Update

RNS Number : 1235L

Regency Mines PLC

26 July 2011

 



Regency Mines PLC

('Regency' or the 'Company')

Update

26 July 2011

Regency Mines, the mining exploration and mineral investment company with interests in nickel and other minerals in Western Australia, Queensland, Papua New Guinea and Pakistan, reports on exploration activities.

Mambare Joint Venture, Papua New Guinea

Drilling has begun at Mambare, the Joint Venture nickel-cobalt project between Direct Nickel Pty Ltd ("DNi") and Regency in Papua New Guinea: after unexpected visa delays the first drillers have now arrived on site.

The ground penetrating radar programme was completed successfully on 30 June 2011, with full analysis of the results now awaiting receipt of cloud-free satellite imagery over the area, in order that a digital elevation model can be produced.

Geophysics programmes in Australia

The Company is pleased to announce the completion of a comprehensive Versatile Time Domain Electromagnetic (VTEM) survey over some of its tenements in Western Australia. The survey has been flown over 4 areas covering 7 tenements and compliments the survey previously carried out in late 2010.  In addition, a VTEM survey has been scheduled for August over the Company's Bundarra tenement in Queensland.

 A VTEM survey was carried out in late June over the Company's Little Mt Isa/Twin Hills (E80/4046) project near Halls Creek (Figure 1). Specifically designed to identify conductive bedrock features at depth this survey was undertaken to delineate base metal deposits known to occur within the Halls Creek Mobile zone (Figure 2). 266 line kms were spaced at 100 and 200 metres apart and although the raw data has been collated it will take 6-8 weeks to process. The area flown is outlined in Figure 3. The Company will pass on the results from this survey and recommendations for further work once these data have been assessed.

http://www.rns-pdf.londonstockexchange.com/rns/1235L_-2011-7-26.pdf

Figure 1. Location Map

http://www.rns-pdf.londonstockexchange.com/rns/1235L_1-2011-7-26.pdf

Figure 2. The Company's Little Mt Isa/Twin Hills project in association with other prospects

http://www.rns-pdf.londonstockexchange.com/rns/1235L_2-2011-7-26.pdf

Figure 3. Area of VTEM Survey over E80/4046

Another VTEM survey has just been completed over 3 areas within the Lake Johnston/Ravensthorpe area. This survey cover 6 projects - E63/1382 (Lake Hope)-Area 1, E63/1299 (Lake Tay North), E63/1191 (Mt Gordon), E63/1374 (Lake Tay)- Area 2, E74/452 (Munglinup 1) and E74/458 (Munglinup West)- Area 3. Figure 4, as well as showing the areas just flown also incorporates the previous VTEM survey over this area. All areas are being surveyed for Nickel sulphide deposits but area 3 abuts a magnetite and graphite exploratory licence and this is also being covered. Similar to the previous survey data will take 6-8 weeks to be processed. Results will be released after assessment.

The previous areas surveyed now form the focus of a November programme of geochemical surveying  and extended drilling programme to that of Phase 2 outlined in late summer 2010 (Figure 5).  Additionally, a 700m RC program is proposed for early next year to test historic gold intersects at Kambalda (Figure 6).

Area 1	200 line spacing	71 line kms
Area 2	200 line spacing	253 line kms
Area 3	100 line spacing	272 line kms
Total		596 line kms

http://www.rns-pdf.londonstockexchange.com/rns/1235L_3-2011-7-26.pdf

Figure 4. Outline of the three areas just flown and in context with the previous VTEM survey (note: Kambalda has been omitted from this diagram as it is too far to the north-east).

http://www.rns-pdf.londonstockexchange.com/rns/1235L_4-2011-7-26.pdf

Figure 5. Proposed  geochemical sampling and aircore drilling over previous VTEM targets.

http://www.rns-pdf.londonstockexchange.com/rns/1235L_5-2011-7-26.pdf

Figure 6. Proposed RC drill programme for Kambalda. The large dots are proposed holes, the smaller ones are historic drill holes.

A further VTEM survey is scheduled for mid-August over the Bundarra area in Queensland. These tenements are prospective for Cu (as porphyry deposits) and have been the focus of many small exploratory mining concerns. 5 areas are to be flown in all to try and link all the historical workings and provide a more holistic geological appraisal (Figures 5a & 5b).

http://www.rns-pdf.londonstockexchange.com/rns/1235L_6-2011-7-26.pdf

Figure 5a. The Bundarra granodiorite intrusion (elevation model) and the 5 areas to be flown.

The VTEM Survey has been planned as: 

Area 1	100 line spacing	266 line kms
Area 2	100 line spacing	177 line kms
Area 3	100 line spacing	310 line kms
Area 4	100 line spacing	45 line kms
Area 5	200 line spacing	256 line kms
Total		1,054 line kms

http://www.rns-pdf.londonstockexchange.com/rns/1235L_7-2011-7-26.pdf

Figure 5b. Flight lines to be flown over the Bundarra tenement mid-August.

The information in this release has been reviewed and approved for release by Helen Salmon, BSc(Hons), a geologist working for the Company, a Fellow of the Geological Society and a Member of the Mineralogical Society.

Enquiries:

Regency Mines PLC                 Andrew Bell, Chairman                                  0207 402 4580

                                                Sandra Spencer, Public and

                                                Investor Relations                                           0207 402 4580

Nominated Adviser

Religare Capital Markets          Peter Trevelyan-Clark/Ben Jeynes                   020 7444 0800

Broker

Simple Investments Ltd            Nick Emerson                                                   01483 413500

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

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

The Direct Nickel Process is a hydrometallurgical process for treating nickel laterites with unprecedented efficiency and environmental benefits. It is designed to operate with tank leaching at atmospheric pressure, and is the first to treat both limonite and saprolite ores with a single flowsheet. The Process recycles its novel reagents, offers high cobalt and nickel recoveries with short residence time, produces mixed hydroxide precipitates ("MHP") or sulphide concentrate, has substantially lower capital and operating costs than competing processes and is fully scalable.

 

END

 

 

MSCSEDFMMFFSEEW