Resources
Wowo Gap Resource Estimate Update.
A critical feature of the Feasibility Study is an updated Resource Estimate. Ravensgate Mineral Industry Consultants were engaged to complete this work. Ravensgate’s report has been received and Resource Mining Corporation (RMC) is pleased to announce the positive outcome of the independent resource estimate for the Wowo Gap Ni-Co Project in PNG.
Indicated Resource: 39 million tonnes @ 1.00% Ni, 0.06% Co
Inferred Resource: 50 million tonnes @ 1.01% Ni, 0.06% Co
(The updated resource estimate is quoted to the appropriate level of precision at a 0.8% Ni block cut off grade. The level of 0.8% Ni has been adopted to better define the quantity of higher grade ore available as potential plant feed.)
Previous Resource Estimate Comparison
Table 1 provides a comparison of the current and previous mineral resource BOTH using a 0.5% Ni cut off grade.
Table 1: Mineral Resource Estimate
| Date | JORC Classification | Quantity | % Ni | % Co |
| Feb 2008 | Inferred | 200 Mt | 0.83 | 0.07 |
| Sep 2009 | Indicated + Inferred | 190 Mt | 0.83 | 0.06 |
Note: This comparison compares well and is further enhanced by considering the substantial decrease in the insitu bulk density.
Reporting of the resource estimate at the block cut off grade of 0.5% Ni, the Inferred and Indicated Resources total 190Mt @ 0.83%Ni, 0.06%Co compares to the 2008 Inferred Resource of 200Mt @ 0.83% Ni. Although the updated resource estimate includes more material volume, the lower tonnage is due to the substantial decrease in insitu bulk densities (IBD) from the 2008 (Table 2) estimate. The updated IBD’s are based on measurements taken by Amdel, (Perth laboratories) from dry diamond core samples.
Table 2: Comparison of IBD between the two estimates.
| Material Type | 2008 IBD (g/cm3) | 2009 IBD (g/cm3) |
| Limonite | 1.5 | 1.1 |
| Saprolite | 1.5 | 1.3 |
Resource Details
The resource estimate was undertaken by Ravensgate Minerals Industry Consultants in Perth which included an additional 12 Ground Penetrating Radar (GPR) Profiles, 55 additional wacker drill holes and 27 additional diamond holes drilled since the 2008 resource estimate for a total of 25 GPR profiles, 155 wacker drill holes and 98 diamond drill holes.
The estimation work was performed in Minesight software with base of ash, limonite and rocky saprolite surface models created from the GPR profiles and lithological contacts in the drill holes (Figures 1 and 2).
Figure 1: Creation of the Limonite Surface in Minesight Software.
Figure 2: Completed material surfaces – ash (yellow), limonite (pink), saprolite (blue).
These surfaces were used to tag the ore block model (OBM) by material type. The grade interpolation process was done using ordinary kriging (OK) with the inverse distance squared (ID2) method used as a check.
The OBM has 4 categories (Figure 3) which relates to the quality of the grade estimation and has been used to classify the resource according to the JORC categories: Category 1 (green) ‐ Indicated Resource, Categories 2 – 4 (orange, purple and blue respectively) – Inferred Resource. Both the inverse distance squared and ordinary kriging resource models report similar grades and tonnes at the appropriate levels of precision.
Figure 3: Categorized Ore Block Model showing Indicated Resource Blocks in Green.
The estimate is based on all drill hole assay GPR data as of 24th July 2009 and covers a total strike length of 8 km. Classification of the estimate was based on drill hole density, assay data, geological confidence criteria and the bulk density estimation.
The higher confidence level of this latest mineral resource estimate provides a reliable and high quality foundation for the Wowo Gap Nickel Project Feasibility Study currently being conducted. Additional metallurgical testwork has been commissioned and a range of potentially viable project development scenarios have been identified and are being studied.
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Competent Persons Statement: Information in this report relating to ore reserves, mineral resources or mineralisation conforms with the reporting requirements of the “Australian Institute of Mining and Metallurgy’s Code for reporting of Identified Mineral Resources and Ore Reserves” and is based on and accurately reflects information compiled by Mark Hill who is a Competent Person as defined by the CODE and is a Member of the AIG. Mark Hill has consented to the release of the information dealing with these matters in the form in which it is reported.
