SW Axmin SL 43-101_v06

Axmin Inc.

DRAFT

Nimini HillsSierra Leone

NI 43-101 Report on Axmin’s Nimini Hills Gold Exploration Project,

Sierra Leone

Scott Wilson

AXMIN IncNimini Hills 43-101, January 2008 - DRAFT

Report Control Form

Document Title NI 43-101 Report on Axmin’s Nimini Hills Gold Exploration Project, Sierra Leone

Client Name & Address

AXMIN IncSuite 107, Kent House,Station RoadAshford, Kent TN23 1PP

Document ReferenceD117535

Status & Issue No. Status 1

Issue Date

Lead AuthorHelen Oliver

(signature & date)

AuthorIan Blakley

(signature & date)

Reviewer

(name) (signature & date)

Project Manager Approval James Hendry

(signature & date)

Director ApprovalJames Hendry

(signature & date)

Report Distribution Name No. of Copies

Client 1

Scott Wilson Library 1 (master)

This document has been prepared by Scott Wilson for the titled project or named part thereof. The report expresses Scott Wilson’s opinions based on the information available at the time of preparation. No part of this document should be taken in isolation and the entire document must be read, construed and acted upon in its entirety. Scott Wilson accepts no liability for use of or reliance on this document for any purposes other than that

Scott WilsonGreencoat House, 15 Francis Street

London SW1P 1DHUnited Kingdom

Tel: +44 (0)20 7798 5200

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AXMIN IncNimini Hills 43-101, January 2008 - DRAFT

for which it was commissioned or by any third party. Fax: +44 (0)20 7798 [email protected]

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mailto:[email protected]

CONTENTSPage

LIST OF TABLES …………………………………………………………………………………III

LIST OF FIGURES………………………………………………………………………………...IV

1. INTRODUCTION AND TERMS OF REFERENCE......................................11.1 SOURCES OF INFORMATION.................................................11.2 LIST OF ABBREVIATIONS......................................................3

2. RELIANCE ON OTHER EXPERTS......................................................4

3. PROPERTY DESCRIPTION AND LOCATION.......................................53.1 LOCATION AND ACCESS.......................................................53.2 MINERAL RIGHTS.................................................................53.3 SURFACE RIGHTS................................................................63.4 MINERALISED ZONES...........................................................63.5 ENVIRONMENTAL LIABILITIES...............................................63.6 ROYALTIES.........................................................................6

4. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY....................................................................74.1 ACCESSIBILITY....................................................................74.2 CLIMATE.............................................................................74.3 INFRASTRUCTURE AND LOCAL RESOURCES...........................74.4 TOPOGRAPHY, ELEVATION AND VEGETATION........................7

5. HISTORY………………………………………………………………………………….9

6. GEOLOGICAL SETTING................................................................116.1 REGIONAL GEOLOGY..........................................................116.2 LOCAL GEOLOGY...............................................................11

6.2.1 Titambia and Yiduna.................................................156.2.2 Komahun.................................................................156.2.3 Sendekor.................................................................166.2.4 Sendekor North........................................................16

7. MINERALISATION.......................................................................18

8. EXPLORATION............................................................................208.1 STREAM SEDIMENT SAMPLING...........................................208.2 SOIL SAMPLING.................................................................20

8.2.1 Titambia and Yiduna.................................................218.2.2 Komahun.................................................................218.2.3 Sendekor.................................................................218.2.4 Sendekor North........................................................21

8.3 PITTING............................................................................228.3.1 Komahun.................................................................22

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8.3.2 Titambia and Yiduna.................................................238.3.3 Sendekor.................................................................238.3.4 Sendekor North........................................................23

8.4 TRENCHING.......................................................................238.4.1 Komahun.................................................................238.4.2 Titambia and Yiduna.................................................248.4.3 Sendekor.................................................................248.4.4 Sendekor North........................................................24

9. DRILLING………………………………………………………………………………..25

9.1 KOMAHUN........................................................................259.1.1 Main Zone Structure.................................................259.1.2 Eastern Structure.....................................................259.1.3 Western Structure....................................................259.1.4 Southern One Structure............................................26

9.2 SENDEKOR........................................................................269.3 DRILLING SUMMARY..........................................................269.4 SURVEYS..........................................................................26

9.4.1 Survey Grids............................................................269.4.2 Diamond Drilling.......................................................279.4.3 Trenching.................................................................27

9.5 DIGITAL DATABASE............................................................279.6 ASSAY DATABASE..............................................................30

10. SAMPLING METHOD AND APPROACH...........................................32

11. SAMPLE PREPARATION, ANALYSES AND SECURITY.......................3311.1 SAMPLE PREPARTION........................................................3311.2 ANALYSIS.........................................................................3311.3 QUALITY CONTROL............................................................33

11.3.1......................................................................................................Blanks33

11.3.2.............................................................................................Duplicates34

11.3.3..............................................................................................Standards35

11.4 SECURITY.........................................................................3611.5 DENSITY MEASUREMENTS..................................................36

12. DATA VERIFICATION...................................................................37

13. ADJACENT PROPERTIES..............................................................38

14. MINERAL PROCESSING AND METALLURGICAL TESTING.................39

15. MINERAL RESOURCE ESTIMATE...................................................4115.1 SUMMARY.........................................................................4115.2 RESOURCE DATABASE.......................................................4215.3 WIREFRAME MODELS.........................................................4315.4 OXIDATION.......................................................................5315.5 BULK DENSITY..................................................................5315.6 ASSAY CAPPING (CUTTING)................................................5415.7 COMPOSITE CONTROL INTERVALS......................................56

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15.8 RESOURCE ASSAY STATISTICS............................................5615.9 MINERALISATION CONTINUITY AND VARIOGRAPHY..............5715.10BLOCK MODELLING............................................................58

15.10.1 Block Model Geometry and Block Size.....................5815.10.2 Grade Interpolation and Search Strategy................5815.10.3 Block Model Validation..........................................59

15.11CUT-OFF GRADE................................................................5915.12MINERAL RESOURCE CLASSIFICATION.................................6315.13MINERAL RESOURCES........................................................65

16. INTERPRETATION AND CONCLUSIONS..........................................69

17. RECOMMENDATIONS..................................................................70

18. REFERENCES.............................................................................71

19. CERTIFICATE OF QUALIFICATIONS...............................................72

LIST OF TABLES

Table 3–1 Nimini Hills Exploration Licence Boundary Co-ordinates

Table 6–1 Nimini West Nomenclature

Table 7–1 Rock and Mineralisation Types

Table 8–1 Nimini Hills Sampling Summary

Table 9–1 Nimini Hills Drilling Summary Project to Date

Table 9–2 Summary of Nimini Hills Digital Drillhole Database

Table 9–3 Summary of Nimini Hills Drillholes Used For Resource Modelling

Table 9–4 Summary Statistics for Nimini Hills Digital Drillhole Database and Assay Digital Database

Table 9–5 Summary of Database Assay Statistics Used For Resource Modelling

Table 11–1 CRM’s

Table 11–2 Density Measurements

Table 14-1 Metallurgical Test Work

Table 15–1 Axmin Inc. Nimini Hills – January 2008 Mineral Resource Estimate

Table 15–2 Resource Area Diamond Drillhole Statistics

Table 15–3 Nimini Hills Drillhole Statistics by Lense

Table 15–4 Nimini Hills Density Data

Table 15–5 Resource Assay Statistics

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Table 15–6 AXMIN Inc Nimini Hills Resource Evaluation Criteria

Table 15–7 AXMIN Inc. Nimini Hills – January 2008 Mineral Resource Estimate

Table 15-8 Scott Wilson January 2008 Mineral Resource Estimate AXMIN Inc – Nimini Hills Project

Table 15–9 Scott Wilson January 2008 Mineral Resource Estimate by Potential Mining Method

LIST OF FIGURES

Figure 6–1 Nimini West Prospects

Figure 6–2 Nimini West Zones

Figure 9–1 Plan View Drill Hole Locations and Lenses

Figure 9–2 Vertical Longitudinal Section Drill Hole Locations and Lenses

Figure 11–1 Nimini Hills Duplicate Samples

Figure 11–2 Nimini Hills CRM

Figure 13–1 Mano River’s Nimini North Exploration Prospecting Licence

Figure 15–1 Oblique Side View Drill Hole Locations and Lenses

Figure 15–2 Vertical Section 1300 M – Drill Hole Grades and Lenses



Figure 15–5 Vertical Section South Extension – Drill Hole Grades and Lenses

Figure 15–6 Plan View 450 Elevation – Drill Holes Grades and Lenses



Figure 15–9 Gold Grade versus Sample Length

Figure 15–10 Histogram of Assay Grades

Figure 15–11 Assay Interval Lengths

Figure 15–12 Main Zone Relative Downhole Semi-Variogram of Topcut 2 m Composites

Figure 15–13 Main Zone Relative Major Directional Semi-Variogram of Topcut 2 m Composites (Azimuth 230 / Dip -60)

Figure 15–14 Oblique View - $1,000 Au Pit Shell and Lenses

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Figure 15–15 Oblique View - $1,000 Au Pit Shell and Lense 2 Au Grades

Figure 15–16 Vertical Longitudinal Sections – Lense 2 Drill Hole intercepts and Class Codes

Figure 15–17 Vertical Longitudinal Section – Lense 2 Drill Hole Intercepts and Target Areas

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1. INTRODUCTION AND TERMS OF REFERENCE

Scott Wilson (incorporating Scott Wilson RPA) (SW) has been retained by Dr. Jon Forster, Chief Executive Officer of AXMIN Incorporated (AXMIN) to prepare an Independent Technical Report compliant with National Instrument 43-101 on the Nimini Hills Project. The report has been prepared to meet the requirements of NI 43-101 and Form 43-101F1.

Scott Wilson (SW) has had no prior involvement in the Nimini Hills Project.

The Nimini Hills Project is an Archean Greenstone gold exploration project in eastern Sierra Leone, composed of two exploration licences - Nimini East and Nimini West.

1.1 SOURCES OF INFORMATION

A site visit conducted by Helen Oliver C.Geol., SW Senior Geologist between 15th

and 19th October 2007. On-site discussions were held with personnel from AXMIN and independent consultants. Reports and data were reviewed and discussed with AXMIN staff. Various maps and technical reports were provided by AXMIN in addition to public documents as listed in Section 18 References.

Overall project review and preparation of the Report was carried out under the supervision of Helen Oliver C.Geol., SW Senior Geologist.

A digital database of exploration drilling and trench sampling data was obtained from AXMIN in Microsoft Excel format. Drillhole, topographic data and other exploration data is based on a cut-off date of 31st October 2007.

Mr. Ian T. Blakley, P. Geo., SW Consulting Geologist, performed checks on the drilling, drillhole collar locations, sampling, assay data as well as the resource wireframes.

The resource estimate was carried out using Gemcom Software (Version 6.1) by Mr. John C. Boyce, P. Eng., SW Senior Systems Engineer, in consultation with Mr. Ian T. Blakley, P. Geo., SW Consulting Geologist, who reviewed and audited results.

Throughout the course of the resource estimate, several meetings and progress reviews were held to ensure that the estimate was completed to the standards of Scott Wilson and CIM / NI 43-101 guidelines.

