Quarterly
Activities Report
For the period ended 30 June 2016
Message from
the CEO
The Court of Appeal judgment was delivered in late March, and whilst the ruling was not entirely expected, it did provide us with a clear path forward - one without prolonged litigation that in the past has prevented us from our core business - sustainable mining.
With the Court of Appeal ruling ordering that SMM Solomon Limited (Sumitomo) were a) in breach of
the land-banking provisions and should not have been able to apply for further tenements, and
b) Axiom's Kolosori tenement is no longer in existence. On hearing this announcement, Axiom quickly re-organised the operations of the
business and focussed it's attention to the other half of the Isabel Nickel Project, the San Jorge tenement.
The San Jorge Prospecting Licence was granted in early 2015 and was previously subject to significant exploration in the 1960s & 70's by INCO (Vale). Historical exploration data indicates that the San Jorge deposit is very similar to the Kolosori deposit including in both grade
and tonnage.
During the quarter we continued with our preliminary activities on San Jorge, including community consultation and environmental
studies, and anticipate further active development of San Jorge in the near future.
We have re-applied for our Prospecting Licence over the Kolosori tenement and await formal notification from the Solomon Islands Government.
Axiom and our landowner partners' investment in the Isabel Nickel Project goes beyond 18 months
of extensive exploration and mine planning to define the first five years of production - we upskilled our local workforce and worked with local communities to develop small businesses and community infrastructure. We are still confident that our approach to sustainable mine development, the company's strong ties with the customary
landowners and the robust technical work undertaken to date, will give Axiom a competitive advantage both in the development of the San Jorge deposit and the reapplication
of the prospecting licence over the Kolosori tenement.
The nickel laterite industry is experiencing significant supply constraints and it is uncertain, especially in the Pacific, where the majority of tropical nickel laterite deposit will be sourced from.
Axiom has a unique opportunity to capitalise on these recently evolving dynamics in the Asia Pacific nickel ore trade - moving the Company's projects to production is paramount.
Coupled with our existing and ongoing relationships with our strategic partners such as
Gunvor and Anitua, we are looking forward with much optimism to
the next stages of growth in the Solomon Islands.
Ryan Mount, CEO
1 | Axiom - Quarterly Activities Report for the period ended 30 June 2016
Corporate summary
Application for Prospecting Licence for Kolosori tenement
On 9 May 2016, Axiom Mining Limited announced it had submitted its application for a Prospecting Licence for the Isabel Nickel Project's Kolosori tenement with the Solomon Islands' Ministry of Mines, Energy and Rural Electrification ('the Ministry').
Axiom also welcomed a 6 May 2016 public notice from the Ministry stating its position on the Isabel Nickel Project, in which the Ministry advised it:
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has committed to run an "inclusive, transparent process that is strictly compliant with all requirements under the Mines and Minerals Act (Cap 42) and the Environment Act (1998) and other relevant legislation to avoid legal implications and delay in the development of mineral rights of great promise and potential benefit for all stakeholders".
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will provide further details about the process to receive expressions of interest for the Isabel nickel deposits.
Shareholder information sessions
A number of shareholder sessions were held in Brisbane and Sydney at the end of May, to give an update on the Company's operations.
We welcome and enjoy open discussion with our shareholders, and plan similar events in the near future.
Key executive management appointment
Recruitment has commenced on a number of key management positions, with our first successful incumbent being Mr Ken Stein, who has taken up the role of Executive
General Manager - Operations. Mr Stein brings to the company some 40 years of mining experience, particularly in nickel development, and bolsters our in-country management team to prepare our operations for upcoming fieldwork. Ken will be located in the Solomon Islands.
Axiom - Quarterly Activities Report for the period ended 30 June 2016 | 2
Solomon Islands summary
Isabel Nickel Project
Tenements
San Jorge (PL 01/15)
Ownership
80% Axiom Mining Limited
20% interest held by landowning tribes
Location
San Jorge Island, Isabel Province
Area
36 km2
Kolosori Nil - reapplication submitted
Santa Isabel Island, Isabel Province
42km2
Solomon Islands Court of Appeal judgment
Axiom was granted a Prospecting Licence for the Isabel Nickel Project's San Jorge tenement in March 2015 with approval from the Solomon Islands Government and the customary landowners. Its close proximity to the Kolosori tenement enables Axiom to rapidly re-deploy most existing project infrastructure and resources to progress work on San Jorge.
Following the Solomon Islands Court of Appeal judgment, which considered the Kolosori tenement, on 1 April Axiom announced it would also focus its operations on the San Jorge tenement.
Axiom has been undertaking preliminary activities on the tenement, including community consultation and environmental studies, and further active development of the San Jorge tenement is anticipated in the coming months.
Kolosori tenement
On 9 May 2016, Axiom announced it had reapplied for a Prospecting Licence for the Isabel Nickel Project's Kolosori tenement.
Pre-feasibility Study
Through in-house consultants and a third party engineering firm, Axiom has been preparing a pre-feasibility study of the Isabel Nickel Project (both San Jorge and Kolosori tenements). The study, which confirms the economics of the project, is nearing completion.
3 | Axiom - Quarterly Activities Report for the period ended 30 June 2016