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The Challenges and Rewards of Gold Exploration in Sub Saharan Africa FINEX 2008 – Dr Jonathan Forster

The Challenges and Rewards of Gold Exploration in Sub Saharan Africa FINEX 2008 – Dr Jonathan Forster. Exploration in Sub-Saharan Africa. Sub-Saharan Africa. Gold Mining in SSA (1990-2003). Favourable investment climate Historic centres Low cost discoveries Open pit mining

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The Challenges and Rewards of Gold Exploration in Sub Saharan Africa FINEX 2008 – Dr Jonathan Forster

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  1. The Challenges and Rewards of Gold Exploration in Sub Saharan Africa FINEX 2008 – Dr Jonathan Forster

  2. Exploration in Sub-Saharan Africa Sub-Saharan Africa

  3. 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

  4. 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

  5. Ongoing Exploration Projects Sukari Medinandi Tongon Kalsaka Inata Kofi Kouroussa Bissa Zara Essakane Taparko Bondi Baomahun Passendro Sega Youga Komahun Moto New Liberty Beposo Ayanfuri Agbaou Kilo Twangizi Bonikro Angovia Nampala FT Finkolo Kubi Sian Esaase Salman Bibiani

  6. Gold Discoveries in SSA (2003-08) • Approx 50:50 new : reworked • Predominantly greenstone belt hosted • Archaean and Lower Proterozoic • Shear zone hosted

  7. West Africa Geology – 50moz 1moz 5.3moz 1.6moz 0.7moz . 0.5moz 1moz 0.5moz 0.5moz 0.3moz 1.3moz 0.5moz 0.9moz 1moz 0.6moz 4.3moz 0.5moz 1.6moz 1.5moz 2.2moz 1.6moz 3.5moz 0.5moz 3.2moz 1.6moz 0.5moz 2moz 0.4moz 0.5moz

  8. Central/East Africa Geology Greenstone Belts Kilo 2.6m oz

  9. >4 moz Gold Discoveries Sukhari (12 moz) Tongon (4 moz) Loulo (9 moz) Essakane (5 moz) Moto (22 moz) Twangiza (12 moz) Ahafo (10 moz) Ayem (5 moz)

  10. Ongoing Exploration Targets Twangizi DRC (11.8 moz) Moto DRC (21.6 moz) Sukari Egypt (11.6 moz) Burkina Faso Ghana Cote d’Ivorie Mali Other Essakane (5.3 moz) 3.5 Tongon (4.3 moz) Bibiani Aynfuri 3.0 Passendro CAR 2.5 Million ounces Bonikro 2.0 Salman New Liberty Liberia Esaase Inata 1.5 Bomahun Sierra Leone Bissa Agbou Taparko 1.0 Kalsaka Kouroussa Guinee Zara Eritrea Nampala Finkolo Komana Kofi Sega Kubi 0.5 Youga FT Angovia Medinandi Komahun Sian Bondi Baraya Beposo 0 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 Grade g/t Au

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

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

  13. “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

  14. Risk vs. Reward Resource Drilling High Discovery / Exploration Drilling $ Dollars Reconnaissance Drilling Ground Evaluation / Acquisition Surface Exploration Low Low Exploration Risk High

  15. Exploration in Sub-Saharan Africa Sub-Saharan Africa

  16. Programme/Expenditure Buildup (Target 1 moz open pit gold mine) $100K Ground Acquisitions $750K Surface Sampling Airborne Geophys $500K Infill Sampling Trenches $1,000K Reccon. Drilling (RAB/RC) $1,500K Exploration Drilling $3,000K Resource Drilling 0 6 12 18 24 30 36 Time in Months

  17. Steps in Data Collection • Stream sediment sampling / artisanal activity • Soil geochemistry – influence of morphology • Trenching and reconnaissance drilling

  18. Gori Hills, SL AXMIN Reconnaissance Camp

  19. Gori Hills, SL Stream Sediment Sampling

  20. Gori Hills Project, SL Follow up Soil Geochemistry

  21. Bambari, CAR Historic alluvial workings Passendro Ndassima Ao

  22. Bambari, CAR Historic alluvial workings & soil geochemistry Passendro Ndassima Ao

  23. Passendro, CAR Pits & soil geochemistry

  24. Betea Prospect, Mali Mineralised zones & soil geochemistry

  25. Passendro, CAR Trenching

  26. Passendro, CAR RAB Drilling

  27. Passendro, CAR RC Drilling – Main Zone

  28. Passendro, CAR Core Drilling – French Camp

  29. 560m Section Line 1300m North 540m 520m 500m Komahun Project, SL

  30. Komahun Project, SL Man Portable Rig

  31. Gori Hills, Sierra Leone Hand cut access

  32. Passendro Project Evolution 25 Indicated Inferred Total Pre-feasibility Study 06 20 3000 Reserves (included in resources) $8/oz Resource (million ounces) 2500 15 $8/oz Millions of US$ 2000 $13/oz Coup d’etat Bozie President – Mar 03 1500 10 $13/oz 1000 $26/oz 5 500 1999 – 2000 AXMIN enters Agreement with Asquith 2001 2002 2003 2004 Initial Resource Estimate 2005 Update 2 2006 Update 3 2007 2008 Update 4

  33. Ongoing Exploration Targets Twangizi DRC (11.8 moz) Moto DRC (21.6 moz) Sukari Egypt (11.6 moz) Burkina Faso Ghana Cote d’Ivorie Mali Other Essakane (5.3 moz) 3.5 Tongon (4.3 moz) Bibiani Aynfuri 3.0 Passendro CAR 2.5 Million ounces Bonikro 2.0 Salman New Liberty Liberia Esaase Inata 1.5 Bomahun Sierra Leone Bissa Agbou Taparko 1.0 Kalsaka Kouroussa Guinee Zara Eritrea Nampala Finkolo Komana Kofi Sega Kubi 0.5 Youga FT Angovia Medinandi Komahun Sian Bondi Baraya Beposo 0 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 Grade g/t Au

  34. Increase Exploration Sophistication To Expand Discoveries… • Integrate exploration models and subtle indicators • Depth extensions

  35. Mali – Kofi Project

  36. Blanaid Prospect, Mali Curiasse Cover

  37. Blanaid Prospect Kofi Project, Mali Ground IP

  38. Cathedral Termite Mound Kofi Project, Mali

  39. Cuirasse – Masks Deposit Blanaid Prospect

  40. Cuirasse – Masks Deposit Blanaid Prospect

  41. Cuirasse – Masks Deposit Blanaid Prospect

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

  43. Exploration Reward $125 March 2008 Feasibility $100 September 2008 Feasibility $75 September 2008 Market Cap US$ / oz Au $50 Breakeven $25 September 2008 $5 $10 $15 $25 $30 $35 $40 0 $20 Discovery Cost US$ / oz Au

  44. Disclaimer 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.

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