20 slides from Resource Minerals International's investor presentation, Dec 9, 2013
Slide 1: WOWO Gap Nickel Laterite Project
For personal use only WOWO GAP NICKEL LATERITE PROJECT EL 1165, EL 1979, EL 1980 “FACING NEW CHALLENGES” NIUGINI NICKEL LIMITED 100% SUBSIDIARY OF RESOURCE MINING CORPORATION
Slide 2: Technical Disclosures and Forward-Looking Disclaimers
Technical Disclosures and Forward-Looking Disclaimers For personal use only This presentation has been prepared by Resource Mining Corporation Limited (“RMC” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an i
Slide 3: Corporate Overview
Corporate Overview For personal use only Structure Assets ASX Code RMI PNG - WOWO Gap – Nickel Shares currently on issue 2,700M Shares – fully diluted WA Tenements Market Cap A$2.7M Cash (Mar 30 2013) A$2.1M Top 20 shareholders 73.8% Sinom (Hong Kong) Ltd 43% Board & Senior Management Registered Off
Slide 4: New Challenges for Niugini Nickel
New Challenges for Niugini Nickel For personal use only What are they? Commodity Cycle/World Economy • Depressed nickel prices (Current price US$13,500/tonne(1) vs US$19,400/tonne 5 years ago) • Investors risk averse • Equity raising very difficult for junior explorers Increasing compliance cost
Slide 5: WOWO Gap – Nickel Laterite Project
WOWO Gap – Nickel Laterite Project For personal use only Established mining industry and mining regulations Proximity to Asian markets 35km from potential coastal export site Fixed wing to nearby Embessa or Obea
Slide 6: Significant Exploration Upside
Significant Exploration Upside For personal use only • Mineralisation is open to the north and south of current resource model • Grant of EL 1979 and EL 1980 (neighbouring exploration leases) in 2012 • Ultramafic unit extends into EL1980, possibly EL1979
Slide 7: A Globally Significant Nickel Project
A Globally Significant Nickel Project For personal use only 8 Global Nickel Oxide Resources 7 125 Mt @ 1.06% Ni Mt of Contained Metal and 0.06% Co (JORC 6 2004) 5 70% of holes Ni>1% 4 3 12 km strike length 2 570 holes drilled 1 0 Total contained Ni 1.32 Mt Source: Intierra RMG and various industry r
Slide 8: Nickel Uses
Nickel Uses For personal use only • 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 it
Slide 9: Stainless Steel Growth
Stainless Steel Growth For personal use only • 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 A
Slide 10: Nickel Laterites / Nickel Pig Iron
Nickel Laterites / Nickel Pig Iron For personal use only • 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
Slide 11: Stainless Steel Production
Stainless Steel Production For personal use only 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 s
Slide 12: Rotary Kiln-Electric Furnace Growth
Rotary Kiln-Electric Furnace Growth For personal use only • 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 op
Slide 13: Saprolite v Limonite
Saprolite v Limonite For personal use only • 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 a
Slide 14: WOWO Gap Processing Options
WOWO Gap Processing Options For personal use only NEW CHALLENGE WOWO Gap Saprolite Limonite Chinese RKEF Japanese FeNi Smelter 3rd party HPAL Chinese Blast Furnaces High grade NPI Ferronickel Ni‐Co Hydroxide Low grade NPI or PI Next generation on site processing Saprolite & Limonite in one flowsheet
Slide 15: Indonesian Supply Gap
Indonesian Supply Gap For personal use only • 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 a
Slide 16: Ore to Market: Shipping Opportunities
Ore to Market: Shipping Opportunities For personal use only NEW CHALLENGE 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 ba
Slide 17: WOWO Gap Development Pathway
WOWO Gap Development Pathway For personal use only NEW CHALLENGE Better define Saprolite/Limonite Further resource Finance & JV parameters drilling partner Commissioning Scoping study Definitive Feasibility Study
Slide 18: Investment Opportunity
Investment Opportunity For personal use only 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
Slide 19: Thank you
For personal use only Thank you
Slide 20: Appendix: WOWO Gap Mineral Resource Estimate
Appendix: WOWO Gap Mineral Resource Estimate For personal use only 2011 Mineral Resource Mt Nickel (%) Cobalt (%) Estimate (JORC 2004) Indicated 72 1.03 0.07 Inferred 53 1.09 0.06 Total 125 1.06 0.07 Contained Metal (kt) 1,325 83 1. Figures may not add due to rounding 2. Mineral Resources are report