Update on Direct Nickel Limited

RNS Number : 1482D

Regency Mines PLC

24 April 2013

 



REGENCY MINES PLC

("Regency" or the "Company")

Update on Direct Nickel Limited - Test Plant

24 April 2013

Regency Mines plc, 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 progress at Direct Nickel Limited ("DNi"), a company in which Regency is a shareholder holding approximately 7.5% of the shares. DNi is the Company's joint venture partner in the Mambare nickel-cobalt laterite project in Oro Province, Papua New Guinea; a project which has a license for the DNi Process.

Further to the announcement on 13 February 2013, DNi has announced that hot commissioning of Stage 1 of its nickel extraction process Test Plant in Perth, Western Australia, has been achieved and that the first three months of operations have been successful with the leaching, solid-liquid separation and intermediate product circuits achieving design metallurgical performance. In the latter stage of hot commissioning the nitric acid recovery (recycling) circuit has been brought into operation.

DNi regards this performance as an indication that demonstration of the DNi Process on a continuous basis will be achieved this year as planned. The next two months will see campaigns designed to optimise process results, and DNi expects commissioning of the Stage 2 modules (including iron extraction) to begin in June 2013. The full text of the release by DNi is given at http://www.asx.com.au/asxpdf/20130423/pdf/42fdnbq9mns61w.pdf

Regency Chairman Andrew Bell comments: "The news that the first circuits to be tested are achieving design metallurgical performance is important, and as the acid recycling circuit now being tested has already undergone independent testing by Aker Solutions at their Charlotte, North Carolina facility the Stage 1 progress is looking very promising. We invested in and allied with this technology at a time when few others believed in it, and although the path has been a long one recent progress suggests that decision was correct. I believe this has the potential to be a disruptive technology for the nickel industry."

Enquiries:

Andrew Bell	020 7402 4580 or    07766 474849	Regency Mines plc	Chairman
Sandra Spencer	020 7402 4580 or 07757 660 798	Regency Mines plc	Public and Investor Relations
Gerry Beaney/ Daniela Amihood	020 7383 5100	Grant Thornton Corporate Finance	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker

Note to Editors: DNi is a public company incorporated in Australia. It is currently demonstrating a potentially revolutionary process with attractive economics for treating laterite nickel ores (the "DNi Process").

The DNi Process is a hydrometallurgical process for the treatment of nickel laterites. It is designed to operate with tank leaching at atmospheric pressure, and to treat both limonite and saprolite ores with a single flowsheet. The DNi Process claims to recycle its reagents, offer high cobalt and nickel recoveries with short residence time, and to enable the treatment of nickel laterites with industry-competitive capital and operating costs. The DNi Process has the potential to add materially to the prospective value of world nickel laterite resources which receive access to the DNi Process.

 

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