Discussions were held with personnel from AXMIN and independent consultants, including:

Dr. Jonathan Forster , Chief Executive Officer, AXMIN

Mr. Anthony Greenish, Projects Geologist, AXMIN;

Mr. Dan Cocis, Member of the Romanian Geological Society, Exploration Manager, AXMIN;

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Ms. Fiona Best, Geologist; AXMIN and

Dr. William A (Bill) Sheppard, P.Geo from LiaMin Consulting.

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1.2 LIST OF ABBREVIATIONS

Units of measurement used in this report conform to the SI (metric) system. All currency in this report is US dollars (US $) unless otherwise noted.

Micron kPa kilopascal°C Degree Celsius kVA kilovolt-amperes°F Degree Fahrenheit kW kilowattg Microgram kWh kilowatt-hourA Ampere L litreA Annum L/s litres per secondBbl Barrels M metreBtu British thermal units M mega (million)C$ Canadian dollars m2 square metreCal Calorie m3 cubic metreCfm cubic feet per minute Min minuteCm Centimetre MASL metres above sea levelCm2 Square centimetre Mm millimetreD Day Mph miles per hourdia. Diameter MVA megavolt-amperesDmt dry metric tonne MW megawattDwt dead-weight ton MWh megawatt-hourFt Foot m3/h cubic metres per hourFt/s foot per second opt, oz/st ounce per short tonFt2 square foot Oz Troy ounce (31.1035g)Ft3 cubic foot oz/dmt ounce per dry metric tonneG Gram Ppm part per millionG giga (billion) Psia pound per square inch absoluteGal Imperial gallon Psig pound per square inch gaugeG/L gram per litre RL relative elevationG/t gram per tonne S secondGpm Imperial gallons per minute St short tongr/ft3 grain per cubic foot Stpa short ton per yeargr/m3 grain per cubic metre Stpd short ton per dayHr Hour T metric tonneHa Hectare Tpa metric tonne per yearHp Horsepower Tpd metric tonne per dayIn Inch US$ United States dollarin2 square inch USg United States gallonJ Joule USgpm US gallon per minuteK kilo (thousand) V voltKcal Kilocalorie W wattKg Kilogram Wmt wet metric tonneKm Kilometre yd3 cubic yardKm/h kilometre per hour Yr yearKm2 square kilometre

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2. RELIANCE ON OTHER EXPERTS

This report has been prepared by Scott Wilson for AXMIN. The information, conclusions, opinions and estimates contained herein are based upon:

Information available to SW at the time of preparation of this report;

Assumptions, conditions and qualifications as set forth in this report; and

Data, reports and opinions supplied by AXMIN and other third party sources listed as references.

For the purpose of this report, SW has relied on ownership information provided by AXMIN. SW has not researched property title or mineral rights for the Nimini Hills Project and expresses no legal opinion as to the ownership status of the property. SW has not independently investigated the legal title of the licences or the permitting and reclamation status of the property.

SW is not an associate or affiliate of AXMIN, and neither SW nor any affiliate has acted as an advisor to AXMIN or its affiliates in connection with the Nimini Hills. The results of the technical review by SW are not dependant on any prior agreements concerning the conclusions to be reached, nor are there any disclosed understanding concerning any future business dealings.

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3. PROPERTY DESCRIPTION AND LOCATION

3.1 LOCATION AND ACCESS

The AXMIN licences are located within the Nimini Hills some seven hours drive due east from Freetown. The road is tarred approximately 75 % of the 330 km drive. Air transport is currently only available by helicopter.

An exploration camp has been established next to the village of Komahun, outside and to east of the Nimini West exploration licence area. The licence area is accessed by a network of often steep dirt tracks from the main camp. The topography is moderately to extremely steep with heavy vegetation; access to some areas is limited during the height of the wet season.

The total area of the AXMIN Nimini Hills licences is approximately 100 km2 and geographical co-ordinates for the permits are presented in Table 3-1.

Table 3-1 Nimini Hills Exploration Licence Boundary Co-ordinates (WGS 84 UTM 29N)

Points Longitude East Longitude North

Nimini Hills East

A 259903 943087

B 259903 939084

C 269000 939084

D 269000 943087

Nimini Hills West

A 259903 943087

B 263018 955758

C 263018 943087

D 259903 943087

E 259903 939084

F 258934 939084

The licence boundaries have been located using a hand-held GPS but have not been demarked in the field.

3.2 MINERAL RIGHTS

The Nimini Hills Property is held under two exploration licences. The Nimini East licence encompasses 44 km2 and the Nimini West licence covers 56 km2.

The Nimini licences are held by ‘Nimini Mining Company’, a joint venture company between AXMIN (60%) and Eldorado Gold Corporation (previously known as AFCAN). The licences give the holder(s) the right to explore for gold, diamonds, associated minerals and base metals.

AXMIN applied to the Sierra Leone Ministry of Mineral Resources (MMR) in early 2007 for the upgrading of the Nimini East Prospecting Licence (Number EPL 9/02)

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to an Exploration Licence. The exploration licence has been paid for and has been approved, however the official paperwork is outstanding along with the allocation of the exploration licence number. (A letter dated 31st July 2007 from the MMR was seen by one of the authors, stating that the licence had been approved.)

The Nimini West Exploration Licence (Number EXPL 4/06), was issued on 11 th

August 2006 which is valid for three years (expiring August 2009), following which application may then be made for a renewal of a further two years (August 2011).

No additional permits are required for the current exploration programme.

3.3 SURFACE RIGHTS

The issue of surface rights is not applicable to exploration projects in Sierra Leone; however, sensitivity and consideration should be shown to local communities and land use.

3.4 MINERALISED ZONES

Small alluvial gold workings are common in the Nimini Hills, particularly in the tributaries of the Wongo River in the Nimini West licence. Historical drilling (see Section 5 for further details) established a zone of mineralisation with a strike length of 300 m open in all directions. The drilling is reported to have interested grades of 2.5 g/t Au over 40 m, 4.6 g/t Au over 13.7 m and 8.6 g/t over 5.5 m.

3.5 ENVIRONMENTAL LIABILITIES

There are no known environmental liabilities currently in place over the Nimini Hills prospect although no detailed studies have taken place. Baseline studies will be required if a mining lease application is made.

3.6 ROYALTIES

There is no royalty applied to the property other than of the royalty payable to Government as prescribed by the Mining Code (currently set at 4 % of revenue from precious metals).

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4. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

4.1 ACCESSIBILITY

The Nimini Hills are located approximately 330 km east of Freetown, accessed via the paved road linking Freetown and Koidu. A dirt access road (as constructed by AXMIN) joins the Freetown - Koidu road at the village of Jagbwema and leads to the village of Komahun and is approximately 5 km long. The Nimini Hills exploration camp is positioned next to Komahun, to the east of the Nimini West licence. A gabion and steel bridge (which was also constructed by AXMIN) crosses a large river south of Jagbwema.

The access road has recently been extended from the exploration camp into the concession to facilitate drill rig access in the ‘Main Zone’. However, access throughout the majority of the property is via foot.

4.2 CLIMATE

The climate is tropical – hot and humid with a summer wet season (May to November). Annual rainfall is approximately 20oC and temperatures generally range between 20oC and 36oC.

Exploration continues throughout the year; however, contract drillers Boart Longyear do not work in the peak wet season. Access across the site significantly deteriorates during the wet season, slowing down work activities.

4.3 INFRASTRUCTURE AND LOCAL RESOURCES

The Nimini Hills are very rural with no infrastructure. No power or water services are available (bar that which is generated within the confines of the camp, including a dam and pump on a local river and diesel generators).

Koidu, a regional and diamond mining town, lies approximately 22 km from the exploration camp where basic supplies can be sourced (e.g. food, fuel, basic engineering services and medical resources). Mobile telephone coverage is adequate.

4.4 TOPOGRAPHY, ELEVATION AND VEGETATION

The Nimini Hills form a rugged range of north – south trending hills in eastern Sierra Leone. The hills rise rapidly from the surrounding plains, from 380 m to a maximum of 772 m at Mount Nimini (in the Nimini East licence).

The Nimini West licence incorporates a north – south striking watershed, with the Komahun River flowing northwards on the eastern side of the divide. Many westward flowing rivers emanate and bisect the western flank of the Nimini Hills. The Wongo River runs along the eastern boundary of the Nimini West licence.

The hills are covered by thick tropical forest, which have been in part been cleared by subsistence farmers (which may have been neglected and re-claimed by the forest).

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The southern extent of the Nimini East licence is extremely rugged and isolated with no villages in the area. The northern part of the Nimini West licence incorporates flat alluvium covered valley plains formed at the base of the Hills.

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5. HISTORY

Mineralisation was first discovered in the Nimini Hills at Komahun by the Geological Survey of Sierra Leone in 1967 following a regional geochemical sampling programme. The Survey conducted further work in May 1975 which involved further soil sampling, ground magnetic surveying, trenching and reconnaissance drilling.

Leo Temp Mining Development Company of Canada drilled the Komahun Prospect between 1981 and 1982.

The Nimini Hills were further investigated by the European Development Fund of the European Economic Community (EEC) between 1989 and 1992. Regional stream sediment sampling, followed by soil sampling, delineated two anomalies at Komahun and Nimikoro.

The Komahun anomaly lies within the Nimini West licence area.

The Nimikoro anomaly extends for 5.6 km from the Golden Leo anomaly (currently held by Mano River Resources), immediately east of the Nimini West licence and extends south into the Nimini East licence. The main Nimikoro anomaly lies within the Nimini East Licence and covers an area of 1,600 m along strike by 1,000 m. The majority of samples assayed greater than 400 ppb Au with several values being greater than 1,000 ppb Au. Follow-up trenching was undertaken by the EEC at Komahun before the project was abandoned due to political instability.

AFCAN Mining Corporation (under its 75 % owned subsidiary Nimini Hills Mining) was granted a prospecting licence for the Nimini West licence (No. EPL 9/02) on 1st

October 1996 and a prospecting licence for Nimini East licence (No EPL 9/02) on 15th November 2002. The Nimini West prospecting licence was extended by the Ministry of Mineral Resources without any work being undertaken due to civil unrest.

AFCAN entered into a Head of Agreement with Ashanti Goldfields in May 2003. Ashanti carried out regional stream sediment sampling in Nimini West and East, followed up by detailed stream sampling of the Wongo River. Ashanti placed soil sampling grids over the Komahun and Nomikoro anomalies. Ashanti identified a 400 to 600 m long anomaly at Komahun with a similar trend to that identified by EEC (although somewhat weaker). Ashanti did not locate any significant gold anomalies at Nimikoro. Ashanti withdrew from the agreement in December 2003.

In 2004 AXMIN elected to exercise an option whereby they can earn a 60 % interest in the Nimini Hills Project as owned by AFCAN Barbados Limited (“AFCAN”), a subsidiary of Eldorado Gold Corporation, by an expenditure of US $ 2.25 million over a three year period, with a minimum expenditure of US $ 500,000 in the first year.

The current AXMIN exploration programme commenced in late 2004 / early 2005 with an airborne geophysical survey.

SRK Consulting produced a report entitled ‘Independent Mineral Resource Estimation of the Nimini Hills Prospect, Sierra Leone’ in September 2006. They estimated an inferred mineral resource statement of 4.9 million tonnes at a grade of 2.5 g/t Au.

