TIDMRGM
RNS Number : 1381J
Regency Mines PLC
07 September 2016
Regency Mines Plc
("Regency" or "the Company")
Review of Motzfeldt Centre Project, Greenland
7(th) September 2016
Further to the announcement of 17 November 2014, and subsequent
references in the Company's announcements, Regency has initiated a
review of its Motzfeldt Multi-Element Project, covering the
Motzfeldt Centre, Greenland, and contained within its license
2014/01 ("Motzfeldt Centre"), with a view to conducting further
work that will give a comprehensive understanding of the
composition and economic potential of the Motzfeldt Centre, most of
which remains unexplored or lightly explored.
Highlights
-- The Motzfeldt Centre Project includes a previously notified
JORC Inferred Mineral Resource of 340Mt @ 120ppm Ta(2) O(5) ,
4,600ppm ZrO2, 1,850ppm Nb(2) O(5) and 2,600 ppm total rare earth
oxides
-- Resource contains a significant Tantalum Resource
-- Other areas within the license with potential for mineralisation little explored
-- Globally significant scale of existing Resource indicates further potential
Regency Chairman Andrew Bell commented:
"As the exploration and commodity markets moved inexorably
towards their lows, the opportunity arose to pick up at negligible
cost the massive Motzfeldt Centre Project, with its declared
Mineral Resource and known exploration potential. We had in-house
alkaline rock and Greenland exploration experience, and knowledge
of the Motzfeldt area, so we seized that opportunity.
Demand for tantalum, niobium, and rare-earth minerals continues
to increase.
Regency has always looked for projects where the potential for
scale exists.
We were not in a position to do more last year than fund some
academic fieldwork and sampling in the unexplored but accessible
Swaldale area to the west of Qooroq fjord, near the Narsarsuaq
international airport, looking at the petrological and geochemical
characteristics and petrogenesis of the peripheral syenites in that
area. Through this and other work new prospects have been
identified besides the existing Resource area.
It is now time, in an improved environment, to find ways to
progress the Project. We have over time received several
expressions of interest in purchasing the asset, and have indicated
terms on which we might consider disposing of all of our interest.
We are now notifying all such parties that in the light of current
interest we are reviewing our position. We have also established a
data room and will be ready to engage with any parties interested
in partnering with us on this asset."
Background of the Motzfeldt Multi-element (Nb, Ta, REE) Project,
Greenland
The technical information contained in this announcement was
previously disclosed in the Company's announcement of 17 November
2014, from which the following summary is derived:
Regency holds 100% of the Motzfeldt Centre multi-element
(niobium (Nb), tantalum (Ta), rare earth elements (REE)) Project
through its ownership of licence 2014/01 in southern Greenland.
The licence covers 555km(2) of the Gardar Province in southern
Greenland, host to three large REE deposits, including the
important Motzfeldt Centre, a part of the Igaliko Nepheline Syenite
Complex. The licence area includes a multi-element prospect
believed by GEUS (Geological Survey of Denmark and Greenland) to be
one of the world's largest Ta deposits with a prospectivity
identified by GEUS of 600 million tonnes grading 120 ppm Ta (high
grade zones up to 426 ppm Ta) and 130 million tonnes grading
0.4-1.0% Nb(2) O(5) . The prospect has known and significant rare
earth potential, requiring exploration.
The Motzfeldt Project is located 50km north-east of Greenland
Minerals and Energy Limited's Kvanefjeld Project, considered to be
one the world's largest rare earth resources with extensive
additional resources of uranium and zinc.
The Motzfeldt area was first explored in the 1980s by GEUS who
carried out regional chip sampling and a detailed helicopter-borne
radiometric survey, identifying five radiometric anomalies over a
7km strike length, shown to be associated with tantalum-rich
pyrochlore mineralisation hosted by hydrothermally altered syenite.
Cabot Corporation carried out further work in 2001, including a 9
hole, 1,621m drill programme intercepting up to 18 metres @ 630 ppm
Ta(2) O(5) and 7,800 ppm Nb(2) O(5) .
On 27 April 2012 Ram Resources Limited (ASX:RMR)("Ram") made an
ASX announcement of a maiden JORC Inferred Mineral Resource in one
part of what is now Regency's Motzfeldt Centre Project, of 340Mt @
120ppm Ta(2) O(5) , 4,600ppm ZrO(2) , and 1,850ppm Nb(2) O(5) at a
cut off operating cost of $60/t. Additional details are summarised
in the table below:
Commodity Ta(2) O(5) Nb(2) O(5) ZrO(2) TREO U Th
------------- ----------- ----------- ---------- -------- ------- -------
Grade (ppm) 120 1,850 4,600 2,600 70 120
------------- ----------- ----------- ---------- -------- ------- -------
Product
(t) 40,800 629,000 1,564,000 884,000 23,800 40,800
------------- ----------- ----------- ---------- -------- ------- -------
Mineral resources are not mineral reserves and do not have
demonstrated economic viability. All figures are rounded to reflect
the relative accuracy of the estimate and any resultant apparent
errors are not considered to be material (SRK Consulting (UK)
Ltd).
A copy of the Ram announcement of an Inferred Mineral Resource
may be found at
http://www.asx.com.au/asxpdf/20120427/pdf/425vdqmzhqgxp0.pdf
Figure 1 Map showing the 2014/01 licence area
http://www.rns-pdf.londonstockexchange.com/rns/1381J_-2016-9-6.pdf
For further information, please contact:
Andrew Bell 0207 747 9960 Chairman Regency Mines Plc
Scott Kaintz 0207 747 9960 Executive Director Regency Mines
Plc
Roland Cornish/Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 0129 351 7744 Broker Dowgate Capital
Stockbrokers Ltd
This information is provided by RNS
The company news service from the London Stock Exchange
END
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