RENISON CONSOLIDATED MINES NL - ASX: RSN

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Description

Renison is an emerging mining house with projects in gold and coal. The Company's current major emphasis is on undertaking a feasibility study at its Agate Creek Project in Queensland. The company's coal assets are predominately coking coal and are located in New South Wales.

AGATE CREEK

The Agate Creek Epithermal gold project is located approximately 50 kilometres west of Kidston in north-east Queensland and covers an area of 465 sq. kms. Renison’s current share of the project is approximately 86%, which is increasing as Barrick Gold Ltd (Renison’s Joint Venture partner) has elected not to contribute to the current programme.

Sherwood Group

Drilling commenced on 16 June 2007, and six drill holes had been completed at 30 June 2007. The program is ongoing and 50 holes have now been completed at the main Sherwood Prospect. A combined Indicated and Inferred Mineral Resource of 13.2 million tonnes at 1.0 g/t for 428,000 ounces has been estimated at a 0.3 g/t gold cut-off. At a 0.5 g/t gold cut-off, a combined Indicated and Inferred Resource of 7.5 million tonnes at 1.5 g/t gold for 350,000 ounces has been estimated. Drilling has been conducted in one of several nearby mineralised zones, identified by geologic mapping. These zones include epithermal-style chalcedonic quartz veins with textural features similar to the main mineralised zone at Agate Creek: Friar Tuck, Agate Creek Fault Zone and Zig Zag.

Digger Creek

High grade gold-in-quartz veins outcrop at Digger Creek. Rock chips to 103 g/t have been collected. Outcropping veins dip very gently and may well be part of a stacked set. The shallow dip of Digger Creek mineralisation indicates open cut potential. Soil surveys indicate mineralisation continues well beyond mappable outcrop. One of the gold-in-soil anomalies lies structurally below the outcropping veins. Plans are to drill test the obvious potential at this locality in the very near future. A Cultural Heritage survey has recently been carried out and awaits sign-off.

Nottingham

Nottingham comprises epithermal quartz veins of several styles, within and adjacent to a NNW trending fault zone. This zone is mapped to 8 metres true thickness, for nearly 2km. Intense stockwork veining occurs in nearby rhyolites, one of which has visible gold in outcrop. Out cropping little more than a kilometre NE of Sherwood, the Nottingham prospect is clearly part of the Agate Creek collapse-cauldron epithermal system, the same system that resulted in the Sherwood group of deposits. Reinterpretation of data from the limited older drill holes at Nottingham indicates they are too shallow to have intercepted the main vein. Deeper drilling to target a conceptual “Vera-Nancy” style vein system is planned. A Cultural Heritage survey has recently been carried out and awaits sign-off.

ASHFORD COKING COAL

The Ashford Coking Coal Project comprises two 50% joint ventures with Northern Energy Corporation (“NEC”). The first is the Ashford Mine Area, a joint venture on EL6234 and EL6428, where an inferred resource of 18 mt of coking coal has been identified and where NEC is funding exploration and a feasibility study to earn an additional 25%. The second is the Ashford Exploration Area, which covers other exploration licences (including Atholwood [EL6526] and Ashford North [EL6539]), which are being funded on a co-contribution basis. NEC is managing both areas of activity.

Following a series of washability and product coal tests the key coking coal properties of a potential washed product were identified. These properties compare favourably with other coals both in Australia and overseas. Following these tests a single core from within the resource area was prepared and subject to a pilot coke oven test to assess the quality of the coke formed from Ashford seam coal. The results confirmed that the resource at Ashford would produce a mid volatile hard coking coal with a high coke yield, moderate ash and other qualities which could be expected to be favourably received by global steel makers.

ARRAWATTA COAL

The Company holds four coal Exploration Licenses, Nos. 6433, 6434, 6521 and 6568, at Arrawatta near Inverell, in NSW, covering approximately 250 square kilometres. The licenses are located between 30 to 60 kilometres south of the Ashford Coking Coal project (Renison 50%).

Significant thicknesses of coal-bearing Permian sediments have previously been identified in and around the original Arrawatta discovery. Drill holes intersected Permian sediments with coal over a strike of approximately 3 km. The sequence is open to the north. Coal-bearing strata are contained in two to three sequences within the Permian sediments. Cumulative thicknesses of coal previously identified ranged from approximately 3m to almost 18m.

Surface exposure of Permian sediments is very limited. Drilling has therefore been “blind-testing” for Permian coal measures through Tertiary sediments/basalts and recent alluvials. The Permian coal measures strike almost north-south and have a westerly dip.

Mine For

gold, coal

Location of operation(s)

Queensland, New South Wales

Address

Level 5 , 60 Edward Street
BRISBANE, QLD, AUSTRALIA

Phone

(07) 3303 0630

Email

Website

http://www.rcm.com.au

Last Updated

02/03/2010