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Axiom Mining's high grade nickel hits boost Q4 DSO production potential

Published: 13:14 24 Apr 2015 BST

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Axiom Mining’s (ASX:AVQ) drilling  continues to confirm continuity of high grade nickel mineralisation at the Havihua Ridge prospect of its Isabel Nickel Project in the Solomon Islands.

The project is considered to be one of the largest nickel laterite deposits in the Pacific with the company targeting the establishment of a DSO operation by late 2015.

Mineralisation remains open in multiple directions including the south with the identification of significant laterite outcrop up to 300m from current drilling.

The infill drill holes will provide information for the calculation and evaluation of a maiden JORC resource.


Drilling Results


The latest drilling returned the following results:

- 15 metres at 1.46% nickel from 1 metre, including 6.5 metres at 1.76% nickel from 9 metres;
- 21.2 metres at 1.16% nickel from 0.5 metres, including 2.1 metres at 2.14% nickel from 6.5 metres; and

- 9.6 metres at 1.23% nickel from 1.5 metres, including 2 metres at 1.94% nickel from 8 metres.


Current Activity

Axiom is currently repairing roads constructed by previous explorers INCO into the neighbouring Suma Ridge prospect.

Drilling at Suma Ridge is expected to take six weeks and will be completed on a 100 metre by 100 metres grid, which will finalise the orientation and twinning drilling program on Santa Isabel Island.

Further drilling programs designed to facilitate mining operations will commence in June.


Isabel Nickel Project

Axiom was recently granted a prospecting licence for the San Jorge tenement of its Isabel Nickel Project, almost doubling its exploration footprint.

This brings the Isabel Nickel Project’s combined potential tonnage to about 160 million, based on previous explorers’ advanced exploration.

Adding to the interest, this gives the company better economies of scale for its proposed direct shipping ore operation that is initially focussed on a 2 million tonne per annum production rate.

Like Kolosori, the San Jorge tenement shows great mineability. There is no human habitation, only sparse vegetation over the mineralisation and easy access to a natural deep water harbour.

Axiom, which holds a 50-year registered lease and Prospecting Licence over the Kolosori tenement, is looking at opportunities to develop both tenements in tandem to further improve efficiencies and economies of scale.


Analysis

The latest drilling results further improve Axiom’s confidence in the geological model at the Isabel Nickel Project and highlights its potential.

This will contribute to the evaluation of a maiden JORC resource at the project, which l is already one of the largest nickel laterite deposits in the Pacific with historic non-JORC resources estimated at 159 million tonnes at 1.045% nickel and 0.07% cobalt.

Share Price Catalysts


- Further orientation and twinning drilling results from San Jorge in the second half of 2015;
- Court of Appeal hearing in May, where Axiom is confident of once again successfully defending its rights on the Kolosori tenement;
- Defining a JORC resource on Kolosori in the second half of 2015;
- Grant of a Mining Lease for Kolosori in mid-2015; and
- Starting direct shipping of ore in late 2015.



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