Resource Estimation

​​​​​In 2010, an extensive drilling program commenced to define the lateritic nickel resources at a drill hole spacing of 200m x 200m along the 12 km strike of the project. This drilling resulted in an Indicated Mineral Resource Estimate (JORC2004) of 125 Million tonnes @ 1.06 per cent Ni and 0.07 per cent Co (reported at a 0.8 per cent Ni cutoff).  

​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.

2011 Mineral Resource Estimate 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

 

The above information, as it relates to mineral resources, is based on information compiled by Mark Hill, who is a Member of the Australian Institute of Geologists. Mark Hill is an employee 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 of the matters based on this information in the form and context in which it appears.  The information relating to Mineral Resources was prepared and disclosed in accordance with JORC 2004.