Australian Exploration Update

RNS Number : 5963L

Regency Mines PLC

05 September 2012

 



REGENCY MINES PLC

Australian Exploration Update

5 September 2012

Regency Mines plc ("Regency" or the "Company"), 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. This includes:

·     Beginning of metallurgy testwork on titanium rich clays obtained from the March 2012 drill programme at Pyramid Lake

·     Significant silver anomalies in initial results from the MMI geochemical soil sampling programme at Pyramid Lake and adjacent to Silver Lake Resources Ltd

·     Results of rock chip sampling programmes undertaken at the Company's Munglinup Graphite and Oldfield tenements.

·     Acquisition of new tenements adjacent to Sirius Resources Ltd.

Figure 1: Location Map

 http://www.rns-pdf.londonstockexchange.com/rns/5963L_-2012-9-5.pdf

Pyramid Lake Project

E74/318 and E74/425

Titanium Metallurgical Test Work

The Company's 2012 Reverse Circulation (RC) and Aircore (AC) drill programme tested a conductive target previously delineated by the AEM survey of 2011. This work intersected titanium rich clays in a zone above and adjacent to a magnetic dolerite dyke. All significant titanium drill hole assay results from 4m composites were announced by the Company on 4 May 2012 (shown in Figure 2a and 2b).

Figures 2a and 2b: Ti values from drill programme (red dots are the cross section detail)

http://www.rns-pdf.londonstockexchange.com/rns/5963L_1-2012-9-5.pdf

http://www.rns-pdf.londonstockexchange.com/rns/5963L_2-2012-9-5.pdf

 The two thickest AC drill hole intersects were 12PLAC008 (86m @ 2.90% Ti) and 12PLAC0024 (82m @ 2.83% Ti) both from near surface. One of these drill holes, 12PLAC008 located on the central drill line, was resampled using 1m splits and submitted to Perth based Amdel Laboratories for preliminary metallurgical test work. Out of the 90 samples analysed two 8m composite samples were selected for further beneficiation test work, the results of which are awaited. If metallurgical results and further interpretation of the geophysical and drill results indicate as hoped the potential for economic extraction of titanium, then further exploration and metallurgy to quantify and define the resource will be carried out.

The first 8m composite has a titanium grade of 8m @ 2.86% Ti (av) from 20m down hole (DH) depth. The second 8m composite contains the maximum titanium intersect of 3m @ 4.38% Ti (av) from 47m (DH) depth,  with a  grade of 8m @ 3.94% Ti (av) from 44m DH depth.

MMI Soil Sampling Results

A regional geochemical soil sampling survey carried out in March/April 2012 collected 766 samples across the Pyramid Lake project. This spanned 3 tenements E74/318, E74/425 and E74/457. SGS laboratories in Perth analysed the soils using Mobile Metal Ions (MMI) technique, where two gridded line samples yielded highly anomalous silver values of between 115 and 351 ppb Ag (Figure 3). This tested area lies 50m inside the tenement boundary and adjoins the tenement of Silver Lake Resources Ltd, who recently reported completion of a 200 hole RAB drilling programme.

Next steps under consideration would include a phase 2 geochemical programme within this south-western area which would be performed up to the tenement boundary with Silver Lake Resources. These geochemical surveys would be completed prior to a follow-up reconnaissance aircore drilling programme, which could be scheduled for 2013 after the crop harvest.

Figure 3: Silver values returned from the MMI sampling programme

http://www.rns-pdf.londonstockexchange.com/rns/5963L_3-2012-9-5.pdf

Munglinup East Graphite Project

E45/452 and E74/458

Drilling permits have recently been granted to test geophysical targets near a defined flake graphite Resource (as announced in April 2012).  The Company's exploration team has ground inspected these drill sites and observed an extensive oxidisation zone in the near surface, with an iron capping covering the target zone. These near surface graphitic ironstone samples have been upgraded to haematite, containing up to 59.38% iron.

The aeromagnetic unit adjoining the Halbert's Main deposit area has been tracked into the Company's tenements with ironstone outcropping. The Company plans to initially drill test three to four reconnaissance RC drill lines across the ironstone outcrop, to investigate graphite targets under the iron capping.

