RGM.L Regulatory News (RGM)

8 Sep 2009 07:00



REGENCY MINES PLC

Botue-Mambare Nickel Exploration Project: Drilling Report

Dated: 8 September 2009

Further to the announcement made on 10 August 2009, Regency Mines plc ("the Company") the mining exploration and mineral investment company with interests in copper and nickel in Papua New Guinea ("PNG"), Western Australia, and Queensland, presents further results from its drill programme at the Botue-Mambare Nickel Laterite Project, Papua New Guinea.

All of the sample results from the drilled cores over the Mambare Plateau have now been received. Figure 1 shows the location of all 331 holes and the distribution of these holes over the 15 lines (9021600N to 9026000N). The holes labeled with an ID number are holes from which average Ni grades of greater than 0.90% have been recovered, in either the limonite or saprolite (or both) layers, and the remaining, unlabelled holes have average Ni grades of relative locations of drilled holes for high grade Limonite and Saprolite respectively with average Ni and Co (Cobalt) grades for each of the high grade holes, as well as the thickness. 

Referring to figures 2 and 3, the limonite zone southeast of the Arumu River (which flows SW, parallel to the walking track between the 2 camps) averages at 1.08% Ni and 0.11% Co over an average thickness of 8.10m. The saprolite body averages at 1.36% Ni and 0.04% Co over 5.25m. The area to the northwest of the Arumu River shows average limonite grades of 1.05% Ni and 0.11% Co over 8.07m thickness and the underlying saprolite averages at 1.25% Ni and 0.04% Co over an average of 2.60m. These results suggest that there are 2 ore bodies (one on each side of the river); however detailed resource modeling and 3D imaging is required in order to determine the dimensions of the ore bodies and is currently underway. 

The development of high grade limonite and saprolite profiles tend to occur across areas of shallow gradient over ridge tops, and along the base of ridges and valley floors. Bedrock type is an additional control on the laterite formation. Generation of a resource model has commenced which should further test the relationship between topography, bedrock and laterite development. 

The first phase of exploration at Mambare, consisting of testing the more accessible incised slopes on the south west edge of the plateau, is now complete. This drilling programme, completed at the end of last year, produced 4000m of drilled core. More drilling is anticipated over the wider area of the main plateau (targeting the shallower gradients), as well as infill drilling (between the completed lines), which will allow the extent of the high grade zones to be further constrained. There is potential to increase the thickness of the saprolite zones, as some holes in the recently completed programme may not have tested the full saprolite profile due to drill penetration issues. Future drilling activities will need to persist to greater average depth than encountered during this drill programme.

These results are regarded as highly encouraging, and as justifying an acceleration in the pace of exploration of the property. Further announcements will be made as information becomes available.

Figure 1: http://www.rns-pdf.londonstockexchange.com/rns/6671Y_-2009-9-7.pdf

Figure 2: http://www.rns-pdf.londonstockexchange.com/rns/6671Y_1-2009-9-7.pdf

Figure 3: http://www.rns-pdf.londonstockexchange.com/rns/6671Y_2-2009-9-7.pdf

The technical information in this announcement has been prepared by Kamini Manick, MEarthSci, and reviewed and approved by Helen Salmon, BSc(Hons), both geologists working for the Company. Helen Salmon is a Fellow of the Geological Society and a Member of the Mineralogical Society, and a qualified person as defined in the Note for Mining and Oil & Gas Companies, June 2009, of the London Stock Exchange..

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