6 Apr 2010 13:00
Regency Mines PLC
('Regency', 'Regency Mines' or the 'Company')
Update
6 April 2010
Regency Mines, the mining exploration and mineral investment company with interests in nickel and other metals in Western Australia, Queensland, and Papua New Guinea announces that it has completed the first phase of its exploration programme in the Tay Munginlup sector of the Lake Johnstone Greenstone Belt.
Regency has completed its phase 1 exploratory aircore drilling programme on E74/318 which occurs in the south east of Western Australia approximately 50 kilometres east of the nickel and gold bearing centre at Ravensthorpe.
The aim of the drilling programme was to test two airborne moderate electro-magnetic (AEM) conductor targets and one magnetic target under cover for precious and/or base metals mineralisation, and to attempt to define contact zones between the Archaean Craton and the Proterozoic Albany-Frazer Complex. This contact zone which hosts AngloGold Ashanti's 5m oz Tropicana deposit is the focus of strong exploration interest. Click on, or paste the following link into your web browser, to view the Project Area and Structural Map graphics. http://www.rns-pdf.londonstockexchange.com/rns/7438J_1-2010-4-6.pdf
http://www.rns-pdf.londonstockexchange.com/rns/7438J_2-2010-4-6.pdf
This preliminary exploration drilling programme had planned up to 3,750m in Phase 1 (planned Phase 1 holes marked in red on accompanying maps) and completed2,401 metres of drilling in 51 drill holes at Targets 1 & 3, having satisfactorily encountered the geologies sought. 779 samples are to be submitted for testing on return to Perth.
The programme successfully completed its objectives and will provide specific target zones for further follow up work once all assays have been returned.
The targets proposed were:
Target 1 (conductor) for Tropicana style gold mineralisation;
Targets 2 & 3 (magnetic) - For Nickel sulphide deposits in Greenstone rocks thought to be present under cover and to determine if gold mineralisation exists along the margins of the ultramafic within shear / alteration zones in contact with local granitic and or mafic rocks. Click on, or paste the following link into your web browser, to view the Maps of Magnetic Image, Target 1 and Target 2/3
http://www.rns-pdf.londonstockexchange.com/rns/7438J_3-2010-4-6.pdf
http://www.rns-pdf.londonstockexchange.com/rns/7438J_4-2010-4-6.pdf http://www.rns-pdf.londonstockexchange.com/rns/7438J_5-2010-4-6.pdf Target 2, a small area 700m E of Target 3, was unable to be tested due to recent rains, as in the wet conditions access to the area could not be achieved. This was the least significant of the targets and it was decided to conclude the programme rather than keep the drill crews on standby in the hope of drier weather.
At Target 1, sulphides associated with gneissic-migmatitic rocks, schists and shales were visibly detected in 10 drill holes. Contact zones between these lithologies were also identified providing specific targets for further follow up work. This geological profile is similar to that at Tropicana where gold is also found associated with pyrite. Tropicana announced a 5 Million ounce gold resource approximately 550km NE of 74/318 and is situated, as is E74/318, along the margins of the Yilgarn and Albany Frazer Complex in a similar context. In addition, this exploratory programme outlines the existence of a potential SW extension to a similar conductor along the same structure in the neighbouring Anglogold Ashanti tenement.
Target 3 drilling outlined a zone of serpentinised mafic/ultramafic rocks (Greenstone Belt) in 13 drill holes along 1km of strike under approximately 30m of cover. Due to alteration (which included biotite-chlorite and epidote) many of the samples were clast free but some sulphides were identified downhole for 18m.
Regency considers that the initial drill work has enjoyed technical success and proven the electromagnetic and magnetic anomalies to be associated with visible sulphides. Theories that the anomalies could represent salinity or siltstone appear to have been disproved, and at T1 the transgression southwards fromrocks of Archaean age into a contact with migmatite rocks believed to be of the Albany Frazer Metamorphic Zone appears to have been proven. Once all assay results are to hand Regency will determine its follow up work for 2010 which will use on ground geophysical surveying combined with RC drilling.
The geological information in this announcement has been prepared by Helen Salmon, BSc (Hons), a geologist working for the Company, a Fellow of the Geological Society, a Member of the Mineralogical Societ y 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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For further information contact:
| Andrew Bell | 0207 402 4580 07766 474849 | Regency Mines plc | Chairman |
| Peter Trevelyan-Clark/Ben Jeynes | 020 7444 0800 | Religare Capital Markets | Nominated Adviser |
| Nick Emerson | 01483 413500 | Simple Investments Ltd | Broker |
| Ron Marshman | 020 7011 9411 | Lothbury Financial Ltd | Public Relations |
Updates on the Company's activities are regularly posted on its website www.regency-mines.com.