AVQ 0.00% 2.5¢ axiom mining limited

News: Axiom Mining raises $2.5M through oversubscribed placement

  1. Axiom Mining (ASX:AVQ) has received a strong show of support from sophisticated and professional investors with its private placement closing oversubscribed, raising $2.5 million instead of the original $2 million.

    The shares were priced at $0.015 each while one option exercisable at $0.02 and expiring on 30 November 2014 was issued to investors for every two shares subscribed.

    Proceeds will be used to develop the Isabel Nickel Project, subject to a favourable outcome in the High Court later this month, and drilling on the West Guadalcanal Project.

    West Guadalcanal


    Axiom is poised to start a 2,500 metre scout drilling program targeting the Taho and Polo prospect areas of its West Guadalcanal Project in the Solomon Islands.

    This follows encouraging trenching results that have defined a gold mineralisation occurrence along 1.5 kilometres of strike including:

    - 49 metres at 0.32g/t gold;
    - 72 metres at 0.34g/t gold;
    - 67 metres at 0.55g/t gold;
    - 51 metres at 0.41g/t gold open; and
    - 26 metres at 0.88g/t gold and 64g/t silver including 2 metres at 4g/t gold.

    The results continue to build bulk tonnage that increases the confidence in the project.

    The company has also completed a high definition 2000 line kilometre airborne magnetic survey that has highlighted deep tapping regional structures intersecting both the Taho and Polo prospect areas.

    This has contributed to subsurface drill targeting at both prospects.

    West Guadalcanal covers 485 square kilometres and is considered under‐explored and highly prospective for Southwest Pacific style mineralisation, namely gold‐silver‐basemetal epithermal and copper‐gold porphyry including skarn mineralisation.

    Isabel Nickel Project


    Commissioner John Brown will deliver on 24 September 2014 a decision on the lengthy High Court battle with multi-billion dollar refining giant Sumitomo Metal Mining Company over the Isabel Nickel Project in the Solomon Islands.
       
    The Isabel Nickel Project is 80% owned by Axiom via local subsidiary Axiom KB Limited that includes the Kolosori and Bungusule tenements, which contain the largest nickel laterite deposits in the Pacific.

    Previous operator Kaiser Engineering had concluded that the historic and non-JORC resources of159 million tonnes at 1.045% nickel and 0.07% cobalt were sufficient to operate a heap leach mine for 15 years at a process rate of 2,800 tonnes per day.

    This has DSO potential due to its proximity to the shore line.

    Analysis

    The oversubscribed share placement raising $2.5 million demonstrates the confidence investors have in the suite of assets owned by Axiom.

    Scout drilling is poised to begin at the West Guadalcanal Project, which has bulk gold potential, while a decision will soon be made on the Isabel Nickel Project.



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