RMLA Rusina Mining

 

TIDMRMLA 
 
RNS Number : 3508M 
Rusina Mining NL 
28 January 2009 
 

FOR IMMEDIATE RELEASE 
                                           28 January 2009 
 
 
 
 
Rusina Mining NL 
("Rusina" or the "Company") 
 
 
QUARTERLY REPORT 
FOR THE PERIOD ENDED 31 DECEMBER 2008 
 
 
 
 
The Company announces that is has released its Quarterly Report to the ASX 
today. A copy of the document is available from the Company's website - 
www.rusina.com.au 
 
 
HIGHLIGHTS DURING THE QUARTER 
 
 
-    Heap Leach Pre Feasibility Study completed 
-    Construction of Trial Leach Pads underway 
-    Operating expenses reduced 
-    DSO market inquiries increasing 
-    $4.9m in cash and $2.2m in receivables at Quarter end 
 
 
 
 
RUSINA CORPORATE 
 
 
Rusina Corporate 
The Company's cash balance at the end of the quarter was $4.9m as compared with 
$5.2m at the end of the prior quarter. 
 
 
In addition to cash on hand there are receivables of $2.2m payable from our 
joint venture partners. 
 
 
The majority of expenditure and operating activities are now being undertaken by 
our joint venture partners European Nickel and DMCI Mining. The Company has also 
implemented a revised budget that reduces annual expenditures through the 
elimination and/or deferral of all non-essential expenditure. 
 
 
The Company continues to benefit from holding a majority of its cash in USD 
which has further strengthened against the Australian dollar during the period. 
 
 
In November the Company held its Annual General Meeting at which all resolutions 
were passed on a show of hands. 
 
 
There were no share issues during the quarter. The total number of ordinary 
shares on issue as at the end of the 2008 calendar year was 245,202,715. 
 
 
NICKEL MINING 
 
 
 
 
DMCI NICKEL LATERITE MINING AGREEMENT - Rusina 50%, DMCI 50% 
 
 
Background: 
DMCI Mining, a subsidiary of Philippine listed construction company DMCI 
Holdings, and Rusina have an alliancing Direct Ship Ore (DSO) agreement wherein 
DMCI are responsible for all funding, mining, grade control, rehabilitation, 
road and port developments as well as the marketing and sales obligations of 5 
million tonnes of ore over 5 years. 
 
 
Update: 
As advised in the last quarterly report, the DSO market has virtually stopped 
and only one 7,500t 2.1% Ni trial shipments took place for a Japanese customer. 
The trial shipment was successful and DMCI are reviewing mine plans for possible 
future cargos. The new year has shown some renewed interest in DSO cargos, 
particularly in high iron content but margins remain low. DMCI have advised that 
they have signed a contract to move 50kt 1.3% Ni with Laycan in February and 
continue to negotiate for the higher grade 1.8%Ni cargos. 
 
 
 
 
DMCI FERRONICKEL PROJECT, SEMIRARA - Rusina 40%, DMCI 60% 
 
 
Background: 
Under an arrangement between DMCI and Rusina, DMCI are investigating the 
feasibility of a ferronickel facility where Rusina has up to 40% free carry in 
such a project, and will guarantee the ore supply for up to 5 years. 
 
 
 
 
Update: 
Nothing to report this quarter. 
 
 
 
 
EUROPEAN NICKEL PLC, HEAP LEACH STUDY - Rusina 40%, EN 40%, LP 20%* 
 
 
(*LP - Local Partners, DMCI and others 20%. This figure is at the mining level, 
the Processing Facility can sustain 100% foreign equity and will be subject to 
capital subscription.) 
 
 
Background: 
European Nickel plc and Rusina have entered into a JV agreement to investigate 
the feasibility of Heap Leaching of Acoje Ore.  Under the agreement European 
Nickel will spend USD 10 million on the Feasibility Study to earn up to 40% of 
the nickel laterite project. 
 
