JUNE QUARTERLY REPORT Resource Mining Corporation Limited ( RMC ) For the period ended 30 th June 2011 HIGHLIGHTS: Resource Mining Corporation Limited ABN: 97 008 045 083 702 Murray Street West Perth WA 6005 Phone: +61 8 9213 9400 Fax: +61 8 9213 9444 Email: rmc@resmin.com.au ASX Code: RMI Contacts: Warwick Davies Managing Director Projects: Wowo Gap: Nickel-Cobalt Tomkinson Range: Nickel-Copper St Patricks: Copper-Zinc-Silver-Gold Capricorn JV: Copper-Gold Kumarina: Copper-Gold Cue: Gold One million dollars raised from private investors at a price premium to the market Drill program assay results from Wowo Gap identifies larger resource as strike continues in new south west direction Innovative cassava farming trials to provide potential alternative income for local PNG stakeholders Field visits and sampling for West Australian projects provides better understanding of resource potential
COMPANY OVERVIEW CORPORATE Resource Mining Corporation Limited (ASX: RMI) is a Perth-based specialist mineral exploration company creating wealth from mineral commodities using innovative technical, marketing and financial skills as it explores for economic metal deposits in Australia and Papua New Guinea. This quarterly report highlights a number of important milestones for the company relating to capital raising, exploration success, stakeholder engagement and our Western Australian projects. CAPITAL RAISING Resource Mining Corporation during the quarter has raised $949,997 through a private placement to sophisticated investors at 1.0 cents per share. This money will be used to fund further exploration and research into the leaching technology. It is important to note that investor confidence in the company by the private investors is strong with the issue price of new capital being above the trading range of the stock on the open market. STAKEHOLDER COMMUNICATIONS During the quarter the company launched several new initiatives to improve communications with stakeholders. A new website has been developed and a new investor newsletter Tok Tok has been initiated to better communicate with stakeholders. The first edition has provided an overview of current activities and been well received by subscribers. WOWO GAP PROJECT The major focus of Resource Mining Corporation is on the development of its wholly owned, world class Wowo Gap Nickel Project located 200 kilometres from the PNG capital of Port Moresby. A key strategic objective of the company is to update and expand our mineral resource estimates, continue to engage with local stakeholders and demonstrate research leadership through our scoping study with the leaching technology. ASSAY RESULTS POSITIVE Assay results from exploration drill holes were released during the quarter and confirmed the significance of the resource in terms of both the size of the resource and the grade. The drill program was designed to infill holes on a 200 metre hole spacing within areas of known mineralisation towards the north of the project, and to test for extensions of mineralisation to the south-west. 2
The results are extremely positive because the high grade mineralisation remains open to the north and an exciting new south west extension has been identified. The high Nickel grades confirm the quality of the Wowo Gap deposit as world class and the extension to the mineralisation provides confidence that the mineral resource is larger than current estimates. Over 250 holes (Figure 1) have been drilled since commencement of the program using an innovative custom made man-portable core drilling rig capable of much faster, higher quality and more cost effective drilling using a largely unskilled local workforce. The drilling program has been focused on the thicker profiles of limonite that occur within a geological unit known as the Sivia Breccia which trends along the Bereruma Fault and these assay results are better than original expectations. The company is looking forward to receiving the updated resource estimates to be completed in mid August 2011 followed by further update in October of this year. The recently received assay results continue to reinforce the potential of the project to host significant near surface laterite nickel mineralisation which would lend itself to a high quality, low cost surface mining operation. The latest assay results received are from 50 holes, 35 of which intersected high grade Nickel of a grade greater than one per cent Nickel with some as high as 1.56 per cent Nickel. Figure 1: Core hole locations. 3
Bio-renewable Organic Acid Leaching to Progress to Commercialisation A significant increase in nickel extractions for both limonite and saprolite ore types has been achieved using the recently developed innovative bio-renewable organic leaching process. Results from a second round of leaching tests confirmed the results of Ni and Co extraction using the newly developed organic leach process. The results provide the company with significant encouragement to further investigate an understanding of the science behind the leaching process discovery and develop the green-tech process through to commercialisation. A comprehensive industrial laboratory scale test program is in progress to define the leaching kinetics of both limonite and saprolite ores. CASSAVA FARMING Resource Mining Corporation believes in agriculture partnerships for sustainable development as a way of leaving a legacy in the host countries in which we operate. This is part of our corporate social responsibility (CSR) program. The company supports the premise that sustainable development is defined as development which meets the needs of the present without compromising the needs of future generations. This is a key value driver for the business. Figure 2: Cassava farming trial 4
