Passendro Gold Project - AXMIN Inc.

AXMIN Inc.
Marketing Presentation
October 2012

Cautionary Statement
This presentation contains forward looking statements. All statements, other than statements of historical
fact, included herein, including without limitation, statements regarding potential mineralisation and
reserves, exploration results and future plans and objectives of AXMIN, are forward-looking statements that
involve various risks and uncertainties. There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to differ materially from AXMIN’s expectations
are disclosed under the heading "Risk Factors" and elsewhere in AXMIN documents filed from time-to-time
with the TSX Venture and other regulatory authorities.
Total resources include all categories unless otherwise stated.
All currency are in US$ unless otherwise stated.
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AXMIN Highlights: Buying Opportunity
Near term +160,000 oz/year producer
at Passendro, CAR
• +200,000 oz/ year production first 3-years
production at cash cost of US$437/oz result
in rapid 2.2 year payback
• Strong economics at US$1,100100 oz gold –
significant gold price upside
• Debt facility to finance up to 66% of capital
requirements well advanced
Excellent Exploration Potential along
the Bambari greenstone belt
• +1,200 sq km exploration permit within the
greenstone belt
• High potential exploration areas within
Passendro mining permit
• Q1 2012 drilling underway, targetingti
untested strike & depth extensions around
pits
3