Oldfield Prospect

E74/495

The western tenement in the package is referred to as the Oldfield Prospect. This recently granted tenement has the strongest airborne uranium anomaly in the Ravensthorpe district (Figure 4). Historic exploration from 1977 identified the uranium anomaly as coming from a clay pan calcrete, scavenging mobile uranium from groundwater.

Locating the strongest uranium anomaly on the ground using a hand spectrometer, the area with the highest signal lies along the northern margin of the clay pan and has not been drill tested. Hand dug soil samples showed traces of uranium but deeper soil samples are required. This will be achieved using a hand auger drill.

Field assessment was concentrated along the 3.7km long magnetic anomaly (Figure 5) located adjacent to the airborne uranium anomaly. A number of unmapped ultramafic outcrops were discovered. Both peridotite and pyroxenite outcrops contained typical background nickel up to 0.17% nickel. The magnetic anomaly is from an ultramafic sequence; but radioactive drainage along the southern contact of this magnetic unit is unexplained.

Figure 4: Open file airborne uranium channel grid showing location of the Oldfield uranium anomaly

http://www.rns-pdf.londonstockexchange.com/rns/5963L_4-2012-9-5.pdf 

Figure 5: Aeromagnetic data identifies the Oldfield magnetic anomaly with interpreted structure

http://www.rns-pdf.londonstockexchange.com/rns/5963L_5-2012-9-5.pdf

An ultramafic pegmatite was also sampled within the Oldfield tenement and was submitted to Genalysis Laboratories in Perth. Results are presented in Table 1. This soil sample was obtained to the east and downstream of the uranium target and is highly anomalous in the Light Rare Earth Elements (REEs).  The mineralogy and geochemistry of this rock suggest it to be a metasomatic peridotite not previously recorded in this area. Further exploration across strike of the ultramafic unit is warranted to test the ultramafic/granite contact margin for pegmatite mineralisation containing REE enrichment.

Table 1: Pegmatite grab sample shows high grade total REE (addition of all REE elements displayed)

Sample	Ce	Dy	Er	Eu	Gd	Ho	La	Lu	Nd	Pr	Sm	Tb	Tm	Y	Yb	Total REE (ppm)	Total REE (%)
5004	1152.9	18.7	6.2	9.4	36.9	2.8	780.4	0.51	449.4	132.36	61.6	4.49	0.8	83.5	4.6	2744.56	0.274

Analysed by Genalysis Laboratories Perth, using 4-Acid/MS and 4-Acid/OE methods

Fraser Range Project

EL 28/2209, EL 28/2210, ELA63/1528

In 2011, Regency applied for three exploration tenements approximately 220km to the south east of Kalgoorlie in Western Australia. These tenements were applied for to explore for Tropicana style gold mineralisation, along the Yilgarn/Albany - Fraser contact zone.  Two of these tenements are now granted, and the third is expected to proceed to grant shortly. The tenements are situated between Sirius Resources Ltd. exploration tenements (Figure 6) and within this new exploration province.

The ground applied for had been dropped by Sirius Resources Ltd some months prior to their announcements to the ASX on the 26^th of July 2012 and 3^rd September 2012 in which they announced a potentially important nickel/copper discovery referred to as Nova, 18km to the east of Regency's tenement boundary. 

The Company has in these tenements approximately 50km of Yilgarn craton margin with possibilities for gold and base metals mineralisation. Regency has begun a process of tenement evaluation using open file regional aeromagnetic survey data and open file soil geochemistry.

The Nova base metals discovery has a soil cover sequence and is not outcropping so conductors measured by an open file aerial electromagnetic (AEM)  survey in 2004 are being reviewed. A possible wide line spaced AEM survey is currently being designed along the remaining contact zone to explore for Nova style conductors. Any significant conductors measured in the proposed AEM survey can be plate modelled, and targeted with deep RC drill holes.

Figure 6: Regency tenement applications (red outlines) with Sirius Resources discovery 18km away

http://www.rns-pdf.londonstockexchange.com/rns/5963L_6-2012-9-5.pdf

Competent Person's statement

Mr Grant Donnes

The technical information in this report relates to exploration results based on information compiled 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 in the style of mineralisation and type of deposit under consideration.  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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