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