FYI
OR: REGAL GOLDFIELDS LIMITED
CANADIAN DEALING NETWORK SYMBOL: REGL
JULY 23, 1998
Regal Goldfields to Spend $250,000 on Tagalder's 1998
Kiglapait/Labrador Nickel Exploration Program
TORONTO, ONTARIO--Regal Goldfields Limited (CDN-REGL) announces
that it has entered into a joint venture agreement with Tagalder
Inc. whereby Regal can earn up to a 75 percent interest in
Tagalder's interest in its Kiglapait Properties which covers the
northeastern and eastern contact of the Kiglapait Intrusion in
northern Labrador. The Properties consist of three claim groups,
two totalling 129 claims of which Tagalder owns 100 percent and a
third totalling 148 claims of which Tagalder has the right to 80
percent thereof.
Regal will earn a 25 percent interest by expending $250,000 during
1998 and has the right to spend an additional $1.5 million on
exploration in 1999 and 2000, for which it can earn an additional
50 percent. Tagalder will pay Regal a fee of $25,000 for
organizing and managing the Joint Venture.
Tagalder's Kiglapait Properties comprise 277 claims over 6,925 ha
and are located approximately 100 km northeast of the original
Voisey's Bay nickel copper discovery. The Properties, while
almost completely overlain by the Labrador Sea, are interpreted to
be underlain by the basal portion of the Kiglapait Intrusion, one
of a series of troctolite intrusions belonging to the Nain
Plutonic Suite. Tagalder controls 14 km of strike length along
the basal portion of the Kiglapait Intrusion. The remainder of
the intrusion, currently controlled by Inco, was staked by Diamond
Fields Resources after its Voisey's Bay discovery, as it has a
geological structure very similar to that of Voisey's Bay.
Drilling results reported by Diamond Fields on November 1, 1995
from their Dudley Prospect in the southern part of the intrusion
indicated the presence of "disseminated semi-massive sulphides"
within the intrusion.
In early 1996 Watts, Griffis and McOuat, Consulting Geologists and
Engineers ("WGM") completed a series of reports on the Properties.
The reports concluded that the potential for Voisey's Bay type
mineralization is indicated by:
1) Anomalous values of nickel, copper and cobalt (up to about 10
times regional background) occurring in lake sediments collected
from lakes situated along the lower contact of the Kiglapait
Intrusion along strike to the northwest of the property.
2) The sulphide showings occurring within the basal part of the
intrusion at Wendy Bay and Topaz Point.
3) The anomalous nickel values reported from rock samples
collected from the basal part of the intrusion north of Port
Manvers Run.
4) An airborne magnetometer survey, which was completed over the
property in 1996, defined a number of interesting magnetic
anomalies.
The 1998 exploration program will focus on the significant
anomalies delineated by the 1996 aerial magnetometer survey. WGM
will carry out the work which includes: initial reconnaissance to
map and sample the basal part of the intrusion as exposed along
the shore and on the small islands included in the claims;
confirmation of drill sites in the vicinity of the magnetic
anomalies; an initial 400 m diamond drillhole to test the basal
part of the intrusion in the area of one of the magnetic
anomalies; and a down-hole EM survey to explore for the presence
of off-hole conductors.
Further, Regal announces that it has completed a private placement
of 625,000 flow through special warrants ("Special Warrants") at a
price of $0.20 per Special Warrant for gross proceeds of 125,000.
The Special Warrants are exchangeable for 625,000 fully paid and
non-assessable common shares in the capital of Regal and 625,000
common share purchase warrants any time up to June 30, 2001. Each
common share purchase warrant is exercisable into one common share
in the capital of Regal at an exercise price of $0.25 per common
share for a period of three years.
The proceeds of this private placement will be used to partially
fund the initial program on the Kiglapait Properties.
Regal is currently negotiating to sell an option to purchase a 50
percent interest in its interest in the Kiglapait Properties.
Under the proposed terms of the option, the optionee would pay
$25,000 for the option to purchase the 50 percent interest for
$100,000 until July 31, 2001.
Regal presently has 14,390,054 common shares and 2,625,000 special
warrants outstanding, including the 625,000 described above. The
balance of the special warrants are exercisable into 2,000,000
common shares and 1,000,000 common share purchase warrants within
six business days after a receipt is issued by the Ontario
Securities Commission for a final prospectus qualifying such
common shares and warrants, or on June 23, 1999, whichever is
earlier. Each common share purchase warrant entitles the holder
to acquire one common share in the capital of Regal at an exercise
price of $0.20 per common share at any time on or before December
23, 1999.
Regal is currently engaged in exploration for and development of
mineral properties in Canada. It currently has active exploration
programs in northwestern Cape Breton Island, Nova Scotia, and in
Kidd Township near Timmins, Ontario. |
