WOWO GAP NICKEL LATERITE PROJECT EL 1165, EL 1979, EL 1980 “FACING NEW CHALLENGES” NIUGINI NICKEL LIMITED 100% SUBSIDIARY OF RESOURCE MINING CORPORATION
Technical Disclosures and Forward-Looking Disclaimers 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 inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. This presentation contains forecasts and forward looking information. Such forecast, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. RMC have not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent 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 this presentation. You should not act or refrain from acting in reliance on this presentation material. This overview of RMC does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before 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.
Corporate Overview Str uc tur e 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% Boar d & Senior Management R egister ed Offic e Warwick Davies Managing Director 702 Murray Street Bill Mackenzie NE Chairman West Perth 6065 Zhang Chi NE Director Western Australia Mark Hill Exploration Manager Francis Casper Country Supervisor PNG
New Challenges for Niugini Nickel 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 costs/complexities Meeting growing expectations of all stakeholders Finding additional operational efficiencies Project Development (1) Kitco historical data
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
Significant Exploration Upside 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 •
A Globally Significant Nickel Project 8 Global Nickel Oxide Resources 125 Mt @ 1.06% Ni 7 Mt of Contained Metal and 0.06% Co (JORC 6 2004) 5 70% of holes Ni>1% 4 12 km strike length 3 2 570 holes drilled 1 0 Total contained Ni 1.32 Mt Source: Intierra RMG and various industry research Reflects 100% of projects
Nickel Uses 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 Stainless Steel Stainless Steel Non ‐ Ferrous Alloys Alloy Steels Plating Foundry Batteries Other
Stainless Steel Growth 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 China USA Brazil EU Other Europe Japan S. Korea Taiwan S Africa China India Source: Heinz H. Pariser, June 2013
Nickel Laterites / Nickel Pig Iron • 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 Global nickel resources by ore type NPI Production in China Kt 500 Sulphides 450 27% 400 350 300 250 200 Laterites 150 73% 100 50 0 Laterites Sulphides 2008 2009 2010 2011 2012 2013f Source: Shanghai Tsingshan Mineral Co Ltd, June 2013
Stainless Steel Production 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”
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% Increasing Ratio of NPI Production by RKEF (China) 10% 40% 45% 55% 60% 90% 2011 2012 2013f RKEF Electric Furnace RKEF Electric Furnace RKEF Electric Furnace Source: Shanghai Tsingshan Mineral Co Ltd, June 2013
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 project in PNG
WOWO Gap Processing Options NEW CHALLENGE WOWO Gap Limonite Saprolite 3 rd party HPAL Chinese RKEF Japanese FeNi Smelter 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
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