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Regal acquires an interest in an advanced high-grade Copper/Cobalt Project in the Katanga Copperbelt, DRC
Regal Resources Limited (�Regal� or �the Company�) (ASX:RER) is pleased to announce the signing of a Binding Memorandum of Understanding (�MoU�) with Traxys Europe SA (�Traxys�) to acquire, explore and develop a potentially significant Copper and Cobalt project located in the Katanga Province of the Democratic Republic of Congo (DRC).
Historic drill results have confirmed the potential of the project.
Some of the more significant intersections include:
- DKAL_DD006: 90.23m @ 3.38% Cu and 0.93% Co
- DKAL_DD007: 77.60m @ 4.14% Cu and 0.57% Co
- DKAL_DD019: 70.00m @ 2.22% Cu and 0.84% Co
- DKAL_DD005: 56.30m @ 2.98% Cu and 0.46% Co
- DKAL_DD019: 47.00m @ 2.07% Cu and 0.43% Co
The Kalongwe project (PR 12198) is held by La Generale Industrielle et Commerciale au Congo SPRL (�GICC�), a DRC Registered Company. Regal and Traxys have entered into a formal and binding agreement with GICC to acquire an immediate 60% interest in the project with the right to acquire a further 20% interest.
Both agreements represent major milestones for Regal in achieving its strategic objective of fast tracking the delineation of significant mineral resources and of developing early cash flow opportunities.
Highlights
- The project is located within the world class Central African Copperbelt, and is situated some 60km from Kolwezi, an established mining centre in the Katanga Province DRC, and 15km from Kamoa, considered to be Africa�s largest high grade copper discovery. Indicated Mineral Resources of 739 million tonnes grading 2.67% Cu.
- Previous exploration drilling and exploration results indicate that the project has the potential to support a resource of several hundred thousand tonnes of copper metal.
- At surface there is extensive outcrop of high grade Copper and Cobalt mineralisation. Oxide mineralisation has been intersected in drill holes to a depth of at least 200m below surface.
- Mineralisation is of similar grade to Cu mines operating in the region.
- There is significant exploration potential, with numerous targets already defined over 2.7km of strike.
- Regal has a highly experienced copper exploration team with a track record of success of exploration in the DRC and who have also been involved in the development of a copper mine in Katanga.
- The project offers the potential for early positive cash flow generation from semi-mechanised mining.
- Funding for acquisition, exploration and feasibility studies will be shared on a 50/50 basis with Traxys, which helps to de-risk the path to the development of the project.
- Traxys is a leading international commodities trader as well as a global leader in financing, marketing, distribution and financial services for the mining, metals and minerals industries.
- Regal and Traxys are jointly reviewing other copper opportunities in the DRC with the intention of building a portfolio of strategically important projects.
Managing Director of Regal, David Young, said:
�Kalongwe presents an exciting opportunity for Regal, and appears to be an ideal project for the Company in its current phase of development. Not only does it provide Regal with exposure to a highly prospective copper project but it also limits, through risk sharing with a strong financial partner, the Company�s level of investment commitment. In addition there is an existing exploration and drilling database of substantial value that will enable the Company to advance rapidly to a resource drilling phase, subject to confirmation of the previous drilling results. Further, there is the potential to generate early cash flow from the semi-mechanised mining of outcropping mineralisation. Profits generated can be used to support future exploration programmes.�
About Traxys
Traxys is a major metals and natural resources marketing, distribution, supply chain management and trading firm with over 300 employees worldwide, over 20 global offices, and has become a global leader in financing, marketing, distribution and financial services for the mining, metals and minerals industries. It had an annual turnover in excess of USD 6 Billion..
The Kalongwe Copper-Cobalt Project
The Kalongwe Cu-Co deposit is located within PR 12198 which is situated in the Katanga province of DRC approximately 60km south west of Kolwezi, an established mining and service centre, that lies close to the western extent of the Central African Copperbelt (CACB) (Figure 1). The CACB is one of the most important copper producing regions in the world accounting for an estimated 8% of the global mining production of copper and is estimated to contain 50% of the copper known to exist in sediment hosted copper deposits.
To read full ASX Announcement click here.
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