VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 8, 2010) - Regal Resources Inc. (CNSX:RGR) (the "Company" or "Regal") -
Regal Resources Inc. (the Company) is pleased to announce it has entered into an option agreement to earn a 100% interest in the Patagonia copper project in Santa Cruz county Arizona. In order to exercise the option the Company would need to make cash payments of $810,000 US and undertake work expenditures of $25,500,000 US over a ten year period with a $40,000 cash payment and a $500,000 work commitment in the first year. In addition the Company would need to issue 2,000,000 shares to the optionor over the same ten year period. The optionor will retain a 3% NSR.
The Patagonia project is located near Nogales, Arizona, 45 miles (72 kilometers) south of Tucson. The project is located in the prolific Laramide porphyry copper province along the trend of the Cananea Mine (7.14 billion tons @ 0.41% copper) to the south, and the Resolution Copper deposit to the north (1.5 billion tons @ 1.5% copper). The property consists of 280 claims totaling 5600 acres (2266.2 hectares), and contains several areas of drilling completed by ASARCO, Anaconda and others. This historic work has identified four primary targets and several secondary targets. The four main targets were identified by geologic mapping and core drilling conducted from 1952 through 1992. The targets include the BX Breccia, Sunnyside Deep, Sunnyside shallow and Sunnyside Skarn.
The BX Breccia is a large altered area containing chalcocite-enargite mineralization near surface. The BX breccia pipe had several holes drilled by Anaconda in the mid 1950's. The target area is centered on drill holes SU-2 and 3 which contain 317 feet grading 0.67% copper as chalcocite and 74 feet grading 0.62% copper as chalcocite respectively according to reports written by Anaconda.
The Sunnyside targets consist of approximately three square miles of alteration (777 hectares) containing chalcocite-enargite mineralization near surface. Wide spaced drilling by Kerr-McGee and ASARCO identified deep porphyry copper-molybdenum mineralization (Sunnyside Deep) in five drill holes spaced from 1000 to 2000 feet apart. ASARCO internal reports list drill hole TR 10 which include an interval of 350 feet grading 0.57% copper, 0.033% molybdenum, 0.006 oz/ton gold and 0.10 oz/ton silver. Drill hole TM 8, from the same report, contains 1200 feet averaging 0.25% copper, 0.017% molybdenum, and 0.10 oz/ton silver (no gold assays were available). The mineralization is open to the south, west, and north and to depth according to ASARCO reports.
The drilling above also intersected copper mineralization as chalcocite-enargite near surface (Sunnyside Shallow). Drill hole TM 8 described above intersected 70 feet of 0.58% copper, an intervening zone of 160 feet grading 0.25% copper, and an additional 110 feet grading 0.68% copper from 120 feet to 480 feet below surface. Other drill holes include BB 1 with 140 feet grading 0.41% copper, BB 2 with 100 feet of 0.60% copper, BB3 with 76 feet of 0.60% copper and BB 6 with 110 feet of 0.91% copper. Silver occurs along with the copper in amounts from 0.10 to 0.50 oz/ton.
The Sunnyside Skarn mineralization was identified in step out drill holes from the porphyry system. The skarn is also deeply buried and would require underground methods of extraction.
In a report by ASARCO, drill hole TCH 2 intersected several mineralized zones including 57 feet grading 1.3% copper, 5% lead, 12.2% zinc and 10.8 oz/ton silver, as well as 124 feet grading 0.2% copper, 0.9% lead, 14.1% zinc and 7.3 oz/ton silver. Three additional holes intersected thinner zones of comparable grades. These holes are spaced from 350 to 1500 feet (107 to 457 meters) apart.
The information contained herein with respect to historical drill results comes from historical records and has not been independently verified by the Company.
The technical information in this release has been reviewed and approved by Mr. Richard Kern, BSc., M.Sc., P. Geo. Registered Geologist Nevada & California; a 'qualified person', as defined by NI 43-101, Standards for Disclosure of Mineral Projects unless otherwise noted.
Although the widely separated drill holes mentioned above do not warrant a 43-101 compliant resource study until more drilling is completed, the Company believes this property to be exceptional in its quality of grade and size potential. The Company plans a diligent program of exploration commencing immediately.
The Company proposes to raise an initial $3,000,000 by way of private placement. These funds will be used to meet the first two years of commitments on the Patagonia and Squaw peak projects.
This press release includes "forward-looking statements" including forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Regal Resources Inc. Statements regarding future fund raising and completion of the Acquisition are subject to all of the risks and uncertainties normally incident with the raising of capital and completing corporate transactions including, but are not limited to, financing risks, inflation and costs of goods and services, property title issues and regulatory approvals. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Regal Resources Inc. does not assume the obligation to update any forward-looking statement, except as required by applicable law.