LONDON (Alliance News) - Regency Mines PLC Friday said it has applied for a nickel and gold licence over a 1,284 square kilometre region near the port city of Lae in eastern Papua New Guinea.
The exploration and development mining company said the area it is applying for contains nickel laterite bearing zones which host a historic inferred resource of 70 million tonnes at 0.68% nickel, from studies by Bulolo Gold Dredging Co Ltd in the late 1950s.
The company said that minor work carried out by other operators in the 60s and 70s reported nickel grades of up to 1.68% grades.
Regency Mines added that the western half of the licence lies within the Wau-Bulolo goldfields, just 15 kilometres east of the Hidden Valley Gold Mine, which currently produces 250,000 ounces of gold per year.
Regency Mines shares closed up 2.1% at 0.24 pence on Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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