for personal use only 25 june 2013 - asx2013/06/25  · 125 mt @ 1.06% ni and 0.06% co (jorc 2004)...

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3 rd Annual PNG Mining & Logistics Conference 25 June 2013 For personal use only

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Page 1: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

3rd Annual PNG Mining & Logistics Conference25 June 2013

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Page 2: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

This presentation has been prepared by Resource Mining Corporation Limited (“RMC” or the “Company”). It should not beconsidered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement tomake an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company willbe entered into on the basis of this presentation.

This presentation contains forecasts and forward looking information. Such forecast, projections and information are not aguarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almostcertainly differ materially from those expressed or implied. RMC have not audited or investigated the accuracy orcompleteness of the information, statements and opinions contained in this presentation. Accordingly, to the maximumextent permitted by applicable laws, RMC make no representation and can give no assurance, guarantee or warranty,express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy,suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in thispresentation.

You should not act or refrain from acting in reliance on this presentation material. This overview of RMC does not purportto be all inclusive or to contain all information which its recipients may require in order to make an informed assessment ofthe Company’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfyyourself as to the accuracy and completeness of the information, statements and opinions contained in this presentationbefore making any investments decision.

Competent Persons Statement:The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mark Hill, who is a Member of the Australian Institute of Geologists. Mark Hill is a director of Exman Consultancy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mark Hill consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.

Technical Disclosures and Forward-Looking Disclaimers

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Page 3: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

Warwick Davies Managing DirectorBill Mackenzie NE ChairmanZhang Chi NE DirectorMark Hill Exploration ManagerFrancis Casper Country Supervisor PNG

Capital Structure

ASX Code RMIShares currently on issue 2,700MShares – fully dilutedMarket Cap A$2.7MCash (Mar 30 2013) A$2.1MTop 20 shareholders 73.8%Sinom (Hong Kong) Ltd 43%

Board & Senior Management

Assets

PNG - WOWO Gap – Nickel

WA Tenements

Registered Office

702 Murray StreetWest Perth 6065Western Australia

Corporate Overview

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Page 4: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

WOWO Gap – Nickel Laterite Project

Established mining industry and mining regulations

Proximity to Asian markets

35km from potential coastal export site

Fixed wing to nearby Embessa or Obea

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Page 5: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

A Globally Significant Nickel Project

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Global Nickel Oxide ResourcesMt of Contained Metal

125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004)

70% of holes Ni>1%

12 km strike length

570 holes drilled

Total contained Ni1.32 Mt

Source: Intierra RMG and various industry researchReflects 100% of projects

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Page 6: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

Stainless Steel Non‐Ferrous Alloys Alloy Steels

Plating Foundry Batteries

Other

Stainless Steel

• Nickel (Ni) is primarily used for the production of stainless steel (66%) and super alloys (12%)

• Nickel has many applications within construction, electronics, transport, energy, medicine, food production and consumer goods

• The factors which make nickel and its alloys valuable commodities include strength, corrosion resistance, high ductility, good thermal and electric conductivity and catalytic properties

Nickel Uses

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Page 7: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

• Stainless steel production has a long track record of healthy global growth, ~5.3% pa since 1975

• Much of the growth in the last decade has been driven by China – now ~40% of global demand

• Ongoing urbanisation and population growth, particularly in Asia will underpin long-term demand growth

Global Stainless Steel Production 2012

USA Brazil EU

Other Europe Japan S. Korea

Taiwan S Africa China

India

China

Stainless Steel Growth

Source: Heinz H. Pariser, June 2013

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Page 8: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

• Nickel is sourced from two primary deposit types, nickel laterite and nickel sulphide• Nickel sulphides make up 40% of current global production of Ni but only 27% of new global Ni

resources• Laterites are generally shallow (open pit) and therefore cheaper to mine than sulphides

(underground)• Iron oxide content associated with laterites present unique opportunities for stainless steel production• Chinese processors have dramatically increased their demand for laterite ore since 2008 (+380%) for

the manufacture of Nickel pig iron (NPI) which in turn is used for the production of stainless steel

Laterites 73%

Sulphides 27%

Global nickel resources by ore type

Laterites Sulphides050100150200250300350400450500

2008 2009 2010 2011 2012 2013f

NPI Production in China Kt

Nickel Laterites / Nickel Pig Iron

Source: Shanghai Tsingshan Mineral Co Ltd, June 2013

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Page 9: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

Traditional stainless steel production

• Pure nickel is melted together with pig iron and/or scrap steel, chromium, manganese and silicon in an electric furnace to produce various grades of stainless steel