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6. GEOLOGICAL SETTING

6.1 REGIONAL GEOLOGY

The Nimini Hills form one of a number of sub-parallel greenstone belts in the eastern region of Sierra Leone, all of which trend north to north-northeast It is comprised of typical classic greenstone lithologies including basic schists, ultramafic bodies, felsic schist and banded iron formations (BIF).

The Hills rise sharply from the surrounding Precambrain basement granites of the Man Domain, which are divided into the Liberian granite – greenstone terrain and the metamorphic Kaila Group and is composed of the Archean greenstone lithologies of the Kambui Group.

6.2 LOCAL GEOLOGY

A full understanding of the local geology of the Nimini Hills is still being formulated. The Hills consist of a 2 to 8 km wide, northeast trending greenstone belt with granitoid rocks to the east and west. The belt has been thickened where it has been subjected to folding about north – south axes.

The Archean (2.98 Ga) supracrustal lithologies of the Nimini Greenstone Belt have been metamorphosed to the low greenschist facies and are thought to belong to the lower part of the late Archean Kambui Supergroup. They include a lower ultramafic-mafic sequence overlain by pelitic schists and psammites. The ultramafic-mafic sequence includes amphibolite, tremolite schists, anthophyllite schists and serpentinites. Banded iron formation (BIF) units are also present. Reportedly, the amphibolites include a lava flow sequence of up to 2,500 m thick within which pillow structures are well preserved. The overlying sediments are greywacke turbidites, presumably in unconformable relationship with the underlying metavolcanics. AXMIN’s airborne magnetic and radiometric survey indicates that the northern third of the Nimini West licence is underlain by metasediments, while the remainder is underlain by the ultramafic and mafic metavolcanics.

At Komahun, an ultramafic sequence of talc and minor tremolite schists occurs low in the host rock sequence. Overlying this is a transitional sequence of phyllites, sandstones, coarse volcaniclastics and talcose amphibolite. In turn this sequence is overlain by massive and banded amphibolites of near vertical dip. These amphibolites host the gold mineralisation, but close to the mineralised system they become strongly altered and sheared. The Komahun wall rocks are dominated by schistose, probably tremolitic, amphibolite that shows a wide range of mineralogies. The altered amphibolite schists contain a diversity of strain and alteration patterns defined by the distribution of minerals such as phlogopite, tremolite, actinolite, garnet, diopside chlorite and carbonates.

The summits of the hills are typically capped by ferricrete. Typical soil depth is 2 to 3 m with the weathering zone extending to 20 to 30 m.

Exploration has concentrated on the Nimini West licence as work in Nimini East is complicated by problematic access. As significantly more work has been undertaken in Nimini West, it is better understood than Nimini East.

The Nimini West Exploration Licence can be divided into 5 Prospects or areas that have gold prospectivity (see Figure 6.1), namely:

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Komahun Prospect;

Sendekor Prospect;

Sendekor North Prospect;

Titambia Prospect; and

Yiduna Prospect.

Seven Structures (or Zones) have been identified to be of interest in regard to potential gold mineralisation within the Komahun and Sendekor Prospects (Figure 6-2) namely:

Main Zone;

Northern (northern extension of Main Zone);

Western;

Eastern;

Southern One;

Southern Two; and

Southern Three.

The Structures can further be sub-divided into Lenses, as detailed in Table 6-1.

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Figure 6-1 Nimini West Prospects

(Source: AXMIN 2006 Annual Report)

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Legend:

BIF – Banded Iron Formation

V – Volcanics

ms - Metasediments

Gb – Gabbro

UM – Ultramafic

I – Intrusive

ts –Talc Schist

Figure 6-2 Nimini West Zones

(Source: AXMIN June – September 2007 Quarterly Report)

As the Nimini West exploration project has progressed, the nomenclature has changed; Table 6-1 below summarises the changes.

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Table 6-1 Nimini West Nomenclature

PROSPECTSRK

DOMAINHISTORICAL ZONE CURRENT NAME LENSE NO.

Komahun

Komahun 1 Western Western 6 & 7

Komahun 2, 3 & 4Main Zone

Main Zone 1, 2, 3 & 4

Komahun 5 Northern 5

Komahun 6 Eastern Eastern -

- Southern Southern One 8 & 9

Senekor- - Southern Two -

- - Southern Three -

6.2.1 Titambia and Yiduna

Titambaia and Yiduna are adjacent Prospects, located in the far north of the Nimini West Licence. The more westerly Titambaia Prospect covers 6 km2 and the easterly Yiduna Prospect 3 km2.

The geology of the Titambaia and Yiduna Prospects, as interpreted from airborne geophysics, is dominated by metasediments and volcanic units (including banded iron formation as identified by float mapping). It is postulated that the geology of these areas has been affected by ductile deformation, with folding into a north-northeast – south-southeast trending, north-northeast plunging syncline.

Due to the scarcity of float, field mapping has provided little information on the geology of these Prospects. However, scarce pieces of BIF, amphibolite and quartz have been observed in both Prospects.

A soil gold anomaly(ies) has been identified in Titambia and Yiduna, however the source of the gold has yet to be identified (which may be complicated due to potential long transportation on to the flat plains). Future follow up work (pitting and trenching) may be further complicated by relatively thick overburden and water-logged ground (hence possibly requiring wild-cat drilling).

6.2.2 Komahun

The Komahun Prospect is located in the central western Nimini West Licence, covering 1.65 km2.

The predominant greenstone lithologies of the Komahun Prospect are amphibolite, banded iron formation (BIF) and talc schist. These reflect a regional northeast – southwest trend and (using airborne geophysics) they have been interpreted as being folded into a generally northeast – southwest trending structure, the hinge of which runs through the centre of the Komahun Prospect (Last, 2006). This structure is therefore referred to as the Main Zone Structure. Based on field evidence and geophysical data it appears that a later period of brittle faulting has offset units associated with the Main Zone Structure.

In addition, a number of other structures have been identified in the Komahun Prospect, including the Western Zone, Southern One Zone and Eastern Zone.

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Several parallel mineralised units have been identified in the Main Zone. The mineralised units trend approximately 050o and can be traced over a strike length of over 400 m.

The Northern Zone is a continuation of the Main Zone, but has been broken out for resource evaluation.

The Eastern Zone is structurally complex and the mineralisation appears to be rather discontinuous.

6.2.3 Sendekor

The Sendekor Prospect is located in central to southern Nimini West Licence, covering 18 km2.

The geology of Sendekor, as interpreted from the airborne geophysical survey, is dominated by greenstones. The north-northwest – south-southeast trending contact between the greenstone belt and granite appears towards the west of the Sendekor Prospect.

Two broad (100 - 500 m thick), parallel magnetic zones, continuous over approximately 3,000 m with abundant volcanic packages, have been identified in Sendekor using airborne geophysics. These packages have been interpreted as being folded into a generally north-northwest plunging syncline - the hinge of which runs through Sendekor South, Sendekor, Sendekor North and Titambaia. Towards the south, the synclinal structure appears to be orientated more east - west, possibly suggesting a second phase of folding in southern Sendekor. These two anomalies are referred to as Southern Two Zone and Southern Three Zone.

Sendekor also appears to have a complex history regarding brittle deformation - two sets of faults have been provisionally delimited using airborne geophysics.

6.2.4 Sendekor North

The Sendekor North Prospect is located in the northwest of the Nimini West Licence, covering 1.5 km2.

Airborne geophysical data suggests that the northerly limb of the Main Komahun Structure (composed of possible BIF) extends into Sendekor North. The units comprising the northern limb have been interpreted as being folded into a generally north-northwest plunging syncline displaying an east – west trend. The hinge of this syncline has been interpreted as running through the centre of Sendekor North.

Based on field mapping, the dominant lithologies of the Sendekor North Prospect are sheared amphibolite, recrystalised quartz and schist. Laterite boulders are also prevalent. There is little evidence for the presence of BIF in the area, hence the airborne magnetic signature is likely due to the relative abundance of magnetic sheared amphibolite. Exposed rocks predominantly strike 020° to 050°.

Anomalous gold zones have been identified within the area, predominately associated with magnetic sheared amphibolite. The anomalous gold values are low, with no assays over 0.62 g/t.

Lithologically and structurally, the Sendekor Prospect is poorly understood at the time of writing.

-16- Scott Wilson

7. MINERALISATION

The gold mineralisation found in Nimini West is shear-hosted occurring in the vicinity of a near-vertical sequence of BIF units within basic volcanics close to their contact with talcose ultramafic schists. Positive assays for gold from talcose schists are rare. Most significant gold intersections appear to be arsenopyrite-related and much of it is in association with the intervals of highest strain within the mineralised host rock package (LiaMin, June 2007). The mineralisation in the marginal target areas is not well understood at present. However, recent detailed geological studies of drill core at Komahun have established tight geological controlled on the mineralisation.

A number of rock types and mineralisation styles have been characterised in Nimini West, as summarised in Table 7-1 below:

Table 7-1 Rock and Mineralisation TypesType Description / Comments Typical Grade

(Au g/t)

Talc Schist Barren

Carbonate Veining Barren

Carbonate Veining with foliation With pull apart structures. Barren

AmphiboliteWith AsPy 1.5

Without AsPy 1

Banded Iron Formation (BIF)

Up to 5 m thick with narrow banding with folding and shearing. Garnetiferous in

places.

With AsPy 5Without AsPy 3

Pyrrohitite BrecciaHigh strain unit. Only found in southern

Main Zone to date.

12(possibly reduced

by smearing)

Quartz Veining Type 1Cloudy quartz with sulphides (carbonate replacement). Can develop into major

shears.2

Quartz Veining Type 2 Brown tint. 1

Quartz Veining Type 3Host rock inclusions, foliation, often visible

gold.6

Quartz Veining Type 4 Clean, massive quartz. Barren

Three sets of BIF horizons have been correlated through much of the area as a basis to subdivide the mineralised system:

Top Garnetiferous BIF Marker

Middle Non-garnetiferous BIF Marker

Bottom Garnetiferous BIF Marker

However, the Middle and Bottom BIF Markers have not been located in the southern area of Main Zone.

The uppermost mineralised zone is associated with a persistent trend of massive syn-deformational vein quartz, referred to as Type 3 veining, within which visible gold is common. This zone is low in sulphide and lies entirely above the top garnetiferous BIF marker. Two other zones lower in the sequence have a different

-17- Scott Wilson

character and each, through reference to two other BIF markers, can be sub-divided into a number of sub-zones

Features of these lower zones include:

1. Persistent shear-hosted vein quartz – Two principal types of veining are recognised that carry modest but sustained gold values.

2. Discrete / disseminated euhedral to anhedral arsenopyrite – This mineralisation style is common in the lower zones, carries modest to high grades and is interpreted as syn-deformational.

3. Massive pyrrhotite breccia mineralisation – These breccias, although narrow, show good persistence between drill sections and are probably related to zones of major detachment within the auriferous shears. Like the Type 3 veins, they carry very high grades of gold.

4. Massive chlorite garnet altered schist – Often at or close to BIF units. This contact alteration assemblage is commonly seen in Archaean greenstone terrains associated with chemical sediments.

