The Challenges and Rewards of Gold Exploration in Sub Saharan Africa

FINEX 2008 – Dr Jonathan Forster

Exploration in Sub-Saharan Africa

2

Sub-Saharan Africa

Gold Mining in SSA (1990-2003)

• Favourable investment climate• Historic centres• Low cost discoveries• Open pit mining• Approx 4,200 tonnes of gold• Approx 40 new gold mines

Gold Exploration in SSA (2003-08)

• Approx 2,800 tonnes gold in resources• > 35 projects• > US$1 billion• Headline discovery costs approx

US$11/oz

Page 5

TaparkoBondi

Essakane

Sukari

Zara

SegaYouga

SalmanBibiani

Tongon

Agbaou

Passendro

BonikroAngovia

Moto

Twangizi

KubiSianEsaase

New Liberty

Ongoing Exploration Projects

Kofi

Kouroussa Bissa

Baomahun

BeposoAyanfuri

NampalaFTFinkolo

Komahun

Medinandi

KalsakaInata

Kilo

Gold Discoveries in SSA (2003-08)

• Approx 50:50 new : reworked • Predominantly greenstone belt hosted• Archaean and Lower Proterozoic • Shear zone hosted

West Africa Geology – 50moz

4.3moz

5.3moz

1.6moz0.5moz

2moz

0.5moz

0.4moz

1moz

3.2moz

1.3moz

1.6moz

3.5moz

.

1moz

0.5moz0.3moz

0.5moz0.7moz

0.5moz

0.9moz

0.5moz

0.5moz

0.5moz

1moz0.6moz

1.6moz

1.6moz

1.5moz 2.2moz

Central/East Africa Geology

Greenstone Belts

Kilo2.6m oz

Page 9

Essakane (5 moz)

Sukhari (12 moz)

Ahafo (10 moz)

Tongon (4 moz)

Moto (22 moz)

Twangiza (12 moz)

Ayem (5 moz)

>4 moz Gold Discoveries

Loulo (9 moz)

Ongoing Exploration Targets

Nampala

FTSian

KomanaSega

Kofi

Bondi

BomahunSierra Leone

Beposo

1.0 2.0 4.5 5.0 5.52.5 3.0 3.5 4.01.50

Agbou

Bonikro

Finkolo

KouroussaGuinee

Kalsaka

1.5

1.0

0.5

2.5

2.0

3.5

3.0

Bissa

KubiMedinandi

Baraya

Inata

Salman

PassendroCAR

ZaraEritrea

6.0

Aynfuri

SukariEgypt(11.6 moz)

Esaase

TwangiziDRC(11.8 moz)

Tongon(4.3 moz)

Essakane(5.3 moz)

MotoDRC(21.6 moz)

Grade g/t Au

Mil

lio

n o

un

ce

s

Angovia

New LibertyLiberia

Burkina Faso

Ghana

Cote d’Ivorie

Mali

Other

KomahunYouga

Bibiani

Taparko

Exploration Funding

• Cyclical• Stop-start• Sensible, efficient programmes• 3-5 year time frame for discovery

An Informed Market

• Regular (over?) supply of news• Emphasis on positive news• Look behind the headlines• Work programmes:• News or Exploration

“HIGH GRADE INTERSECTIONS OVER IMPRESSIVE WIDTHS AT KOMAHUN, SL: NKWD 125 – 7.2 G/T AU OVER 31 M & NKWD 123 – 9.2 G/T AU OVER 13.5 M”

February 29th 2008

“DRILLING CONTINUES TO INTERSECT HIGH GRADES AT KOMAHUN ,NIMINI HILLS JV, SL”

April 16th 2008

“HIGH GRADE MINERALISATION CONTINUES AT DEPTH AT KOMAHUN, SL HOLES 160 & 161 RETURN 7.2 G/T AU OVER 10.5 M & 3.9 G/T AU OVER 46.7 M”

August 6th, 2008

AXM Press Release in Sierra Leone

Risk vs. Reward

Ground Evaluation /Acquisition

Surface Exploration

$ Dollars

Low

High

Resource Drilling

Discovery / ExplorationDrilling

Low Exploration Risk High

Reconnaissance Drilling

Exploration in Sub-Saharan Africa

15

Sub-Saharan Africa

Programme/Expenditure Buildup

$3,000K

$1,500K

6 12 30 3618 240

$1,000KReccon. Drilling (RAB/RC)

