RGM.L Regulatory News (RGM)

15 Sep 2005 15:17

Regency Mines PLC15 September 2005 Regency Mines plc (the "Company") Exploration Update Dated: 15 September 2005 BUNDARRA PROJECT Soil sampling and geological mapping has been completed over three prospectswithin the Bundarra project area; Isens, Flora Range and Mt Flora. At Isens, soil sampling was completed on 200m x 80m centres in open terrain.Results were significant; peaking at 3.1% copper with 0.9g/t gold and 10.8g/tsilver. Other results include 0.5% copper with 0.36g/t gold and 2.5g/t silver.Copper and gold anomalism has been outlined over approximately 1500m of strikeand remains open to the west. At surface, mineralisation is up to 30m wide andhosted by a brecciated, iron-stained quartz-feldspar porphyry. Primary sulphidesare chalcopyrite and pyrite, with secondary copper carbonates of malachite andazurite. Drilling of three traverses of angled RC holes is required to testmineralisation at depth. At Flora Range, soil sampling was completed over 4km of strike on 200m x 80mcentres. Copper and gold anomalism was outlined over the entire 4km of strikeand remains open to the southwest. Maximum results were 2400ppm copper with28ppb gold and 2.7g/t silver. Mineralisation is hosted by discontinuous lodes ofbrecciated granite intruded by veins of iron and malachite stainedquartz-feldspar porphyry. Ten sets of historic workings were located within theFlora Range area, each commonly returning +2% copper from historic rockchipsampling by previous explorers. Only one working has been tested by a single RChole that, significantly, returned 3m @ 7.2g/t gold from 36m. A groundgeophysical survey (IP) and RC drilling is required to test the peak geochemicalresponse. At Mt Flora, the immediate area of historic workings has been subject to muchsurface exploration in the past and, consequently, soil sampling and mapping wasfocused on potential northern and southern strike extensions to mineralisation.Sampling returned a peak of 254ppm copper and 7ppb gold. Results confirmedmineralisation continues northwest of the historic workings for some 2500m, andalso southeast for a further 1800m. However, mineralisation is of a more subtlenature than that encountered at Isens and Flora Range. This suggests a large,low-grade disseminated style of mineralisation for Mt Flora. Step out RC orDiamond drilling of the Mt Flora mineralisation is required. Airborne Geophysical Data During August, magnetic and radiometric data from a detailed airborne surveywere processed and imaged. Total count (K, Th, U) radiometric data illustratesthe strong alteration of the Permian sedimentary rocks in contact with themargin of the Bundarra intrusion, and highlights the potential for economicaccumulations of uranium. Subsequent imaging of the airborne uranium datarevealed several discrete anomalies within the project area. These are scheduledfor ground follow-up during the current field season. The directors consider the results to date of the sampling and mapping programat Bundarra to be encouraging and to justify moving to the next stage ofexploration. The results in the Isens area mean that this will be a focus offurther exploration effort, including drilling. The Flora Range results willalso be followed up by further exploration, including drilling. Continuedmapping and sampling of areas around the edge of the Bundarra intrusion will beundertaken to test hitherto unexplored areas. The objective remains to identifyand delineate high grade copper zones as well as potential low grade bulktonnage targets. Several areas have uranium anomalies identified from theradiometrics and will be tested by field work. Enquiries: Andrew Bell 07766 474849 Regency Mines plc Chairman John Simpson 020 ARM Corporate Finance Ltd Nominated Adviser 7512 0191 Ron Marshman / John Greenhalgh 020 City of London PR Limited Public Relations 7628 5518 This information is provided by RNS The company news service from the London Stock Exchange