Regal Goldfields Limited - New Target Defined On Kiglapait Property
TORONTO, ONTARIO--Regal Goldfields Limited announces that it has
completed its 1998 exploration program on the portion of the
Kiglapait Intrusion in northern Labrador which is covered by its
joint venture agreement with Tagalder Inc. Regal is pleased to
report that work to date has identified a highly prospective
target that has the potential to host ore grade
nickel-copper-cobalt sulphides.
KIGLAPAIT PROPERTIES
Tagalder's Kiglapait Properties total over 6,925 ha and are
located approximately 100 km northeast of the original Voisey's
Bay nickel-copper discovery. They 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. The Properties, while almost completely overlain
by the Labrador Sea, are interpreted to be underlain by the basal
portion or border zone of the Kiglapait Intrusion, the largest of
a series of troctolite intrusions belonging to the Nain Plutonic
Suite. Tagalder controls 14 km of strike length along the border
zone of the Kiglapait Intrusion. The remainder of the intrusion
is controlled by Inco Limited and has a geological structure very
similar to that of Voisey's Bay.
The 1998 exploration program was managed by Watts, Griffis and
McOuat Limited, Consulting Geologists and Engineers, ("WGM") and
the results were reviewed by Dr. A. J. Naldrett, a world
recognized expert on nickel deposits. The program included
mapping and sampling of the border zone as exposed along the shore
and on the small islands included in the claims and the drilling
of a 509 m diamond drillhole to test the border zone and one of
the magnetic anomalies previously identified therein. The hole
which was collared on shore and drilled - 62§ due east intersected
zones of disseminated and semi-massive to massive sulphides within
intervals from 225-228 m, 356-407 m and 465-505 m but was
completed before it intersected the contact between the border
zone and the Archean gneisses. Assay results indicate that the
sulphides contain low values of nickel and copper.
In July 1996, an airborne geophysical survey was flown over the
Properties. The magnetic survey showed that zones in what was
presumed to be border group rocks were characterized by magnetic
highs that extend intermittently all around the northeast margin
of the intrusion. Several egg-shaped magnetic highs, one
comprising a marked dipole, occur southeast of the 1998 drillhole
and extend as much as 5 km offshore. As well, a
southeast-trending magnetic anomaly extends from this area for
more than 10 km. In the eastern part of the claim block, a
succession of parallel, north-south striking magnetic bands
probably reflect variations in Archean gneisses of the basement.
These appear to be cut and offset by the southeast-trending
magnetic anomaly.
In Dr. Naldrett's report, he states "as one has come to understand
more about the controls on the formation of Ni-Cu sulphide
deposits, it has become clear that 4 factors are pre-eminent:
(i) A sufficient amount of Ni-rich magma is required;
(ii) Immiscible sulphides must develop within this magma;
(iii) The sulphides must mix with enough of the magma to scavenge
enough Ni that they themselves become sufficiently Ni-rich; and
(iv) The sulphides must then become concentrated in a restricted
locality so that the final deposit is of mineable grade."
Dr. Naldrett believes that, based on the results of exploration to
date, the first two factors are now fulfilled and he continues "in
considering the likelihood of economic mineralization on the
Tagalder property, the geological question to be answered is
whether any sulphides on the property have had the opportunity to
mix with, and extract nickel from a large amount of magma, and if
so, whether they have been concentrated at any particular
locality.
"In answering these questions, it is interesting to consider what
is currently known about the origin of the Voisey's Bay deposit.
The concept for the formation of different parts of the Voisey's
Bay deposit, as published by Naldrett et al. (1996) is that
troctolitic magma reacted with sulphide-bearing Tasiuyak gneiss at
depth, developed immiscible sulphides, and then flowed rapidly up
a magma conduit to form an intrusion (the "Eastern Deeps") at a
higher level in the crust. The early forming sulphides, which
Naldrett et al. (1998) suggest contained relatively little Ni,
were picked up by a surge of fresh magma, with which they mixed
and were carried along in suspension. In this way their contents
of Ni, Cu and Co were upgraded. They settled out of the rapidly
flowing magma in the conduit locations where the conduit widened,
and thus where the magma flow was less rapid, and also at the
junction of the conduit with the main intrusion, where again magma
flow was less.
"Turning now to the Tagalder property, it does not take great
imagination to picture the southeast-trending magnetic anomaly as
a feeder channel, intersecting the base of the Kiglapait
Intrusion. It is not clear that magma flowing through this feeder
was carrying immiscible sulphides. If it was, these sulphides
could well be expected to settle in a basin that had developed at
the junction of the feeder with the intrusion, and which is
represented by the broadening of the highly magnetic zone where
the feeder joins the anomalies coincident with the margin of the
intrusion. The egg-shaped magnetic highs within this zone could
represent accumulations of sulphide+magnetic highs (the pyrrhotite
of the Voisey's Bay Ovoid is non-magnetic, but it is associated
with magnetite formed from the oxygen which was originally in
solution in the immiscible sulphide liquid). If the magma in the
feeder did not contain immiscible sulphide, it could still have
encountered Ni-poor sulphides present in rocks of the Lower Border
Zone, where it transected this zone, and have re-melted and
enriched these sulphides in Ni, upgrading them over the sulphides
of the border zone that do not occur in the vicinity of the
feeder.
"In either case, from a geological point of view, the locus of the
intersection of any feeder with the base of the Kiglapait
intrusion is a fertile one for the development of ore-grade
sulphides."
Both Dr. Naldrett and WGM recommend that further exploration be
performed on the Properties and concentrated in this area. An
additional 44 claims have been staked to the southeast covering
the possible feeder channel and Regal is in the process of
developing a program for further exploration. More detailed
airborne magnetic surveys, a side-scan and vertical sonar survey,
an underwater EM and magnetic survey, bottom sampling and diamond
drilling are all being considered.
Regal has earned a 25 percent interest in Tagalder's interest in
the Properties by expending $250,000 during 1998 and has the right
to earn an additional 50 percent by spending a total of $1.5
million on exploration in 1999 and 2000. Regal's interest was
subject to an option agreement whereby the optionee could purchase
a 50 percent interest in Regal's interest for $100,000. The
optionee has decided not to exercise the option.
CAPITALIZATION
Regal presently has 14,390,054 common shares and 2,625,000 special
warrants outstanding. Of the special warrants, 2,000,000 are
exercisable into 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 of these common share purchase warrants 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.
The balance of the special warrants are exchangeable for 625,000
common shares and 625,000 share purchase warrants any time up to
June 30, 2001. Each of these common share purchase warrants is
exercisable into one common share at an exercise price of $0.25
per common share any time on or before July 23, 2001.
SUMMARY
Regal is currently engaged in exploration for and development of
mineral properties in Canada. It currently has active
exploration programs in northern Labrador, Moose River and
northwestern Cape Breton Island, Nova Scotia and in Kidd Township
near Timmins, Ontario.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Regal Goldfields Limited
Richard W. Brissenden
President
(416) 364-1130
(416) 364-6745 (FAX)
Email: regalgld@interlog.com
Internet: www.regalgoldfields.com
NO REGULATORY AUTHORITIES OR SIMILAR BODIES HAVE APPROVED OR
DISAPPROVED THE INFORMATION CONTAINED HEREIN.
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