A moratorium on drill sample exports in Sierra Leone delayed some good news for Axmin (AXM-V, AXMIF-O), but the company says the results were worth waiting for.
Axmin has released drill results from a 2,000-metre program conducted last fall at its Komahun project, on its Nimini Hills property.
Results included a 31-metre intersection grading 7.2 grams gold per tonne, 13.5 metres averaging 9.2 grams gold, 19.5 metres of 6.9 grams gold and 13.5 metres grading 4.6 grams gold. The company used a lower cutoff of 0.5 gram gold per tonne and no upper cutoff.
Axmin says the 800-metre-long mineralized structure 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 use assays from a 2,300-metre summer drill program plus the latest results 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 said in a statement.
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 downdip.
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 can increase its interest in the project to 80% from 60% by completing a bankable feasibility study; its joint-venture partner, Eldorado Gold (ELD-T, EGO-X), has decided not to contribute funds to ongoing exploration.
In Toronto on the news, Axmin shares jumped nearly 14%, or 9, to 75 each on a trading volume of about 330,000.
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