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AXMIN Inc. (TSX VENTURE: AXM) announced its agreement with Ferrum Resources Ltd. ('Ferrum'), a private British Virgin Islands registered company, whereby AXMIN has consented, as contemplated under the Laws of the Central African Republic ('CAR'), that Ferrum may lodge prospecting rights applications for Iron Ore over the same areas already held by AXMIN for gold mineralisation.
The area under application covers the entire Topa Iron Belt consisting of two northwest trending ridges, West Limb and East Limb, over a strike of 28 km and 20 km, respectively, and contains the Topa Iron Ore discovery. It has been agreed that on the date of a grant to Ferrum, by the government of CAR, of an Exploration Permit covering Iron rights only, AXMIN will receive an assignable 25% participating interest in the Topa Iron Ore deposit, that will be free carried for the first US$4 million. President and CEO, Mr. George Roach, comments, 'We believe, that should the Ferrum applications be granted, AXMIN may, should it be deemed appropriate or necessary, have an opportunity, to realize significant early value from this participation right. This could help AXMIN avoid any further necessity to raise equity funds prior to finalization of its gold mine development funding, expected to be completed in mid-2011. The significance of the Topa Iron Belt has remained unrecognized in AXMIN's share price; which currently barely reflects the value of the 200,000 - 150,000 ounce per annum Passendro Gold Project for which a 25 year Mining Licence has recently been awarded. We remain committed to the development of the Passendro Mine and the ongoing exploration of the many additional high grade gold targets to occur in this region with a view to adding significantly to the mine life in years to come.' Topa Iron Belt Details
In May 2000 during the course of regional gold exploration within the Bambari Permits AXMIN geologists discovered a significant body of massive high grade lump iron ore, that is now referred to as Topa Hill, and which had the potential to be of commercial interest. Since that time, AXMIN has completed further sampling, mapping, airborne and ground geophysical surveys and limited drilling to define the potential of the iron belt. The Topa Iron Belt consists of two northwest trending ranges of hills, the West Limb and the East Limb, which can be traced over a strike of at least 28 km and 20 km, respectively within a zone up to 6 km in width. The West Limb comprises a series of parallel iron enriched horizons; while the East Limb has not been explored yet beyond one prominent iron horizon and Topa Hill. The horizons or ridges typically stand 50-100 metres above the valleys; except at Topa Hill, which is believed to be underlain by folded iron horizons and rises some 240 metres above ground level. Airborne magnetic survey and geological mapping suggest that the cumulative strike length of the entire Topa Iron Belt iron horizons could potentially exceed 75 km. The character of the iron is very similar wherever observed, either in outcrop or float blocks, and comprises coarse-grained massive specular hematite-magnetite rock. Initial sampling and analysis of the massive lump hematite-magnetite rock indicates an Fe content of 66.7% Fe with low silica, alumina and phosphorous content, from an average of 10 grab samples see press release November 20, 2006. In 2008, an initial drilling program at the West Limb, focused on a 7.5 km central zone where surface mapping identified four main iron ridges, underlain by massive hematitic iron. Airborne geophysics and earlier reconnaissance mapping and sampling indicated that at least two of these ridges continue to the northwest, while all four may continue to the southeast. Initial observations suggest that the enriched iron horizons were derived from schistose banded ironstone, with schistocity now seen as specular hematite. It is believed that the style of mineralisation is similar to that seen in Guinee (Simandou-Mt Nimba areas) and Brazil (Minas Gerais). Results of the initial drilling returned high grade iron assays with a weighted average 63.1% Fe over true widths that range from more than 10 metres up to 52 metres to a maximum tested depth of 150 metres, as reported in press release dated April 21, 2008. |
