Regulus Initiates 30,000 M Drill Program at Rio Grande and Provides Update on Status of Merger with Pachamama
May 11 2012 - 8:00AM
Marketwired Canada
Regulus Resources Inc. ("Regulus" or the"Company") (TSX VENTURE:REG) is pleased
to announce the initiation of a 30,000 m drill program at the Rio Grande
copper-gold-silver project in Salta Province, Argentina. The first drill rig is
on site and has commenced drilling. An additional three rigs will arrive in the
next few weeks with drilling projected to continue throughout the remainder of
2012. The drilling will primarily focus on delineation of mineralization
surrounding newly discovered zones in the central and southwestern portions of
the Rio Grande system. These new zones include higher grade copper- gold
sulphide mineralization intersected in drill hole RGR-11-86 (257.2 m with 0.53%
Cu and 1.20 g/t Au, see news release of December 14, 2011) as well as
near-surface, oxide gold mineralization encountered in drill hole RGR-11-86
(49.6 m with 1.34 g/t Au and 0.26% Cu) and approximately 500 m to the north in
drill hole RGR-11-88 (104.5 m with 0.66 g/t Au and negligible Cu, starting from
the surface, see news release of February 8, 2012).
The results from the final six drill holes from the previous 15,000 metre
2011-12 drilling program are presented below (Figure 1 and Table 1 below, drill
holes RGR-11-92 through RGR- 12-97). The six holes are primarily infill holes in
the eastern part of the Rio Grande ring structure at the Sofia and Discovery
zones. None of these holes were drilled in the zones of mineralization
encountered in drill holes RGR-11-86 and RGR-11-88 described above.
Highlights from the drilling include the following:
-- RGR-11-92 - Infill drilling in the Sofia Zone intersected an interval of
146.50 metres with 0.33% Cu, 0.41 g/t Au and 4.49 g/t Ag (0.60% Cu Eq.).
-- RGR-11-93 - Infill drilling in the Sofia Zone encountered 111.00 metres
with 0.39% Cu, 0.45 g/t Au, 3.47 g/t Ag (0.67% Cu Eq.) including a
higher grade interval of 47.00 metres with 0.52% Cu, 0.67 g/t Au and
4.61 g/t Ag (0.93% Cu Eq.).
Wayne Hewgill, President and CEO of Regulus commented as follows: "With the
discovery of two new significant zones in late 2011, the recently announced
merger and $26.6 million financing, we are very well positioned to move ahead
aggressively at Rio Grande in 2012. Drilling will initially focus on delineating
the mineralization surrounding the high-grade Cu-Au sulphide mineralization
discovered in RGR-11-86 and the near surface oxide Au discovered in both
RGR-11-88 and RGR-11-86. We look forward to delineating the dimensions of these
two new zones and understanding their importance as the drilling program
progresses."
UPDATE ON STATUS OF MERGER WITH PACHAMAMA RESOURCES LTD.
Regulus and Pachamama Resources Ltd. ("Pachamama") (TSX VENTURE:PMA), as
previously indicated in press releases dated February 8, and February 24, 2012,
have signed a plan of arrangement agreement (the "Arrangement") that provides
for a merger of the two companies. Regulus and Pachamama each own a 50% interest
in the Rio Grande project.
The Arrangement was subject to approval by Pachamama shareholders. On May 8,
2012, Pachamama announced the results of the special shareholder's meeting held
on the same date. By a vote conducted by ballot, the special resolution
approving the Arrangement between Pachamama and Regulus under the Business
Corporations Act (British Columbia) was approved by a majority of 99.98% of
votes cast on the resolution in person or by proxy.
The Company expects to obtain final court approval of the Arrangement on Friday,
May 11, 2012 and expects to complete the Arrangement on or about May 16, 2012.
Coincident with the announcement of the arrangement agreement, Regulus closed a
$26.6 million financing. Proceeds of the financing will be released to Regulus
on completion of the Arrangement.
Full details on the Arrangement are set out in the management information
circular delivered to Pachamama shareholders in advance of the meeting, which is
available on SEDAR at www.sedar.com.