The Cassava Project has begun at Embessa village on the 29 th of May 2011 and then moved to Obea village which started on the 13 th of June 2011. There is full support at all levels within the respective villages for this initiative. The Project will have five stages. STAGES: 1. Marking and Clearing 2. Fencing. 3. Plotting and Planting. 4. Caring. 5. Harvesting. Both villages have completed the first stage and now on their second stage which is Fencing (Figure 2). Fencing is a very important factor in the Musa area due to wild pigs and wallabies destroying gardens in the area. A representative from each village with previous agriculture experience has been engaged to oversee the project development. The Project will proceed to stage three after completion of the fencing. The Plotting/Planting stage should start in the middle of July and the Company is providing tools and support for the project through its fully owned subsidiary Niugini Nickel. TRANSPORT LOGISTICS NEW AIRCRAFT TRIALLED Wowo Gap is located 200 kilometres east of Port Moresby in a remote area in south east Papua New Guinea only accessible by helicopter or by foot. There are no roads, only walking tracks. Infrastructure is extremely limited and there is no electric power transmission, telephone access or water supply. The Wowo Gap resource is on a slope between 200 and 1300 metres above sea level in Oro Province. The camp is at 800 metres above sea level. It is located 35 kilometres from the village of Safia near the Musa River and the village of Wanigela situated on Collingwood Bay. These villages have access to the nearest large town, Popendetta by boat. Access, for example from Safia requires travelling down the Musa River, then by open sea to the town. The journey usually takes two days. Several of the surrounding villages have very basic airstrips suitable for small aircraft. With the financial support and encouragement of Resource Mining Corporation, the villagers of Embessa have extended their airstrip to allow small cargo aircraft to use the airstrip. Resource Mining Corporation personnel co-ordinated the airstrip upgrade efforts including the certification of the airstrip. This facility allows Resource Mining Corporation an alternative point of food and goods delivery to site where local villagers can act as porters to carry the goods to site providing yet another form of income to the villages. For Resource Mining Corporation the benefits are twofold: an alternative transport means to helicopters and a means of evacuation should this be required. 5
For the local village, having an active airstrip provides communications and a means for medivac if necessary. Resource Mining Corporation will pay for the regular upkeep of the airstrip. During the quarter a new aircraft carrier was used with a PAC 750XL, a STOL aircraft with the ability to carry a high payload (Figure 3). The new service is fast, allows efficient cargo handling, with aircraft able to land on the short runways in the remote PNG terrain. Figure 3: Inspecting the new aircraft capabilities for transport logistics to Wowo Gap WESTERN AUSTRALIAN PROJECTS Tomkinson Range Project Field Trip to Remote Musgrave Province A field trip with industry experts to the Musgrave Province (Figure 4) has provided an opportunity to gain first-hand knowledge of the geological potential of this under explored remote desert region that is highly prospective for nickel-copper sulphides and gold. The Tomkinson Range project is located 230 kilometres east of Warburton and 1,400 kilometres northeast of Perth, close to the Western Australian South Australian border. The exploration licence application 69/2782 covers an area of 430 square kilometres over the Michael Hills and the Hinckley layered gabbro intrusions that form part of the Giles Complex, between which there are granites. 6
The primarily target is nickel-copper sulphide mineralisation hosted by the layered gabbroic intrusions similar in style to the Babel and Nebo deposits, also within the Musgrave Province, and the Sally Malay Deposit in the Halls Creek area of WA. Resource Mining Corporation staff joined a Geological Services WA (GSWA) lead field trip for companies with ground holdings in the Musgrave Province in June 2011. Approximately 20 companies participated in the field trip, along with the South Australian Geological Survey and numerous University participants. The aim of the field trip was for the GSWA to inform industry geologists of the new geological interpretation of the area from the mapping that has covered the area over the last 10 years. Figure 4: GSWA Field Trip convoy in the Musgrave Province, WA. The Tomkinson Range project is highly prospective for nickel - copper sulphide mineralisation within an interpreted feeder pipe structure located between the Michael Hills and the Hinkley layered mafic intrusions with surface soil geochemistry showing a coincident nickel and copper anomaly (Figure 5). This anomaly has yet to be drill tested. The Michael Hills Intrusion is prospective for copper and platinum group elements (PGE s) mineralisation, and the upper portion of the Hinkley Intrusion which is within the tenement area is prospective for gold mineralisation. With the exception of stream sediment and soil geochemistry performed in the 1980 s there has been very little other documented work done on this ground due to past issues with land access. PNG Stakeholder Engagement Model Well Received By Traditional Landowners A key element of the field trip was to meet with the Ngaanyajarra Council. The Council comprises of representatives from the traditional land owners in the area and is the liaison between exploration companies and the local traditional land owners. 7
