TORONTO, ONTARIO--(Marketwire - March 17, 2011) - AXMIN Inc. (News - Market indicators) is pleased to announce that today it has filed the revalidated feasibility study summary report with respect to the Passendro Gold Project located in the Central African Republic ("CAR"), the results of which were released on January 31, 2011. A copy of the NI 43-101 compliant report has been filed with securities and regulatory authorities in Canada and can be found on both the SEDAR website at www.sedar.com and the AXMIN website at www.axmininc.com. The Feasibility Study was led by SENET (PTY) of South Africa ("SENET") and included a multidisciplinary team of independent consultants. Highlights of the robust project that will see an annual production of 205,000 ounces with an average cash cost of US$437/oz in the first three years, resulting in a rapid project payback of 2.2 years, are detailed below.
Feasibility Study Highlights |
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Assumed Gold Price |
US$1,100/oz |
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Assumed Oil Price |
US$80/bbl |
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Mine Throughput |
2.8 mtpa |
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Mine Life |
8.3 years |
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Development & Construction |
24 months |
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Strip Ratio |
5.4:1 |
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Average Annual Production years 1-3 |
205,000 oz |
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Average Annual Production (LOM) |
163,000 oz |
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Initial Capital Costs (excluding contingency) |
US$246 million |
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Total Cash Costs (including royalties) (LOM) |
US$484/oz |
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Average Metallurgical Recovery |
94% |
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Gravity Recovery |
30% |
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IRR (after tax & royalties, including contingency CAPEX) |
32.1% |
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NPV (after tax, 5% discount) |
US$340 million |
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Operating Cash Flows |
US$493 million |
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Payback Period |
2.2 years |
AXMIN Closes Kofi Sale to Avion Gold – Walia Saakola and Walia West Concessions
AXMIN is also pleased to announce that it has completed the sale of its interest in the Walia Saakola concession and the Walia West Concession, which formed part of AXMIN's Kofi Property, to Avion Gold Corporation (TSX:AVR) ("Avion").
On closing Avion paid AXMIN C$6,250 and 56,250 Avion common shares, representing 25% of the total consideration due to AXMIN for sale of these concessions. The remaining 75% will be paid to AXMIN in three equal tranches on June 11, 2011, March 11 2012 and September 11, 2012.
This press release has been reviewed by an in-house qualified person, François Auclair, M.Sc., VP Exploration of AXMIN, Member of the Ordre des Géologues du Québec and Fellow of Geological Association of Canada.
About AXMIN
AXMIN is a Canadian exploration and development company with a strong focus on central and West Africa. AXMIN has projects in Central African Republic, Mali, Mozambique, Sierra Leone and Senegal. AXMIN is positioned to grow in value as it progresses its Passendro Gold Project towards development and builds on its project pipeline focusing on transitioning from an explorer to producer. For more information regarding AXMIN visit our website at www.axmininc.com.
This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact included herein, including without limitation, statements regarding future plans and objectives of AXMIN; and statements regarding the ability to develop and achieve production at Passendro and to satisfy the terms of the Mining Licence as negotiated, are forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from AXMIN's expectations have been disclosed under the heading "Risk Factors" and elsewhere in AXMIN's documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities. AXMIN disclaims any intention or obligation to update or revise any forward-looking statements whether resulting from new information, future events or otherwise, except as required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.