Axmin up 14% on Komahun drill results

A moratorium on drill sample exports in Sierra Leone delayed some good news for Axmin (AXM-V), but the company says the results were worth waiting for.

Axmin released drill results from a 2,000-metre program in October and November at its Komahun project, which is on its Nimini Hills property.

Results included a 31-metre intersection grading 7.2 grams gold per tonne, 13.5 metres grading 9.2 grams gold, 19.5 metres grading 6.9 grams gold and 13.5 metres grading 4.6 grams gold per tonne. The company used a lower cut-off of 0.5 grams gold per tonne and no upper cut-off.

Axmin says the 800-metre-long mineralization has been expanded by 100 metres vertically, now reaching 220 to 280 metres below surface in the central 300-metre portion of the structure.

Axmin president and CEO, Mario Caron, says the company will take results from a 2,300-metre summer drill program and the latest drill grades to update the resource estimate on the deposit.

“With these results and those announced in October last year, we are starting to build a picture of a strongly mineralized system in the central portion of Komahun which is conducive to underground mining and that has excellent upside for further expansion,” Caron says.

Gold mineralization occurs within four sub-vertical structures in a 20-metre wide shear zone.

The company says each structure is distinct in style with good correlation along strike and down dip.

Several exploratory holes intercepted weak gold mineralization in the footwall of the Main zone. The company says more extensive exploration of the system is needed.

Axmin may be able to increase its interest in the project from 60% to 80% because its joint venture partner, Eldorado Gold (ELD-T, EGO-X), has decided to not spend money on the project.

Axmin shares jumped nearly 14% in Toronto today, or 9, to 75 each on a trading volume of about330,000 shares.

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