 3 metres (from 48.6 metres) running 2.6 grams gold, 6 metres (from 74.1 metres) of 1.9 grams gold, and 2.8 metres (from 114.8 metres) of 1.7 grams. Hole 22 was collared 45 metres to the east and 160 metres to the north, and encountered 24 metres of 0.3 gram gold.

Further sampling has extended mineralized intervals in three earlier holes, including hole 6, which now runs 4.9 grams gold over 41 metres (previously 4.6 grams over 29.7 metres), and hole 3, which is now reported to contain 3.9 grams over 30.5 metres (4.1 grams over 25 metres).

The dip of the zone increases from about 45 to 60 toward the southeast, with the depth of oxidation ranging from 65 to 90 metres. Further drilling will target the core of the structure.

Meanwhile, two samples of banded-iron-formation-hosted (BIF) oxide mineralization and two BIF-hosted sulphide samples from the French Camp prospect were subjected to 24-hour bottle-roll tests. The oxides surrendered 96-97% of their gold; the sulphides gave up 94-97%.

At the same time, drilling on Bambari’s Main zone has confirmed multiple gold-bearing structures at depth. Selected results from 10 widely spaced holes include the following:

— Hole 10 — 25.7 metres grading 2.5 grams gold;

— Hole 12 — 4.5 metres of 9.9 grams and 1.5 metres of 27.6 grams;

— Hole 14 — 10.2 metres running 6 grams gold;

— Hole 17 — 3 metres averaging 3.5 grams gold.

The remaining intervals run 1-5 grams gold over generally smaller, 1-to-5-metre widths.

So far, RC drilling has delineated the Main zone over a strike length of 1.6 km. The zone comprises multiple mineralized structures varying in width from 1-20 metres in a corridor 200 metres wide. Gold mineralization is believed to be associated with acid to intermediate schists with only minor BIF units.

Elsewhere on Bambari, the first core hole to test the Katsia prospect returned 33 metres averaging 3.2 grams gold, including a 1-metre section running 42.3 grams. The hole was terminated while still cutting gold mineralization. A second hole collared 320 metres to the southeast encountered several mineralized lenses, including 6.9 metres running 2 grams gold.

The Katsia prospect comprises a 1.5-km-long zone of gold mineralization defined by soil sampling and shallow, vertical rotary air blast drilling. The steeply dipping mineralization is hosted by acidic schists associated with quartz and tourmaline veining. It lies within 20 metres of a steeply dipping banded ironstone formation.

Axmin plans to send a second drill rig, as well as a reverse-circulation drill, to accelerate a planned 15,000-metre (including 5,000 metres of core drilling) program of follow-up drilling at Bambari. Drilling will test for strike extensions in both strike directions at French Camp, as well as at depth. The holes will test new targets farther northwest along the French Camp trend, and drilling is planned over the entire Katsia prospect.

Meanwhile, in Mali, West Africa, Axmin inked a deal allowing Newmont Mining (NEM-N) to pick up an initial 40.6% stake in the Kofi project and a 47.2% interest in the recently acquired Walia West permit. To do so, the world’s biggest gold company must spend at least US$5.5 million on the properties over three years, including US$1 million in the first year. Axmin will remain as exploration manager during the earn-in period.

Once vested, Newmont can boost its respective stakes to 60.9% at Kofi and 70.8% at Walia by funding a bankable feasibility study at a cost of no less than US$1 million per year. If Newmont’s study isn’t ready within seven years, the major will pay Axmin annual advances (increasing from US$250,000 to US$1 million) over the subsequent four years.

Axmin currently holds a 81.25% interest in the Kofi, Kofi North and Netekoto permits, and a 94.44% stake in Walia West. Under the latest deal, Axmin and Newmont can acquire the properties outright, subject to government interests, which may vary from 10% to 20%.

The Kofi property is in the prospective Senegal-Mali shear zone in southwestern Mali, which is also home to the Sadiola, Yatela, Loulo and Tabakoto-Segala deposits.

Kofi is bordered to the north by the Loulo and Tabakoto deposits. An initial inferred resource at Kofi stands at 1.44 million tonnes grading 2.3 grams gold. The zone remains open along strike and at depth. Axmin has identified another 10 targets for drilling.