Axiom Nightflower Drilling Progress and IP Survey Results, North Queensland
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1 1 July 2008 The Manager, Companies Australian Securities Exchange Ltd Electronic Announcement System Dear Sir, AXIOM MINING LIMITED (ASX CODE: AVQ) ASX Announcement Axiom Nightflower Drilling Progress and IP Survey Results, North Queensland In accordance with Listing Rule 3.1, we attach the following. Yours faithfully John Weil Manager Special Projects Townsville Office North Queensland Australia
2 Nightflower Digger Lode Drilling Progress and A Newly Discovered IP Anomaly Axiom Mining Limited is pleased to report that the four infill drill holes completed at its Nightflower Project in North Queensland have already intersected massive sulphide mineralisation at the Digger Lode. Split core samples of massive and stockwork lead-zinc-(copper) sulphides have been sent for analysis from the first of the holes and others will follow shortly. Drilling of the first of three deeper holes has commenced. These are designed to intersect the Digger Lode down-plunge, and test at depth, for a potential gold-copper porphyry intrusive source. Importantly, the Company has also identified a second strong Induced Polarization geophysics anomaly at the Terrace Prospect within the Nightflower Fault Corridor, only 500 m south of the Digger Lode. The Dipole-Dipole IP/resistivity survey data shows that the strong 800 m long Terrace Prospect Anomaly is similar in response to the Digger Lode IP anomaly and continues to the south beyond the area surveyed. Drilling of this second anomaly is a priority for Axiom. Image 1 Split core showing high-grade galena and sphalerite mineralisation in the Digger Lode. Nightflower project drilling and IP update 1 July
3 Historic Digger Lode drill assays Table 1 below lists 1972 assay results from drill hole intercepts of the silver-lead-zinc Digger Lode in the immediate vicinity of the high-grade discovery shoot below historic mine workings. In several these historic holes, the assayed section is incomplete because lower grade core to either side of the high grade intercepts was not sampled. Furthermore, the 1972 samples were generally not assayed for gold or copper. HOLE NO. FROM (m) TO (m) DOWN HOLE INTERCEPT LEAD % ZINC % SILVER g/t DHNF/ DHNF/ DHNF/ DHNF/ DHNF/ DHNF/ DHNF/ DHNF/ DHNF/ Table 1 Significant intersections in 1972 Digger Lode drilling by Hastings Ltd. Gold assays were conducted during investigations and sampling of the Lode in the late 1980 s that averaged around 1g/t, and a bulk sample taken in 1988 contained anomalous bismuth, molybdenum and indium. Recent surface rock-chip sampling of the Lode has also produced gold values up to 17g/t. If these additional metal credits are widespread this can have a beneficial economic impact on the project. Axiom Digger Lode drill results See Nightflower Drilling announcement of 12 th June At this early stage, no assay results are yet available. Visual descriptions of drill core from the four Digger Lode infill holes are therefore presented below. Sulphide intercept assay data will be presented in full when available. Drill Hole 1 (NF08DD17) Intersected the mineralised fault channel and lode from 147 to 155 m down hole, including a massive sulphide vein from to 153 m. The massive sulphide consists primarily of galena (lead), with subsidiary pyrite, chalcopyrite (copper), and sphalerite (zinc). Galena in the Digger Lode is known from historic drill core assays to be very rich in silver. This mineralised intercept has been submitted to a Townsville laboratory and assay results will be announced upon receipt. Drill Hole 2 (NF08DD18) Intersected a 41 m zone of fine pyrite and sphalerite stockwork veining from 129 to 170 m down hole, including a 60 cm massive sulphide lode intercept. Core is currently being split for assay. Nightflower project drilling and IP update 1 July
4 Drill Hole 3 (NF08DD19) Intersected 45.5 m of mineralisation, including 29.5 m (71.8 to m down hole) of strong galena, sphalerite, chalcopyrite, pyrite, and other sulphides in stockwork and massive sulphide veins (see image 2). From visual inspection, this intercept appears to be the widest zone of rich mineralisation ever encountered at the Digger Lode. Moreover this zone coincides with a strong IP response that continues to the limit of IP penetration (at least 400 m vertical depth). The mineralised zone is open down plunge and northward, with its potential for substantial extension supported by the strong IP response 170 m to the north. Image 2 Split core showing 12 m from the 45.5 m wide zone of rich galena, chalcopyrite, and sphalerite mineralisation in Hole 3 at the Digger lode. Drill Hole 4 (NF08DD20) This hole is located 70 m south of Hole 1 and intersected weak stockwork sulphide mineralisation and a 50 cm massive sulphide lode. In view of the continuity of the IP response to the south and at depth this appears to be a choke point. It is typical for structurally controlled zones to vary in width at and away from inflection of structures. Nightflower project drilling and IP update 1 July
5 Terrace Prospect IP Anomaly The Company recently completed the 19 line-kilometre IP/resistivity survey over a 2.2 km strike length along the Nightflower Fault zone corridor. See Nightflower Exploration Update of 29 th May. The survey covered both the Digger Lode and Terrace Prospect areas. In addition to the Digger Lode Anomaly announced on the 29 th May 2008, the inverted IP modelled data defined a second strong chargeability anomaly now named the Terrace IP Anomaly (figure 1). Figure 1 3D model of the newly discovered Terrace IP Anomaly Both the Digger Lode and Terrace anomalies extend to at least 400 m below surface. Significantly, the Terrace Anomaly has not been fully defined and shows potential to continue to the south beyond the completed IP/resistivity survey grid. Nightflower project drilling and IP update 1 July
6 Major new drill target The Terrace Anomaly represents a new drill target, being large, and similar to the Digger Lode. Historic surface sampling and shallow percussion drilling indicate that copper and gold are becoming a more significant component of the mineralisation at the Terrace Prospect, particularly toward its southern extension. Future induced polarization survey and drilling Initial planning has begun for a further 2,000 m of reverse circulation (RC) drilling to test the full strike length of the Terrace Prospect and its coincident IP Anomaly later in The Terrace IP Anomaly clearly continues past the last IP/resistivity profile line to the south on figure 1. It is therefore planned to extend the IP survey to cover the remaining 2 km strike length of the Nightflower Fault zone corridor given its established capacity to tap and host mineralisation. For further information: Jake Gray John (Jack) McCarthy John Weil Director & CEO Director Geology Manager Special Projects Axiom Mining Axiom Mining Ozmin Resources Geological information presented in this report is based on exploration results compiled by Mr John Weil in respect of the Queensland tenements and Mr John McCarthy for the Group. Mr Weil and Mr McCarthy are a Fellow and Member of the Australasian Institute of Mining and Metallurgy, respectively and they have sufficient experience that is relevant to the styles of mineralisation and types of deposits under consideration and to the activity, which they are undertaking to qualify as competent persons in accordance with Clause 8 of the JORC Code. Mr Weil and Mr McCarthy are full-time employees of the Company and consent to inclusion in this report of the matters based on their information in the form and context in which it appears. Statements in this document that are forward-looking and involve numerous risks 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 the 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. Nightflower project drilling and IP update 1 July
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