AXMIN: Capital Structure
TSX Venture - AXM
Capitalization (October 2012)
Market Cap
$19 MM
Basic Shares Outstanding
t 63,274,215
215
Options
3,961,250
Warrants ($0.63 - $7.50)
12,854,988
Fully Diluted 80,090,453
Cash 1
Debt (at present)
US$3.7 MM
Nil
Major Shareholders
AOG Holdings 26% (FD 23%)
Management &
5% (FD 7%)
Insiders
CAR Government
2.6 MM shares
(2 MM warrants
@ US$3.00)
Float (estimated) +45%
1
Cash as at June 30, 2012; proceeds from future disposal of marketable
securities are not included in the cash position above.
“AXMIN’s vision is to own and operate the first modern mine
in Central African Republic.”
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AXMIN Experienced Team
Senior Management
George Roach, President & CEO
Over 25 years of experience securing and establishing mineral exploration tenure
and managing mining and resource operations throughout Africa. Founding director
and managing director for UraMin Inc., former president & CEO of AfNat
Resources, founder and managing director of G&B African Resources. Currently a
director of Ethiopian Potash Corp.
Graham Hill, COO
Mechanical Engineer with over 25 years of experience building and operating major
gold coal and mineral sands mines internationally. Involved with building of the
Yatela and Sadiola gold mines in Mali for Anglo American, recently involved with
the development of Oxus Resources Jerooy and Amantaytau gold mines in Central
Asia.
Janina Dusza, Chief Financial Officer
Ms. Dusza has over 16 years of financial experience working for both, private and
public companies. In addition to her financial reporting experience, Ms. Dusza has a
well acknowledged auditing experience primarily in the resource sector with
PricewaterhouseCoopers LLP in Toronto. Ms. Dusza has advanced knowledge of
Canadian GAAP and IFRS regulations. Most recently, Ms. Dusza was AXMIN’s
corporate controller since June, 2009 and previous to that she practiced as an
independent financial consultant.
Judy Webster, Vice President Investor Relations
Ms Webster comes to AXMIN with extensive experience in the field of investor
relations. Prior to joining AXMIN in 2001 Ms Webster worked as an relations
professional managing IR programs for many publicly listed companies. Ms
Webster also brings a valuable background as a manager at a major Canadian
newswire service and as Senior Geologist for one of Canada's largest mining
consulting firms. Ms Webster holds a BSc in Geological Sciences from McMaster
University (Canada).
Board of Directors
Alex du Plessis
Adjunct Professor Ctr. for Mechanized
Mining, U. of Witwaterstand, SA
Ozge Erdem
Legal Counsel & Partner at Patrimoine
Partners LLP, London, UK
Robert Metcalfe
Legal Counsel at Metcalfe, Blainey & Burns
LLP, Toronto, Canada
George Roach
President & CEO
Robert Shirriff
Legal Counsel at Fasken Martineau
DuMoulin,
Toronto, Canada
David de Jongh Weill
Director & Partner at Patrimoine Partners
LLP, London, UK
Shirley Kozel
AXMIN Corporate Secretary
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AXMIN Key Management (cont’d)
Mine Development Team
Alex du Plessis, Technical Committee Chairman
Alex du Plessis has more than 30 years of mining industry experience. This experience includes mine design and operations, as well as the management
of mine construction projects. In addition, he has worked in applied research and development for mining. Since 1990, Alex has consulted to a wide range
of mining industry clients around the world, and has direct experience in mining projects in Canada, the United States, Asia, Australia, Eastern Europe,
and south and central Africa.
Mike Edwards Project Director
Senior Project Director with over 40 years experience, 25 of which were in high-level positions managing the construction and development of major
mining, hydroelectric, civil and earthworks projects primarily in sub-Saharan Africa. Mining and resource projects include Sadiola gold mine in Mali, Phase
I of Tarkwa gold mine in Ghana and major gas pipeline in South Africa.
Geoff McLoughlin Engineering Manager
Mr. McLoughlin, a process Metallurgist, has over 25 years senior level design and operational experience with gold mining projects and operations
throughout central Asia and Africa. As Chief Metallurgist for MAED Limited, Geoff’s experience included the design and commissioning of metallurgical
operations for several gold operations in Central Asia. Geoff was responsible for managing the Phase I and II of expansions at Randgold’s Syama Gold
Mine in Mali, and was Plant Manager for four of Harmony Gold’s South African gold mines.
Dan Orlando CAR Country Manager
Mr. Orlando, a Forest Engineer, has over 25 years experience in high level positions managing large plantation, milling , newsprint and recycling
operations in Canada and Africa. Most recently, Mr. Orlando was Director General for MagForestry’s Eucalyptus Fibre operation in the Republic of
Congo, an operation with plus 300 full time and 1,800 contract employees. Dan oversaw all aspects of managing the 68,000 hectare plantation and
500,000 GMT annual chip plant. Mr. Orlando was responsible for the operations community and social relations, all aspects of health safety,
environmental programs. In addition, Dan was the Company chief liaise with the State’s Ministries and local NGO’s
s.
Johan Slabber CAR Controller
Mr. Slabber, a CMA, has over 25 years of financial experience working with federal government and private companies throughout Africa. Johan most
recently was Chief Financial Officer for Koidu Kimberlite Project, Sierra Leone and the Director Finance and Country Manager for two diamond mines in
Angola. Prior to that Mr. Slabber was Finance Officer for 18 years with the South African National Defense.
Denis Spector Project Geologist – CAR
Mr. Spector is a professional geologist with over 19 years of international experience managing technical and administrative functions of mineral
exploration and mine development projects. Denis has held senior roles with Lithic Metals, Nickel project in Togo, Western Prospector Group, Uranium
Mine, Mongolia, Phelps Dodge, Gold Mine, Botswana and Falconbridge International projects in Yemen and South Africa to name a few. Mr. Spector 6has
a MSc from Royal School of Mines Imperial College, UK.

