Friday, January 30, 2009

Rusina Leaves Expenditure To Its JVs

Rusina Mining NL said it had a cash balance of A$4.9 million at the end of the third quarter to October 31 2008 and noted the majority of expenditure and operating activities are now being undertaken by its joint venture partners European Nickel PLC and DMCI Mining.

It has implemented a revised budget that limits and/or defers all non-essential expenditure.

In addition to cash on hand there are receivables of A$2.2m payable from its joint venture partners.

A trial shipment under the nickel laterite mining agreement with DMCI Mining of the Plilippines took place to a Japanese customer in the quarter which was successful. DMCI is reviewing mine plans for possible future cargos. The new year has shown some renewed interest in Direct Ship Ore cargos, particularly in high iron content but margins remain low.

Regarding the Acoje nickel project, in which Rusina Mining holds a 40 percent interest, the third quarter saw the release of the pre feasibility study being conducted by European Nickel PLC. The companies anticipate that the resources will be upgraded at 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, Rusina said.

The project has now moved into the definitive feasibility study 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, it added.

Source: Proactive Investors

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