Page 19 - Axiom Mining Limited 2012 Annual Report

Basic HTML Version

2012 Annual Report
The INCO estimations of the resource figures for
the deposits are non-JORC compliant, having been
calculated prior to the inception of the JORC code.
The Kaiser report calculation did not include
the full lateritic profile of the deposits. Therefore
there is a substantial upside potential for tonnage
because the saprolite zone at depth was not
included in the calculation.
The project also has several other attractive
development characteristics, including:
The main area of nickel-cobalt mineralisation
is free from human habitation.
Mineralisation occurs from the surface.
The deposit is very close to the shore line,
thereby allowing easy seaborne access to regional
processing hubs.
A deep water area adjoining Isabel Island will
form an ideal loading facility and harbour.
Mining via a Direct Shipment of Ore (DSO) approach has
the benefits of minimising impacts on the environment,
as well as significantly reducing the immediate and
overall capital requirements. Ultimately, a DSO approach
will function to enhance and accelerate the generation
of significant cash flows. This is due to the much
shorter time frame involved with the DSO process, as
compared to the time required to build a conventional
high pressure acid leaching process plant (HPAL) or
using alternative process methods.
Currently, Axiom remains in a legal dispute with
Sumitomo over the Isabel Nickel Deposit. Once free of
this litigation, Axiom will aim to accelerate exploration
activities and the feasibility study in order to progress
the project towards production as soon as possible.
Figure 1. Solomon Islands Project Locations
The project was reignited by Kaiser Engineering in
1993-1995. Kaiser excavated an additional 34 new
test pits across the deposits in order to evaluate the
historical work and directly compare results with the
43 INCO pits. Kaiser’s subsequent report highlighted
several tangible opportunities, including:
The deposit being classified into a high iron
limonite zone at the surface and a low iron
saprolite zone at depth.
The total thickness of the saprolite was not
accurately tested at depth due to the limitations of
equipment and the overall depth of these pits. This
is important because the saprolite zone in these
styles of deposits have the highest Ni-Co grade.
Estimates of resources (non-JORC code compliant)
dating back to 1970s had been made and
subsequently validated by Kaiser Engineering –
this included the manipulation of cut-off grades
to increase tonnage.
The Kolosori Resort on Isabel Island
Santa Isabel Island
San Jorge
Bungusule LOI
(Under litigation)
Arosi Tenement
Makira Province
Kolosori Tenement
(Under litigation)
Itina Tenement