Resource Estimation
Mineralisation has been identified within the laterite profile along the 12 kilometre strike length and remains open to the north and south of the resource estimate.
The Mineral Resource Estimate comes on the back of a comprehensive drilling program which commenced in August 2010 with RMC’s purpose built man portable drilling rigs. The light weight drill rigs were designed to penetrate the clay profile of the laterite without the requirement of water to assist in the drilling, as is the case for conventional diamond drilling. A total of 295 holes were completed along the 12 kilometre strike length of the resource at a nominal drill hole spacing of 200 metres, with drilling completed in August 2011
The Mineral Resource Estimate was undertaken by Ravensgate Minerals Industry Consultants in Perth which included an additional 295 core holes drilled in 2010 and 2011, along with 98 diamond holes, 155 wacker holes and Ground Penetrating Radar (GPR) derived lithological profiles.
The estimation work was performed in Minesight software with base the clay profile and base of the rocky saprolite profile models created from the GPR profiles and lithological contacts in the drill holes. These surfaces were used to tag the ore block model by material type. The grade interpolation process was done using Ordinary Kriging technique.
The Mineral Resource was estimated and reported in accordance with the JORC Code (2004) guidelines covering the “Estimation and Reporting of Mineral Resources” and is based on all drill hole, GPR and dry bulk density data as of 26th October 2011. Classification of the estimate was based on drill hole density and geological confidence criteria.
The updated Mineral Resource Estimate has substantially increased the tonnage, grade and confidence level of the Wowo Gap Nickel Laterite deposit as summarised in the table below.
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2011 Mineral Resource Estimate
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Mt
|
Nickel (%)
|
Cobalt (%)
|
|
Indicated
|
72
|
1.03
|
0.07
|
|
Inferred
|
53
|
1.09
|
0.06
|
|
Total
|
125
|
1.06
|
0.07
|
|
Contained Metal (kt)
|
|
1,325
|
83
|
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.