The Asia Miner

JAN-FEB 2017

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Page 87 of 103

86 | ASIA Miner | Volume 14 • Issue 1 | 2017 South Pacific OUTSTANDING results have been received from a resource defi- nition drilling program at Axiom Mining's Isabel Nickel Project in the Solomon Islands. Nickel grades of up to 2.14% have been returned from drilling on the San Jorge tenement. The Isabel project is considered one of the largest nickel-later- ite deposits in the Pacific region. Drilling is focused on San Jorge, which makes up 50% of the project. Highlights from results received to date are 13 metres from 2 me- tres @ 1.6% nickel, including 7 metres from 8 metres @ 2.14%; 14 metres from 2 metres @ 1.47%, including 7 metres from 9 metres @ 1.91%; 10.3 metres from 4 metres @ 1.55%, including 5.4 me- tres from 6.6 metres @ 2.0%; and 13.7 metres from 3 metres @ 1.37%, including 7.9 metres from 8.2 metres @ 1.56%. Axiom has established an exploration camp at San Jorge Island. Skid-mounted lightweight drill rigs were set in place and drilling commenced in November. The initial program comprises 2500 me- tres over 200 holes with the objective of validating historical drilling by previous explorers and identifying higher grade saprolite material at depths. Results to date provide confidence in being able to define a future mineral resource and progress the tenement towards mining ap- proval and production in 2017. Axiom CEO Ryan Mount said, "Drilling is progressing well. It is pleasing to see thick, high grade saprolite being intercepted outside of historically identified mineralised areas. This provides good indi- cation 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" "These excellent results give us a high level of confidence in our ability to supply a premium product for potential customers." Axiom has targeted an initial area with in the San Jorge tenement that presents optimal logistical characteristics of a mining DSO op- eration. The remainder of the Isabel project comprises the Kolosori depos- it. Axiom is awaiting a decision from the Solomon Islands Govern- ment regarding the re-application for the prospecting licence over this deposit. Axiom recently appointed David Kinsman as chief financial officer and company secretary. He has a track record of establishing effec- tive finance teams and as a senior finance executive in multinational organisations. SOUTHWEST Pacific Bauxite Company has been granted a Mining Lease by the Solomon Islands Government to mine bauxite on Vagh- ena Island. The project has total JORC-compliant resources of 30.1 million tonnes, which translate into an in-situ mining inventory of 29.1 million tonnes. Southwest Pacific Bauxite (HK) Ltd (SWPB) holds a 75% interest in Solomon Bauxite Ltd (SBL), which holds 100% of the Vaghena Island Bauxite Project. The project comprises tenements covering around 45sqkm on the island's eastern side. The low-lying island is relatively small, with a land area of around 78sqkm, and is between the large islands of Choiseul and Santa Is- abel. It comprises a succession of marine calcareous sediments and raised reef limestone ridges and plateaus overlain by lateritic soil which varies in thickness from 0.3 to 12 metres. Bauxite generally constitutes the upper part of the laterite profile, but in a number of places, particularly over limestone, the total laterite profile is bauxite. The bauxite was discovered in 1968 by CRA Exploration during a re- connaissance. Initial scout drilling and assaying were encouraging and a mineral resource evaluation program was completed by November 1971. The vast majority of the CRA data remains available to SBL. In 2013, Breakaway Mining Services developed a digital resource model and resource estimate, which complies with JORC 2012 standards. In August 2014 SBL completed a feasibility study which involved conventional open pit mining and processing to produce 1.2 million tonnes of dry bauxite product for sale into the export market in the first year of operation, expanding to a sustainable annual rate of 2 million tonnes by year 3. The study outlined a robust investment scenario with attractive returns. However, SBL commissioned Breakaway to prepare a modified staged development plan taking into account various factors. This plan incorporates many of the initial study's fea- tures and strategies, and has two construction and operational phases. Stage 1 aims to gather operating data to be used to optimise final design features while building annual production to 500,000 tonnes. Stage 2 expands production to the sustainable target of 2 million tonnes. The mined bauxite will be delivered to a Run of Mine area near the centre of the island where drying is undertaken to improve handling characteristics of the bauxite and reduce moisture content. Southwest Pacific granted bauxite mining lease Preparations for drilling on the San Jorge tenement at Axiom Mining's Isabel Nickel Project. High grade nickel results at Isabel

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