22 Jan 2020 07:00
Regency Mines PLC
("Regency" or the "Company")
Mambare Project Update
22 January 2020
Regency Mines Plc (LON: RGM), the natural resource exploration and development company with interests in battery metals and energy storage, announces an update on its flagship Mambare nickel-cobalt project following recent successful partner engagements including the meeting in Sydney, Australia earlier this month as referred to in the announcement of the 23 December 2019.
The Mambare project is a large nickel-cobalt deposit with a substantial JORC compliant Inferred and Indicated mineral resource.
Highlights:
o 230km Line cutting completed and a ground penetrating radar ("GPR") exploration programme underway, targeting 200km of surveys
o Environmental Permit application submitted
o Exploration Lease renewal process underway
o Mining Lease application material being finalised
o Joint Venture partners aligned on forward programme
Scott Kaintz, CEO, commented: "I am delighted to report the first substantial exploration activities at our Mambare nickel-cobalt project since 2012. The works underway currently focus on exploring the primary target of the plateau and on allowing the project to transition from short-term exploration licences towards a longer-term mining lease.
We believe a future direct shipping ore ("DSO") operation at Mambare will perfectly position us to benefit from the strongly growing demand for battery metals."
Line Cutting and GPR Exploration Programme:
Oro Nickel, a joint venture between Regency Mines plc and Battery Metals Pty Ltd, commenced line cutting operations at Mambare during 2019 and is delighted to report a total of 230km line cuttings are now complete. A GPR programme has been initiated with 21 staff and 3 GPR units on site supported by the Canadian company International Groundradar Consulting Inc.
Oro Nickel expects the GPR field work will be largely completed on site by the end of Q2 2020. Processing is to be handled in Canada, with the release of final data from these efforts likely later in 2020 after which the Company will issue an update on the results. Additional work is also targeted during 2020, including planning for roads and local infrastructure as well as related aerial surveys.
Licensing and Permitting:
An application to renew the EL1390 exploration licences, encompassing the project, was submitted to the PNG authorities in March 2019 and is expected to be renewed during 2020 covering the period up to June 2021.
Oro Nickel is also currently progressing a plan to upgrade the existing exploration licence to a mining licence based on a DSO operation. This DSO operation would consist of excavation and export of raw ore so will involve no processing plant, no chemicals, no pipeline and no tailings.
The Company is delighted to report Oro Nickel is progressing both the Mining Lease application and the associated environmental permit application.
Oro Nickel Joint Venture Partner Update:
Recent activity at Mambare has been led by Oro Nickel Joint Venture partner, Battery Metals.
Following recent meetings, the Company and its partners are aligned on the forward activity plan for Mambare and also potentially for further battery metal acquisitions. Discussions are underway between the partners regarding the budgeting and funding of the Mambare project. These discussions include exploring various alternative JV structures, including a re-framed JV arrangement and potentially the pooling of both partner's interest in the project. The Company expects to conclude these discussions during the course of Q1 2020 and will update shareholders as appropriate.
For further information, please contact:
Scott Kaintz 020 7747 9960 Director Regency Mines Plc
Roland Cornish/ Rosalind Hill Abrahams 020 7628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 020 7374 2212 Broker First Equity Limited
This announcement contains inside information under Article 7 of Regulation (EU) 596/2014.
Notes to Editors on the Mambare Project:
o Mambare project sits on exploration licence EL1390 in Papua New Guinea
o JORC compliant Resource totalling 162.5 million tonnes of 0.94% nickel and 0.09% cobalt (1.53 million tonnes of in-situ Nickel and 146,000 tonnes in-situ Cobalt) stated gross.
o Current JORC compliant Resource is in respect of slope areas and a small part (3%) of the mineralised plateau
The Mambare project site is located near the village of Botue, approximately 90km north east of Port Moresby. The area is linked to Popondetta and Oro Bay by gravel and sealed roads.
The Mambare Plateau is an elevated 20 by 7 kilometre paleo-plateau west of the Ajule-Kajale Range, developed on ultramafics. To the east, these ultramafics are overlain by gabbroic rocks and submarine basaltic volcanics.
Whilst the project has a long history of exploration digging, it remains largely unexplored with exploration activities to date covering only 3% of the plateau. Pre 1960s exploration consisted of test pitting and hand augering with at least one bulldozer trench being dug. Between 1960 and 1971, 240 auger holes were drilled, and 56 pits and one costean dug. Between 2008 and 2011 exploration campaigns included 7,291m of drilling from 455 holes and 5 test pits, including GPR surveys. The programmes conducted between 2008-12 covered only 3% of the Mambare Plateau, the primary long-term exploration target.