Regal Goldfields Limited - Drilling Commences On Kiglapait Property Update
On Cheticamp Exploration
TORONTO, ONTARIO--Regal Goldfields Limited (CDN-REGL) announces
the commencement of the initial 450 m diamond drillhole to test
one of the magnetic anomalies identified on the basal part of the
portion of the Kiglapait Intrusion in northern Labrador which is
covered by its joint venture agreement with Tagaldar Inc. Under
the terms of the agreement, 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. 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.
Further, Regal has completed the sale of an option to purchase a
50 percent interest in its interest in the Kiglapait Properties.
Under the terms of the option, the optionee paid Regal $25,000 for
the option to purchase the 50 percent interest for $100,000. If
Regal decides to spend any additional funds on the Kiglapait
project after the first $250,000 has been spent, the optionee must
either exercise its option and pay his pro-rata share of ongoing
expenditures or the option expires. If no further expenditures
are made after the first $250,000, the option expires on July 31,
2001.
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. 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 is focused on the significant
anomalies delineated by the 1996 aerial magnetometer survey. WGM
has completed a reconnaissance program to map and sample the basal
part of the intrusion as exposed along the shore and on the small
islands included in the claims and has confirmed drill sites in
the vicinity of the magnetic anomalies.
CHETICAMP PROPERTIES
With respect to exploration activities in the Cheticamp Highlands
on northwestern Cape Breton Island, Nova Scotia, Regal has
completed 9 holes totalling 1173 m of diamond drilling. This
program was monitored by WGM.
Two holes tested lead-zinc-silver mineralization in the Galena
Mine area where some high grade mineralization was mined at the
turn of the century. Based on the results no additional drill
testing in this area is warranted at this time. A fence of four
holes was drilled about 300 m to the south to test a conductive
zone coincident with a zinc-lead soil geochemical anomaly on
strike with the Galena Mine mineralization. The mineralization
encountered in the holes does not appear to have economic
potential for base metal mineralization. However, fine grains of
visible gold were observed from two mineralized horizons in the
westernmost hole associated with fine grained disseminated
chalcopyrite. The upper horizon has a stratigraphic thickness of
30.6 m including a section which assayed 2.31 grams of gold per
tonne over 1.24 m and the lower horizon with a stratigraphic
thickness of 23.6 m had a section which assayed 0.45 grams of gold
per tonne over 0.3 m.
The disseminated gold mineralization encountered at Galena South
is considered significant in that:
- anomalous gold values associated with the mineralized horizons
extend over significant stratigraphic thicknesses indicating
potential for generating significant tonnage if economic grade
mineralization can be located;
- the grade and thickness of the mineralization appears to be
increasing to the west. No drilling has been carried out in that
direction and since the host stratigraphy is overlain by about 60
m of metasediments the area remains completely unexplored.
The presence of gold occurring in association with chalcopyrite
has not been previously noted in the over 200 holes drilled in the
Cheticamp district. An examination of old drill logs show that
there was disseminated chalcopyrite mineralization in some of the
old holes that was not sampled and/or assayed for gold. In
addition there are several copper-gold soil geochemical anomalies
on the property which require investigation.
Three holes were drilled to test the coincident zinc-lead soil
geochemical anomaly at Delbert Brook where several high grade
sulphide boulders had been discovered in the stream valley. No
mineralization of economic interest was encountered in this
drilling and no further work is planned on this target at present.
Regal is finalizing its plans to follow up the Galena South
mineralization and the balance of its exploration targets in the
Cheticamp area.
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 common 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, 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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