Passendro Gold Project: Bambari Gold Belt
N
Louba
Topa
Bambari 1
Bambari potential
25-year mining licence from the
government granted in Aug 2010
(highlighted yellow)
BFS studied only the Passendro region
Areas within the mining licence such as
Ndassima and Ao have high
exploration potential
Exploration permits in the Bambari Belt
(highlighted blue) adds upside for
AXMIN
Western Limb
Mining Licence
Ao
Passendro
Gold Project
Bambari 2
Ndassima
Bambari South
0 Km
10 Km 20 Km
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AXMIN: Leading Development in CAR
AXMIN has positive relationship with the CAR
Government
• CAR Government received signature bonus of US$11
million, final tranche paid in Jan 2012
• CAR Government, in lieu of carried interest, received
2.6 million AXMIN shares and 2.0 million warrants at
US$3.00 per share
• High ranking CAR Government officials i support
AXMIN’s development; state visit to Canada re-enforce
commitment
Fiscal provisions of amended 2006 Mining Convention
remain intact
• 2.25% royalty on gold sales
• Exemption from duties and VAT on capital, equipment,
consumables and mining contract
• Fuel tax and VAT exemption for life of mine
• 5-year tax holiday (30% corporate tax rate)
Government equity ownership aligns the State’s
interest to the interest of AXMIN shareholders.
Key facts
History:
Independent since 1960. Civilian rule was
established in 1993. General Bozize was
affirmed as President in May 2005
Population:
4.8 million
GDP:
US$3.3 billion (2009 estimate)
GDP Growth Rate:
1.7% (2009 estimate)
Foreign Direct Investment (net):
US$117.1 million (2008)
IMF October 2010 Report:
Fund support to the CAR – both financially and
through technical assistance – has helped the
implementation of sound economic policies and
mobilized external financing to help authorities
reduce poverty and achieve growth objectives.
The economy now appears to be on the way to
sustainably higher growth.
8

Passendro Project: Financing Update
• To date a total of US$235 MM debt Mandate Letters signed:
• US$100 MM – Standard Bank (Mandate Lead Arranger)
• US$85 MM (Consortium of Lenders)
• US$50 MM IFC (US$25 MM Senior, US$25 MM Convertible); IFC
Lead for the Development Finance Institutions
• Lenders’ due diligence led by Standard Bank and IFC is
progressing:
• Golder updating ESIA to meet IFC Performance Standards
• Optimizing and updating OPEX and CAPEX costs to be completed
for the finalization of Lenders’ terms sheet
• Final version of preferred EPCM contractor submitted to Lenders’
legal counsel for approval before award and announcement
• Negotiations advancing for the equity component of the projects
capital requirements
9

Passendro Project: Pre-production Work
• Fuel supply bids received, power plant tender updated; AXMIN
award Bosche Projects (SA) to investigate appropriate alternative
and sustainable energy options for Passendro
• Logistics supply tenders for shipment and transportation of heavy
equipment loads has been received will be analyzed and
adjudicated in due course
• Road up-grade work well advanced due for completion in late July
work included roads from Bambari to site, on-site roads and
building airstrip
• Geotechnical drilling at Baidou river bridge site completed;
currently drilling underway on the plant terrace site and will then
move to the tailings and water storage dams; additional drill
working on infilling hydrogeological testwork
• Early works started on engineering and design with preferred
EPCM
10

Passendro Project: Road work Bambari to Site
Local contractor engaged, 45 km road upgrade from town of Bambari to site initiated in December 2011
11

Passendro Project: Hydrogeological Testing
Geotechnical & Hydrogeological drilling underway
12

Passendro Project: Local Community
Ndassima Camp garden; Local school meeting; Neighboring villagers and women selling at the market
13

Bambari Belt: Satellite Image Analysis
High Priority Targets
N
Q4 – Exploration drilling to resume utilizing 2
drill rigs with the objective of increasing reserves
in pit and long existing pits
0 Km
10 Km 20 Km
14

