This is an excerpt from the most recent quarterly. It definitely...

This is an excerpt from the most recent quarterly. It definitely does say 'late in the December quarter'.

Feasibility Study
As advised in previous announcements, a condition of the renewal of the Wowo Gap exploration
tenement EL1165 is the completion of a Feasibility Study.
Work on this study is well underway with the estimated completion being late in the December
quarter.
A particularly important aspect of the Feasibility Study will be the Marketing section. The current and
future forecast price of Nickel will have a significant impact on the economics of production.
Over the past several months, there has been encouraging signs for Nickel as a commodity. The
International Nickel Study Group estimates world nickel consumption to rise to 1,332 Mt in 2009 from
1.252 Mt in 2008.
Consumption of nickel is dominated by the stainless steel sector, which accounts for around 70% of
demand for primary nickel. Since 2001, world output of stainless steel has increased at an average
rate of almost 10%per annum, driven by China where growth has averaged over 50% per annum
over the same period.
Although China has overtaken Japan as the largest primary nickel consuming country, Japan’s
economy is reviving from its worst recession since World War II, fuelling consumption of raw
materials.
The International Nickel Study Group has forecast a shortfall of 40,000 t in world nickel supply in
2009 and nickel prices in London have gain 34 percent this year as customers including stainless
steelmakers, the biggest consumers, ramp up output.
Table 1 below provides information regarding the Spot Nickel price for the past 12 months in US$/1lb.
The upward trend in the Nickel price is clearly evident from a low of US$4.60 in Oct 08 to the current
level of US$8.78.
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Table 1: 1 Year Nickel
Resource Estimation Update
The updated resource estimate was completed in September 2009 and is quoted to the appropriate
level of precision at a 0.8% Ni block cut off grade:
Table 2: Updated Resource Estimate
Wowo Gap Laterite Nickel - Cobalt Resource
Classification Ni %
Cut Off M Tonnes Nickel
%
Cobalt
%
Contained
Nickel tonnes
Contained
Cobalt tonnes
Indicated 0.8 39 1.00 0.05 390,000 20,000
Inferred 0.8 43 1.00 0.06 440,000 26,000
Total 0.8 82 1.00 0.06 830,000 46,000
Previous Resource Estimate Comparison
Table 3 provides a comparison of the current and previous mineral resource BOTH using a 0.5% Ni
cut off grade.
Table 3: 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 @
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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 4) estimate.
Table 4: 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
The updated IBD’s are based on measurements taken by Amdel, (Perth laboratories) from dry
diamond core samples.
The resource estimate was undertaken by Ravensgate Minerals Industry Consultancy in Perth which
included 25 GPR profiles, 155 wacker drill holes and 98 diamond holes drilled.
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: Creating the Limonite Surface in Minesight Software.
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.
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Figure 2: Completed material surfaces – ash (yellow), limonite (pink), saprolite (blue).
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.
Metallurgical Test Work
Following the release of the Scoping Study in early 2008 into various leach processes including heap
leach, atmospheric leaching and HPAL, further metallurgical test work was undertaken to ascertain
the mineralogical characteristics of the various material types.
Results of this test work suggested that both heap leaching and atmospheric leaching of the materials
using sulphuric acid (H2SO4) were unlikely to be viable processes for Wowo Gap ore due to the high
iron content in the limonite material and high magnesium content in the saprolite material. The test
work indicated that HPAL was the preferred process.
Recent testwork conducted as part of the Wowo Gap feasibility study has included testing of:
(a) the Rheology of the limonite, and
(b) the use of saprolite as a means of neutralising the surplus acid following the leaching
of the limonite
Preliminary results have been received for both lots of testing with encouraging results. Whilst the
results have yet to be formally reviewed by RMC’s consultants, the rheology test has yielded the
more positive results.
The original Scoping Study assumed that the slurry feed to the HPAL plant would consist of 20%
solids. Rheology tests have shown that the Wowo Gap limonite has the ability to support 40% to 45%
solids in solution.
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This will have a positive impact on both plant design and acid consumption. With 20% solids, the
transport medium (water) is available to neutralise the acid. With 40% to 45% solids, there is less
water available to neutralise the acid thereby improving process economics.
Neutralisation tests using saprolite have shown that the saprolite is an effective neutralising agent.
However, the recover of Nickel from the saprolite (level of Nickel leached from the ore) is yet to be
fully evaluated.
RMC has contracted the appropriate specialist consultants in order to complete the feasibility study
which should be finalised in the December quarter 2009.
Project Details
The parameters of the HPAL project consist of a 1.25 million tonne per annum limonite process plant
producing an estimated 10,000 tonnes per annum Ni-Co sulphide product. Approximately 250,000
tonnes of saprolite material will be required and used to neutralise the sulphuric acid discharge from
the HPAL plant. Metallurgical test work has confirmed the suitability of the high MgO saprolite
material as a suitable neutralising material to the acid which alleviates the requirement of importing
limestone for this purpose.
Metallurgical test work 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.
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
Figure 4 shows the project site plan with the proposed port located in Collingwood Bay, approximately
10km from the plant site location, which is located 25km from the Wowo Gap mine site.
Figure 4: Proposed Site Plan.
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Preliminary mine fleet selection has been made with the next study stage being to finalise the mining
and haul costs for the financial modelling.
Mining studies for Wowo Gap have concluded that simple, conventional, selective open pit mining
techniques will be appropriate. High rainfall will require the selection of appropriate equipment to
operate in slippery conditions, and the proposed mining fleet includes
• 2 x Caterpillar 345 excavators
• 10 x Caterpillar 740 38t Articulated Trucks
• 2 x D9 dozer
• 1 x Caterpillar 16H grader
• 1 x 988 Loader
• 1 x water truck.
Limonite and Saprolite ore will be mined on 2.5m benches and trucked to the stockpiles near mine
offices at the northern base of the project (3 – 4km typical haul). Mining rates will be based on 2 shifts
per day (24/7).
Proposed Haulage Fleet – 25km haul from mine stockpile to plant by sealed all weather road.
• 5 x prime mover with 100t capacity.
• 1 x 980 Loader
Final capital and operating expenses of the mine and haul fleet are still being complied.