 
 
 
Update: 
The Acoje pre feasibility study being conducted by European Nickel PLC on the 
heap leaching of nickel laterites was released during the quarter. Highlights of 
the PFS are: 
 
-        JORC combined limonite plus saprolite Indicated Resource of 34.41 Mt at 
1.09% nickel from an Inferred plus Indicated Resource of 50.14 Mt at 1.06% 
nickel using a 0.8% cut off grade 
-        Estimated annual production of 24,500 tonnes of nickel and 930 tonnes 
of cobalt 
-        Estimated cash cost of US$3.10/lb of nickel, net of by-products 
including refining costs at US$6.00/lb nickel price and US$10/lb cobalt price 
-        Total development estimated at US$498 million 
-        Estimated capital cost per annual pound of nickel of US$7.84 
-        Post-tax Net Present Value of US$375 million (at a 10% discount rate) 
and US$6/lb nickel price and $10/lb cobalt 
-        Internal Rate of Return of 28.3% 
-        3 year payback period 
-        Forecast annual sales of US$260 million, based on a long term nickel 
price of US$6.00/lb and including by-product credits 
-        Significant potential to increase NPV and IRR with extended mine life 
by confirming the JORC Inferred Acoje and Zambales Chromite deposits to JORC 
Indicated status 
 
 
 
The results demonstrate an economically viable nickel laterite project using 
heap leach technology producing 24,500 tonnes a year of contained nickel and 930 
tonnes of contained cobalt. The study for the Acoje project is based on a JORC 
Indicated Resource of 30.76 million tonnes at 1.12% nickel and 0.05% cobalt (at 
a 0.8% nickel cut-off for saprolite and a 0.9% nickel cut off for limonite) 
giving the project an initial mine life of ten years. Mining will be at a rate 
of three million tonnes per annum, with a low strip ratio of 0.46, and cash 
costs are estimated at US$3.10 per pound of nickel (at US$6/lb Ni), net of 
by-products including a refining charge of 25% of the nickel price and a cobalt 
price of US$10/lb. Further potential resources have been identified, the JORC 
Inferred Resources at Acoje and the Zambales Chromite deposit, which are 
expected to extend the mine life beyond 20 years and are expected to be 
confirmed to JORC Indicated Resource levels during the DFS. 
 
 
The basis for the Study was the November 2008 Snowden Mining Industry 
Consultants resource estimate.  This only used the indicated resource at Acoje. 
The inferred resource at Acoje and Zambales Chromite has not been used. The 
Companies anticipate that these further resources will be upgraded at Acoje by 
infill drilling during 2009 which should significantly increase the net present 
value and the rate of return of the project in the future through greater mine 
life. 
 
 
Trial Leach Facility Construction 
 
 
The project has now moved into the definitive feasibility study ('DFS') phase 
with the construction of the trial leach facility to demonstrate the large scale 
permeability and recovery of the Acoje ore. First leaching is on schedule for 
April 2009. In addition European Nickel have constructed a research laboratory 
at Acoje where larger 4m column test work as well as advanced metallurgical work 
on enhancing the final mixed hydroxide products can be undertaken as part of the 
DFS.  The permitting of the full scale plant has also commenced and the Chinese 
engineering group (China Tianchan Engineering Corporation) have conducted a site 
visit. 
 
 
 
 
EXPLORATION 
 
 
 
 
ZAMBALES DISTRICT 
 
 
Zambales Chromite Mining Company Inc (ZCMC) - Rusina 40%, EN 40%, DMCI 20% 
 
 
Background: 
Rusina, European Nickel and DMCI have purchased all of the shares in ZCMC which 
holds mining tenement MPSA-005-91-III, an area of 540 hectares located 3 km 
north of Acoje. This tenement is highly prospective for nickel laterites and an 
initial JORC resource estimate of 23.5mt grading 1.18% Ni and 0.05% Co has been 
defined in December 2007. 
 
 
 
 
Update: 
Nothing to report in this quarter. 
 
 
 
 
Acoje Chromite** and Platinum Group Metals (PGM's) - Rusina 80%, LP 20% 
(** Note the above chromite target ore figures are based on historic reports are 
reported under section 18 of the JORC code and are conceptual until further 
drilling can confirm these figures. There can be no guarantee that a 
classification as Resource or Reserve will occur in accordance with JORC 
requirements.) 
 