Nickel Pig Iron as a precursor to stainless steel production

• Developed in China as a cheaper alternative to using pure nickel• Utilises laterite nickel ores rather than pure nickel• Laterite nickel ore is mixed with coking coal and a mixture of fluxes• Mixture is heated in either a blast furnace or an electric furnace depending on desired grade• Use of Rotary Kiln Electric Furnaces (RKEF) now driving growth of NPI • The NPI process short-circuits the typical costly hydrometallurgical route for producing nickel • NPI contains 4 to 15% nickel. The rest of the metal is pig iron – an important advantage since iron is

also needed to produce stainless steel• Tsingshan Iron and Steel, “Every Chinese mill’s primary mission: minimise usage of pure nickel and

maximise usage of NPI”

Stainless Steel Production

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Page 10: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

Rotary Kiln-Electric Furnace Growth

• The rapid growth in the use of RKEF means the NPI sector is the main supplier of nickel to the stainless steel market

• Cost of RKEF is ~10% lower than traditional electric furnaces and produces a higher grade product

• Four Chinese RKEF operators currently trialling new technology that promises to reduce energy consumption in the RKEF process by a further ~70%

10%

90%

RKEF Electric Furnace2011

40%

60%

RKEF Electric Furnace2012

55%

45%

RKEF Electric Furnace2013f

Increasing Ratio of NPI Production by RKEF (China)

Source: Shanghai Tsingshan Mineral Co Ltd, June 2013

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Page 11: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

Saprolite v Limonite

• Saprolite is magnesium‐silicate ore with a relatively high Ni content and low cobalt, iron and moisture content

• Saprolite has traditionally required a different processing route to Limonite• Value of WOWO Gap saprolite not realised in 2009 PFS as not amenable to High Pressure 

Acid Leaching (HPAL)• WOWO Gap ore is 66% saprolite which is required for the production of high grade 

Chinese NPI using RKEF’s – driven by the rising popularity of 300‐series stainless steel• Opportunity to ship saprolite ore direct to China

• Limonite is effectively a highly weathered low‐grade iron ore with a relatively low nickel and magnesia content and high cobalt, silica and moisture content

• Certain steel smelters in China blend nickel limonite ore with conventional iron ore to produce stainless steel feed products

• Limonite can also be used in RKEF’s to produce 200‐series stainless steel• Additional opportunity to deliver Limonite ore to the recently commissioned Ramu 

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Page 12: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

WOWO Gap Processing Options

WOWO Gap

3rd party HPALNi‐Co Hydroxide

Chinese RKEFHigh grade NPI

LimoniteSaprolite 

Japanese FeNi SmelterFerronickel

Chinese Blast FurnacesLow grade NPI or PI

Next generation on site processingSaprolite & Limonite in one flowsheet

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Page 13: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

• Laterite ore used in Chinese NPI originates primarily from Indonesia and the Philippines

• Imports from these countries have grown exponentially since 2008

• Indonesian Government will ban unprocessed Ni ore exports from Jan 2014

• Indonesia represents around half of the current nickel laterite feed source for Chinese SS producers and is the world’s largest producer in terms of nickel content

• Processed nickel production in Indonesia will not quickly eventuate to fill Chinese supply gap

• New sources of laterite ore will be required – significant opportunity for WOWO Gap Project

Indonesian Supply Gap

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Page 14: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

Ore to Market: Shipping Opportunities

Development Options• Nickel ore to be trucked from WOWO Gap site to coastal export point (~35km)• A landing barge will transport nickel ore from shore and secured to barge mounted 

crane for loading• Midstream loading ‐ a barge‐mounted crane will be stationed beside an ocean‐going 

vessel • Used successfully in New Caledonia• Cost effective export solution

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WOWO Gap Development Pathway

Better define Saprolite/Limonite

parameters

Scoping study

Further resource drilling

Definitive Feasibility Study

Finance & JV partner Commissioning

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Page 16: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

Significant Exploration Upside

• Mineralisation is open to the north and south of current resource model

• Purchase of EL 1979 and EL 1980 (neighbouring licence areas) in 2012

• Low cost drilling using light weight man portable drill rigs (RMC owns 2 rigs)

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Page 17: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

Investment Opportunity

Large, globally significant Nickel laterite JORC resource

Rapidly growing demand for nickel laterite ore in China

Close to proposed coastal export point

proximity of WOWO Gap Project to Asian markets

Strong market for WOWO Gap Saprolite – value not accounted for in 2009 PFS

Significant exploration upside in adjacent licence areas

Low cost drilling, ~A$100 / metre

Highly experienced and innovative team

Stable jurisdiction with progressive mining regulations and taxation system

Responsible corporate citizen, well regarded in PNG

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Page 18: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

Thank you

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Page 19: For personal use only 25 June 2013 - ASX2013/06/25  · 125 Mt @ 1.06% Ni and 0.06% Co (JORC 2004) 70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32

WOWO Gap Mineral Resource Estimate

2011 Mineral ResourceEstimate (JORC 2004)

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

Appendix:

1. Figures may not add due to rounding2. Mineral Resources are reported using a cut‐off grade of 0.8% Ni3. Mineral Resources which are not Ore Reserves do not have demonstrated economic viability

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