Axmin deepens resource at Kofi (June 02, 2004)

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

Four holes were drilled undercutting Kofi Southwest zone B and two undercut shallow mineralization at Kofi Southwest zone C.

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

Highlighting zone B drilling is an intersection grading 6.1 grams gold per tonne over 21 metres, that includes 7 metres grading 14.2 grams gold per tonne. Other intersections ranged in grade from 1.2 to 6.0 grams gold per tonne over widths of 2 to 55 metres.

The two zones are about 3 km apart. The zones both 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 with a 1 gram gold per tonne cutoff.

The present drilling defines mineralization to a depth of 100 to 130 vertical metres.

The 331 sq. km project area is covered by four exploration licences (Kofi, Kofi north, Netekoto and Walia West).

The Kofi project is a joint venture whereby a subsidiary of Newmont Mining (NMC-T) has the right to earn a 50% interest in Axmin’s approximate 80% interest in the properties by spending US$5.5 million over a three-year period (Axmin holds a 94% interest in Walia west). Following this, Newmont’s interest can be further increased subject to their agreement. To hold its interest in the property Axmin has various joint venture agreements with partners, including African Selection Mining (ASMC), and Societe Financiere et d’Exploration de l’Or au Mali (SOFOM). In the event of mining, the Mali government will also own 10-20% of the properties.