The current structural interpretation involves first order tight folding of the ultramafic to mafic schist and intercalated magnetic BIF. The mineralisation probably relates to a second phase of shearing and buckle folding associated with a broad zone of northeast trending dextral shearing with mineralising fluids percolating through curvilinear riedel shears cross cutting lithologies. The distribution of gold is closely tied into discrete shears carrying persistent modest grades within which highly auriferous Type 3 veining, pyrrhotite breccias and strong arsenopyrite developments enhance gold grades to be of high potential economic interest.

-18- Scott Wilson

8. EXPLORATION

AXMIN established the Komahun exploration field camp in April 2004. Initial work involved the reconditioning, mapping and sampling of the historical EEC pits and trenches. Regional work included stream sediment sampling. An airborne geophysical magnetic and radiometric survey was flown in late 2004 / early 2005. Stream sediment and geophysical anomalies have been followed up by soil sampling, and possibly by pitting, trenching and drilling.

Reconnaissance stream sediment sampling (22 samples) has been carried out in the eastern and central portions of the Nimini East licence by AXMIN. The -180 micron fraction stream sediment samples were analysed by Transworld Laboratories in Ghana. Visible gold-in-pan anomalies (with corresponding gold values ranging up to 1.86 g/t Au) were recovered in the streams draining off the southeast flanks of Mt Nimini in the central and southern area of the licence. However, there was little visible gold in the streams draining the eastern area.

The EEC’s Nimikoro gold-in-soil anomaly in the east of the Nimini East licence was investigated by AXMIN pits (at an average depth of 2 m) at 50 m intervals along two 500 m spaced lines across the centre of the anomaly. The highest recovered value in the 38 pits (which mainly exposed 2 m thick fragmental laterite) was 84 ppb Au. The majority of the comparative EEC values recovered over 400 ppb Au. Hence, it is believed that the Nimikoro anomaly in Nimini East is an EEC laboratory error.

Table 8-1 Nimini Hills Sampling Summary

Sample Type Number

Stream 20

Soil 349

Pit 177

Trench 2,874

8.1 STREAM SEDIMENT SAMPLING

In 2005, stream sediment sampling was undertaken within the licence areas on a 1 km interval. 1 kg samples were taken and panned to produce a 1.5 litre minus100 mesh sample which was subjected to wet geochemical analysis.

8.2 SOIL SAMPLING

Soil samples are taken on a 400 m line, 50 m sample spacing grid with possible sample infill on a 200 m lines with 50 m sample spacing. The samples are sieved on-site to produce approximately 100 g -100 mesh which are dispatched to OMAC for wet geochemical analysis.

Soil sampling is limited to the dry season and is under direct geological supervision; float mapping by the geologist occurs during the soil sampling procedure. Sample lines are cut by local labour with the sample positions located by hand held GPS and compass / clinometer.

-19- Scott Wilson

A total of 349 soil samples have been taken within the Nimini West Licence project-to-date from the 5 Prospects. No soil sampling has occurred to date in 2007.


A geochemical survey was completed in the Yiduna Prospect in the first quarter of 2006. It involved the collection of soil samples at 50 m intervals along seven 600 to 1,200 m long, east – west cross lines. In total, 104 soil samples were collected.

A second geochemical survey was undertaken in the third quarter of 2006. It entailed the collection of soil samples at 50 m intervals along seven 500 to 1,500 m long, east – west cross lines. In total, 147 soil samples were collected (37 samples from the Titambaia Prospect and 10 from the Yiduna Prospect).

Of the 251 soil samples collected in the Titambaia and Yiduna Prospects during 2006, 75 samples contained over 20 ppb Au, 31 samples contained over 50 ppb Au, 15 samples contained over 100 Au ppb and 3 samples contained over 500 ppb Au.

A broad, relatively low – grade soil anomaly can be observed across both Prospects. Due to the flat lying nature of the Prospects (which are rich in alluvial deposits) and the lack of float, the source of the gold in the sampled material is currently unknown.

8.2.2 Komahun

44 soil samples were collected in southern Komahun during 2006. Nine samples were anomalous for gold with over 20 ppb Au and four samples contained over 100 ppb Au.

In southern Komahun in 2006, 26 soil samples were collected along two east - west crosslines (950200N and 950300N). Three samples contained over 20 ppb Au and 1 sample contained over 50 ppb Au. However, the geology of this area is masked by a duricrust (laterite); hence, the assays received from soil sampling may reflect gold contained in the duricrust rather than that in the underlying rocks.

8.2.3 Sendekor

During the third quarter of 2006, a new grid comprising approximately 25 km of lines, covering 8 km2 of southern Sendekor was cut.

Due to logistical constraints, this grid has not been sampled to date.


An infill soil sampling program, involving the sampling of seven 450 m north - south crosslines was completed in 2006. Soil samples were collected at 50 m intervals along each crossline. In total, 54 soil samples were collected and analysed in 2006.

Of the 54 soil samples collected, 36 samples contained over 20 ppb Au, 12 samples contained over 50 ppb Au and 3 samples contained between 100 – 200 ppb Au.

-20- Scott Wilson

A relatively low-grade soil anomaly covering approximately 0.25km2 of the western Sendekor North Prospect has been identified.

8.3 PITTING

Pits are dug 3 m deep on an initial 200 m x 50 m grid overlaying an anomaly with possible infill on a 100 m x 500 m grid. Channel samples (5 cm wide, 2 cm deep, 1 m long) are taken at the base of the pit, and sent for wet geochemical analysis. Pitting occurs all year around. Pit positions are located by hand-held GPS and are mapped.

A total of 177 pits have been excavated within the Nimini West Licence project-to-date from the 5 Prospects. No pitting has occurred to date in 2007.

8.3.1 Komahun

8.3.1.1 Main Zone

22 pits were excavated in the Main Zone anomaly in 2006. Of these, 15 samples contained over 20 ppb Au and 8 samples contained over 100 ppb Au.

8.3.1.2 Eastern Zone

In 2006, 5 pits were excavated and sampled in the area to the southeast of the Main Zone (i.e. the eastern Zone). Of these, 4 pits contained samples with over 100 ppb Au and 2 samples contained over 500 ppb Au.

Pitting is difficult in this area due to a combination of a high water table, a thick blanket of transported material and duricrust.

8.3.1.3 Western Zone

34 pits were excavated across the Western Structure in 2006. Of these, 20 contained over 20 ppb Au, 8 contained over 100 ppb Au and 1 contained over 500 ppb Au.

Laterite grab samples were taken from pit AX024 (located at 950106N / 262062E) in 2006. As laterite overburden / duricrust extends to a depth over 3 m for the entirety of this trench, it was not previously logged or sampled.

Of the 5 grab samples taken from pit AX024 all contained over 50 ppb Au, 4 contained over100 ppb Au and one contained over 400 ppb Au

8.3.1.4 Southern One Structure

13 of the 33 pits excavated and sampled in Southern One Structure during 2006 contained over 20 ppb Au and 2 contained over 100 ppb Au.


No pitting has been undertaken in the Titambia and Yiduna Prospects to date.

-21- Scott Wilson

8.3.3 Sendekor

22 pits were excavated and sampled in the Sendekor Prospect during 2006. This program was a follow-up to the soil sampling survey completed in the final quarter of 2005 which identified anomalous values in northern Sendekor on line 948500N between 261700E and 261800E (41 – 122 ppb), 948300N between 261550 – 261750E (60 – 235 ppb), and 948100N between 261600E – 261700E (89 – 621 ppb). The aim of this new pitting program was therefore to provide more information on the source of the anomalous soils in the area.

Of the sampled pits, 6 contained over 50 ppb Au, 2 contained over 100 ppb Au and 1 contained over 500 ppb. These anomalous pits were located on lines 949100 (between 261700E and 261800E), 948500N (261750E), and 948300N (at 261550E and 261750E).


61 pits were excavated and sampled in the Sendekor North Prospect during 2006. This program was a follow-up to the 2006 soil sampling survey and the 2005 pitting program. The latter identified anomalous values on line 260250E between 949300N and 949100N and on line 260550E between 949350N and 949150N. The aim of this new pitting program was to:

provide more information on the source of the anomalous soils in the area; and

attempt to trace the anomalous values seen in previously excavated pits.

Of the sampled pits, 6 contained over 50 ppb Au and 4 contained over 100 ppb Au. Anomalous pits predominantly contained magnetic amphibolite or magnetic iron-rich saprolite.

8.4 TRENCHING

Trenches are excavated 3 m deep, 50 m long (with possible extensions) with channel samples taken every 2 m on a 100 m line spacing. The trenches are also mapped. Trenching occurs all year round; however, no trenches were being excavated during the site visit.

A total of 2,874 m have been trenched within the Nimini West Licence project-to-date from the 5 Prospects.

8.4.1 Komahun

8.4.1.1 Main Zone

In 2005, 246 m of trench were excavated to a depth of 2 m in the Main Zone.

In 2006, the 2005 trenches were deepened to 3 m in an attempt to intersect saprolite. An additional 655 m was trenched in 2006.

8.4.1.2 Eastern Structure

During 2006, 226 m of trench were excavated (to 3 m depth) in the area to the southeast of the Main Komahun Anomaly, i.e. the Eastern Structure.

-22- Scott Wilson

8.4.1.3 Western Structure

During 2006, 579 m of trench were excavated (to 3 m depth) to the west of the delimited Komahun Main Anomaly (the Western Structure).

8.4.1.4 Southern One Structure

During 2006, 570 m of trenches were excavated (to 3 m depth) in the South One Structure.


One trench, 50 m in length (located at 261780E / 951025N) was excavated in the Yiduna Prospect in 2006. The aim of this trenching exercise was to intersect BIF as predicted from the interpretation of the geophysical survey (Last, 2005). However, bedrock was not intersected due to deep (> 3 m) overburden.

No trenching has been undertaken in the Titambia Prospect to date.

8.4.3 Sendekor

During 2006, 212 m of trenches were excavated in the Sendekor Prospect. These trenches were mapped and sampled in order to aid in the understanding of the extent and style of the mineralisation observed in the associated anomalous soil samples identified in a number of pits.

To date in 2007, 4 trenches (245.5 m) have been excavated in Sendekor targeting the South Two and South Three Zones.


Two trenches, totalling 80 m, were excavated in the Sendekor North Prospect during the first quarter of 2006. These trenches were mapped and sampled in order to aid in the understanding of the extent, and style of the mineralisation observed in the associated anomalous pits.

-23- Scott Wilson

9. DRILLING

No drilling has been undertaken in the Nimini East licence to date by AXMIN; all drilling reported below occurred in Nimini West. Drilling has only been conducted within the Komahun and Sekendor Prospects to date.

All drill core is electronically geotechnically and geologically logged with all interesting zones in regard to potential mineralisation sampled.

Phase 1 drilling is typically undertaken by the AXMIN man-portable drill rig on a 40 m spacing with typically 3 – 4 holes per fence. The drill fences are initially 320 m apart, with possible infill drilling at 160 m and 80 m. The drillholes are generally 100 m deep and inclined at 55o.

2nd Phase drilling is tended to be undertaken by the Boart Longyear skid-mounted rig, typically to a 200 m depth and is utilised on infill drill lines on a 40 m interval. This rig may also be used for infill drilling on a 20 m spacing if required.

