Mambare drilling program

RNS Number : 1434R

Regency Mines PLC

31 October 2011

 



Regency Mines PLC

('Regency' or the 'Company')

Mambare Drilling Program

31 October 2011

Regency Mines plc is pleased to announce encouraging drill intercepts from the exploration program being undertaken on the Mambare nickel laterite project in Papua New Guinea.  The program is being undertaken by the 50:50 Joint Venture with Sydney based Direct Nickel Pty Ltd.

Assay results for the first 17 holes of a 200-hole program have been received from the Intertek laboratory in Jakarta and the joint venture partners are encouraged by the early results.  The first 17 holes were drilled in the North Ridge Extension zone (see Figure 1).   A further 8 holes have been completed in the Plateau and North Ridge Extension zones.

Drilling has accelerated in the last two weeks from one rig to four rigs while a fifth will become operational when parts arrive from overseas and the joint venture looks forward to releasing more drill results in the coming months.

The 200-hole program shown in Figure 1 is designed to test three areas:

·    infill drilling of the North Ridge area identified by Regency's 2008 drilling;

·    to test for extensions to the north, the North Ridge Extension; and

·    the Plateau to test for mineralization on prospective ground on the plateau identified by prior tenement holders in the 1950's and 1960's.

Earlier in 2011 the joint venture completed a number of test pits and a ground penetrating radar (GPR) survey over the drill area covering approximately 27 line kms with encouraging indications of laterite profile thickness.

Key results from the drilling are summarized below: 

Mambare Area 2
	Location		Intersection (m)			Grade
Hole ID	Easting	Northing	From	To	Interval	%Ni	%Co
MAM-KK-0001	582321	9026762	9.0	13.7	4.7	1.29	0.119
MAM-KK-0002	582314	9026555	18.3	22.5	4.2	1.46	0.042
MAM-KK-0004	582113	9026564	18.5	22.5	4.0	1.18	0.022
MAM-KK-0014	581415	9026965	22.6	26.6	4.0	1.47	0.044
MAM-KK-0017	582010	9026967	12.5	16.3	3.8	1.24	0.102

The assay results relate to just one and a half drill lines across the deposit but in summary:

·    As anticipated better grades are appearing on the crest of the ridge line and these extend north of the 2008 program where it had been previously open

·    Current drilling is penetrating the full laterite profile which wasn't consistently achieved in 2008 and is supported by the GPR survey undertaken

·    Of the 305 assays from the 17 holes completed the highest single grade, in hole MAM-KK-0002 was 1m @ 2.06% Ni and 0.062% Co from 20.3m

As work has just commenced on the Plateau drill area, considered to have a large tonnage potential, further reports on progress can be expected as results come to hand.

There is at this stage insufficient data to be able to calculate or deliver any JORC compliant resource figures, as this will require further drilling and also detailed geological assessment both along and across drill lines in each of the three target areas.

Figure 1  Mambare 2011 Drill Program

http://www.rns-pdf.londonstockexchange.com/rns/1434R_-2011-10-31.pdf 

The information in this announcement that relates to Exploration Results is based on information reviewed and audited by Mr M Elias who is a Fellow of the Australasian Institute of Mining and Metallurgy.  Mr Elias is employed by CSA Global Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and as a qualified person within the meaning of AIM's Note for Mining and Oil & Gas Companies of June 2009 . Mr Elias has consented to the inclusion of the information in the form and context in which it appears.

For further information contact:

Andrew Bell	0207 402 4580 or 07766 474849	Regency Mines plc	Chairman
Sandra Spencer	0207 402 4580 or 07757 660 798	Regency Mines plc	Public and Investor Relations
Peter Trevelyan-Clark/ Ben Jeynes	020 7444 0800	Religare Capital Markets	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker

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

 

END

 

 

DRLUAVRRARAROAA