Drilling Report

RNS Number : 1580X

Regency Mines PLC

10 August 2009

 

REGENCY MINES PLC

Botue-Mambare Nickel Exploration Project: Drilling Report August 2009

Dated: 10 August 2009

Further to the announcement made on 31 July 2009, Regency Mines plc ('the Company') the mining exploration and mineral investment company with interests in copper and nickel in Papua New Guinea ('PNG'), Western Australia, and Queensland, presents the first set of results from the Mambare Nickel Laterite Project, Papua New Guinea.

The results given cover all of the holes on lines 1 and 2 (21600N and 22000N respectively) and 7 of the 16 holes on line 3 (22400N). The lines are spaced 400m apart with drill holes at 200m intervals along each line. Lines 1-3 cover the area over the east slope and plateau above the NE-SW trending Aruma River. Data for lines 3-12 and 3 infill lines, covering areas further north and to the west of the river, are being received in stages over the coming weeks and will be announced later. 

For line 1, the limonite horizon averages at 0.22%Ni and <0.03%Co over an average thickness of 5.24m. The underlying saprolite horizon averages 0.30%Ni and <0.03%Co over an average thickness of 3.10m. For line 2, 400m to the north, the limonite horizon averages at 0.57%Ni and <0.07%Co over a thickness of 7.86m and the saprolite horizon averages at 0.92%Ni and <0.05%Co over a thickness of 8.41m . The averages for line 3 are only based on 7 of the 16 holes drilled and thus are subject to change once the results from the remaining holes are received. The limonite horizon averages at <0.44%Ni and <0.45%Co over an average thickness of 2.17m and the saprolite averages at 0.84%Ni and 0.04%Co over an average thickness of 9.89m. 

So far, these data show that drill holes on line 1 intersected lower grade mineralisation whereas lines 2 and 3 intersected much higher grades. The above data are averages along the entire cross sections and so the results from individual holes and their relative localities must be considered in order to gain a true sense of the zones of mineralisation. 

Drill hole CAC-046 lies on the east end of line 2, on the plateau east of the Aruma slopes. The limonite horizon averages at 0.81%Ni and <0.07%Co over an average thickness of 14.00m and the saprolite horizon averages at 2.28%Ni and 0.05%Co over an average thickness 9.40m. Results from the neighbouring hole (CAC-050), 200m to the W, show an average limonite grade of 1.02%Ni and 0.10%Co over a thickness of 16.55m. There is no saprolite data for this hole, possibly due to drill penetration issues. Such high grades continue northwards and westwards with drill hole CAC-101 (on the east end of line 3, also on the plateau -about 0.75km north-west of holes CAC-050 and CAC-046) showing an average of 0.31%Ni and 0.03%Co in the limonite horizon (average thickness 3.00m) and 1.06%Ni and 0.01%Co in the saprolite horizon (average thickness 23.40m). 

This zone of possible high grade mineralization, which will need to be confirmed by closer-spaced drilling, lies over an area of about 1km by 0.5km and lies on the plateau, on the east end of both lines 2 and 3, with any extension further north dependent on pending results from lines 4 and above. Average Ni grades in the saprolite horizon range between 0.98% and 2.28% with thickness between 9.40m and 23.40m.

A second, slightly smaller, potential zone of high grade mineralisation can be identified on the west end of lines 2 and 3, on the Aruma slopes. Hole CAC-084 (on the west end of line 3, on the Aruma slopes - about 1.55km north-west of holes CAC-050 and CAC-046) shows an average of 0.86%Ni and 0.10%Co in the limonite horizon (average thickness of 1.00m) and 1.30%Ni and 0.03%Co in the saprolite horizon (average thickness of 4.50m). CAC-068 on the west end of line 2 (about 0.5km SW of CAC-084) shows saprolite grades of 1.14%Ni and <0.03%Co over a thickness of 13.60m. 

This second zone lies over an area of about 0.75km by 0.25km on the Aruma slopes on the west end of lines 2 and 3. The average Ni grade in the saprolite is between 1.14% and 1.30% and the thickness in the range of 4.50-13.60m.

Regency considers the completion of the first substantial drill programme at Mambare and the identification of possible high grade zones of some size from the first sample results to be analysed to be important milestones in the Company's development. Further results will be notified as they are received and analysed over the coming weeks.

The technical information in this announcement has been prepared by Kamini Manick, MEarthSci, and reviewed and approved by Helen Salmon, BSc(Hons), both geologists working for the Company. Helen Salmon is a Fellow of the Geological Society and a Member of the Mineralogical Society, and a qualified person as defined in the Note for Mining And Oil & Gas Companies of the London Stock Exchange..

Enquiries:

Andrew Bell	0207 402 4580 or 07766 474849	Red Rock Resources plc	Chairman
Peter Trevelyan-Clark / Ben Jeynes	020 7489 4500	Blomfield Corporate Finance Ltd	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker
Ron Marshman / John Greenhalgh	020 7011 9411	Lothbury Financial Limited	Public Relations

Updates on the Company's activities are regularly posted on its website, www.regency-mines.com.

 

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