9.1 KOMAHUN

9.1.1 Main Zone Structure

In 2006, two drilling programs focusing on the Komahun Main Zone Structure were undertaken. The first program occurred in April 2006 and involved the drilling of 17 holes (NWKD011 – NWKD028), totalling 2,000 m, along the southern limb of the main structure. A further 3 holes (NWKD031 – 33), totalling 243 m, were drilled along the southern limb of the main structure in the final quarter of 2006.

2007 year-to-date has seen the drilling of 23 holes, totalling 3,814 m in Main Zone.

9.1.2 Eastern Structure

Due to a thick transported layer, in-situ mineralisation has not intersected by trenching, however abundant quartz float, containing visible gold, has been observed in the Eastern Structure.

The first hole drilled in this area was NWKD027, completed in the first quarter of 2006. Exploratory drill holes NWKD029, NWKD030, NWKD034, NWKD035 and NWKD036 were drilled between October and December 2006. Drilling attempted to intersect gold-bearing quartz veins at depth, with a total of 567 m drilled.

2007 year-to-date has seen the drilling of 2 holes, totalling 197 m in the Eastern Structure.

9.1.3 Western Structure

Three holes, NWKD024 – NWKD026 (277.4 m), were drilled in the Western Structure in 2006. These aimed to extend the known zones of mineralisation to the southwest.

2007 year-to-date has seen the drilling of 21 holes, totalling 1,540 m in the Western Structure.

-24- Scott Wilson

9.1.4 Southern One Structure

2007 year-to-date has seen the drilling of 12 holes, totalling 1,138 m in the Southern One Structure.

9.2 SENDEKOR

2007 year-to-date has seen the drilling of 16 holes, totalling 1,567 m in northern Sendekor targeting the South Two and South Three structures.

9.3 DRILLING SUMMARY

A limited core drilling programme of 600 m was initiated in November 2004, but suspended in December 2004 due to staffing and equipment difficulties; no core was produced.

Diamond core drilling resumed in June 2005, completing 14 holes totalling 1,106 m. Drilling utilised two man-portable drill rigs producing NTW / BTW (57 mm / 44 mm diameter) core, undertaken by a contracting company (Envirodrill Ltd) and by an AXMIN crew. Holes were drilled at –60o declination.

A drilling programme in the first half of 2006 included 17 diamond drill holes (totalling 2,086.4 m) by a Boart Longyear 38 rig at dips between -45 o and -60 o with HQ and NQ diameter core.

Drilling in 2007 has utilised a Boart Longyear skid mounted 38 drill rig and a man-portable rig (owned and operated by AXMIN). A total of 78 drill holes have been drilled in 2007 year-to-date, a total of 8,256 m.

Table 9-1 Nimini Hills Drilling Summary Project to Date

Structure / Zone Number of Holes Metres

Main Zone 57 6,6687.43

Eastern 10 945.85

Western 22 2,023.8

Southern One 12 1,138.25

Southern Two 12 1,167.2

Southern Three 4 400.3

Total 117 72,363

9.4 SURVEYS

9.4.1 Survey Grids

Coordinate systems used for the project are based on WGS 84 UTM 29 N.

-25- Scott Wilson

9.4.2 Diamond Drilling

Surface drill holes have been set out by a total station GPS. Down the hole deviation of the diamond drillholes is surveyed in on 50 m intervals only in the contractor-drilled holes (i.e. the man-portable drill holes do not have down the hole surveys taken).

9.4.3 Trenching

Surface trenches and pits are laid out by total station GPS.

9.5 DIGITAL DATABASE

A digital database of exploration drilling and trench sampling data was obtained from AXMIN in Microsoft Excel format. All drillhole, topographic data and other exploration data was based on a cut-off date of 31st October 2007.

Within the Nimini Hills resource area there are some 242 represented diamond drillholes and surface trenches totalling 17,205 m as outlined in Table 9–2.

The Nimini Hills digital drillhole database contains 242 records consisting of 117 diamond drillholes and 125 surface trenches (represented as drillholes) totalling 17,205 m as outlined in Table 9–2.

Table 9–2 Summary of Nimini Hills Digital Drillhole Database

Series No. of Holes Metres % of Total m

Surface DDH 117 12,363 72 %

Trenches 125 4,842 28 %

Total 242 17,205 100 %

For the resource estimation a total of 94 represented diamond drillholes and surface trenches were utilised (Table 9–3).

Table 9–3 Summary of Nimini Hills Drillholes Used For Resource Modelling


Surface DDH 41 5,171 65 %

Trenches 22 925 35 %

Total 63 6,096 100 %

Figures 9–1 and 9–2 illustrate drillhole locations in plan and composite vertical longitudinal sections, respectively. These figures serve to show drilling density relative to the mineralised lens’ wireframes and the geometry of the lenses.

-26- Scott Wilson

Figure 9-1

-27- Scott Wilson

Figure 9-2

-28- Scott Wilson

9.6 ASSAY DATABASE

The assay database contains 6,490 records totalling 11,704 m. Records are flagged by hole type (Table 9-4). Intervals below detection limit or not sampled at all were flagged in the database. These intervals were treated as zero-grade intervals during the compositing and grade interpolation.

For the resource estimation a total of 443 samples were utilised (Table 9-5).

-29- Scott Wilson

Table 9–4 Summary Statistics For Nimini Hills Digital Drillhole Database and Assay Digital Database

Hole Series CountTotal

Length (m)

Percent of Total

Minimum Length

(m)

Maximum Length

(m)

Average Length

(m)

Au (g/t) Minimum

Au (g/t) Maximum

Au (g/t) Average

Au (g/t) Std. Dev.

Au (g/t) Coeff.

Variation

Surface Diamond Drilling 4,347 7,460 64 % 0.4 37.0 1.7 0.00 110.08 0.49 3.82 7.78

Trenching 2,143 4,244 36 % 0.5 3.0 1.98 0.01 19.52 0.29 1.03 3.57

Total 6,490 11,704 100 %

Table 9–5 Summary Of Database Assay Statistics Used For Resource Modelling

Hole Series CountTotal

Length (m)

Percent of Total

Minimum Length

(m)

Maximum Length

(m)

Average Length

(m)

Au (g/t) Minimum

Au (g/t) Maximum

Au (g/t) Average

Au (g/t) Std. Dev.

Au (g/t) Coeff.

Variation

Surface Diamond Drilling 335 491 70 % 0.4 6.5 1.46 0.00 110.08 4.90 11.16 2.28

Trenching 108 214 30 % 1.0 2.0 1.98 0.10 19.52 2.56 3.16 1.23

Total 443 705 100 %

-30- Scott Wilson

10. SAMPLING METHOD AND APPROACH

Drillholes are typically cased to a depth of 20 to 25 m at the base of weathering, with HQ core produced in the upper 20 to 25 m which is then decreased to NQ core for the remaining hole.

Core is marked at the drill rig in regard to depth and depth markers inserted. It is then transported to the AXMIN exploration camp in specially built wooden core boxes.

In summary, the sampling procedure can be summarised as:

Core is electronically geotechnically logged and provisionally geologically logged;

Density measurements are taken (using water immersion) on average, every 10 m down each drillhole;

The core centre line is determined and the core is photographed;

Zones of interest (i.e. potential for gold mineralisation) are identified by the geologist;

The core is split (parallel to the maximum dip of foliation) into two identical halves by a diamond core cutter. Fines recovered from the cutter are collected, bagged by drillhole and visible gold counts are made (the cutter is flushed and cleaned between holes);

The core is then fully electronically logged; and

Lengths of core of interest are then sampled – the left hand half of the core is sampled with the right side stored on site. Sample lengths are restricted to 1.5 m core runs which honour main geological contacts.

The core shed at the AXMIN Nimini Hills exploration camp was inspected and found to be adequate with the core protected from the elements.

Trenches and pits are sampled using 1 m channel samples (5 x 2 cm) by pick and chisel. The trenches are typically 3 m deep and 50 m long (with possible extensions), excavated on 100 m line spacing. Trench channel samples are taken over 2 m lengths. Pitting is typically undertaken on 400 m grid lines, with 50 m sample spacing (with infill pitting on 200 m lines, 50 m spacing).

-31- Scott Wilson

11. SAMPLE PREPARATION, ANALYSES AND SECURITY

11.1 SAMPLE PREPARTION

The AXMIN Nimini Hills trench and core samples are prepared for assay by an independent laboratory in Sierra Leone, Alex Stewart (Assayers) Ltd. The sample preparation laboratory is approximately 4 hours drive west of Nimini Hills, near to Cluff Gold’s Boamahun exploration property

Alex Stewart (Assayers) prepare the samples by crushing, milling and splitting to produce a ‘dry pulp’ suitable for assaying.

Samples are dispatched to the preparation laboratory typically on a weekly basis. The laboratory has a normal one week turn around for the samples. The sample pulps are then returned to the Nimini Exploration Camp. The remaining coarse and fine rejects are also returned to the AXMIN exploration camp and stored.

Alex Stewart (Assayers) Ltd is accredited by ISOQAR Ltd to ISO 9001:2000 Quality Management System standards.

The samples are then dispatched to Freetown and the Ministry of Mineral Resources where their details are recorded and inspected by the Geological Survey Department prior to commercial couriering to the laboratory.

11.2 ANALYSIS

OMAC in Shannon, Ireland undertake fire assaying with an AA finish, with results sent electronically to the Exploration Camp and the original certificates sent to AXMIN’s office in Ashford, UK.

OMAC is accredited to ISO 17025 by the Irish National Accreditation Board (INAB). INAB is a member of the International Laboratory Accreditation Cooperation (ILAC) and is a signatory to the ILAC Mutual Recognition Agreement (whose signatories include Canada, USA, Australia, South Africa, Japan and the EU).

In the first phase of drilling, 52 % of the samples were assayed at SGS Siguri, Guinea. The majority of the second (2006) drilling samples were assayed at OMAC and all samples from the third (2007) samples have been tested by OMAC.

11.3 QUALITY CONTROL

11.3.1 Blanks

A blank sample (locally sourced river sand) is inserted into the sample series every 20 samples (even 8’s) at the exploration camp prior to dispatch to the sample preparation laboratory.

The project to date has inserted 235 blank samples, of which 185 have returned values below the detection limit (DL < -0.01) and 50 samples returned values above the detection limits (i.e. positive for gold).

However, please note that a total of 50 blank samples were tested at SGS laboratories between June and July 2006 of which 15 returned positive results. This is in comparison to a total of 168 blank samples tested at OMAC between

-32- Scott Wilson

September 2005 and September 2007 of which 15 have given positive results. Hence it can be concluded that there was more of a contamination or accuracy problem at SGS. AXMIN now solely use OMAC.

Of the 50 blank samples with positive assays, 48 assays are below 0.25 g/t Au. In total, the positive blanks have a mean grade of 0.05 g/t Au (standard deviation of 0.01). Scott Wilson does not consider this to be significant in regard to accuracy.

11.3.2 Duplicates

Duplicate samples are generated every 20 samples (odd 7 samples are re-sampled to produce a duplicate sample as an odd 8) at the exploration camp after the samples have returned from the sample preparation laboratory.

