Resource Mining Corporation

Project Development Studies

Feasibility Study

Following the requirement to finalise a Feasibility Study for the tenement renewal process, RMC has undertaken a study into the viability of a high pressure acid leach (HPAL) project. Following the release of the Scoping Study in early 2008 into various leach processes including heap leach, atmospheric leaching and HPAL, further metallurgical testwork was undertaken to ascertain the mineralogical characteristics of the various material types.

Results of this testwork suggested that both heap leaching and atmospheric leaching of the materials using sulphuric acid (H2SO4) were not considered viable processes due to the high iron content in the limonite material and high magnesium content in the saprolite material. The testwork indicated that HPAL was the preferred process.

RMC has contracted the appropriate specialist consultants in order to complete the feasibility study which should be finalised in the December quarter 2009.

The parameters of the HPAL project consist of a 1.25 million tonne per annum limonite process plant producing an estimated 10,000 tonne per annum Ni-Co sulphide product.

Metallurgical testwork has now been completed. Work on the mass balance, process flow sheet design, detailed capital and operating cost estimates for the plant are in progress.

Preliminary mine fleet selection has been made with the next study stage being the optimisation of this equipment to meet mine grade and production requirements.

Given the nature of the environment in which the Wowo Gap project is located, the mine fleet has been selected with flexibility in mind. The equipment is planned to be used during the construction process prior to moving into a mining operation.

Logistics and infrastructure development will form an important part of the Wowo Project. Accordingly, consultants are involved in the assessment of the key infrastructure aspects of the Project, including:
• Port
• Roads
• Airstrip
• Camp
• Water supply
• Sewage treatment facilities
• Stockpile location
• Residue storage dam and pipelines 

In PNG, the majority of the land is held under customary land tenure. Title for most of the land has not been formally recorded or registered and as a result land ownership is often unclear. Disputes over land ownership are common, especially when the development of a resource project such as Wowo Gap is announced. The identification of the landowners in the development of Wowo Gap is essential. Extensive ethnology and land ownership studies have been conducted by RMC for a number of years with the recording of land owner boundaries.

Following the company’s current understanding and documentation of the local land owners, RMC has referred the matter to land court mediation with the local clan representatives and Provincial and National Government representatives in March 2009, however we still await final rulings as to the rightful owners.

Limestone is required to neutralise acid solution discharged from the process plant. A source of limestone has been identified approximately 100km east of the project at Cape Vogel. A 100 block exploration licence has been applied for over the limestone occurrence. Mapping and sampling of the limestone will commence once the licence has been granted. 

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