Exploration Drilling

Resource Drilling

Surface Sampling Airborne Geophys

Infill SamplingTrenches

Ground Acquisitions

$100K

$750K

$500K

Time in Months

(Target 1 moz open pit gold mine)

Steps in Data Collection

• Stream sediment sampling / artisanal activity

• Soil geochemistry – influence of morphology

• Trenching and reconnaissance drilling

Gori Hills, SL

AXMIN Reconnaissance Camp

Gori Hills, SL

Stream Sediment Sampling

Gori Hills Project, SL

Follow up Soil Geochemistry

Historic alluvial workings

Ao

Ndassima

Passendro

Bambari, CAR

Ao

Ndassima

Passendro

Historic alluvial workings & soil geochemistry

Bambari, CAR

Passendro, CAR

23

Pits & soil geochemistry

Betea Prospect, Mali

Mineralised zones & soil geochemistry

Passendro, CAR

Trenching

Passendro, CAR

RAB Drilling

Passendro, CAR

RC Drilling – Main Zone

Passendro, CAR

Core Drilling – French Camp

Page 29

Section Line 1300m North

560m

520m

500m

540m

Komahun Project, SL

Komahun Project, SL

Man Portable Rig

Gori Hills, Sierra Leone

Hand cut access

Passendro Project Evolution

500

10

5

1999 – 2000AXMIN enters Agreement with Asquith

20022001 2005Update 2

25 Indicated

Inferred

2006Update 3

Total

2004Initial Resource Estimate

2003 2007 2008Update 4

Reserves (included in resources)

1000

2000

2500

3000

1500 Mil

lio

ns

of

US

$R

esou

rce (millio

n o

un

ces)

15

20Pre-feasibility Study 06

Coup d’etat Bozie President – Mar 03

$8/oz

$8/oz

$26/oz

$13/oz

$13/oz

Ongoing Exploration Targets

Nampala

FTSian

KomanaSega

Kofi

Bondi

BomahunSierra Leone

Beposo

1.0 2.0 4.5 5.0 5.52.5 3.0 3.5 4.01.50

Agbou

Bonikro

Finkolo

KouroussaGuinee

Kalsaka

1.5

1.0

0.5

2.5

2.0

3.5

3.0

Bissa

KubiMedinandi

Baraya

Inata

Salman

PassendroCAR

ZaraEritrea

6.0

Aynfuri

SukariEgypt(11.6 moz)

Esaase

TwangiziDRC(11.8 moz)

Tongon(4.3 moz)

Essakane(5.3 moz)

MotoDRC(21.6 moz)

Grade g/t Au

Mil

lio

n o

un

ce

s

Angovia

New LibertyLiberia

Burkina Faso

Ghana

Cote d’Ivorie

Mali

Other

KomahunYouga

Bibiani

Taparko

Increase Exploration Sophistication

To Expand Discoveries…• Integrate exploration models and subtle

indicators • Depth extensions

Mali – Kofi Project

35

36

Blanaid Prospect, Mali

Curiasse Cover

Blanaid Prospect

Kofi Project, Mali

Ground IP

Cathedral Termite Mound

Kofi Project, Mali

Cuirasse – Masks Deposit

Blanaid Prospect

Cuirasse – Masks Deposit

Blanaid Prospect

Cuirasse – Masks Deposit

Blanaid Prospect

Summary

• Continued exploration success in SSA• World class discoveries– Where is the next one?– First phase exploration maturity?– More sophistication in exploration

Exploration Reward

44

$25

$50

$5 $10 $30 $40$20 $250

$75

Ma

rke

t C

ap

US

$

/ o

z A

u

$125

$100

Discovery Cost US$ / oz Au

$15 $35

March 2008

September 2008

Feasibility

Feasibility

September 2008

September 2008

Breakeven

Forward Looking Statements: All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralisation and reserves, exploration results and future plans and objectives of AXMIN, 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 are disclosed under the heading "Risk Factors" and elsewhere in AXMIN documents filed from time-to-time with the TSX Venture and other regulatory authorities.

Disclaimer