RGM.L Regulatory News (RGM)

11 May 2005 12:06

Regency Mines PLC11 May 2005 REGENCY MINES PLC 11 MAY 2005 REGENCY BEGINS EXPLORATION AT THE BUNDARRA COPPER-GOLD PROJECT IN QUEENSLAND ANDLAKE JOHNSTON NICKEL PROJECT IN WESTERN AUSTRALIA. • Focus on advanced copper targets at Bundarra to delineate small high grade resources suitable for near term mining development. • High priority given to unexplored southern section of the Bundarra tenements • Work to start this month at Lake Johnston nickel-sulphide project Regency has commenced drill target generation and reconnaissance exploration atits Bundarra copper-gold project in the Bowen Basin of Queensland, Australia andwill begin work later this month at its Lake Johnston nickel sulphide project inthe southern Yilgarn region of Western Australia. Bundarra covers an area of 200km2 containing numerous genetically relatedcopper-gold occurrences around the perimeter of a large intrusion, the Bundarragranodiorite. Modern exploration has indicated the potential of the area to host multiplestyles of mineralisation. The most advanced prospects include Mt Flora and Isens. In 1973 exploration byEndeavour Oil resulted in a calculated ore system of 262,000 tonnes at 2.59%copper and 40g/t of silver with larger potential. At Mt Isens reanalysis of olddrill samples and costeaning was carried out in the mid 1980's which returnedresults including 6m at 6.5% copper and 2.2g/t gold. In the early 90's an 800metre long siliceous breccia was located at Quorn containing up to 9% copper atsurface. Regency's exploration effort will focus on these prospects where exploration anddrilling has the potential to define high grade resources. The company will alsoinvestigate the southern margin of the Bundarra granodiorite where there is norecorded exploration and which includes an embayment similar to that hosting theMt Flora lode system. Regency's Lake Johnston nickel exploration program will focus on tenements atLake Percy ,Maggie Hays and Lake Tay. At Lake Percy recent RAB drilling by ImageResources in adjacent ground recorded encouraging nickel intersections up to0.9% nickel in ultramafic lithologies. Regency will now proceed with mapping andsoil sampling on its areas which are on the same geological trend line as Imagefollowed by EM work to define drill targets. Adjacent to Maggie Hays LionOre are scheduled to commence a drill programadjacent to the Regency ground. In Regency's planned exploration programme newairborne magnetic data will be correlated with the Company's areas abuttingLionOre. With the addition of new substantial magnetic targets outlined byMonarch Resources to the south east on the margins of Lake Hope it is becomingapparent that the Lake Hope area is developing as an area of considerableinterest for potential nickel discoveries. Commenting today, Regency managing director, Ken Watson said: "Exploration inthe Lake Johnston greenstone belt and the nearby Forrestania belt is encouragingand we are pleased to be able to start our own exploration programmes in theregion so soon after listing. The proximity of the LionOre mines of Emily Annand Maggie Hays and the rapidly developing mine of Western Areas at Forrestaniawith major intersections and high grade nickel augers well for the company'sprospects in the region. Enquiries: Andrew Bell 07766 474849 Regency Mines plc Chairman Ron Marshman / John Greenhalgh 020 7628 5518 City of London PR Limited Public Relations John Simpson 020 7512 0191 ARM Corporate Finance Ltd Nominated Adviser This information is provided by RNS The company news service from the London Stock Exchange