Australia - Fraser West Project Update

RNS Number : 8902M

Regency Mines PLC

21 September 2012

 

REGENCY MINES PLC

("Regency" or the "Company")

Australian Exploration - Fraser West Project Update

21 September 2012

Regency Mines plc, a mining exploration and mineral investment company with interests in nickel and other minerals in Australia, Africa, and Papua New Guinea is pleased to announce an update on exploration activities in Western Australia carried out through its wholly owned subsidiary Regency Mines Australasia Pty Ltd.

During 2011 Regency Mines Australia Pty Ltd applied for three exploration tenements, located approximately 220km to the south east of Kalgoorlie in Western Australia.  The combined area of 271 km² was selected to explore for "Tropicana" style gold mineralisation along the Yilgarn / Albany - Fraser contact zone. In the past two months, all three Fraser West exploration licences were approved.

Within 20km of Regency's tenement boundary, a large discovery of Ni-Cu-Co mineralisation has recently been made by Sirius Resources NL ("Sirius"), referred to as the Nova deposit (figure 1). Several companies with ground near Sirius's tenements are accelerating exploration efforts, and Enterprise Metals Ltd, a company with  tenements neighbouring Regency, on 17^th September released anomalous soil results indicating  base metal exploration potential.

Figure 1. Tenement and geology map shows proximity of Sirius and Enterprise Metals to Regency
http://www.rns-pdf.londonstockexchange.com/rns/8902M_-2012-9-21.pdf

Regency's exploration tenements were acquired on vacant ground along the Fraser Range margin, and are located in-between Sirius' tenements. Sirius had previously completed a soil geochemical sampling programme across the Fraser Range district, with many targets not previously drill tested. All digital geochemical data relating to the ground that Sirius surrendered in 2011 was made available on open file recently.

Open file geochemical and geophysical databases have been now assessed, and the geochemical database covering the Regency licenses contains a number of gold in calcrete anomalies up to 13ppb Au, which have not been drill tested. The calcrete gold assay results were gridded and then colour contoured as shown in Figure 2. Significant gold assay results over 6ppb gold have been individually labelled, and then superimposed on to the regional aeromagnetic greyscale derivative image to show a magnetic contact.

Figure 2. Historical gold assay results from calcrete sampling.
http://www.rns-pdf.londonstockexchange.com/rns/8902M_1-2012-9-21.pdf

Regency Mines Australasia Pty Ltd director Helen Salmon said: "This is the most keenly watched exploration area in Australia at the moment, and Regency is in the centre of it holding a large and prospective tenement package along the contact zone". Regency's exploration team is currently designing an exploration programme for gold and base metals, consisting of an air core drill programme to investigate (a) anomalous gold over 10km of strike, (b) an open file AEM conductor, and (c) a magnetic unit of similar size to the recent Nova discovery.

Competent Person's statement

Mr Grant Donnes

The technical information in this report relating to previous exploration results has been prepared by consultant Mr. Grant Donnes, BSc (Hons - Geophysics), who is a Member of the Australian Institute of Geoscientists (AIG) and Australian Society of Exploration Geophysicists (ASEG). Mr Donnes has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and as a "Qualified Person" as defined in the Note for Mining and Oil & Gas Companies, June 2009, of the London Stock Exchange..  Mr. Donnes has reviewed this announcement and consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Mr. Donnes is a self-employed consultant to the Company.

For further information contact:

Enquiries: Andrew Bell 020 7402 4580 or    07766 474849 Regency Mines plc Chairman Sandra Spencer 020 7402 4580 or 07757 660 798 Regency Mines plc Public and Investor Relations Gerry Beaney/    Daniela Amihood 020 7383 5100 Grant Thornton Corporate Finance Nominated Adviser Nick Emerson 01483 413500 Simple Investments Ltd Broker

 

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