Axiom 2014 Annual Report - page 64

Notes to the Financial Statements
for the year ended 30 September 2014
62
Axiom Mining Limited
11. Mineral exploration expenditure
Exploration, evaluation and development costs carried forward in respect of mining areas of interest:
2014
$000
2013
$000
Carrying amount at 1 October
2,796
23,046
Deficit on valuation of mineral exploration expenditure
–
(15,030)
Exploration costs
2,385
914
Less: Exploration costs expensed
(1,425)
(676)
Exchange alignment
276
85
Impairment loss on mineral exploration expenditure
(1,560)
(5,543)
Carrying amount at 30 September
2,472
2,796
Determining the recoverability of mineral exploration expenditure capitalised in accordance with the Group’s accounting
policy (see Note 2 (g)), requires estimates and assumptions as to future events and circumstances, in particular, whether
successful development and commercial exploitation, or alternatively sale, of the respective exploration right will be
achieved. During the period, an impairment charge was made to capitalised exploration expenditure in accordance with
the Group’s accounting policy (see Note 2(g)) to its recoverable amount.
Mineral exploration projects
Axiom KB Limited has a prospecting licence (Kolosori project) granted on 15 April 2011 on Isabel Island in the Solomon
Islands to explore for nickel, cobalt and other minerals. Exploration activities have commenced subsequent to the court
setting aside an interim injunction (refer Note 23(a)).
South Pacific Minerals Limited acquired the West Guadalcanal Project in January 2014. Historical results support the
possibility for this geological system hosting economic grades of gold mineralisation. Since securing the Prospecting
Licence for the West Guadalcanal Project earlier this year, Axiom has undertaken systematic soil sampling and geological
mapping across the three prospect areas of Mt Tanjili, Taho and Polo.
Ozmin Resources Pty Ltd and Millungera Energy Pty Ltd hold seven exploration permits, and seven mining leases to
explore for gold, silver, copper and other minerals in Australia.
During the year, the Company transitioned its Vietnam operations to maintenance mode to enable it to focus its efforts
on the Solomon Islands. The Company still believes that Vietnam offers great potential for resource development and
has taken steps to maintain avenues for re-commencing exploration in future when circumstances permit.
12. Trade and other payables
2014
$000
2013
$000
Trade payables
854
373
Other payables and accruals
914
676
1,768
1,049
All of the other payables are expected to be settled or recognised as an expense within one year or are repayable on
demand.
GROUP FINANCIAL REPORT
1...,54,55,56,57,58,59,60,61,62,63 65,66,67,68,69,70,71,72,73,74,...116
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