Passendro Project: Robust Economics
Revalidated Feasibility Study (Jan 2011)
Assumed Gold Price
Assumed Oil Price
Mine Throughput
Mine Life
Development & Construction
Strip ratio
Average Annual Production (year 1-3)
Average Annual Production (LOM)
Initial Capital Cost (excluding contingency)
Cash Operating Costs (including royalties)
Average Metallurgical Recovery
Gravity Recovery
Payback Period
IRR (after tax & royalties)
NPV (after tax, 5% discount)
Operating Cash Flows
$1,100oz
US$80/bbl
2.8 mtpa
8.3 years
24 months
5.4:1
205,000 ozs
163,000 ozs
US$246 million
US$484/oz Au
94%
40%
22years 2.2 32.1%
US$340 million
US$493 million
Gold Price Upside US$1,500/oz US$2,000/oz
IRR (after tax & royalties)
NPV (after tax, 5% discount)
57.8%
US$785 million
83.9%
US$1,340 million
Reserves (January 2011– based on US$1,000/oz Au)
Category
Proven
Probable
Tonnes
(Mt)
3.5
20.0
Grade
(g/t Au)
1.8
1.9
Gold Content
(oz)
207,505
1,238,670
Total P&P Reserve 1 23.5 1.9 1,446,175
Resources (Updated June 2009)
Category
Tonnes
(Mt)
Grade (g/t
Au)
Gold Content
(oz)
M&I 31.5 2.0 2,027,000
Inferred 21.7 1.6 1,104,000
Additional Low Grade (0.8-0.3g/t Cut-off (within Main Zone Pit)
M&I
Inferred
27.5
35.5
0.5
0.5
1
Proven & Probable reserve included in Measured & Indicated resource
Resources are NI 43-101 compliant and prepared by SRK Consulting (UK) Ltd
458,000
550,000
AXMIN is preparing to deliver the first large-scale operational gold
mine in the Central African Republic
15

Passendro: Cost-efficient Gold Production
Capital cost breakdown
Description
Initial mining capital cost
Pre-strip costs
Pit dewatering
Tailings
Process plant direct costs
Infrastructure costs
Owners’ pre-production costs
Off-site infrastructure
Other
Construction & Management
Contingency
Operation cost breakdown
Capital Cost
Description
US$/Tonne
(US$ million)
Processed
US$ per ounce
26.8
11.5
Mining
$11.62
$201
3.5
Processing & Refining
$11.46
$198
73 7.3
G&A
$3.13
$54
79.3
Royalties
$1.81
$31
45.5
7.6
Total Cash Costs $28.02 $484
63 6.3
2.3
55.0
20.4
Sub-Total
$265.55
Working capital
$8.4
Total
$273.9
Current work on project optimizations have potential to reduce
capital costs further improving economic profile
16

Passendro Gold
Project
Infrastructure – Mine Plan
Nov 2011 Feasibility Study
N

Passendro: Main Zone Pit Overview
Open woodland
MainZonePit
Sparsely populated
NdassimaVillage
NdassimaCamp
18

Passendro: Planned Transportation Routes
Note – the river route involves off-loading
at Pointe Noire, transfer by train to
Brazzaville and loading on to river barges
for transport to Bangui, CAR. It is open for
6-7 months of the year (May-November).
Fuel is imported to Matadi by barge and
then piped to a large storage facility in
Kinshasa before loading into barges for
transport up river to Bangui.
River Route – Brazzaville/Kinshasa to Bangui
Rail Route – Point Noire to Brazzaville
Road Route – Matadi to Kinshasa
Road Route – Douala to Site
19

AXMIN: Highly Prospective Project JV Asset
Senegal Permits
Location:
Senegal Permits (Sounkounkou,
Heremakono and Sabodala NW )
includes the Gora Gold Deposit
Description
Located adjacent and to NE of Teranga
Gold (formerly Mineral Deposits
Limited) Sabodala Gold Mine.
Ownership
Teranga has earned 80% interest in the
Senegal Permits (by spending US$6
MM, AXMIN retains a 20% interest.
AXMIN has US$2.5 MM free carried
interest of which ~US$1.1 MM is spent
to date.
Key development
Teranga announced inferred resource
at Gora Deposit of 106,000 oz (0.53Mt
at 6 g/t Au); plus the discovery of two
other potential deposits on the AXMIN
Senegal Permits.
Teranga is planning to fast-track Gora
to augment Sabadola production.
20

AXMIN: Excellent Grade Open Pit Deposit
Open Pittable Gold Deposits > 1 million ounces held within a single asset Junior
2.5
Reserve Grade (g/t)
2
1.5
1
0.5
Andina
Greystar
Detour
Osisko
Gabriel
Banro
AXMIN
Romarco
0
Andina Greystar Detour Osisko Gabriel Banro AXMIN Romarco
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www.axmininc.com
Judy Webster, VP Investor Relations
T: 416 368 0993 ext 221
E: ir@axmininc.com
October 2012
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