THE EMERGING PACIFIC RIM MINER
The Isabel Nickel Project is considered to be one of the largest nickel-laterite deposits in the Pacific. The project has previously been extensively explored and developed by mining and engineering industry leaders, International Nickel Company Limited (INCO) and Kaiser Engineering (Kaiser).
Since success in the Solomon Islands High Court in September 2014, Axiom has resumed exploration activities in order to progress the project towards production as soon as possible.
Axiom’s drilling program is designed to confirm the historical data compiled by INCO and Kaiser and test the potential for high grade nickel in saprolite beneath the limonite mineralisation.
To date, early drilling results have revealed grades of more than 2% nickel and depths of mineralisation that far exceed that recorded by the previous explorers.
Table 1 ‐ Summary of results for 2014/15 drilling program (March 2015)
Work has also progressed on the infrastructure and operations requirements of the project, including repairs to existing roads, tracks and jetty infrastructure plus the establishment of new roads, an initial 70-person camp and logistics and transport systems between Honiara, Santa Isabel Island and various sites.
Safety and environmental protocols and procedures are in place for exploration, and are currently being developed for mining operations. Environmental baselines studies are underway and monitoring equipment has been installed.
Axiom continues to build on our strong community and landowner relations through ongoing engagement and communication initiatives.
The Isabel nickel deposit shows high mine-ability, which means a quick transition from ground to market. The main area of nickel-cobalt mineralisation occurs from the surface and is free from human habitation, and as such mining development will have minimal social impacts.
Axiom will take a phased approach to mine development. The initial focus will be on establishing a 2mtpa direct shipping of ore operation on Santa Isabel Island by late 2015 for a relatively low capital expenditure.
The cashflow generated from the early stages will provide Axiom with the capital needed to consider the next phase of development to add value through on-site processing.
The project wholly owned by Axiom Mining comprises an area of about 485 km² located in the west of Guadalcanal Island, Solomon Islands (Figure 1).
Figure 1 - West Guadalcanal Project location.
The West Guadalcanal Project is wholly owned by Axiom Mining and comprises an area of about 485km² located in the west of Guadalcanal Island.
Axiom relinquished both Arosi and Itina gold projects in early 2014 in favour of the West Guadalcanal Project having higher prospectivity. The tenement is adjacent to known Au-Ag deposits, including the Gold Ridge Mine and boasts potential for epithermal Au and porphyry Cu-Au style deposits.
The exploration targets of Taho, Polo and Mt Tanjili lie within a 10km long carbonate basemetal gold epithermal corridor.
Since gaining a Prospecting Licence for the project in January 2014, Axiom has undertaken exploration that indicates the potential for higher grade zones.
In late 2014, Axiom commenced a 2500 initial drill program at Taho. Mineral assemblages indicate the deposit is part of a carbonate base metal low sulphidation epithermal system—these gold minerals include rhodochrosite, ankerite, siderite, pyrite, galena, sphalerite and various silver-based sulphides (similar to Porgera, PNG).
The initial drilling has assisted in building the three dimensional geological model and interpreting the orientation of the mineralised structures. A total of 1529m was drilled by the end of 2014, with nine holes completed.
The assays contain some encouraging results, including 4.35m @ 0.91 g/t Au and 7.22 g/t Ag from 7.5m including 1.85m @ 1.52 g/t Au and 2.85m @ 9.70 g/t Ag in hole HVDD005.
Trenching results from the Taho prospect have upgraded and extended the surface mineralisation zone to 1.5km long.
In 2015, Axiom will review the drilling program at the Polo prospect area as the further potential at Taho is assessed.
Updated March 2015
Statements in this document that are forward-looking and involve numerous risks and uncertainties that could cause actual results to differ materially from expected results are based on the Company’s current beliefs and assumptions regarding a large number of factors affecting its business. There can be no assurance that (i) the Company has correctly measured or identified all of the factors affecting its business or their extent or likely impact; (ii) the publicly available information with respect to these factors on which the Company’s analysis is based is complete or accurate; (iii) the Company’s analysis is correct; or (iv) the Company’s strategy, which is based in part on this analysis, will be successful.
Competent Person's Statement for Isabel Nickel Project
The information in this announcement that relates to Exploration Results is based on information compiled by Mr Clinton Rivers who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Rivers has sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration and to the activity which is being undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr Rivers is a consultant to Axiom Mining Limited and consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
Competent Person's statement for West Guadalcanal Project
The information in this report that relates to Exploration Results is based on information compiled by Ms Barbara Pierna who is a Member of the Australasian Institute of Geoscientists. Ms Pierna has sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration and to the activity that is being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Ms Pierna is a full time employee of Axiom Mining Limited and consents to the inclusion in this report of the matters based on her information in the form and context in which it appears.
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