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  • Axiom Mining's MD Ryan Mount Speaks To Proactive Investors

    Axiom Mining (ASX:AVQ) is developing the world-class Isabel nickel project located in the Solomon Islands.

    There is potential for the Solomon Islands to supply between 2%-5% of projected new nickel laterite supply between 2014-2030, with Axiom well placed to make a significant contribution.

    Proactive Investors will be conducting a series of exclusive Q&A sessions with Axiom's managing director and CEO Ryan Mount.

    This is the first instalment.

    PROACTIVE INVESTORS: Welcome Ryan.

    The grant of the San Jorge prospecting licence almost doubles Axiom's exploration footprint in the southern Isabel province. What impact does this have on proposed direct shipping ore (DSO) operations?

    Ryan Mount: The addition of San Jorge to our current Kolosori tenement brings the Isabel Nickel Project's combined potential tonnage to about 160 million, based on previous explorers' advanced exploration.

    This sizable increase in tonnage will give us better economies of scale for our proposed DSO operation, initially focussed on a 2mtpa production rate.

    Like Kolosori, the San Jorge tenement shows great mineability. There is no human habitation and only sparse vegetation over the mineralisation. We have easy access to a natural deep water harbour. This, coupled with the mineralisation occurring from surface and located at, or near, the shoreline, puts us in an enviable position to develop one of the most efficient mines in the region.

    To further improve efficiencies and economies of scale, we are looking closely at opportunities to develop both tenements in tandem.

    Drilling at Kolosori has already confirmed our model of deeper, higher grade saprolite zones at the Project. We anticipate we will find the same at San Jorge when we commence drilling there later this year.

    This is encouraging given that nickel prices are forecast by traders and analysts to grow as China's stockpile of nickel ore falls.

    Can you outline the ownership structure of Isabel along with the possible size and scale of the project?

    Ryan Mount: The Isabel Nickel Project is owned by Axiom KB Limited, of which Axiom holds 80%, with the two original landowning tribes holding the remaining 20% interest. Their stake is corporatised in a community company structure.

    Axiom has a registered leasehold and prospecting licence over the 49 square kilometres of the Kolosori tenement, and we have a prospecting licence for the San Jorge tenement, which is 36 square kilometres.

    The historical exploration at Kolosori only tested to 5 metres in depth from the surface. Recent drilling has intersected high grade nickel of more than 2% to a depth of more than 20 metres. The potential upside for grade and tonnage is substantial.

    We are continuing drilling at Kolosori-not only confirm the historical work but to test and quantify the extension of the higher grade mineralisation at depth.

    In the next couple of months we will commence Resource definition drilling, targeting an initial JORC Resource of 4-7 million tonnes, which will supply the first 2-5 years of a DSO operation.

    We will begin with a low cost dig-and-deliver mining operation, which will generate cashflow for a relatively low capital expenditure.

    The significant cashflow generated from the first two years of mining will give us options for further expansion.

    The International Nickel Study Group has forecast new laterite supply to increase by around a third in the next decade. How is Axiom positioned to contribute?

    Ryan Mount: Axiom has the potential to supply between 2% and 5% of the world's new laterite over the next 15 years, making the company a significant player in global laterite production.

    Chinese nickel ore stocks have dropped to their lowest levels over the past few years, and this coupled with the limited amount of high grade left in the Philippines means that the Isabel Nickel Project has become far more important in the region.

    Our project has well understood tropical laterite geology and metallurgy, with ore to be mined from surface and a simple dig-haul-ship process. Our DSO operation will also have a relatively low capital expenditure of US$25 to US$35 million.

    Additionally, we are pleased to have established good working relationships with the Solomon Islands community and Government whom we proudly call our partners.

    Axiom is therefore well placed to meet some of the global demand for nickel.

    Can you outline the proposed change in capital structure through a consolidation in shares?

    Ryan Mount: The proposed consolidation is 15:1, reducing shares on issue from approximately 3.6 billion to approximately 240 million, which is subject to shareholder approval at our AGM next week.

    A consolidation would streamline the company's register by significantly reducing the amount of shares on issue.

    We believe the consolidation is needed now. We are confident of achieving several milestones shortly and as such we need to have our share capital in order. The consolidation will broaden our appeal to institutional investors, whom we expect to become increasingly interested as we progress with our business plan this year.

    We have also sought shareholder approval to increase our authorised share capital from 4 billion to 8 billion. Of course, if the consolidation is approved-this would equate to an increase from 267 million to 533 million shares.

    This increase gives us the ability to raise working capital only if required, as we work towards advanced exploration goals and setting up our DSO operation by year's end.

