Company Update - expansion and development of the world class Isabel Nickel Project
Highlights
A Pre-feasibility study on the Isabel Nickel Project (both San Jorge and Kolosori deposits) is nearing completion
Planning of a cost-effective development of the San Jorge tenement is well advanced in anticipation of the imminent commencement of operations to develop the company’s asset of medium to high grade tropical nickel laterite ore
o Axiom is progressing with its discussions and negotiations with its strategic partners, and
o Recruitment of key personnel has commenced
The application for the Kolosori tenement is before the government. Axiom remains confident of its position as the preferred developer of sustainable mineral development in the Solomon Islands and anticipates a formal response from government shortly
Recent developments in the international nickel laterite market continue to bode well for Axiom and reinforce the value of the Isabel Nickel Project.
Chief Executive Officer Mr Ryan Mount sees Axiom capitalising on the current market situation:
"The DSO nickel laterite ore market is undergoing unprecedented change. Indonesia, the Philippines and New Caledonia, holding 80% of the world’s nickel laterite reserves for DSO, are refusing to export any significant nickel ore to China.
"In what is becoming one of the most constrained nickel laterite markets in history, Axiom is in the incredible position of being potentially one of the only few viable DSO opportunities for the world’s largest nickel ore consumer, China."
Development and mining studies
The Company has continued to conduct studies in consultation with leading industry experts as to the economics and development of mining for nickel ore located within the Isabel Province, collectively known as the "Isabel Nickel Project".
A Pre-feasibility study is nearing completion. This study is expected to validate the potential of the Isabel Nickel Project.
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About Axiom Mining Limited
Axiom Mining Limited focuses on tapping into the resource potential within the mineral-rich Pacific Rim. Through dedication to forging strong bonds and relationships with the local communities and governments where we operate, Axiom Mining has built a diversified portfolio of exploration tenements in the Asia Pacific region. This includes a majority interest in the Isabel Nickel Project in the Solomon Islands and highly prospective gold, silver and copper tenements in North Queensland, Australia. The Company is listed on the ASX. For more information on Axiom Mining, please visit
www.axiom-mining.com
Disclaimer
Statements in this document that are forward-looking and involve numerous risk 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.
ASX Announcement 25 July 2016 Page 2
San Jorge tenement
The Company has been in discussions with the government and its strategic partners as to planning and commencement of cost effective operations on Axiom’s San Jorge tenement.
The San Jorge tenement has previously been subject to many years of exploration by industry leader INCO (Vale) including thousands of drill holes and pits in the 1960’s and 70’s. The geology is very similar to the Kolosori deposit, with historical drilling and feasibility studies indicating the ore body is likely to have similar characteristics especially as to grade and tonnage.
Axiom will be able to mobilise already in-country plant and equipment, as well as benefit from established supply chains and logistics channels. The Company also has access to trained and experienced operational personnel for this exploration and development campaign.
Kolosori tenement
The Company submitted its application for the Kolosori tenement in March 2016. The Solomon Islands Government has indicated it wants to ensure an efficient and proper process be conducted in the re-issuing of the mineral rights over Kolosori.
An Environmental Management Plan has also been completed and submitted to the government.
Nickel ore market
Recent developments in the nickel laterite ore market have resulted in a number of favourable opportunities currently being considered by the Company.
The Philippines Government introduced greater environmental protocols, which has resulted in diminishing ore exports out of the Philippines. Furthermore, the Philippines Government has suspended operations at a number of nickel mines and stopped issuing relevant licenses and permits.
In 2014, the Indonesian Government banned the export of unprocessed ore including nickel laterite ore. Previously, Indonesia supplied approximately 70-80% of China’s demand for nickel laterite ore. New Caledonia, which has some of the largest known nickel reserves in the world, now has a policy of not allowing the shipment of its nickel ore into China.
Strategic partners
Axiom continues its ongoing relationship and support from its strategic partners
Axiom’s off-take agreement with Gunvor remains in place as the does the opportunity for Axiom to seek up to $15m of debt financing if Axiom was to extend its off-take agreement out to four years of production*. The Company will continue to work closely with Gunvor to maximise the value of Axiom’s ore, especially in the current market where the nickel ore supply is in high demand.
*Refer to ASX Announcement 22 December 2015
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