 
Background: 
The Acoje Mine operated from 1935 as South East Asia's largest metallurgical 
grade chromite mine producing over 10 million tonnes of ore. The underground and 
surface mining closed in 1991 due to insufficient sustaining capital and low 
commodity prices. The mine reportedly had on its books when it closed between 
3.6 - 3.7 million tonnes of chromite grading between 17-18% Cr2O3 remaining 
underground. Between 1970 and 1975, the mine produced 15,000 oz of PGMs from a 
nickel sulphide lode intercepted as part of the underground operation. 
A scoping study in 2006 conducted by the company established that the surface 
chromite resources were mostly lateritic and presently uneconomic, whilst the 
primary surface chromite was located in widely disseminated pods across the 
property not lending itself to an efficient open pit operation capable of 
sustaining sufficient cash flow to fund a process plant and the underground 
refurbishment. 
 
 
 
 
Update: 
Open Minable Chromite:- 
The quarter saw reduced demand for chromite.  A 1500 tonne shipment is scheduled 
for February.DMCI continue to review an option to construct a small scale plant 
to process the lower grade chromite and increase tonnages. 
 
 
Underground Chromite, Nickel Sulphide, and PGM exploration:- 
Nothing to report this quarter. 
 
 
 
 
DMCI - RUSINA EXPLORATION 
 
 
Background: 
Rusina has entered a joint exploration agreement with DMCI Holdings Inc to form 
an exploration and mining joint venture company [DMCI (60%) and Rusina (40%)] 
where all Rusina's and DMCI's non Zambales properties would be vended into the 
yet to be formed subsidiary. These properties include Rusina's Abogado 
properties EXPA-00068-XII and EXPA-00074-XII and DMCI's Mineral Production 
Sharing Agreement (MPSA) MPSA-000166-XII in Sultan Kudarat and the Sodaco 
Agricultural Corporation, a fully owned subsidiary of DMCI, MPSA application 
APSA-00008-XI located at South Cotabato. 
 
 
Sodaco Prospect - Rusina 40% DMCI 60% 
The Sodaco Project is located on Mindanao Island, 48 km. north-northwest of 
General Santos City in Southern Philippines. The project boundary lies entirely 
within the Xstrata controlled Tampakan FTAA-002-95-X1 and is 900 meters from the 
world class Tampakan copper-gold deposit with a resource of 2.2 billion tonnes 
at 0.72% copper equivalent. The Tampakan copper-gold deposit is a major 
high-sulphidation epithermal deposit superimposed on an underlying porphyry 
copper system. 
 
 
 
 
Update: 
Nothing to report in this quarter. 
 
 
Abogado Prospect - Rusina 40%, DMCI 60% 
The Abogado Project is located on Mindanao Island in Sultan Kudarat province, 67 
km west of General Santos City in the southern Philippines. The project is held 
under two Exploration Permit Applications (EXPA) and an MPSA, for a total area 
of 7,898 hectares (79 km2). 
 
 
Update: 
Nothing to report in this quarter. 
 
 
PANAY PROJECTS - Rusina 100% 
 
 
Pan de Azucar Project, Iloilo 
The Pan de Azucar project (PDA) is located on Pan de Azucar Island, 112 km 
north-east of Iloilo City, Panay Island, central Philippines. The project is 
held through the 1,296 hectare EXPA. 
 
 
Update: 
Nothing to report in this quarter. 
 
 
Guimaras Project, Iloilo 
The Guimaras project is part of a 2,592 hectare EXPA, located on 
Guimaras Island, 30 km south of Iloilo City, Panay Island, central Philippines. 
 
 
Update: 
Nothing to report in this quarter. 
 
 
 
 
Contacts:        Mark Hanlon        Rusina Mining           Tel: +61 8 9226 1111 
                    Roland Cornish Beaumont Cornish    Tel: +44 (0) 207 628 3396 
 
 
 
 
 
 
The information in this report that relates to Mineral Resources is based on 
information compiled by Mr Scott Robson, who is a Member of The Australasian 
Institute of Mining and Metallurgy, 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". The information in 
this report that relates to other exploration matters is based on information 
compiled by Robert Gregory, who is a member of the Australasian Institute of 
Mining and Metallurgy and has the relevant experience 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". Mr Robson and Mr 
Gregory consents to the inclusion in this report of the matters based on his 
information in the form and context in which it appears. 
 
 
 
 
 
 
For further information please visit our website - www.rusina.com.au 
 
 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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