    Finally, can you please outline upcoming catalysts for investors?

    Ryan Mount: Key milestones for the Isabel Nickel Project this year include:

    - Further orientation and twinning drilling results from Kolosori over the next couple of months, and from San Jorge in the second half of 2015

    - Court of Appeal hearing in May, where we are confident of once again successfully defending our rights on the Kolosori tenement

    - Results from resource definition drilling and defining a JORC resource on Kolosori in the second half of 2015

    - Grant of a Mining Lease for Kolosori in mid-2015

    - Starting direct shipping of ore in late 2015.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

    Mar 29 7:01 PM | Link | Comment!
  • Impact Minerals Increases Stake In Broken Hill Project To 87%

    Impact Minerals (ASX:IPT) has now moved to an 87% interest in the copper-nickel-platinum group metal rights at the Broken Hill Joint Venture Project in New South Wales.

    This follows the company's recent discovery of high grade copper-nickel-PGM at the Red Hill prospect in February.

    Partner Golden Cross Resources (ASX:GCR) is focussed on a development project elsewhere and elected not to contribute to Impact's recent work programs.

    It has also elected to not contribute to the follow-up drill program due to start in the next quarter.

    Should Golden Cross to less than a 5% interest then it has to transfer its interest to Impact for $1.

    Recent Activity

    At Red Hill, Impact has discovered a 25 to 30 metre thick near-surface zone of mineralisation that contains high grade PGM's together with nickel and copper associated with an ultramafic intrusion.

    Four significant intercepts have been returned from drill holes RDH001 and RDH006 that define an
    Upper and Lower Zone of mineralisation.

    - Upper Zone: 9.5 metre at 4.7 grams per tonne platinum-palladium-gold, 1.5% copper and 0.8% nickel (RDH001) and 5.2 metres at 3.4 g/t platinum-palladium-gold, 1.1% copper and 1.6% nickel (RDH006); and
    - Lower Zone: 9.9 metres at 6.7 g/t platinum-palladium-gold, 1.4% copper and 0.3% nickel (RDH001) and 13.8 metres at 6.3 g/t platinum-palladium-gold, 1.1% copper and 0.3% nickel (RDH006).

    The copper, nickel and PGE grades appear to be increasing in width and grade at depth and the mineralisation is open at depth and along strike.

    Mineralisation comprises massive and disseminated nickel and copper sulphides together with vein and disseminated nickel and copper oxides and sulphides.

    Importantly it appears that mineralised zones dip at a shallow angle to the south and are close to true width.

    Next Steps

    The results to date from the Red Hill prospect confirm Impact's belief that there is potential for a significant discovery near Broken Hill.

    Latest down hole and ground electromagnetic survey results have been received and are being interpreted.

    These results will be used together with the previous drill assays to design a follow up drill program expected to start in the next quarter.

    The drill intercepts in RHD001 and RHD006 are the first significant drill intercepts of nickel and copper within Impact's project area away from the high grade drill intercept of 2 metres at 6.1% nickel, 4.5% copper, 10.9 g/t platinum and 23.6 g/t palladium in fresh sulphide discovered some years ago by previous explorers at the Platinum Springs prospect some 15 kilometres to the north east.

    There are many strike kilometres of the same ultramafic host rock that contain high grade nickel-copper-PGE rock chip assays similar to those at Platinum Springs and Red Hill that have never been drilled.

    The Red Hill Prospect

    The host ultramafic intrusive unit at Red Hill, which outcrops over an area of about 500 square metres, has a nickel-rich core and copper-precious metal-rich margins.

    This is a common feature in many major nickel-copper-precious metal sulphide deposits around the world.

    Red Hill is part of Broken Hill, which is located 20 kilometres east of the world-class Broken Hill silver-lead-zinc mine.

    The centre of the unit is marked by nickel-in-soil values greater than 10,000 ppb and up to 16,100 ppb nickel that is 100 metres wide and 300 metres long.

    Both the western and, in particular, the eastern margins of the unit are marked by copper-in-soil results greater than 2,500 ppb and up to 16,200 ppb copper that are up to 200 metres wide and 600 metres long.

    Within these margins there are a further three priority areas for follow up work that contain greater than 20 ppb platinum+palladium+gold-in-soil results covering several hundred square metres and which contain rock chip samples with high grade nickel, copper and precious metal assays:

    At Red Hill Shaft, mined to a depth of about 40 metres in the early 1900's, grab samples from outcrops around the shaft returned up to 16g/t platinum, 12.1g/t palladium, 4.2% nickel, 7.7% copper, 1.3 g/t gold and 221g/t silver.

