Mountain Maid Gold System Displays Major Size Potential
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- Elmer Bryant
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1 29 July 2008 The Manager, Companies Australian Securities Exchange Ltd Electronic Announcement System Dear Sir, AXIOM MINING LIMITED (ASX CODE: AVQ) ASX Announcement Mountain Maid Gold System Displays Major Size Potential In accordance with Listing Rule 3.1, we attach the following. Yours faithfully John McCarthy Director Geology Sydney, NSW Australia
2 Mountain Maid Intrusive Related Gold System Displays Major Size Potential Re-evaluation of historic diamond drilling assay data at Axiom s wholly owned Mountain Maid prospect has identified consistent broad zones of gold mineralisation, including economically significant higher grade values. Drilling to commence shortly will explore beneath surface gold geochemical anomalies along strike and at depth for additional zones of higher grade gold. Many of the past drill holes were terminated prematurely while still in gold mineralisation. The granitoid-hosted low-sulphide gold-bearing quartz vein stockwork system has several similarities in style and chemistry to known world-class multi-million ounce gold deposits such as those found at Fort Knox (Alaska) and Dublin Gulch (Yukon). Mountain Maid is located 2 km northeast of Axiom s Split Rock Cu target announced on 23 May 2008, where exploration defined a large, low-grade copper system and new geophysical anomalies to the southeast that remain untested and provide additional drill targets. As a result of Axiom s confidence in the Mountain Maid prospect, existing field camp and office facilities only 12 km to the north at the Cardross mining lease have been upgraded to support the coming exploration program. Figure 1 Cardross project area showing Axiom s EPMs and location of Mountain Maid and other key prospect areas overlain on the basement magnetic signature. Mountain Maid Exploration Update 29 June
3 Introduction The Mountain Maid gold prospect lies within EPM 15449, which forms part of Axiom s greater Cardross Project, located 45 kilometers west of Chillagoe, North Queensland (Figure 1). Previous exploration dating back to 1995 identified a large area of low-to-moderate-grade gold hosted in a stockwork quartz vein system. Axiom geologists have collated all previous exploration data and believe there is a significant opportunity to outline a large body of gold mineralisation of economic importance. A diamond drilling campaign to expand on the current data package will commence shortly. The Mountain Maid Prospect The prospect is situated centrally in the Silurian age Nundah Granodiorite Batholith. In the immediate prospect area, the Batholith has been intruded by a series of younger Permo-Carboniferous dykes and small stocks varying in composition from rhyolite, rhyodacite porphyry, monzogranite, granodiorite to monzonite porphyry. In the central prospect area a thin (5 to 10 metre thick) mesa cap of Jurassic sandstone and conglomerate covers much of the known mineralisation and mineralised monzonite porphyry stock. Previous exploration included BLEG stream sediment sampling, grid-based soil sampling, rock chip sampling, geological mapping, and diamond core as well as RC drilling. Preliminary gold leaching studies encountered no problems with gold extraction. Mapping showed extensive areas of strong quartz-sericite-tourmaline alteration and zones of weak to intense quartz stockwork veining. Previous soil and rock chip sampling defined areas of strongly anomalous gold that was followed up by widely spaced first phase drilling. The drill program intersected a very large, low-to-moderate-grade gold system associated with an extensive quartz vein stockwork. Broad zones of higher grade gold are present within wider low-grade halos. Much of the gold mineralisation drill intersected to date is hidden under thin mesa cover sediments. Recent field observations by Axiom geologists show there is excellent potential for extensions along strike in both directions as well as at depth (Figures 2 and 3). Summary results of significant drill intersections shown in Figure 3 and in Table 1 include: g/t Au from 6.85 m downhole, including 1.1 g/t Au g/t Au from 4 m downhole, including 0.74 g/t Au g/t Au from 12 m downhole, including 0.66 g/t Au from 175 m downhole g/t Au Geochemical Characteristics of the Mineralising System Gold at Mountain Maid has a strong association with metal elements such as bismuth and tellurium, and contains trace amounts of chalcopyrite and molybdenite. The geochemical and alteration signature has characteristics comparable in style to intrusion related gold systems (IRGS), and shows marked similarities to two of the best known examples of IRGS, namely Fort Knox in Alaska (>5M oz gold deposit) and Dublin Gulch in Yukon (~2M oz gold deposit). Of further significance is that Permo-Carboniferous aged intrusions are strongly linked to gold mineralisation elsewhere in North Queensland, including the nearby Red Dome copper-gold mine, and at the Mt Leyshon (2.5M oz) and Kidston (4.5M oz) gold deposits. Future Work Previous workers recognised the obvious potential of this discovery as shown by their written proposals for additional drilling to extend the known mineralisation along strike and to test other areas of anomalous gold reported from soil and rock chip sampling. None of this work was conducted most likely because of weak gold prices and poor mineral exploration funding markets that followed the 1997 stock market downturn. Axiom believes the Mountain Maid prospect has demonstrated outstanding potential to host economic-grade gold mineralisation of substantial size. Detailed mapping aimed at refining the surface extent of the quartz vein stockwork system is about to commence, and diamond drilling is planned as soon as possible thereafter. Axiom s drilling will principally be aimed at extending gold mineralisation along strike, and identifying zones of higher grade gold within the areas only partially tested by past holes. It is believed given the intrusive hosted style of gold mineralisation, and the wide consistent intercepts evident in previous drill holes that new drilling could very rapidly produce data for calculation of a JORC compliant resource at Mountain Maid. Figure 2 follows on next page Mountain Maid Exploration Update 29 June
4 Figure 2 Prospect map showing general geology, past drilling, gold-in-soil anomalies and clear targets for expansion of the mineralisation with further drilling. Figure 3 follows on next page Mountain Maid Exploration Update 29 June
5 Figure 3 Interpreted geological cross-section with drill holes and significant gold intervals. Table 1 follows on next page Mountain Maid Exploration Update 29 June
6 Hole No. Year Drilled Hole Depth (m) From To Intersection (m) Au g/t BMD BMD BMD BMD incl MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC *MRC *MMD incl *MMD incl MMD MMD Incl Table 1 For further information: Significant gold intersections from past drilling. Note holes marked with * were stopped prematurely while still in moderate-grade gold mineralisation. John (Jack) McCarthy Glen Little Director Geology Exploration Manager Axiom Mining Ozmin Resources Geological information presented in this report is based on exploration results compiled by Mr Glen Little in respect of the Queensland tenements and Mr John McCarthy for the Group. Mr Little and Mr McCarthy are Members of the Australasian Institute of Mining and Metallurgy 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 Little 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. Mountain Maid Exploration Update 29 June
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