Regency Mines (LON:RGM) is to begin an exploration programme on its acreage adjacent to Australia’s primary flake graphite deposit at Munglinup.

Prices of high quality flake graphite have been rising recently due a supply shortage, primarily due to its use in lithium ion batteries. Flake graphite has extremely low resistivity to electrical conductance and the electrical resistivity decreases with the increase of flaky particles.

Regency acquired vacant ground adjoining Munglinup in late 2010 and said that as far as it is aware it is the first company to recommence exploration around Australia's primary flake graphite deposit, in the search for the same high grade carbon flake graphite.

The company plans to conduct a reconnaissance drill programme as soon as the permits can be obtained from the state government, and once access tracks are cleared through the scrub. A multi-phase drill programme will commence with 2 to 3 drill lines initially.

Regency also today released initial drill assay results from its March 2012 drilling programme at the Pyramid Lake project, which intersected significant grades of Ilmenite containing up to 3.79 per cent titanium.

The company said the project in Papua New Guinea had the potential to be one the world’s largest single nickel laterite deposits on Wednesday this week, when it released the news.

It gave Mambare an indicated and inferred resource of 95.1 million tonnes grading 0.96 per cent nickel with 912,595 contained tonnes.

This maiden figure was calculated across a combined area of 9 square kilometres, with only 2 sq km in the primary target -  the 80 sq km plateau. 

The remainder of the resource is on the southern slopes below the plateau.

"The tonnage far exceeds our expectation of 30 million tonnes, which we had reached through our discussions with Mambare’s project manager during the November 2011 site visit," said VSA Capital analyst Jessica Pendal.

"It is important to note that it is the 80sq km plateau itself which is the primary target. Hence this 95 million tonnes is just the beginning and we expect that further delineation drilling on the plateau will significantly increase the resource estimate," she added.

Mambare is being explored through a 50:50 joint venture with Sydney-based firm Direct Nickel.

The estimate was based on the results of the 2011 exploration campaign and only those holes from the 2008 exploration campaign located within the 2011 drilling area - 162 drill holes and 5 test pits in all.

On Wednesday, in the statement, Mambare's project manager, Ian Warden said: "This has the potential to be one of the world’s largest single nickel laterite deposits.

 “This resource estimate of 95 million tonnes is three times the size of our initial target for this campaign.

"We found better thicknesses and grades than we anticipated, having penetrated the full profile including both limonite and saprolite horizons. 

"Within the total JORC compliant resource there appear to be significant tonnages of higher-grade material, which bodes well for future project economics."

Regency Mines (LON:RGM) said this morning it expects in the “next few weeks” to declare a maiden mineral resource on the Mambare nickel-cobalt project in Papua New Guinea.

“This will be the most significant milestone in the company's short life,” said chairman Andrew Bell.

He was speaking as the group posted its results for the six months to December 31.

They revealed the group posted a pre-tax loss of £3.1 million, while cash at the period end totaled £150,769.

At the same time the value of investments in associates fell to £3.5 million from £8.5 million. This was counter-balanced to a degree by a revaluation of the company’s exploration assets, which almost doubled in worth to £4.1 million.

“The financial results do not tell this story,” said Bell. “As Regency is an exploration company that may not be surprising.

“They do however track the changes in valuation of the two principal assets of the company: its associate investment in Red Rock Resources and its investment in Oro Nickel, which owns the Mambare project.”

Regency Mines (LON:RGM) rose this morning after reporting on the results of an electromagnetic survey over its Australian assets and outlining proposals for the 2012 exploration campaign.

Regency’s wholly owned subsidiary Regency Mines Australasia (RGMA) completed a versatile time domain electromagnetic (VTEM) survey and interpretation over 17 of its 20 tenements in Australia in 2011.

The interpretation for all areas except Bundarra, where it continues, has been completed and outline exploration proposals for 2012/2013 have been prepared, said Regency.

With the current phase of exploration at its Papua New Guinea nickel-cobalt project having completed, Regency is reviewing these proposals.

The survey results, said the company, confirmed the possible extension of sulphide anomalies at the Pyramid Lake sulphides and gold project. These will undergo further tests during mid-March.

Meanwhile, the next phase of work at Pyramid Lake has been approved so that work can be completed before the agricultural season.

A mobile metal iron sampling programme covering much of the project area is currently underway to detect if any anomalies exist at depth and will be followed immediately by reverse circulation drilling.

Elsewhere, the VTEM survey identified two primary conductors and a magnetic unit at the Mt Gordon project, which are being modelled for further geophysical assessment, while also identifying two near-surface conductors at the Munglinup graphite project.

