Exploration Update - Western

RNS Number : 1148O

Regency Mines PLC

23 June 2010

 



Regency Mines PLC

('Regency Mines' or the 'Company')

Exploration Update - Western Australia

23 June 2010

Regency Mines, the mining exploration and mineral investment company with interests in copper and nickel in Western Australia, Queensland, and Papua New Guinea announces an update on its recent exploration activity in Western Australia.

SUMMARY

The Company has successfully carried out Phase 1 of its reconnaissance air core drilling programme on the Munglinup North Project that lies within the Lake Johnston Greenstone Belt area of Western Australia (Figure 1). 

Figure 1:    http://www.rns-pdf.londonstockexchange.com/rns/1148O_-2010-6-23.pdf

The objectives of this phase were:

1)    to conduct enough air core drilling to ascertain the underlying geology and reason for geophysical anomalies (Figure 2)

2)    to test for greenstone occurrences under cover that could indicate associated mineralisation.

Figure 2:   http://www.rns-pdf.londonstockexchange.com/rns/1148O_1-2010-6-23.pdf

The benefit of air core drilling in areas of extensive cover is that it allows geochemical exploration of the zone from near surface down to bedrock for indications of mineralisation at deeper levels.

This preliminary work was completed in March 2010, with drilling of 2,401m in 51 drillholes, and covered a sample of two anomalous target zones, T1 and T3 (Figure 3). Plans for Phase 2 of the drilling programme are underway. This will include infill drilling to outline the structurally controlled sulphide zones and deeper Reverse Circulation drilling to explore the source of the near surface base metal mineralisation encountered.

Figure 3:   http://www.rns-pdf.londonstockexchange.com/rns/1148O_2-2010-6-23.pdf

TARGET 1

T1 tested an electromagnetic conductor at the interpreted boundary of the Archaean Yilgarn craton and the Proterozoic Albany Fraser Metamorphic Zone. Assay results showed traces of base and precious metals down to basement, though not at economic levels. However the southernmost drill line encountered significant sulphide levels in all holes. Sulphide intersections were not expected and are potentially significant. The westernmost hole of the southern line intersected 24m of sulphide at an average grade of 10.6% with a maximum grade of 18% sulphide. This hole ended in a sulphide mineralisation grade of 8.87%.. The same drill hole MNAC2007 also contained high levels of Titanium, with an average grade of up to 2.24% Ti. The mineralization at MNAC2007 is open in all directions (Figure 4). Other intersects of interest include Ti, Pb, Cu, Zn, Co, Ag and traces of PGE's. These results are presented in Table 1 below and shown in context in Figure 5. Thin section analysis of the rock chips collected from the drilling at T1 is also being undertaken to identify the sulphide source of this weathered material.

Table 1

Hole ID	Easting	Northing	Azimuth/Dip	From	Intersect (m)	Grade
MNAC4033	304337	6301946	310/-60	32	4	11.5g/t Ag
MNAC3017	304091	6301911	320/-60	24	2	0.07% Cu
				30	3	0.04% Cu
				32	1	40ppb Pt 49ppb Pd
MNAC3030	304554	6301447	310/-60	28	1	0.07% Cu
				31	1	0.52% Zn
MNAC2007	304093	6301343	310/-60	8 24	28 24- EOH	2.24% Ti 10.6% S
MNAC2009	304164	6301273	310/-60	32	4	0.07% Pb
MNAC1466	302750	6310600	270/-60	20	8	0.24% Ni
				24	4	19ppb Pt 13ppb Pd
PMNAC1467	302800	6310600	270/-60	36	8	0.14%Ni

Samples have been composited on 4m and sent to Amdel Ultratrace Laboratory. Assay method is ICP Mass Spectrometry for AG, Pb, Pt, Pd and Optical EmissionSpectrometry for Co, Cu, Ni, Ti and using 40g charge.

Figure 4:      http://www.rns-pdf.londonstockexchange.com/rns/1148O_3-2010-6-23.pdf


Figure 5:      http://www.rns-pdf.londonstockexchange.com/rns/1148O_4-2010-6-23.pdf


The importance of the sulphide discovery at T1 is that the significant sulphide levels encountered may be an indicator of further sulphides along the south-western extension of the conductor, with potential for base and precious metal zones at depth. The shallow depth tested by air core lies within the weathered zone where mineralization is potentially depleted. Further drilling along strike and at depth will be carried out to test this hypothesis.

TARGET 3

At T3, a magnetic anomaly, weathered ultramafics were encountered with anomalous Ni and PGE's from 2 holes substantiating the hypothesis that the greenstone belt extends further south than previously thought. However, levels of mineralization were insufficient to justify deeper drilling at this site. Further and deeper drilling at other targets along the belt will be carried out at a later stage.

OTHER

The Company proposes to initiate exploration of its gold/nickel prospective Kambalda license with a VTEM Survey.

An update on progress at Regency Mines' Mambare lateritic nickel deposit will be released shortly.

The geophysical and geological information in this announcement has been prepared by Grant Donnes,BSc(Hons), and Helen Salmon, BSc(Hons). Grant Donnes is a consultant working for the Company and a Member of the Australian Institute of Geoscientists and of the Australian Society of Exploration Geophysicists. Helen Salmon is a geologist working for the company, a Fellow of the Geological Society and a Member of the Mineralogical Society.

For further information contact:

Andrew Bell	0207 402 4580    or 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/Justine James	020 7011 9411	City of London PR	Public Relations

Updates on the Company's activities are regularly posted on its website www.regency-mines.com.

 

END

 

 

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