Resource Mining Corporation Limited (ASX:RMI) Exploration Update at Wowo Gap

Perth, Aug 30, 2011 AEST (ABN Newswire) - Innovative Perth-based minerals explorer Resource Mining Corporation (ASX:RMI) has reduced drilling costs by nearly 70 per cent as it completes a 300 hole drill program at its Wowo Gap Nickel deposit, located 200 kilometres east of Port Moresby in Papua New Guinea in an area known to host significant Nickel-Cobalt mineralisation.

The drill program was designed to infill holes on a 200 metre by 200 metre hole spacing within a ten kilometre strike zone of known mineralisation towards the north of the project and to test for extensions of mineralisation to the north and south-west. Despite additional drilling, the mineralisation continues to remain open which is very positive.

"We have now just completed the most significant drilling program for this deposit since it was first explored in the 1950s and the results are very encouraging because the more holes we've drilled, the more mineralisation we have identified," said Resource Mining Corporation Managing Director Warwick Davies.
In the last 12 months drilling costs at Wowo Gap have come down from A$300 per metre to less than A$100 per metre because of 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. Without this very significant cost reduction RMC would not have been able to afford to complete the 300 hole program.

"The original drilling program planned for 200 infill holes was expanded to 240 then to 300 holes as new areas of mineralisation were identified to the north and south west and this 30 per cent increase in the overall program was completed efficiently with the outcome a testament to the commitment, training and ability of our local workforce," said Mr Davies.

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 1.63 per cent Nickel. Whilst recently completed holes are shallow, grades are relatively high.

"To get seven out of ten holes with grades over one per cent Nickel, particularly in areas where we expected to see a close-out of mineralisation, is outstanding," said Mr Davies.

Mr Davies believes the results continue to lend the project to a low cost surface mining operation.

"The efficiency of our drilling program and slow progress by our independent geological consultant has meant a delay in our ability to release an updated resource estimate in July or August 2011 as planned and we will now just release one estimate in November of this year. This means we're suspending work on the resource update and will recommence when all assay results are in from the completed 300 drill hole program," said Mr Davies.

Final core samples are currently being flown to Lae in PNG for sample preparation and when assays have been completed the resource update will recommence.

About Resource Mining Corporation Limited: 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. The company has a strong commitment to sustainable development and aims to realize world class mineral opportunities through science-based innovation, expert environmental analysis and best practice community stakeholder engagement.

For the complete Resource Mining Corporation announcement including figures, please view:
http://media.abnnewswire.net/media/en/docs/ASX-RMI-555054.pdf

Contact

Warwick Davies Managing Director P: +61-8-9213-9400 M: +61-418-949-759 E: wd@resmin.com.au