The Munglinup also has potential for magnesite.

However, the West Lake area showed only drainage channels with no strong mineralisation so this tenement will be surrendered, said Regency.

The exploration programme proposed for the 2012/13 season also includes further drill programmes at the Kambalda nickel sulphides and gold project and the Bundarra copper and gold project, which are subject to budget approval.

At Bundarra, the VTEM survey measured a number of electromagnetic targets, of which four have been delineated for a diamond drill programme planned for July/August.

In the meantime, Regency’s Australian subsidiary has also applied for licenses covering two new projects in Western Australia, the Fraser Range gold project and the Kimberly Downs/Ellendale North TM tenement, which is prospective for diamonds.

Last Friday, Regency reported further good grades from its Mambare nickel laterite project in Papua New Guinea.

The results were derived from 253 samples from eight drill holes. Seven of these drill holes included assayed intervals with nickel grades above 1 percent, and all eight contained assayed intervals over 0.7 percent nickel. 

Mambare is being explored through a 50:50 joint venture with Sydney-based firm Direct Nickel.

Shares in regency rose four percent to 2.28 pence in early trade in London, giving the company a market cap of £15 million.

The group said the drill results continued to support the good grade, thickness and continuity of mineralisation encountered in Areas 1 and 3 - the Plateau and the North Ridge Infill.

The Plateau (Area 1) include good nickel and cobalt grades at one hole with 15.4 metres at 1.20% nickel and 0.09% cobalt from 8.45m, with sections of 3.70m at 1.78% nickel, and 0.17% cobalt from 15m.

Key results from the North Ridge Infill (Area 3) included 32.9m at 1.00% nickel and 0.06% cobalt from 2.95m, which included 12.67m at 1.40% nickel and 0.09% cobalt in one hole.

The results were derived from 253 samples from eight drill holes. Seven of these drill holes included assayed intervals with nickel grades above 1%, and all eight contained assayed intervals over 0.70% nickel. 

Mambare is being explored through a 50:50 joint venture with Sydney-based firm Direct Nickel.

Regency Mines (LON:RGM) today revealed more drill results from the Mambare nickel laterite project in Papua New Guinea.

The company says the latest results show continued good thickness.

Additionally, Regency explains, that grades in the northernmost drill holes show that the mineralisation continues to the north beyond the current drilling area.

This is encouraging for future exploration, it added.

Today’s drill results come from three separate areas of the Mambare project, and they represent 26 drill holes.

The highlights from the Plateau area, otherwise known as area 1, included an interval of 22.25 metres grading 1.07 per cent nickel, which also had 9.08 metres grading 1.53 per cent nickel.

At the North Ridge Extension, otherwise known as area 2, the highlight result was 31.15 metres grading 1.12 per cent nickel. While the best result from North Ridge Infill, area 3, was 22.69 metres at a grade of 1.38 per cent nickel.

The highest grades recorded in individual assays were 3.03 per cent nickel over 0.2 metres and 2.93 per cent nickel over 0.80 metres. Both of these holes were in the Plateau area.

In total there were 661 sample taken from the 26 holes. Of them 318 had more than 0.7 per cent nickel, including 173 above 1 per cent nickel. The weighted average grade for all samples is 0.74 per cent nickel and 0.07 per cent cobalt.

The results continued to be positive, the company said. The highlight assays showed good thicknesses and grades, it added.

They include 16.55 metres, from 8 metres depth, grading 1.39 per cent nickel and 0.06 per cent cobalt. Within that intersection there was 5.55 metres at 2.19 per cent nickel and 0.09 per cent cobalt, with a peak assay of 2.94 per cent nickel. 

These results come from Area 1, which is also referred to as the Plateau. It also released assays from holes drilled on Area 2 and Area 3. 

Holes in these areas also included continued good nickel grades and thicknesses, as well as high cobalt values.

The best assays from there included 26.6 metres with 1.10 per cent nickel, and in another hole there was up to 0.23 per cent cobalt in a 4.4 metre intersection, within that grades were reported as high as 0.44 per cent cobalt (in 1.2 metres). 

These are the latest in a series of assay results from Mambare. Earlier this month the company said that some of the results from the Plateau have confirmed the "significant grade and tonnage potential" of the zone.

The company had told investors this zone may have the potential to host one of the world's largest nickel laterites.

Mambare is being explored through a 50:50 joint venture with Sydney based firm Direct Nickel Pty Ltd.