Kohamun Has 50,000 Oz/Yr Potential: Scoping Study
AXMIN Announces Komahun Gold Project Scoping Study; New Gold Annomaly West and Parallel to Main Structure
TORONTO, ONTARIO--(Marketwire - March 12, 2009) - AXMIN Inc. (TSX VENTURE:AXM) is pleased to announce the results of a Preliminary Economic Assessment or Scoping Study (the "Scoping Study") for its Komahun Gold Project, Nimini Hills Joint Venture located in east-central Sierra Leone. The report has demonstrated that the Komahun Gold Project has potential for development as an underground gold mine with target production levels of about 50,000 ounces per annum. In addition, economics for the project could be substantially enhanced by future exploration success that is targeting the immediate vertical extensions to the orebody which remain open beyond the currently known depth of 350 metres beneath surface. Previous drilling highlight the exploration upside at depth as announced in press release on August 6, 2008 where intercepts include 24 metres grading 5.6 g/t Au (NWKD 161) and 7.2 metres grading 6.4 g/t Au (NWKD 162) at vertical depths between 250-350 metres.
President and Chief Executive Officer, Mario Caron comments, "Management is very encouraged by the positive Scoping Study results, which is a conservative baseline starting point to evaluate and improve the economics of the Komahun Project. If successful, and using the parameters set out below at a gold price of US$750/oz, the project could have a Net Present Value ("NPV") at a 5% discount rate of US$56 million and at US$900 /oz gold the NPV figure could double. The Scoping Study (+/-25 to 30% contingency) has provided guidance for planned exploration that justifies expansion of drill testing to depths of approximately 500 metres beneath surface with the objective of increasing reserves by 100,000-200,000 ounces."
The Study has been undertaken by SENET (PTY) Ltd ("SENET") of South Africa with the underground mining component provided by SRK Consulting (UK) Ltd ("SRK") and utilises both indicated and inferred mineral resources that were previously reported (press release September 18, 2008) in accordance with National Instrument 43-101 Standards for Disclosure for Mineral Projects. The inferred resources are moderately well constrained within the pre-existing drill fences which are spaced about 40 metres apart. The Scoping Study will be filed on SEDAR shortly.
Scoping Study Highlights
The Scoping Study used a base case of a 6 year, 350,000 tonne per annum ("tpa") throughput, with a gold price of US$750/oz, and utilising the existing indicated mineral resource of 110,000 oz (0.37 Mt grading 9.1 g/t Au) and an inferred mineral resource of 435,000 oz (3.10 Mt grading 4.7 g/t Au). Given that the Scoping Study objective is to facilitate exploration planning, project sensitivities were completed to indicate the upside potential in the event of a 100,000 ounce, and a 200,000 ounce addition to the reserve inventory from exploration below the current resource level. These additional reserves could have the potential to add up to four further years of production to the development.
The Scoping Study considered an industry standard process plant encompassing gravity and leach-CIP (carbon-in-pulp) circuits and generates on average 49,700 ounces per annum at a cash operating cost of US$459/oz. The base case capital cost has been estimated at US$69 million, which includes US$14 million for underground mining and US$5.3 million for life of mine sustaining capital. At a 5% discount rate, the net present value ("NPV") is US$11 million and the Internal Rate of Return ("IRR") 10%. At a gold price of US$900 /oz, the NPV increases to US$48 million and the IRR to 25%....
https://www.marketwire.com/press-release/Axmin-Inc-TSX-VENTURE-AXM-960443.html
AXMIN's leapt up on the news: it's now at 12 cents on really heavy volume. It's also poked its head above its trading range, at least for now.
https://canadiangoldstocknews.blogspot.com