Wo Wo Gap
Regency owns a AUD1.7m Debt Position in Resource Mining Corp Ltd; Developer of the Wo Wo Gap Nickel Project in Papua New Guinea
Nickel-Cobalt Deposit in Southeastern New Guinea
JORC Resource of 125 million tonnes @ 01.06% Ni and 00.07% Co (1.33 million tonnes nickel + 83k tonnes of cobalt)
EL1165 - 28 Sub Blocks Totaling 94.4km2
Regency has purchased a 1.7M debt position in ASX listed Resource Mining Corporation Ltd. (ASX:RMI). Regency retains an option to secure substantially all remaining RMI debt (AUD 3M)
Option price is 23,711,018 new RGM shares + AUD 640k, option runs to Sept ’20 – further extendable
Discussions ongoing with RMI to explore PNG consolidation and expected synergies.
LOCATION AND GEOLOGY
Wowo Gap is located at the south eastern end of the Papuan Ultramafic Belt, a complex of peridotite, pyroxenite and gabbro which form the prominent east-west trending Didana Range, approximately 160km east of Port Moresby.
The project hosts 125 Million tonnes @ 1.06 percent Ni and 0.07 percent Co Indicated Resource Estimate (JORC 2004) within the laterite profile based on drilling along the 12 kilometre strike length.
The nickel mineralisation is associated with a laterite weathering profile developed over the underlying ultramafic geology which has resulted in the enrichment of nickel, cobalt, iron, chromium, magnesium and magnesite.
A complete lateritic profile is preserved, with partial truncation associated with recent drainage systems. The depth of lateritic weathering varies according to rock type and the degree of structural brecciation. The lateritic profile is typically 10 to 15 metres thick, occasionally more than 20 metres.
|2011 Mineral Resource Estimate||Mt||Nickel (%)||Cobalt (%)|
|Contained Metal (kt)||||1,325||83|
WoWO Gap History
Wowo Gap has a long history of exploration dating back to the 1950s. Here is a timeline of significant exploration milestones at Wowo Gap.
|1996||Purchase of Wowo Gap EL1165 by Cobra Resources Limited (now Resource Mining Corporation Limited (ASX:RMI)) held in subsidiary company Niugini Nickel Ltd.|
|1998||Joint venture with Anaconda Nickel Limited (now Minara Resources Limited (ASX:MRE)) one of the world’s Top 10 nickel producers.|
|1998||Exploratory diamond drilling adjacent to Bereruma Creek finds samples to contain between 1.2 and 1.7 percent nickel.|
|1999||Anaconda assigns a Net Present Value (NPV) to Wowo Gap of A$572 million following a Scoping Study into High Pressure Acid Leach (HPAL) development option.|
|2000||Scout drilling using light weight Wacker rig.|
|2003-2005||Diamond drilling using man portable drill rigs.|
|2006||Resource estimate of 120 million tonnes of 1.2 percent nickel and 0.1 percent cobalt published.|
|2007-2008||Further diamond drilling and ground penetrating radar surveys.|
|2008||Metallurgical testwork on Heap Leach, Atmospheric Leach and HPAL options.|
|2008||Inferred mineral resource estimate of 100 million tonnes at 1.02 percent nickel, 0.08 percent cobalt over a strike length of 8 kilometres.|
|2008||Scoping study identifies mine development options with the most favoured option costing between US$300 and US$600 million with an Internal Rate of Return (IRR) of up to 24 percent based on a Heap Leaching model.|
|2009||Updated Resource Estimate: Indicated and Inferred resource of 89 million tonnes at 1.01 percent nickel and 0.06 percent cobalt.|
|2009||Feasibility Study into HPAL development option yielded an NPV of A$272 million and IRR of 16%.|
|2009||Independent project valuation of A$168 million.|
|2010-2011||Auger drilling using new light weight man portable drill rigs.|
|2011||Organic leach technology, metallurgical testwork and Scoping Study commences.|
|2011||Updated Resource Estimate: Indicated and Inferred Resource Estimate of 125 million tonnes at 1.06 percent nickel and 0.07 percent cobalt.|
|2014||DSO exploration target announced, auger drilling and Scoping Study commences.|
|2015||Diamond drilling commences.|