15 Jul 2016 07:00
Regency Mines Plc
("Regency" or the "Company")
Update on Mambare Nickel Project
15 July 2016
Regency Mines Plc ("Regency" or the "Company"), the natural resource development and investment company with interests in oil and mineral exploration, announces an update on the Mambare Nickel Project in Papua New Guinea.
Mambare Nickel Project
Regency holds a 50% direct interest in the Mambare nickel-cobalt laterite project located in Papua New Guinea. The project was operated as a joint venture with Direct Nickel Ltd ("DNi"). DNi had been unable to meet approved expenditure calls, and Regency had issued default notices followed by a buy-out notice and had begun discussions with Direct Nickel to take over DNI's share of the project. DNi under its new controlling shareholders has indicated an intention to meet its share of expenditure obligations and has made a first payment of £44,032 to Regency in reimbursement of amounts due to the joint venture and previously advanced by Regency.
Further amounts of approximately £20,000 will be invoiced shortly.
The project sits on license EL1390 and contains a JORC Indicated and Inferred Mineral Resource Estimate of 162.5m tonnes at 0.94% Ni and 0.09% Co. With only 3% of the 80 sq km main plateau target tested by drill to date, the Company has long indicated that the project potentially holds one of the world's largest nickel laterite deposits. The project also comes with a license to utilize Direct Nickel's laterite treatment process, which offers extremely low operational costs as well as the ability to better match the scale of the plant to overall project size. The DNi process has been tested for over a year at 1 ton per day test plant scale proving its commerciality and preparing for its use at Mambare and other lateritic deposits.
Andrew Bell, Regency Chairman, comments: "We welcome DNi's decision to continue our joint venture nickel activities. The recent increase in the nickel price, and political developments in the Philippines, have improved the investment outlook for nickel projects and we look forward to working with the new DNi on advancing the Mambare project."
For further information contact:
Andrew Bell 0207 747 9960 Chairman Regency Mines Plc
Scott Kaintz 0207 747 9960 Executive Director Regency Mines Plc
Roland Cornish/Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 0129 351 7744 Broker Dowgate Capital Stockbrokers Ltd.