Regal Resources pleased with Kalongwe Scoping Study results

THE DRILL SERGEANT: Regal Resources (ASX: RER) has completed a Scoping Study to assess the technical and economic feasibility of developing a HMS Stage1 – starter project at the company’s Kalongwe project, located in the Katanga Province of the Democratic Republic of Congo to produce a high-grade copper/cobalt concentrate.

 

Source: Company announcement

 

“The completion of a Scoping Study just some 15 months after the start of the company’s first drilling program at Kalongwe represents a significant achievement for both Regal and the Kalongwe Mining JV,” Regal Resources managing director David Young said in the company’s announcement to the Australian Securities Exchange.

“The outcomes of the Study greatly enhance the project’s economic and development potential.

“Results confirm the company’s exploration strategy of identifying and securing an interest in very high-grade copper/cobalt oxide deposits that have the potential to be developed as stand-alone, low CAPEX, open pit mining operations generating strong cash flows allowing for a very short payback period.

“And the results of the Study are considered to be especially robust as the outcomes are based on a Measured and Indicated JORC Mineral Resource estimate.

“While we view the HMS processing option as an efficient and cost effective way to fast track the development of a mining operation, the Study has highlighted multiple opportunities to improve the project economics and to significantly extend the mine life.”

Regal now has further studies underway to evaluate transitioning from a starter Stage 1 HMS project to a longer mine life Stage 2 SX-EW development.

The company explained the JV’s shorter term outlook is to improve the project economics, through such means as reducing concentrate transport costs through a truck lease agreement, generating higher grade copper and cobalt concentrates and identifying alternative ways of marketing the product.

At a corporate level Regal indicated it is progressing towards finalisation of an agreement to acquire Traxys Europe’s 30 per cent interest in Kalongwe Mining that would take its direct holding in the Kalongwe asset to 60 per cent.

The company is also wanting to maximize value from any potential mine development at Kalongwe by entering into JV agreements covering some of the areas surrounding the Kalongwe permit considered to be highly prospective for similar types of deposits,” Young continued.

“Kalongwe Mining has recently submitted an application to the DRC Mines Department to convert the Kalongwe Permit to a mining licence.

“While this process is underway the Board will be seeking consent from its JV partners to complete a bankable feasibility study.”

Website: www.regalresources.com.au