Sudan Project Update

RNS Number : 9162A

Regency Mines PLC

25 February 2014

 

REGENCY MINES PLC

("Regency" or the "Company")

Sudan Project Update - 300km long Area of Interest identified at Jebel Abyad, implications for future exploration

25^th February 2014

Regency Mines plc, ("Regency" or "the Company"), a exploration and mineral investment company with interests in nickel and other minerals in Australia, Africa and Papua New Guinea is pleased to announce the results of the 2013 field programme to the Jebel Abyad concession in Sudan, a project where Regency has farm-in rights under an option agreement with International Mineral Resources (Agrominerals Sudan) Ltd ("IMRAS").

Highlights

·      The existence of widespread phosphogenesis has been confirmed, with numerous samples containing anomalous levels of phosphorous

·      Two extensive target horizons have been identified, defining an Area of Interest over 300 km long within the concession

·      Areas of Interest contain flat lying beds at or close to surface, suggesting target horizons may be suitable for open pit extraction

·      Phosphate anomalies have been stratigraphically correlated to the Phosphate Formation of the Abu Tartur Phosphate mine, Egypt

RGM's technical team have now received all assay results and have completed their evaluation of the phosphate exploration programme at the IMRAS-held Phos 7 concession, also known as Jebel Abyad (Figure 1).

FIGURE 1: SUDAN LOCATION MAP

http://www.rns-pdf.londonstockexchange.com/rns/9162A_-2014-2-25.pdf

Further to the announcement released on 6^th December, field observations support the original exploration model; that the rocks of Jebel Abyad represent an embayment of the Tethys Ocean and are stratigraphically and lithologically similar to those of other South Tethyan Phosphorite Province (STPP) phosphate deposits (Figure 2).

FIGURE 2: GENERALISED JEBEL ABYAD BASIN STRATIGRAPHY COMPARED TO THE ABU TARTUR PHOSPHATE DEPOSIT, EGYPT

http://www.rns-pdf.londonstockexchange.com/rns/9162A_1-2014-2-25.pdf

Two stratigraphic targets/Areas of Interest (AOI) have been identified:

1.    Oolite Target at the Kab/Tam geological units contact;

2.    Anomalous phosphate grades at the Tam/Tal geological units contact.

The phosphatic Oolite Target bed is stratigraphically comparable to the Abu Tartur Phosphate Deposit, Egypt (Figure 2) and is 30-150cm thick. Fifteen rock chip samples taken from exposed, weathered portions of the oolite bed averaged 1.3% P₂O₅ (according to the ISO accredited Stewart Group OMAC Laboratories Ltd, Ireland). Substantial iron enrichment in the samples via weathering suggests depletion of some original rock components near surface, potentially including phosphorous (Figure 3- caption). Testing the impact of weathering on phosphorous content by conducting petrographic studies and trenching for un-weathered samples are essential next steps to evaluate the target.

FIGURE 3: SCHEMATIC REPRESENTATION OF THE JEBEL ABYAD BASIN

http://www.rns-pdf.londonstockexchange.com/rns/9162A_2-2014-2-25.pdf

Phosphate ore bodies are typically elongated or lens-shaped, approximately 5-10 km² and often exhibit a wider anomalous halo which these samples may represent. The grade and thickness of the phosphatic beds are expected to vary across the basin due to natural troughs and areas of increased bioactivity and reworking during deposition.

The entire Kab/Tam units contact can be considered an exploration Area of Interest (AOI) and can be traced for over 300km across areas of the concession yet to be explored. A continuous bed was traced along strike for 2.5km and laterally for 1.5km; an additional phosphatic oolite bed was discovered 18km to the south east. It is undetermined if the two phosphatic oolite occurrences are connected or part of two discontinuous lenses along the same horizon.

As bedding appears to be very flat throughout the concession area, the whole Tam plain may be prospective for phosphate deposits at depths of less than 50m, potentially suitable for large scale open pit style extraction (Figure 3).

Follow-up exploration work later in the year will be divided into two key components:

1. Near surface definition of Oolite Targets: assess bed continuation and phosphate grade variation below the weathered horizon and laterally. This may be achieved by detailed mapping, petrographic studies and trenching to attempt to reach un-weathered rock.

2. Greenfield exploration should continue as less than ¼ of the concession has so far been examined by ground teams. Particular focus should be placed on the Kab/Tam and the Tam/Tal units contacts to assess if phosphate grade improves along strike of targets.

Project Manager Gary Hurst comments: "We are encouraged by the progress made during our trip to the Jebel Abyad concession. The exploration team safely and cost effectively achieved all of the objectives set and made great advances in our understanding of the concession geology. The next stage of exploration can focus on a much smaller area, enabling us to employ systematic exploration techniques such as soil sampling and radiometric grids to the AOI. The phosphate grades identified during this trip and the anomalous horizons discovered may lead us to phosphorite lenses of economic potential."

Enquiries:

Andrew Bell 020 7747 9960 or 07766 474849	Chairman Regency Mines plc
Colin Aaronson/David Hignell 020 7383 5100	NOMAD Grant Thornton UK LLP
Nick Emerson 01483 413500 Guy Wheatley 02073828416 Rupert Trefgarne 02031288817	Broker SI Capital Ltd Joint Broker Beaufort Securities Ltd Media Relations MHP Communications

The information in this report that relates to geology is based on information reviewed by Mr Gary Hurst (MSci), who is a Fellow of The Geological Society of London and Member of The Society of Economic Geologists. Mr Hurst is an employee of Regency Mines plc and has sufficient experience which is relevant to the style of mineralisation under consideration, and to the activities being undertaken. Mr Hurst has reviewed the information in this announcement and consents to the inclusion of the information in the form and context in which it appears.

 

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