REGAL RESOURCES LIMITED - ASX: RER

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Description

Regal Resources is a diversified resources company with a primary focus on adding value to its resource holdings including its two coal projects located in Victoria. The coal projects evidence the potential for significant quanities of brown coal / lignite and are a resource target for the Company's coal liquefaction and gasification technologies. Regal Resources also retains its substantial resource base concentrated on gold and nickel in some of Western Australia’s most perspective regions, including the proven Laverton fields, and has a significant register of priority drilling targets.

In order to disversify its portfolio, Regal Resources has entered into an agreement with Afimines Resources SPRL to acquire a group of 13 gold tenements which cover 3,650km2 of prospective ground in the South Kivu Province, east central Democratic Republic of Congo.

Coal Resources

Regal Resources holds Exploration Licences (EL) 4507 and 4510 covering 1406km2 in the Port Philip and Torquay Basins, to the west of Melbourne, Victoria. The ELs evidence the potential for significant quantities of brown coal / lignite.

Gold and Nickel Projects

Regal Resources projects are focused in the Menzies, Leonora and Laverton areas of Western Australia. The main project areas are Menzies, Eucalyptus, Kookynie, Mt Zepher, Mt Korong, Malcom, St Goose and Wilga. The Company is in Joint Venture Agreements with:

* Silverlink Nominees Pty Ltd on its mining and exploration projects at Mt Zepher, Mt Korong and Mt Goose
* Ozmay Pty Ltd on its Eucalyptus and Malcolm Projects
* Black Mountain Gold Pty Ltd on its Menzies Project

The Company continues to pursue joint venture or sale opportunities for the remaining Western Australia projects.

Gold Resources

Regal Resources has entered into an agreement with Afrimines Resources SPRL ("Afrimines") to acquire a group of 13 tenements which cover 3,650km2 of prospective ground in the South Kivu Province, east central Democratic Republic of Congo.

The tenements are located in one of the world's principal Precambrian orogenic-metallogenic provinces, which hosts the Banro Corporation (TSX:BAA) deposits within the "Twangiza - Namoya belt" and the world class gold deposits in the Kilo-Moto belt to the north (held by Randgold Resources and AngloGold Ashanti). Banro's Lugushwa and Namoya deposits border the project area to the north and south respectively. Banro's Lugushwa Project drilling is reported to have intercepted wide zones of gold mineralization which has an Inferred Mineral Resource of 2.7 million ounces and the Namoya Project is reported as hosting 1.124 million oz of Measured & Indicated Resources and 407,700 oz of Inferred Mineral Resources. The same gold bearing structures from both deposits potentially extend onto the project area.

The South Kivu Project area is underlain by highly prospective Ruzizian and Burundian lithologies which have been intruded by granites and pegmatites of various ages. Most of the tin, tungsten and columbite-tantalite deposits of the region are related to these post-tectonic granitic batholiths and stocks, while the gold deposits occur in the synclinoria between the granites. Afrimines recently completed soil sampling programmes over areas of extensive artisanal workings and rock exposures and collected stream sediment samples from remaining areas to give complete coverage of the project area. A total of 13,400 samples are in process of submission for assay with results expected in February 2011. Extensive alluvial workings and less primary workings were identified on all tenements during the regional sampling campaign. Little focus was placed on identifying primary mineralization by small scale miners mainly due to the ease of mining and high recovery grade of alluvial workings.

The prospectivity of the project is further enhanced by identification of alluvial workings and two northwest-southeast trending quartz veins on the tenement bordering Banro's Namoya deposit to the north. In addition, it is highly likely that mineralized structures which control mineralization at Banro's Lugushwa deposit extend on to the project area in the north. The area to the southeast of Lugushwa has been a major focus of alluvial works potentially associated with an underlying northeast trending structure.

Mine For

gold, nickel, coal

Location of operation(s)

Western Australia, Democratic Republic of Congo

Address

Level 14, 31 Queen St
MELBOURNE, VIC, AUSTRALIA

Phone

(61 3) 8610 8633

Email

Website

http://www.regalresources.com.au

Last Updated

10/02/2011