The Ngaanyajarra Council believes increased access to the area by exploration companies will create employment, training and other opportunities for their people, particularly their youth. All companies were required to introduce themselves to the Council members and provide an indication of future employment needs. Resource Mining Corporation presented their employment model used in PNG, which relies on local PNG village people to assist in all aspects of the project from cooking through to drill rig operation. The model was well received by the Council and this meeting will be the basis of a good working relationship in the future. Figure 5: Mineralisation Potential of the Tomkinson Range Project Kumarina Project Sampling for Gold and Copper Completed The tenement lies approximately 200 kilometres North East of Meekatharra along the Great Northern Highway, approximately 10 kilometres east of the historical Kumarina copper mine within the Proterozoic Collier Basin. Historical exploration has located elevated copper and gold values in surface soils that have not been followed up by further exploration. Tenement E52/2539 was granted on the 16th February 2011. 8
A site field visit to the area in June noted similar geology to that seen at the historical Kumarina Copper Mine to the west of the tenement. Only four drill holes were noted on the tenement along an access track through the middle of the tenement, spaced at approximately 1000 metres. The holes appeared to have been drilled to assess the bedrock geology across the area as there is quite a considerable amount of recent cover sediments obscuring the bedrock geology. Over 100 surface soil and vegetation samples were collected across the tenement area along access tracks as a first pass reconnaissance test to assess the initial prospective nature of the tenement (Figure 6). These samples will be submitted for analysis for multi-element geochemistry, with the results expected in August. Figure 6: Kumarina surface soil and vegetation sampling with Stanton Kennedy-Smith Capricorn Joint Venture Sampling Completed in Pilbara The Project is held by a 50:50 joint venture between Resource Mining Corporation (ASX:RMI) and Ashburton Minerals Ltd (ASX:ATN) with RMI manager. The Ashburton Fold Belt, Edmund (and Collier) Basin and the Gascoyne Complex are typical of Proterozoic sedimentary and metamorphic terrane throughout the world where they host large Zinc- Lead-Gold (Zn-Pb-Ag) and Copper-Gold (Cu-Au) deposits. The tenements E08/2102 and 2103 were granted on the 19 th February 2011. The tenements cover a number of historical stream sediment anomalies with elevated Gold, Copper and Zinc geochemistry that have yet to be systematically followed up. Over 100 surface soil and vegetation samples were collected across the tenements using a helicopter to assist with access as a first pass reconnaissance test to assess the initial prospective nature of the tenements (Figure 7). These samples will be submitted for analysis for multi-element geochemistry, with the results expected in August. 9
Figure 7: Helicopter assisted field exploration at the Capricorn Project. SUMMARY In summary, the company has achieved important milestones for our projects. Our goals for the next quarter are to: 1. Update the Resource Estimation for Wowo Gap including completion of exploration drilling during August. 2. Continue metallurgical development of the new organic acid leaching process. 3. Preparation for a Scoping Study to assess the economic viability of Wowo Gap using the new organic acid leaching process. 4. In PNG, training and education of local village people in hygiene practices to support good health, medical assistance as required and training and education in Cassava farming in order to establish an income for the villages through the export of Cassava produce. 5. Analyse results of sampling for West Australian projects in the Ashburton, Goldfields and Musgrave regions as we focus on gold, copper, nickel and base metal mineralisation. W J Davies Managing Director Dated this 29th day of July 2011 Information in this report relating to ore reserves, mineral resources or mineralisation conforms with the reporting requirements of the Australian Institute of Geoscientists Code for reporting of Identified Mineral Resources and Ore Reserves and is based on and accurately reflects information compiled by Mark Hill who is a Competent Person as defined by the CODE and is a Member of the AIG. Mark Hill has consented to the release of the information dealing with these matters in the form in which it is reported. 10