Only 38 duplicate sample pairs can be used to determine the precision of the sampling procedure due to missing data, as detailed below:

11 duplicate samples cannot be used as unknown original sample;

16 duplicate samples cannot be used due to no assay results; and

133 samples cannot be used due to no check assay.

Figure 11-1 shows the precision of the sampling procedure to be adequate (Note: one sample of 35.2 and 31.04 have been removed from the data set displayed for graphical reasons).

Figure 11-1 Nimini Hills Duplicate Samples

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

6.00

-1 0 1 2 3 4 5

Duplicate Assay Ag g/t

Ori

gin

al A

ssay

Ag

g/t

Approximately 198 duplicate samples have been taken at the Nimini Hills project to date. However, only 38 pairs of data are available for compression. It is recommended that AXMIN reviews and implement any required procedures to ensure that viable duplicate samples are available for this project.

-33- Scott Wilson

11.3.3 Standards

Gold fire assay standards or Certified Reference Materials (CRMs), sourced from Geostats, Australia, are inserted into the sample series at the exploration camp, post sample preparation.

Four CRMs are used - two low grade (0.18 and 0.5 g/t Au), one medium grade (2.47 g/t Au) and one high grade (5.53 g/t Au).

Sample B143980 (assay result 2.5 g/t Au) is attributable to a CRM of 5.53 g/t Au and Samples B142100, B142260 and B142020 (assay results 0.47, 0.47 and 0.5 g/t Au respectively) are attributable to a CRM of 0.18 g/t Au – it is thought that the standard insertion procedure has failed to correctly allocate the correct CRM and thus these four samples should be ignored.

Table 11-1 CRM’s

CRMNo. CRM’s

InsertedCRM Fire Assay

Au g/tCRM Accuracy

(Standard Deviation)CRM Assay ResultsStandard Deviation

G302-10 35 0.18 0.030.09

(drops to 0.02 after removing 3 mis-classed samples)

G901-10 29 0.5 0.03 0.01

G900-8C 36 2.47 0.12 0.05

G901-4 37 5.53 0.20.52

(drops to 0.11 after removing 1 mis-classed sample)

Figure 11-2 graphically shows the CRM assay results for the Nimini Project to date.

-34- Scott Wilson

Figure 11-2 Nimini Hills CRM Results

CRM Resuilts

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Ag

g/t G302-10

G900-8C

G901-10

G901-4

11.4 SECURITY

No security measures are in place in regard to the potential theft of any gold mineralisation.

The samples are accompanied by a letter to the Alex Stewart Laboratory which records the sample numbers and sets out the required preparation.

11.5 DENSITY MEASUREMENTS

A total of 1,798 density measurements have been taken at the Exploration Camp since March 2007 using the Dry Method (core radius x length / weight).

Table 11-2 Density Measurements

Sample Type No. Samples Average Density

Oxide 103 2.74

Sulphide 1,664 2.87

Transition Zone 1 2.55

Total 1,768 2.86

-35- Scott Wilson

12. DATA VERIFICATION

Drill hole logs have not been checked as logging is undertaken electronically - LiaMin has checked a significant amount of AXMIN’s logging to ensure consistency and accuracy.

Original assay certificates (kept in Ashford) have not been checked or verified.

No independent samples have been taken as it is deemed that the sampling method and QA / QC is adequate to preserve the integrity of the data.

The drillhole database has been reviewed by SW and verified with AXMIN’s Database Manager. Minor issues included seven cases of survey depths being greater than hole lengths as well as five instances of duplicate assay intervals within a hole, in which case the lower grade sample was selected. The major issue resolved was in the use of the correct elevation field.

Scott Wilson have used Gemcom software routines to validate the digital data after loading the Microsoft Excel files into the Gemcom Access database. This consisted of cross referencing between data tables in the database, including downhole surveys versus hole lengths and assay data intervals versus survey lengths. This exercise confirmed the good integrity of database structure.

-36- Scott Wilson

13. ADJACENT PROPERTIES

Mano River Resources hold the Nimini Hills North and South Prospecting Licenses and has undertaken soil sampling in these licenses for gold, base metals and kimberlitic indicate minerals.

Mano River have identified multiple gold targets across the prospective Nimini North Exploration Prospecting licence (EPL). The licence (54 km2) contains seven known hard rock gold targets and an additional 4 km x 0.5 km EEC Survey gold and base metal anomaly.

Artisinal gold mining has taken place along all the main drainages in Nimini North.

Mano believes that their Nimini Hills North licence contains an extension to the Komahun Deposit.

Figure 13-1 Mano River’s Nimini North Exploration Prospecting Licence

(Source: www.manoriver.com)

-37- Scott Wilson

http://www.manoriver.com/

14. MINERAL PROCESSING AND METALLURGICAL TESTING

No mineral processing testwork has been undertaken for the Nimini Hills West project.

Initial limited metallurgical testwork has been undertaken by SGS in Johannesburg in 2007. The testwork involved 10 samples which were crushed and milled to 80% - 75 um and subjected to cyanide in-situ leaching (CIL) batch dissolution tests.

The results of the testwork are summarised below in Table 14-1.

From the limited testwork, it can be postulated that the Nimini Hills gold mineralisation would have approximately 95 % gold recovery after dissolution.

-38- Scott Wilson

Table 14-1 Metallurgical Test Work

AU (PPM)

REDOX

Head Residue CarbonReagent

ConsumptionDissolution

(Assay)Dissolution

(Calc)Account

HOLE ID FROM TO Assayed Calc. Au Au NaCN CaO Sol+Carbon Solid Sol+Carbon Solid Au

Au (g/t) Au (g/t) g/t g/t kg/t kg/t Au % Au % Au % Au % %

NWKD001A 51.20 52.20 2.97 S 2.53 2.46 0.16 82.54 3.32 0.26 91.19 93.82 93.65 93.65 97.38

NWKD001A 58.95 59.80 13.76 S 8.87 8.55 0.25 297.98 2.82 1.71 93.62 97.15 97.04 97.04 96.47

NWKD001A 62.80 63.80 9.60 S 11.35 11.56 0.75 390.66 2.62 0.32 95.31 93.41 93.53 93.53 101.91

NWKD001A 94.00 96.00 1.00 S 0.12 0.14 0.02 2.40 2.68 0.27 98.66 82.25 84.75 84.75 116.42

NWKD002 18.50 20.50 5.08 O 8.62 8.64 0.05 311.25 2.30 0.28 99.57 99.40 99.40 99.40 100.17

NWKD005 22.00 24.00 2.13 O 2.45 2.43 0.04 84.27 3.11 2.21 97.75 98.48 98.47 98.47 99.27

NWKD010 54.00 55.40 11.56 S 11.95 11.85 0.67 404.27 3.03 0.79 93.59 94.40 94.35 94.35 99.19

NWKD031 63.34 64.84 40.80 S 30.82 30.06 0.06 1088.55 2.42 0.24 97.32 99.79 99.79 99.79 97.53

NWKD031 76.84 78.34 4.24 S 3.27 3.30 0.15 111.93 2.45 0.18 96.44 95.32 95.38 95.38 101.11

NWKD033 60.10 61.60 18.24 S 0.19 0.20 0.03 4.62 2.68 0.51 89.50 83.99 84.83 84.83 105.51

-39- Scott Wilson

15. MINERAL RESOURCE ESTIMATE

15.1 SUMMARY

Scott Wilson has reviewed data for the Nimini Hills gold deposit and has independently estimated Mineral Resources in accordance with the requirements of NI 43-101 and the definitions set out by the CIM Definition Standards for Mineral Resources and Mineral Reserves (CIM definitions) adopted by the CIM Council in December 2005. The resource estimate is based on diamond drilling core sampling data as well as surface trenching and employs 3-dimensional computer block modelling and inverse distance squared (ID2) grade interpolation. Wireframes were constructed at a cut-off 0.5 g/t Au for open pit and 1.5 g/t Au for underground mining scenarios.

Whittle software was used to assess the reasonable prospects for economic extraction of material by open pit methods. Block and grade continuity were visually assessed to determine the reasonable prospects for economic extraction of material by underground mining methods. Resources have been estimated from surface to a depth of approximately 300 m for lenses which correspond to four main mineralised zones.

Table 15–1 lists the 2008 AXMIN Nimini Hills Project mineral resource estimate.

Table 15–1 AXMIN Nimini Hills – January 2008 Mineral Resource Estimate

Location TypeIndicated Resources Inferred Resources

Tonnes(000’s)

g/t Auoz Au(000’s)

Tonnes(000’s)


Main Zone

(Komahun 2) (Komahun 3)

(Komahun 4)

Oxide

Sulphide

Total

60.3

117.2

177.5

2.39

6.54

5.13

4.6

24.6

29.3

127.3

1,037.3

1,164.6

3.74

4.36

4.29

15.3

145.3

160.6

Northern Zone

(Komahun 5)

Oxide

Sulphide

Total

30.7

29.3

60.1

2.79

3.53

3.15

2.8

3.3

6.1

Western Zone

(Komahun 1)

Oxide

Sulphide

Total

18.9

12.7

31.6

1.90

3.64

2.60

1.1

1.5

2.6

Southern One Zone

Oxide

Sulphide

Total

18.2

69.7

87.8

5.70

5.35

5.42

3.3

12.0

15.3

Grand Total

Oxide

Sulphide

Total

60.3

117.2

177.5

2.39

6.54

5.13

4.6

24.6

29.3

195.0

1,149.0

1,344.0

3.59

4.39

4.27

22.5

162.1

184.6

-40- Scott Wilson

Notes:

1. Resource estimation conforms to CIM (2005) resource definitions.2. Open Pit Option Mineral Resources were estimated with wireframes constructed based

a 2 m minimum mining width and a nominal 0.50 g/t Au cut-off grade.3. Underground Mining Option Mineral Resources were estimated with wireframes

constructed based a 1.2 m minimum mining width and a nominal 1.50 g/t Au cut-off grade.

4. Mineral Resources are estimated using an average long-term gold price of US $700.00 per ounce.

Resources were not estimated for the Western Zone Lense 6 as it did not illustrate sufficient spatial distribution and continuity nor meet the economic test for resources.

15.2 RESOURCE DATABASE

Within the Nimini Hills resource area there are some 242 represented diamond drillholes and surface trenches totalling 17,205 m as outlined in Table 15–2.

Table 15–2 Resource Area Diamond Drillhole Statistics


Surface DDH 117 12,363 72 %

Trenches 125 4,842 28 %

Total 242 17,205 100 %

Statistics for drillholes on which the resource estimate is based are shown in Table 15–3.

-41- Scott Wilson

Table 15–3 Nimini Hills Drillhole Statistics by Lense

Surface DDH Trenches All

LENSE 1

No. of Holes 6 0 6

Total Length of Sampled Interval (m)

31.5 0.0 31.5

LENSE 2

No. of Holes 25 4 29


187.5 114.0 301.5

LENSE 3

No. of Holes 15 5 20


140.3 40.0 180.3

LENSE 4

No. of Holes 8 0 8


43.4 0.0 43.4

LENS 5

No. of Holes 9 2 11


27.0 14.00 41.0

LENSE 6

No. of Holes 4 2 6


10.5 8.0 18.5

LENSE 7

No. of Holes 5 2 7


18.2 38.5 56.7

LENSE 8

No. of Holes 2 1 3


14.8 10.0 24.8

LENSE 9

No. of Holes 3 1 4


18.0 17.0 35.0

15.3 WIREFRAME MODELS

In the preparation of models of the lenses to constraint grade interpolation, mineral envelope wireframes were constructed from the drillhole assays by SW using Gemcom GEMS 6.1 software (Figures 15–1 to 15–8).

