Australian Exploration Update

RNS Number : 0271B

Regency Mines PLC

27 March 2013

 



REGENCY MINES PLC

Australian Exploration Update

27 March 2013

Regency Mines plc ("Regency" or the "Company"), a mining exploration and mineral investment company with interests in nickel and other minerals in Australia, Africa, and Papua New Guinea is pleased to announce an update on Mobile Metal  Ion (MMI) results from its Pyramid Lake project in Western Australia (Figure 1). Pyramid Lake lies near the boundary between the Yilgarn Craton and the Albany - Fraser metamorphic terrane.

Figure 1: Regency Tenements along the Tropicana Trend, Australia

http://www.rns-pdf.londonstockexchange.com/rns/0271B_1-2013-3-27.pdf

·     10 km long Ti anomaly was identified with a peak MMI response ratio value of 4320;

·     Ag anomaly with a peak MMI response ratio value of 575 demonstrated a close relationship with Ti anomalies;

·     Cu and Au also demonstrated elevated response ratios;

·     Elevated values of Ag and Ti may be indicative of a hydrothermal system.

Pyramid Lake

Initial MMI geochemical results from the 2012 soil sampling programme have been further processed using response ratios. The results for Au, Cu, Ag, Ti, Ni are presented in Table 1, the sample locations are shown on the Sample Location Map (Figure 2).

Figure 2: MMI Soil Sampling Programme and Aircore Drilling Location

http://www.rns-pdf.londonstockexchange.com/rns/0271B_2-2013-3-27.pdf

Table 1

Element	Peak Value (ppb)	Background for Response Ratio	Highest Response Ratio
Gold Au	4.5	0.17	27
Copper Cu	2590	108	30
Silver Ag	351	0.67	575
Titanium Ti	21600	5	4320
Nickel Ni	2400	83	29

The response ratio for each element is worked out using the procedure:-

1) Select the data that are in the lowest quartile of the sample results for that element;

2) The average of these is taken to be the background for that element;

3) The response ratio of an element for each sample is calculated by dividing the sample result for that element by the background for that  element.

Response Ratio of an Element = Element Result (e.g. in ppb) / Background (the average of the lowest quartile of the sample results (e.g. in ppb)

Using the raw data obtained, response ratios for selected elements were plotted using contours (Figure 3) and graphs (Figure 4). Response ratios greater than 10 may be regarded as anomalous, and depending on context may constitute exploration targets.

Figure 3A: MMI Response Ratios for Ag

http://www.rns-pdf.londonstockexchange.com/rns/0271B_3-2013-3-27.pdf

Figure 3B: MMI Response Ratios for Ti

http://www.rns-pdf.londonstockexchange.com/rns/0271B_4-2013-3-27.pdf

Figure 4: MMI Response Ratio Graphs

http://www.rns-pdf.londonstockexchange.com/rns/0271B_5-2013-3-27.pdf

Significant high Ti response ratios extending ~10 km were obtained; the highest value being 4,320. This is significantly greater than those located from data points near the Ti anomaly discovered by 2012 aircore drilling and announced on the 5^th September 2012. Figure 5 shows VTEM data overlying MMI response ratios and the aircore drillhole Ti results, which are also shown in the inset.

Figure 5: VTEM data with overlying MMI Response Ratios for Ti & Anomalous Ti Results from

2012 Aircore Drilling

http://www.rns-pdf.londonstockexchange.com/rns/0271B_6-2013-3-27.pdf

Regency Mines consider that the response ratios analysed for the various elements demonstrate significant further exploration prospectivity and may be suitable for potential drill-testing. This area now becomes a priority exploration target for the Company.

Qualified Person's Statement

The information in this report that relates to exploration results is based on information reviewed by Mr Charles William Guy who is a Member of the Australian Institute of Geoscientists and a director of Regency Mines Australasia Pty Ltd. Mr Guy has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a "Qualified Person" as defined in the Note for Mining and Oil & Gas Companies, June 2009, of the London Stock Exchange. Mr Guy has reviewed the information in this announcement and consents to the inclusion of the information in the form and context in which it appears.

For further information contact:

Andrew Bell 020 7402 4580 or 07766 474849                         Chairman Regency Mines plc

Sandra Spencer 020 7402 4580 or 07757 660 798                   Investor Relations Regency Mines plc

Gerry Beaney / Daniela Amihood 020 7383 5100                    NOMAD Grant Thornton Corp Finance

Nick Emerson 01483 413500                                                    Broker Simple Investments Ltd

 

END

 

 

MSCBXGDXUUDBGXR