    Rock chip samples from a surface excavation about 50 metres long located 100 metres to the south of the shaft returned up to 1g/t platinum, 2.6g/t palladium, 0.9% nickel, 0.8% copper, 1.8g/t gold and 3.3g/t silver.

    At Simons Find, rock chip samples returned up to 0.7g/t platinum, 1.7g/t palladium, 0.4% nickel, 0.1% copper, 1.9g/t gold and 6.6g/t silver.

    Finally, in the south east corner of the intrusion, grab samples from weathered rocks associated with some surface diggings returned up to 22% copper, 0.2% nickel, 0.8 g/t gold and 91.1 g/t silver.

    The soil geochemistry survey was completed by Impact at a spacing of 50 metres by 50 metres and submitted for analysis by the MMI partial digest (nickel and copper) and fire assay (platinum, palladium, gold and silver).

    Broken Hill Joint Venture

    Exploration Licence E7390 is owned by Golden Cross Resources and is the subject of two joint ventures, one between GCR and Impact and one between GCR and Silver City Minerals (ASX:SCI).

    Impact has the rights to nickel, platinum and any other metals, occurring in, emanating from, or which are otherwise associated with, mafic or ultramafic complexes.

    Silver City has the rights to base metal, silver and gold mineralisation associated with Broken Hill-style mineralisation.

    Other Projects

    Impact Minerals also holds the wholly-owned Commonwealth gold-silver-zinc-lead-copper project located 95 kilometres north of Orange, New South Wales, as well as the Mulga Tank Project located in the Yilgarn Block, Western Australia.

    The Commonwealth Project has a maiden Inferred Resource of 720,000 tonnes at 4.7 grams per tonne gold equivalent.

    This is open along trend and at depth and contains both massive sulphide mineralization at the Main Shaft prospect and disseminated, vein and lesser massive sulphide mineralization at the Commonwealth South prospect.

    It extends from surface to an average depth of 90 metres, has a strike length of 400 metres and is up to 25 metres thick.

    A separate Inferred Resource (included within the overall resource) has also been calculated for the massive sulphide lens at Main Shaft alone to demonstrate the high grade nature of such deposits that are the principal target for Impact's exploration program.

    The Main Shaft Inferred Resource is: 145,000 tonnes at 10 g/t gold equivalent for a contained 47,000 gold equivalent ounces comprising 4.3 g/t gold, 142 g/t silver, 4.8% zinc, 1.7% lead and 0.2% copper.

    Previous drilling at the southern end of the deposit had returned a bonanza grade intercept of 4 metres at 41 g/t gold, 93 g/t silver, 5.5% zinc and 2.3% lead. This could lead to a new gold-rich massive sulphide lens.

    Further drilling, which has the potential to increase the size and grade of this deposit, is expected to start in the next quarter.

    Already, follow-up IP and ground gravity surveys have identified drill targets within a large zoned elliptical zinc-lead-copper-gold-silver soil anomaly at the Doughnut porphyry copper-gold target.

    The project has similarities to Heron Resources Limited Woodlawn deposit, a Silurian VMS deposit with a global resource of 17.7 million tonnes at 1.4g/t gold, 80g/t silver, 1.7% copper, 9.9% zinc, 3.8% lead for 7.1 million ounces of gold equivalent.

    There is also regional potential with the company securing a further 315 square kilometres that include 8 kilometres of potential strike in the rocks that host Commonwealth as well as 10 kilometres strike potential of structures that host the nearby Galwadgere copper-gold deposit.

    Mulga Tank

    Impact = recently completed the acquisition of the remaining equity in the Mulga Tank Project located in the Yilgarn Block, Western Australia, from Golden Cross Resources.

    It now owns 100% of all 13 licences within the project, which covers 425 square kilometres of the highly prospective Minigwal greenstone belt, 200 kilometres east of Kalgoorlie.

    Notably, the project is located close to world class nickel mines including Perseverance (>1 million tonnes contained nickel), Mt Keith (>2Mt nickel) and Kambalda camp (>1Mt nickel).

    It is also close to recent discoveries such as the Nova-Bollinger deposit, Camelwood and Collurabie.

    This completes a long term goal for the company since it purchased the joint venture rights two years ago while removing the earn-in requirement that was inherited from the previous owners.

    Impact's first drill program had identified nickel sulphides over just a 15 square kilometre area centred on the Mulga Tank Dunite.

    It now plans to move forward with follow-up drilling within the dunite following the recent award of a $150,000 grant under the Western Australian State Government's Exploration Incentive Scheme.

    There is also significant untapped gold potential.

