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• Programme Will Stop Once Initial 4,000m Has Been Completed
• Allows For Completion Of Laboratory Tests And Analysis Before Further Drilling
• Decision Reflects Corporate Priority To Conserve Cash In Tough Markets
AIM-listed Regency Mines plc, the mining exploration and mineral investment company says that at October 18 it had completed 3,050m of the planned 4,000m minimum drilling programme on its Mambare lateritic nickel-cobalt project in the Oro Province of Papua New Guinea.
With up to seven drill rigs operating on site, 262 holes had been completed, along prepared lines, in the southern area of the company’s licence which has been covered by the programme of ground-penetrating radar earlier this year.
Regency also says that it will terminate the drilling programme once the minimum 4,000m as provided for in the contract has been completed, expected within two weeks. It will not drill the entire 10,000m as originally planned.
Commenting today (Friday), Regency chairman Mr Andrew Bell said: “Successful completion of this drill programme is a landmark in the development of the company and its PNG project. We expect to derive an initial resource on part of the license as well as for the first time quantify the saprolite potential.
“The decision to terminate at this point has been taken to conserve our cash resources in a poor market environment where nickel prices have fallen steeply and liquidity factors have affected sentiment towards small exploration companies and, on the advice from our external consultants, to allow laboratory testwork on the core samples, and other analysis, to be completed before any further drilling is considered.” – Press Release