Two sets of wireframes were constructed for most lenses in order to later assess the reasonable prospects for economic extraction:

For the Open Pit scenario wireframe modelling, SW has used a 0.50 g/t Au cut-off grade (COG) with a Minimum Mining Width (MMW) of 2.0 m for both drillhole intersections and to constrain the resource wireframes.

For the Underground Mining scenario wireframe modelling SW has used a 1.5 g/t Au cut-off grade with a Minimum Mining Width of 1.2 m for both drillhole intersections and to constrain the resource wireframes.

-42- Scott Wilson

In situations of narrower intersections, a lower metal accumulation was used in order to preserve lens continuity.

The geological interpretation was initiated on the Main Zone of Nimini Hills where the greatest drill density and continuity between sections is present. The Geological interpretation first focused on the hangingwall (HW) and footwall (FW) lithological boundaries followed by the continuity of Iron Formation marker horizons. In all cases the lense structures are generally vertical to sub-vertical in orientation. An early interpretation by SRK indicates that the Main Zone is broken up by oblique fault sets. SW, on the basis of lack of detailed structural analysis and in order to preserve indicated grade continuity along strike, created contiguous wireframes for each lense.

Four lenses (Lense 1, 2, 3 & 4) were interpreted for the Main Zone with validation of the geological interpretation taken from preliminary LiaMin (Sheppard, 2007) geological reports. SW notes that there are likely cross-lense ladder features in areas of strong quartz veining between Lense 2 and Lense 3.

The Northern Zone consists of one lense (Lense 5) that is similar in orientation to the Main Zone Lense 2. Significant geological interpretation was required between sections due to low diamond drillhole density.

-43- Scott Wilson

Figure 15-1

-44- Scott Wilson

Figure 15-2

-45- Scott Wilson

Figure 15-3

-46- Scott Wilson

Figure 15-4

-47- Scott Wilson

Figure 15-5

-48- Scott Wilson

Figure 15-6

-49- Scott Wilson

Figure 15-7

-50- Scott Wilson

Figure 15-8

-51- Scott Wilson

The Western Zone consists of two distinct lenses (Lense 6 & 7) dipping to the southeast that are based on drillhole intersections on 980 N and 1060 N sections. Lithologically, the mineralisation is localized within an amphibolite unit and associated quartz veining.

The Southern Extension Zone is based on anomalous diamond drillhole and trench intercepts between 540 N and 660 N sections. Although initially appearing to be one lense, the area has been interpreted to be two distinct lenses (Lense 8 & 9) that have a shallow dip to the northwest. Quartz veining and shearing appear to be more pronounced than the other three zones.

SW has validated the new resource wireframes, confirming through both visual and Gemcom applications, that each of new resource wireframes respected the composited intervals.

A wireframe of the topographical surface was created based on DTM information supplied by AXMIN.

15.4 OXIDATION

Weathering within the deposit is variable though oxidation penetrates the mineralised zone to between 20 and 30 m. This weathered zone is more easily expressed in the country rock geologically logged as saprolite.

Grades of assays near surface within the oxidised / weathered zone were compared to assays for sulphide mineralisation and no distinction could be made to warrant creating an independent grade model of the upper portion of the mineralised lenses.

A wireframe base of oxidation surface (“redox”) was created from diamond drillhole intercepts respecting the geological logging and the respective blocks were tagged within the block model. For resource calculations the defined oxide zone bulk density was utilised for blocks between the redox and topographic surfaces.

15.5 BULK DENSITY

Some 1,762 specific gravity measurements have been taken during the AXMIN drilling campaigns with 136 specific gravity measurements spatially located within Lenses 1 through 9. The testing shows no apparent correlation between gold grade and specific gravity.

SW notes that there are sparse bulk density measurements currently available above the redox surface. The average specific gravity of the six saprolite samples was 2.06.

SW reviewed the data (Table 15–4) and used the following mineralisation tonnage factors in the resource modelling:

-52- Scott Wilson

Waste = 2.85

Sulphide Mineralisation = 2.75

Oxide Mineralisation = 2.60

Table 15–4 Nimini Hills Density Data

Selection Criteria No. of Samples Mean SG SG used for Resource Model

Waste 1,584 2.87 2.85

Oxide Above Redox Surface 27 2.64 2.60

Lense 1 Sulphide 11 2.64 2.75







Lense 8 Sulphide - - 2.75


15.6 ASSAY CAPPING (CUTTING)

In order to avoid any disproportionate influence of random, anomalously high grade assays on the resource average grade, SW prepared a histogram to examine the assay grade distribution within the mineralised lenses and assess the need for grade capping. The assay grades appear reasonably independent of sample length allowing for capping based on grades, although Figure 15–9 shows a few anomalous high grades centred around the 1.5 m sample length.

Figure 15–9 Gold Grade versus Sample Length

0

20

40

60

80

100

120

0 1 2 3 4 5 6 7

Assay Sample Length (m)

Au

g/t

-53- Scott Wilson

A histogram (Figure 15–10) of the assay grades demonstrates a positive skewness with a tailing out at between 28 g/t Au to 32 g/t Au. An assay cut of 30 g/t Au was selected for the compositing, variography and grade interpolation. A total of 9 assays out of 443 were cut to 30 g/t Au reducing the average weighted sample from 4.0 to 3.5 g/t Au. The 30 g/t Au cap grade represents approximately 2 % of the assays in the Main Zone and approximately 3 % of the assays in the Southern Extension 1 Zone.

Figure 15–10 Histogram of Assay Grades

0

50

100

150

200

250

0 4 8 12 16 20 24 28 32 36 40 44 48

Mor

eAu (g/t)

Fre

qu

ency

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

Frequency Cumulative %

15.7 COMPOSITE CONTROL INTERVALS

Capped assay intervals were composited by length weighting at 2 m down hole within the wireframes. The distribution of sample lengths for raw assays within the wireframes was reviewed in the selection of a suitable composite length that exceeds or equals the sample lengths and that is shorter than the block dimensions in order to provide reasonable block grade resolution (Figure 15–13).

-54- Scott Wilson

Figure 15–11 Assay Interval Lengths

0

50

100

150

200

250

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Mor

e

Sample Length

Fre

qu

ency

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

Frequency Cumulative %

15.8 RESOURCE ASSAY STATISTICS

All of the assays situated within each mineralisation wireframe were assigned a lense code. The resource assays are the assays that have been used for the interpolation, prior to capping.

Table 15–5 Resource Assay Statistics

Lense NumberMinimum Au (g/t)

Maximum Au (g/t)

Standard Deviation Au (g/t)

Coefficient of Variation

Length Weighted

Mean Au (g/t)

Length Weighted Mean

Cut Au (g/t)

1 22 0.04 26.72 6.02 1.73 3.84 3.84

2 179 0.00 110.08 3.15 3.15 4.81 3.96

3 121 0.01 97.28 9.59 2.79 4.00 3.44

4 31 0.03 30.4 5.64 2.00 2.83 2.82

5 27 0.09 6.80 2.10 0.86 2.43 2.43

6 11 0.16 7.76 2.12 1.49 1.42 1.42

7 19 0.04 7.04 1.99 0.04 1.70 1.70

8 12 0.78 7.28 1.88 0.64 2.94 2.94

9 21 0.10 40.16 7.74 1.77 5.49 5.06

Total 443

15.9 MINERALISATION CONTINUITY AND VARIOGRAPHY

A number of semi-variograms were produced for the Main Zone (Lenses 1, 2, 3 & 4) using 2 m top cut composites with lengths greater than 0.5 m (Figure 15–12). The other lenses do not have enough samples to support their own variography.

-55- Scott Wilson

Generally the along strike, down dip omni-directional and other variograms were not very well defined because of the limited data available.

All of the semi-variograms demonstrate a high relative nugget effect of approximately 55 %. The longest range of continuity was approximately 120 m at 120 / -60 degrees (Figure 15–13). This suggests that the gold mineralisation may have a preferential rake to the southwest. More drilling information is required for confirmation. SW has assumed that the along strike continuity is the same as the down-dip continuity.

Figure 15–12 Main Zone Relative Downhole Semi-Variogram of Topcut 2 m Composites

-56- Scott Wilson

Figure 15–13 Main Zone Relative Major Directional Semi-Variogram of Topcut 2 m Composites (Azimuth 230 / Dip -60)

15.10 BLOCK MODELLING

15.10.1 Block Model Geometry and Block Size

The block model origin is at 261811 East, 948957 North, 700 m elevation and the block model extends down to the 200 m Elevation.

The parent cell size is 10 x 10 x 10 m along strike, down dip and cross strike. Block dimensions were selected on the basis of drillhole spacing and lens wireframe widths. A Gemcom needling pattern of 4 x 4, equalling 16 needles per cell block, was utilised.

To allow for more accurate blocks filling of the wireframes, the block model prototype was rotated 40 degrees counter clockwise around the Z-axis to match the 50 degree azimuth of the mineralised structures.

A variable density depending on rock type was used for all blocks.

15.10.2 Grade Interpolation and Search Strategy

Interpolation of block model gold values was by inverse distance squared (ID2).

The first pass search ellipsoid was a vertical pancake using 40 m along strike (050 degrees) and down dip radii and a 20 m across strike radii.

The radii were doubled for the second pass search ellipsoid to defined inferred blocks.

-57- Scott Wilson

15.10.3 Block Model Validation

To validate its block model Mineral Resource estimate, SW visually compared the block grades with the composite grades on sections and plans and found good overall visual correlation. Volumetric comparisons were also conducted of final mineralisation wireframes and block model resource reports for each lense.

The information for each block in the model includes:

Ore body code

Interpolated Inverse Power of Distance for Cut Au and Au values

Oxide Flag

Block percentage by volume

Resource class identifier

Distance to closest hole

SW considers the block model to be valid, reasonable and appropriate for supporting the Mineral Resource estimates.

15.11 CUT-OFF GRADE

The resource cut-off grade was based on a gold price of US $ 700.00 per ounce. Any potential by-product credits were not included in the resource-cut-off grade calculation.

SW reviewed current economic factors, including both mechanised undercut and fill mining costs, metallurgical recovery and a gold price of $ 700 / ounce in order to determine a breakeven cut-off grade of 2.9 g/t Au over 1.2 m true width for underground mineralisation (Table 15–6).

Table 15–6 AXMIN Nimini Hills Resource Evaluation Criteria

Description Underground Open Pit

Gold Price (US$/oz) 700 700

Recovery 0.95 0.95

Operating Costs

Mining (US$/t) 45

Processing (US$/t) 15 15

G&A (US$/t) 1.5 1.5

Total operating cost (US$/t) 61.5 16.5

Economic Cut-off (g/t) 2.9

Discard Cut-off (g/t) 0.8

-58- Scott Wilson

For the mineralisation wireframes SW applied an incremental cut-off grade of approximately 1.5 g/t Au for lower grade underground mineralisation located in the wall rock immediately adjacent to economic mineralisation. The underground resources at a 2.9 g/t Au block cut-off grade. SW visually confirmed that the resource blocks have good continuity at a 2.9 g/t Au cut-off.