    Analysis

    Impact Minerals now has a larger 87% interest in the copper-nickel-platinum group metal rights at the Broken Hill Joint Venture Project in New South Wales.

    Already, the company has discovered high grade copper-nickel-PGM at the Red Hill prospect and plans to carry out follow-up drilling in the next quarter.

    Significantly, the 25 to 30 metre thick near-surface zone of mineralisation appears to increase in width and grade at depth, raising the likelihood of a major massive and disseminated nickel and copper sulphide resource.

    Share Price Catalysts

    - Interpretation of results from down hole and ground electromagnetic surveys at Red Hill;
    - Drilling at Red Hill in the second quarter of 2015; and
    - Results from drilling.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

    Mar 29 7:00 PM | Link | Comment!
  • TZ Limited Signs Smart Locking Device MoU With Spacesaver Corporation

    TZ Limited (ASX:TZL) has entered into a Memorandum of Understanding for integration of its smart locking device hardware and software solutions into a range of storage solutions from US-based Spacesaver Corporation.

    This is non-binding and subject to the parties entering into a binding definitive formal agreement within 60 days after completing an 8 month evaluation period.

    Spacesaver is part of KI, the sixth-largest contract furniture manufacturer in the industry with $700 million in sales.

    It is also the leading North American manufacturer and innovator of high density mobile storage systems for office, institutional and industrial applications.

    With over 250,000 successful installations since 1972 and a nationwide network of local authorised sales representatives, Spacesaver is the industry leader when it comes to mobile shelving, cantilever shelving and industrial storage solutions.

    These include library storage systems, business storage, ammunition storage, archival storage, evidence storage, hospital storage, and parts storage.

    "We are pleased to be building a strategic relationship with Spacesaver Corporation which has the potential to see TZ's technology expand into a wide range of new application areas for the company," executive director Kenneth Ting said.

    "Working with an industry leader like Spacesaver enables TZ to not only penetrate new market segments for our packaged asset delivery platform but to tap into an extensive and established customer base across government, military, institutional and corporate customers."

    Spacesaver vice president of product innovation Matt Tourdot added:

    "We see TZ's digital locking technology and software development capability as highly synergistic to our business, particularly as our customers are increasingly looking for electronic security and higher levels of granularity when it comes to access control and monitoring.

    "We are hoping to build on this initial MOU and move forward to a mutually beneficial and strategic agreement that provides for a high level of collaboration in bringing new innovative storage solutions to market."

    Recent Activity

    The company has recently won a number of new contracts with Westpac, KPMG, Pos Malaysia, University of Technology Sydney and a number of other major corporations.

    Earlier this month, it raised $6.4 million through a share placement priced at $0.11 per share and signed a memorandum of understanding with KPMG to negotiate a definitive enterprise-wide agreement for the supply of TZ's Day Lockers as well as associated locker management hardware and software for KPMG properties.

    Supply will commence on a limited basis to initial deployments in Adelaide, South Australia and in Parramatta, New South Wales subject to finalisation of commercial terms.

    Westpac's (ASX:WBC) use of Day Lockers at the three new iconic towers, International Towers Sydney (ITS), at Barangaroo, represents a high profile deployment for TZ.

    The ITS properties have been benchmarked against the best office developments in New York, London, Hong Kong, Singapore and Shanghai and are designed to demonstrate the latest thinking in workplace design and sustainability.

    It has also secured a six-year parcel locker contract for the supply of electronic parcel lockers to Pos Malaysia Berhad, cementing its leading position as a supplier to national postal operators.

    The six-year contract covers turnkey supply of TZ hardware and software as well as support and maintenance services over the proof-of-concept, pilot and roll-out phases of the project.

    It includes customisation, integration, testing, commissioning and post-implementation support of the lockers.

    Analysis

    While the agreement with Spacesaver Corporation is currently a non-binding Memorandum of Understand, it clearly demonstrates the appeal of TZ's smart locking device hardware and software solutions.

    This deal will allow the company's packaged asset delivery platform to not only penetrate new market segments but also tap into an extensive and established customer base across government, military, institutional and corporate customers.

    TZ is well positioned to accelerate revenue growth beyond FY2015 after raising $6.4 million in a recent share placement.

    It recently estimated sales potential of up to US$301 million in the 2015 to 2018 horizon for its PAD business with the majority driven by expansion of the existing South East Asian postal locker network, expansion of the U.S. logistics network and European postal tender.

    Based on estimated revenues for FY15 as well as incorporating recent contract wins and growing momentum Proactive Investors recently set a new price target of $0.25-$0.27 in 12 months.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

    Mar 29 6:57 PM | Link | Comment!
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