RIO GRANDE DRILL HOLE MAP
Figure 1: Rio Grande Drill Hole Location Map
To view the figure associated with this press release, please visit the
following link:
http://media3.marketwire.com/docs/510regfigure1.jpg
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RGR-11-092 Sofia From To Metres Cu
----------------------------------------------------------------------------
TD 452.00 46.35 193.00 146.65 0.33%
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Including 48.20 128.90 80.70 0.34%
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RGR-11-093 Sofia From To Metres Cu
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TD457.00 104.00 215.00 111.00 0.39%
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Including 140.00 158.00 18.00 0.49%
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also Including 168.00 215.00 47.00 0.52%
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RGR-11-094 Discovery From To Metres Cu
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TD 503.30 No significant Intervals
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RGR-11-095 Sofia From To Metres Cu
----------------------------------------------------------------------------
TD 454.00 299.00 311.00 12.00 0.21%
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and 366.91 421.00 54.09 0.17%
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RGR-11-096 # 7 From To Metres Cu
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TD 577.70 75.00 123.00 48.00 0.28%
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Including 104.00 121.00 17.00 0.24%
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and 138.72 155.00 16.28 0.28%
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and 185.00 239.45 54.45 0.19%
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and 267.00 283.00 16.00 0.21%
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and 326.55 356.00 29.45 0.18%
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RGR-12-097 Sofia/Disc From To Metres Cu
----------------------------------------------------------------------------
TD-532.50 231.70 258.70 27.00 0.29%
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----------------------------------------------------------------------------
RGR-11-092 Sofia Au g/t Ag g/t Cu Eq Mineral Zone
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TD 452.00 0.41 4.49 0.60% Oxide
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Including 0.62 4.62 0.73% Oxide
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RGR-11-093 Sofia Au g/t Ag g/t Cu Eq Mineral Zone
----------------------------------------------------------------------------
TD457.00 Oxide /
0.45 3.47 0.67% Transitional
----------------------------------------------------------------------------
Including 0.54 3.99 0.82% Oxide
----------------------------------------------------------------------------
also Including 0.67 4.61 0.93% Transitional
----------------------------------------------------------------------------
RGR-11-094 Discovery Au g/t Ag g/t Cu Eq Mineral Zone
----------------------------------------------------------------------------
TD 503.30 N/A
----------------------------------------------------------------------------
RGR-11-095 Sofia Au g/t Ag g/t Cu Eq Mineral Zone
----------------------------------------------------------------------------
TD 454.00 0.21 3.48 0.36% Oxide
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and 0.14 1.91 0.27% Transitional
----------------------------------------------------------------------------
RGR-11-096 # 7 Au g/t Ag g/t Cu Eq Mineral Zone
----------------------------------------------------------------------------
TD 577.70 0.30 3.95 0.49% Transitional
----------------------------------------------------------------------------
Including 0.78 9.94 0.75% Transitional
----------------------------------------------------------------------------
and 0.26 2.29 0.44% Transitional
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and 0.24 1.43 0.34% Transitional
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and 0.24 2.20 0.36% Transitional
----------------------------------------------------------------------------
and 0.23 6.78 0.37% Sulphide
----------------------------------------------------------------------------
RGR-12-097 Sofia/Disc Au g/t Ag g/t Cu Eq Mineral Zone
----------------------------------------------------------------------------
TD-532.50 0.44 2.86 0.55% Oxide
----------------------------------------------------------------------------
Table 1: Rio Grande Drill Results
(i)Copper equivalent calculation uses US$1,100/Oz Au, US$3.00/lb. Cu and
US$20.00/Oz Ag and is not adjusted for metallurgical recoveries as these remain
uncertain. The formula to calculate Cu equivalent is Cu Eq. = (Cu x 1) + (Au x
0.5437) + (Ag x 0.0097). Intercepts are reported as down-hole intercept lengths
and may not necessarily represent true widths.
FINAL 2011-12 DRILLING RESULTS
The 2011-12 drilling campaign at Rio Grande was completed in early 2012 and
consisted of 20 drill holes for a total of 15,025 m. The majority of the drill
holes have been previously reported. The final six holes of the program are
reported in this communication (see Figure 1 and Table one for locations and
detailed results) and consist mostly of infill or slight extension holes
designed to validate and/or constrain current resource estimation modelling of
near-surface mineralization in the Rio Grande ring structure. The final six
holes reported here do not test the new zones of mineralization encountered in
drill holes RGR-11-86 and RGR-11-88.
