Axiom Mining Limited
ARBN 119 698 770
Mendana Ave, Honiara Solomon Islands
Level 6, 15 Astor Terrace Spring Hill QLD 4000
Australia
T + 61 7 3319 4100
www.axiom-mining.com
ASX Announcement
Higher grade saprolite intersected in San Jorge deposit
22 December 2016
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Drilling has continued to intersect limonite and higher grade saprolite mineralisation
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Key highlights from the drilling include:
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13.0 m @ 1.60% Ni from 2 m including 7.0 m @ 2.14% Ni from 8.0 m
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14.0 m @ 1.47% Ni from 2 m including 7.0 m @ 1.91% Ni from 9.0 m
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Drilling results provide confidence in being able to define a future Mineral Resource and progress the tenement towards mining approval and production in 2017.
Axiom Mining Limited ('Axiom' or 'the Company') is pleased to announce further results from the resource definition drill program on San Jorge Island in the Solomon Islands.
Axiom CEO Ryan Mount said, "Drilling is progressing well at the Isabel Nickel Project on the San Jorge Deposit. It is very pleasing to see thick, high grade saprolite being intercepted outside of historically identified mineralised areas. This provides good indication that further drill testing has the potential to discover additional saprolite material that can be included in our upcoming resource estimate - further expanding the mining potential of this deposit"
Axiom has targeted an initial area with in the San Jorge tenement that presents optimal logistical characteristics of a mining DSO operation. The drill program is progressing to deliver a Mineral Resource estimate early in 2017. This will position the Company well for the commencement of mining in 2017, subject to licencing.
Infill drilling on a selected 25 by 25m pattern is underway within an area to provide some higher Mineral Resource classification which has the potential to be mined in the first phase of mining. Recent assay results indicate the occurrence of higher grade saprolite pods outside the known mineralised areas indicated by historical exploration. These areas represent an extension to initial exploration targets.
Exploration, drilling, mining studies and development will continue throughout the Christmas and New Year period, and a significant number of drill core sample results are currently pending release from the assay laboratory.
The project location is indicated in Figure 1 with drilling details provided in Figure 2 and Table 1.
Figure 1 San Jorge drilling location overview Table 1 New assay results from San Jorge Drilling
ASX Announcement
22 December 2016
Page 2
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Hole ID Entire Limonite Saprolite Easting* Northing* RL EOH intersection^ intersection# intersection~ (m) (m)
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SJ-029
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2.0m @ 0.95% Ni
from 2m
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572850
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9059853
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148
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5.6
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SJ-030
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13.6m @ 1.18% Ni
from 2m
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3.3m @ 1.85% Ni
from 8.7m
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572803
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9059852
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144
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15.6
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SJ-031
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13.0m @ 1.60% Ni
from 2m
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7.0m @ 2.14% Ni
from 8m
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572749
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9059848
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158
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16.4
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SJ-032
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8.0m @ 1.18% Ni
from 2m
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2.0m @ 1.42% Ni
from 7m
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1.0m @ 1.27% Ni
from 9m
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572803
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9059800
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166
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10.0
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SJ-033
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6.7m @ 1.37% Ni
from 2m
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2.7m @ 1.81% Ni
from 6m
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572709
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9059802
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167
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9.3
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SJ-034
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14.0m @ 1.47% Ni
from 2m
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2.0m @ 1.29% Ni
from 7m
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7m @ 1.91% Ni from 9m
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572745
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9059795
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166
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16.4
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SJ-035
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1.8m @ 1.30% Ni
from 2m
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572700
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9059848
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145
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3.8
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^0.6% Ni cut-off for entire intersection
#1.2% Ni cut-off and >2m thickness for limonite intersection
~1.2% Ni cut-off and >1m thickness for saprolite intersection
*Zone WGS84 UTM 57S, GPS coordinates subject to final survey
Figure 2 Drilling Highlights
ASX Announcement
22 December 2016
Page 3
Section 1: Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
ASX Announcement
22 December 2016
Page 4
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Criteria
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JORC Code explanation
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Commentary
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Sampling techniques
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Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample representation and the appropriate calibration of any measurement tools or systems used.
Aspects of the determination of mineralisation that are Material to the Public Report.
In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems.
Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.
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Currently utilising NQ single tube core in sampled intervals.
Handheld XRF analysers were used in field for initial analysis to guide site geologist or field assistants in deciding to end the hole.
Samples were collected generally at 1.0m interval. In changes in geology a range of intervals from 0.3 m minimum to 1.25 m maximum.
Whole core samples were sent to the laboratory in mineralised saprolite zones; half core samples were sent for mineralised limonite zones, overburden (minus top 2m), and bedrock intervals.
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Drilling techniques
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Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).
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NQ single tube drilling by tungsten carbide and PCD bits employing light weight skid mounted drilling rigs commonly used in laterite drilling.
Holes were drilled vertically through the limonite and saprolite zones into underlying basement.
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Drill sample recovery
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Method of recording and assessing core and chip sample recoveries and results assessed.
Measures taken to maximise sample recovery and ensure representative nature of the samples.
Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
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NQ coring was by single tube to maximise core recovery using PVC splits to improve sample quality.
Average sample recovery can exceed 100% due to soft rock drilling with no water circulation where the "cuttings" can also report tot eh core barrel.
Axiom has implemented a dry drilling technique in the top limonite zone and a low water technique in lower saprolite zone-bringing average recoveries to more than 99%.
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