RMLA Rusina Mining

 

TIDMRMLA 
 
RNS Number : 1933R 
Rusina Mining NL 
27 April 2009 
 

FOR IMMEDIATE RELEASE 
                          27 April 2009 
 
 
 
 
Rusina Mining NL 
("Rusina" or the "Company") 
 
 
QUARTERLY REPORT 
FOR THE PERIOD ENDED 31 MARCH 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 
 
 
  *  Chinese Engineering group commence Heap Leach Definitive Feasibility Study 
  *  Construction of Acoje Trial Leach Pads almost complete 
  *  New value added heap leach technology research work commenced 
  *  DSO shipments continue 
  *  $4.4m in cash and $2.7m in receivables at Quarter end 
 
 
 
RUSINA CORPORATE 
 
 
Rusina Corporate 
The Company's cash balance at the end of the quarter was $4.4m as compared to 
$4.9M at the end of the prior quarter. Because of timing differences the 
receivables from our joint venture partners increased to $2.7m, $0.5m of which 
is directly attributable to the current Heap Leach Definitive Feasibility Study 
(DFS) which is being funded by European Nickel, but for which many activities 
are being undertaken by Rusina employees. 
The average cash burn rate attributable to Rusina was $220k per month in line 
with the current revised budget.  The Company confirms that it has sufficient 
cash resources to meet all current commitments through until late 2010. 
 
 
The Company took advantage of the weaker Australian dollar by converting a 
proportion of its US dollar holdings into Australian dollars during the period. 
The Company will seek to convert further USD funds into AUD during periods of 
lower exchange rates. 
 
 
The Company, like many in the industry, is currently in discussions with other 
industry participants with a view to completing a corporate transaction 
involving strategic consolidation. 
 
 
There were no share issues during the quarter. The total number of ordinary 
shares on issue as of 31 March 2009 was 245,202,715. 
 
 
NICKEL MINING 
EUROPEAN NICKEL PLC, HEAP LEACH STUDY - Rusina 40%, EN 40%*, LP 20%** 
 
 
* Final shareholding percentages once ENK have completed USD10M earn in 
commitment (currently 10%) and LP's fully subscribed (currently 8%). 
** 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 develop a 
nickel heap leach project at Acoje in Zambales, Philippines. 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: 
 
 
Definitive Feasibility Study (DFS). 
China Tianchan Engineering Corporation (TCC) are taking the Pre feasibility 
Study completed by European Nickel and upgrading to a Chinese PFS to highlight 
the opportunity of Chinese costs to further improve the economic returns at 
Acoje. On completion TCC will be awarded the contract to complete the DFS for 
Chinese construction and financing. A considerable amount of the engineering for 
Acoje is identical to that of European Nickels Caldag Project in Turkey. This 
has been designed to 80% completion by Aker Kvaerner and by utilizing the same 
design will greatly reduce the time and costs for the Acoje DFS. Both European 
Nickel and Rusina are desirous to avail themselves of similar Chinese financing 
options as Caldag, made possible through Chinese engineering, Chinese design and 
Chinese off-take. Permitting of the full project is progressing well, with 
environmental public scoping being completed during the quarter. Mauncell 
Philippines have been appointed to complete the Environmental Impact Study, 
which is underway. 
 
 
Trial Heap Facility 
Tremendous progress was made during the quarter on the trial heap facility at 
Acoje. By the end of May 2009 Acoje will have 3000 tonnes under leach, 
demonstrating the heap leach technology and gathering the necessary data for the 
DFS. All site civil works are complete; the HDPE liners for the leach pads and 
process ponds are 99% complete with piping work now underway. The drum 
agglomerator, water and acid tanks, and ore conveyors are also complete. Final 
works to be finished during the current quarter includes electrical, piping, 
water supply, fencing and contract crushing mobilisation. The ore for the trials 
is currently being trucked to the site ready for crushing and 
agglomeration during May. 
 
 
 Acoje Test Centre 
The newly constructed Acoje Test Centre continues to work on optimising 
agglomeration, and percolation parameters to be tested in the 4m column and 
trial heap facilities. The fully functional analytical laboratory at the test 
centre can now analyse all elements needed in the test work (Ni, Fe, Co, Mg, Mn, 
Cr, Fe2+, Fe3, free Acid) without the need to go to an external laboratory. 
 
 
The Acoje test centre is also working on some exciting value added technology 
such as Resin in Pulp (RIP) and Ion Exchange (IX) test work. Laboratory bench 
top RIP and IX studies are currently being undertaken within the centre and an 
IX pilot plant is under construction at the trial heap facility where a bleed 
stream will be processed once the pregnant leach solution has reached suitable 
concentrations. 
 
 
The centre is manned by two dedicated expat chemical engineers together with a 
highly trained staff of Philippine metallurgists. 
 
 
 
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: 
 
The DSO market remains depressed, however DMCI were able to ship 55,470 wmt Ni 
laterite @ 1.3% Ni, 30% Fe and 1,477 dmt chromite @ 43.7 % Cr2O3, 2.48:1 Cr:Fe 
during the quarter. The trend for DSO has switched to higher iron shipments but 
margins on this material are low. DMCI maintains an operational presence (albeit 
much reduced) at Acoje to take advantage of any improvements in the DSO market. 
DMCI reports there are still frequent enquiries for shipments, though few at 
prices they are willing to entertain. 
 
 
EXPLORATION 
 
 
Due to the current global downturn, the company has curtailed all non essential 
expenditure which has resulted in reduced exploration activities. The exception 
is exploration activities that are directly related to the nickel heap leach 
study. These include limestone and construction material quarry evaluations as 
well as ongoing work regarding both the nickel resources at Acoje and the 
Zambales Chromite properties. All costs to these activities are charged to the 
JV and reimbursed as per European Nickels earn in commitment. 
 
 
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 inferred JORC resource estimate of 23.5mt grading 1.18% Ni and 0.05% Co 
has been defined in December 2007. 
 
 
Update: 
The Mines Adjudication Board (MAB) upheld an appeal in favour of the company in 
a long standing dispute on the tenement during the quarter. This decision now 
paves the way for exploration work program to be approved so that the nickel 
laterite resource can be upgraded to Indicated Status, adding several years to 
the current 10 year PFS mine life. 
 
 
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: 
 
 
Underground Chromite, Nickel Sulphide, and PGM exploration:- 
In view of current commodity prices, the company will add value for these 
assets through the construction of an underground 3D geological model, 
delineation of a JORC chromite resource, and development of an underground 
mining plan leading to a definitive feasibility study. This will require some 
additional conformational resource and geotechnical drilling and will be funded 
through the sale of a minority stake of the underground assets. Several 
companies are currently reviewing the data package. 
 
 
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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