Drill holes RGR-11-92 and RGR-11-93 are infill holes in the Sofia zone which
encountered well mineralized intervals as predicted by the current resource
estimation models. Drill holes RGR- 11-95 and RGR-12-97 were collared in the
area between the Sofia and Discovery zones in an attempt to better connect these
two zones. These two holes only encountered narrow zones of lower grade
mineralization and appear to also confirm current modeling in this area. Drill
hole RGE-11-94 tested for a westward extension of the Discovery zone and did not
intersect any significant mineralization. Drill hole RGR-11-96 tested for a
southward extension of the # 7 zone and encountered multiple intervals of mostly
lower grade mineralization.
About Regulus Resources Inc.
Regulus Resources Inc. (TSX VENTURE:REG) is a mineral exploration company formed
in December, 2010 in connection with the sale of Antares Minerals Inc. to First
Quantum Minerals Ltd. (FM. TSX). Regulus is currently exploring the Rio Grande
Cu-Au-Ag porphyry project in Salta Province of NW Argentina on a 50/50
joint-venture basis with Pachamama Resources Ltd. (PMA TSX.V). As reported in
the press release dated Feb 8, 2012, Regulus and Pachamama have agreed to merge
which will result in Regulus holding a 100% interest in the Rio Grande Project.
All of Regulus' exploration programs and pertinent disclosure of a technical or
scientific nature are prepared by, or under the direct supervision of, Wayne
Hewgill, P.Geo, and Regulus' President, who serves as the qualified person (QP)
under the definitions of National Instrument 43-101.
The Rio Grande samples were analysed with the following methods: Au - 30 g FA
with AA Finish, Cu - four acid digestion for trace Cu and four acid digestion
and AAS for ore grade Cu, 35 element Aqua Regia ICP-AES.
Regulus' security, chain of custody and quality control is described on their
website and can be reviewed at:
http://www.regulusresources.com/BestPractices/SamplingMethodologies.aspx
Forward Looking Information
Certain statements regarding Regulus, including management's assessment of
future plans and operations, may constitute forward-looking statements under
applicable securities laws and necessarily involve known and unknown risks and
uncertainties, most of which are beyond Regulus' control.
Specifically, and without limitation, all statements included in this press
release that address activities, events or developments that either Regulus
expects or anticipates will or may occur in the future, including management's
assessment of future plans and operations and statements with respect to the
completion of the anticipated drilling program and the completion of a NI 43-101
compliant resource estimate, may constitute forward-looking statements under
applicable securities laws and necessarily involve known and unknown risks and
uncertainties, most of which are beyond Regulus' control. These risks may cause
actual financial and operating results, performance, levels of activity and
achievements to differ materially from those expressed in, or implied by, such
forward-looking statements. Although Regulus believes that the expectations
represented in such forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct. Such risks and
uncertainties include, but are not limited to: the impact of general economic
conditions in Canada and Argentina, industry conditions including changes in
laws and regulations including adoption of new environmental laws and
regulations, and changes in how they are interpreted and enforced, in Canada and
Argentina, fluctuations in commodity prices and ability to complete operations
due to factors beyond Regulus' control.
Although the forward-looking statements contained in this Press Release are
based upon assumptions which management believes to be reasonable, Regulus
cannot assure shareholders that actual results will be consistent with these
forward-looking statements. With respect to forward-looking statements contained
in this press release, Regulus have made assumptions regarding: current
commodity prices and royalty regimes; timing of receipt of regulatory approvals;
availability of skilled labour; timing and amount of capital expenditures;
future exchange rates; the impact of increasing competition; conditions in
general economic and financial markets; effects of regulation by governmental
agencies; royalty rates; future operating costs; and other matters.
Accordingly, Regulus does not give any assurance nor make any representations or
warranty that the expectations conveyed by the forward-looking statements will
prove to be correct and actual results may differ materially from those
anticipated in the forward-looking statements. Regulus does not undertake any
obligation to publicly update or revise any forward-looking statements other
than required by applicable securities law.
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