Whittle software was used to assess the reasonable prospects for economic extraction of material by open pit methods. The following parameters were used in the Whittle analysis:

45 degree slope for pit walls

Mining cost of US $2.50 per tonnne

Processing cost of US $15.00 per tonne

G & A cost of US $1.50 per tonne

95 % gold recovery

US $ 1,000 pit shell used to constrain the open pit resources

AXMIN Topographic surface

For the open pit mineralisation wireframes SW applied an incremental cut-off grade of approximately 0.5 g/t Au. SW reviewed current economic factors, including open pit mining costs, metallurgical recovery and a gold price of US $700 per ounce in order to determine an discard cut-off grade of 0.8 g/t Au over 2.0 m true width for open pit mineralisation.

Figures 15–14 and 15–15 illustrate oblique views of the Whittle pit shells and underlying lenses.

-59- Scott Wilson

Figure 15-14

-60- Scott Wilson

Figure 15-15

-61- Scott Wilson

15.12 MINERAL RESOURCE CLASSIFICATION

The definitions for resource categories used in this report are consistent with those defined in CIM (2005) and adopted by NI 43-101. In the CIM classification, a Mineral Resource is defined as “a concentration or occurrence of natural, solid, inorganic or fossilised organic material in or on the Earth’s crust in such form and quantity and of such grade or quality that it has reasonable prospects for economic extraction”. Resources are classified into Measured, Indicated, and Inferred categories. A Mineral Reserve is defined as the “economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a Preliminary Feasibility Study”. Mineral Reserves are classified into Proven and Probable categories.

The Indicated resource category was based on a 25 m search ellipsoid with local reclassification to Inferred after a visual review taking in account drill spacing and factoring in grade and thickness conditions.

Effectively only Main Zone Lens 2 (Figure 15–16) has indicated resources. All other lenses are classified as Inferred Resources. There is good potential to upgrade some of the other lenses to Indicated Resources with additional diamond drilling.

-62- Scott Wilson

Figure 15–16: Nimini Hills Resource Classification 3D Isometric View Looking West

-63- Scott Wilson

15.13 MINERAL RESOURCES

Table 15–7 lists the Nimini Hills resource estimate which incorporates CIM (2005) resource definition standards and best practices.

Table 15–7 AXMIN Nimini Hills January 2008 Mineral Resource Estimate


Tonnes(000’s)


Tonnes(000’s)


Main Zone


(Komahun 4)

Oxide

Sulphide

Total

60.3

117.2

177.5

2.39

6.54

5.13

4.6

24.6

29.3

127.3

1,037.3

1,164.6

3.74

4.36

4.29

15.3

145.3

160.6

Northern Zone

(Komahun 5)

Oxide

Sulphide

Total

30.7

29.3

60.1

2.79

3.53

3.15

2.8

3.3

6.1

Western Zone

(Komahun 1)

Oxide

Sulphide

Total

18.9

12.7

31.6

1.90

3.64

2.60

1.2

1.5

2.6

Southern Extension

Zone

Oxide

Sulphide

Total

18.2

69.7

87.8

5.70

5.35

5.42

3.3

12.0

15.3

Grand Total

Oxide

Sulphide

Total

60.3

117.2

177.5

2.39

6.54

5.13

4.6

24.6

29.3

195.0

1,149.0

1,344.0

3.59

4.39

4.27

22.5

162.1

184.6

Notes:





Table 15–8 presents a detailed listing of resource estimate by Zone, Lense, Method and Type.

Table 15–9 presents a detailed summary of the resource estimate by Zone and Method.

-64- Scott Wilson

Table 15-8

-65- Scott Wilson

Table 15–9 Scott Wilson January 2008 Mineral Resource Estimate

by Potential Mining Method


Tonnes(000’s)


Tonnes(000’s)


Main Zone


(Komahun 4)

Open Pit

Underground

Total

177.5

177.5

5.13

5.13

29.3

29.3

1,021.7

142.9

1,164.6

4.02

6.25

4.29

131.9

28.7

160.6

Northern Zone

(Komahun 5)

Open Pit

Underground

Total

47.4

12.6

60.1

2.92

4.03

3.15

4.4

1.6

6.0

Western Zone

(Komahun 1)

Open Pit

Underground

Total

21.9

9.6

31.6

2.03

3.90

2.60

1.4

1.2

2.6

Southern Extension

Zone

Open Pit

Underground

Total

56.1

31.7

87.8

5.76

4.83

5.42

10.4

4.9

15.3

Grand Total

Open Pit

Underground

Total

177.5

177.5

5.13

5.13

29.3

29.3

1,147.2

196.8

1,344.0

4.02

5.77

4.27

148.2

36.4

184.6

Notes for Tables 15 –8 and 15–9:





.

-66- Scott Wilson

Figure 15–17:

-67- Scott Wilson

16. INTERPRETATION AND CONCLUSIONS

The gold mineralisation found in the Nimini Hills is shear-hosted occurring in the vicinity of a near-vertical sequence of BIF units within basic volcanics close to their contact with talcose ultramafic schists as part of an Archean Greenstone Belt in eastern Sierra Leone. The gold mineralisation is found in a number of different lithologies and concentrations.

Seven structures or zones hosting gold mineralisation have been indentified to date in the Komahun and Senekor Prospects of the Nimini Hill West licence area.

Scott Wilson has compiled a mineral resource estimate on AXMIN’s Nimini Hills Project in eastern Sierra Leone, with a data cut of date of 31st October 2007.

The definitions for resource categories used in this report are consistent with those defined in CIM (2005) and adopted by NI 43-101.

An Indicated Mineral Resource of 177,500 t @ 5.13 g/t Au and an Inferred Mineral Resource of 1,334,000 t @ 4.27 g/t Au has been estimated for the Nimini Hills in January 2008.

The resource estimate is based on open-pit and underground mining; a cut of grade of 0.5 g/t Au and a 2 m minimum mining width has been used for the open-pit resource and a 1.5 g/t Au cut off grade and minimum mining width of 1.2 m for the underground resource. A gold price of US $ 700 has been used in the resource estimation.

-68- Scott Wilson

17. RECOMMENDATIONS

SW recommends the following sampling and resource evaluation and classification strategies:

Additional fill-in drilling and / or trench samples should address the issue of sparse oxide specific gravity measurements above the redox interface;

All the currently defined resource zones show a reasonable prospect for economic extraction. Further diamond drilling and trenching should focus on upgrading Inferred resources as well as deeper drilling to target those lenses which are currently open at depth; and

The Main Zone has the highest potential to increase to an Indicated resource category. Figure 15–17 illustrates target areas for Lense 2. A systematic fill-in diamond drill program should be able to target all four lenses within the Main Zone boundary.

In addition, the following small recommendations are proposed to facilitate and expedite the exploration programme:

Core shed management should be improved with regard to health and safety (e.g. preventative measures against the toppling over of stacks of core trays);

End-of-hole (EoH) markers to be used in the core trays;

Database identification and management of duplicate samples data to be improved; and

Improve the QA / QC procedure in regard to the taking and control of duplicate results.

-69- Scott Wilson

18. REFERENCES

CIM (2005): CIM Standards on Mineral Resources and Reserves – Definitions and Guidelines Prepared by the CIM Committee on Reserve Definitions. December 2005

Last B J Interpretation of Helicopter Borne Ultra-High Resolution Magnetic and Radiometric Data AXMIN Ltd Sierra Leone Project April 2005

LiaMin (Dr W A Sheppard) June 2007 Geological Review of, and General Comments on, AXMIN’s Komahun Prospect in Sierra Leone LiaMin Rpt 168.07

SRK Consulting Sept 2006 Independent Mineral Resource Estimation of the Nimini Hills Prospect, Sierra Leone

-70- Scott Wilson

19. CERTIFICATE OF QUALIFICATIONS

Helen Oliver

I, Helen Oliver, C.Geol., as an author of this report entitled Technical Report on the AXMIN’s Nimini Hills Gold Exploration Project, Sierra Leone”, prepared for AXMIN Inc, and dated XXXXXX, 2008, do hereby certify that:

1. I am a Senior Geologist with Scott Wilson of Greencoat House, Francis Street, London.

2. I am a graduate of Camborne School of Mines in 1995 with a Master of Science in Mining Geology.

3. I am registered as a Chartered Geologist with the British Geological Society. I have worked as a geologist for a total of over ten years since graduation. My relevant experience for the purpose of the Technical Report is working in the international mining and exploration industry, predominately in Africa.

4. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI43-101) and past relevant work experience, I fulfil the requirements to be a "qualified person" for the purposes of NI43-101.

5. I visited the Nimini Hills Project on 15th to 19th October 2007.

6. I am responsible for overall preparation of is Report.

7. I am independent of the Issuer applying the test set out in Section 1.4 of National Instrument 43-101.

8. I have had no prior involvement with the property that is the subject of the Technical Report.

9. I have read National Instrument 43-101, and the Technical Report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1.

10. To the best of my knowledge, information, and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.

Helen Oliver C.Geol.Dated xxxxxxxxxxxxx

-71- Scott Wilson

Ian T. Blakley

I, Ian T. Blakley, P.Geo., as an author of this report entitled “Technical Report on the AXMIN’s Nimini Hills Gold Exploration Project, Sierra Leone”, prepared for AXMIN and dated XXXXXX, 2008, do hereby certify that:

1. I am a Consulting Geologist with Scott Wilson Roscoe Postle Associates Inc. of Suite 501, 55 University Ave Toronto, ON, M5J 2H7.

2. I am a graduate of the University of Waterloo, Waterloo, Ontario, Canada, in 1984 with a Bachelor of Science degree in Honours Co-operative Applied Earth Sciences \ Geology Option.

3. I am registered as a Professional Geoscientist in the Province of Ontario (Reg. # 1446) and in the Province of Manitoba (Reg. # 20126G). I have worked as a Geologist for a total of 24 years since my graduation. My relevant experience for the purpose of the Technical Report is:

Geological consultant for due diligence and resource estimation on numerous worldwide precious metal deposits.

Chief Geologist with a major Canadian mining company responsible for the management of geological exploration, resource definition and production.

Senior Mines Exploration Geologist for new capital underground mining projects including exploration and definition drilling, resource definition, infrastructure positioning, production and reconciliation.

Exploration Geologist responsible for sampling and mapping programs at gold and base metal properties in Canada.

4. I have read the definition of "qualified person" set out in National Instrument 43-101 ("NI43-101") and certify that by reason of my education, affiliation with a professional association (as defined in NI43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI43-101.

5. I have not visited the Nimini Hills property.

6. I am responsible for the resource estimate section of the Technical Report.

7. I am independent of the Issuer applying the test set out in Section 1.4 of National Instrument 43-101.

8. I have had no prior involvement with the property that is the subject of the Technical Report.

9. I have read National Instrument 43-101, and the Technical Report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1.

10. To the best of my knowledge, information, and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.

Ian T. Blakley, P. Geo.Dated Xth day of X, 2008

-72- Scott Wilson

SW Axmin SL 43-101_v06

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