2015 - ASX · 2015. 8. 2. · Sprott -Stansberry Natural Resources Symposium in Vancouver, Canada (27 31 July 2015). The Directors of Regal Resources Limited (ASX: RER) (“Regal”

31 July 2015 ASX Code: RER No. of Pages: 24 (incl. Cover)

QUARTERLY REPORT - FOR THE PERIOD ENDED 30 JUNE 2015 DETAILS OF ANNOUNCEMENT

Quarterly Activity Report for the period ending 30 June 2015 (18 pages)

Appendix 5B for the period ending 31 June 2015 (5 pages) For and on behalf of the Board Yours sincerely

Ian Pamensky Company Secretary Further information relating to the Company and its various mining and exploration projects can be found on the Company’s website at www.regalresources.com.au

R E G A L R E S O U R C E S L I M I T E D A B N 2 3 1 0 6 2 9 4 1 0 6

QUARTERLY REPORT FOR THE PERIOD ENDING 30 JUNE 2015

Ground Floor

11 Ventnor Avenue

West Perth WA 6005

T (+61 3) 9626 2435

E [email protected]

W www.regalresources.com.au

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http://www.regalresources.com.au/

11 Ventnor Avenue, Ground Level, West Perth, Western Australia, Australia 6872

P: 618 6355 6888 | www.regalresources.com.au | ACN 106 294 106

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31 July 2015 ASX Code: RER

QUARTERLY REPORT FOR PERIOD

ENDING 30 JUNE 2015

HIGHLIGHTS

Kalongwe Mining Joint Venture

Following the release earlier in the Quarter of strong Scoping Study results highlighting the outstanding

economic potential of the Kalongwe Project the decision was taken to proceed with a full feasibility study.

ALS Metallurgical Laboratories in Perth (Australia) have been engaged to undertake a comprehensive

metallurgical test work programme that will enable a detailed mineral processing flow sheet to be

developed that will be used for HMS plant design improvements.

Kalongwe Mining SA, has been formally advised by the Ministry of Mines that both the technical study

report and the environmental study report submitted to the Ministry of Mines to support an application to

convert the Kalongwe Project (PR 12198) to an exploitation permit for the establishment of a mine and

associated infrastructure have been approved.

A regional exploration programme was commenced to evaluate high value anomalous copper and cobalt-

in-soil results coincident with Kundelungu Fomation (Grant Conglomerate).

Regal-Ivanhoe Joint Venture

A detailed technical review of historic exploration results covering the five (5) exploration permits that

make up the Regal-Ivanhoe Mines Joint Venture (‘’JV’’) was commenced. And fieldwork was started to

investigate areas identified to have potential to host significant mineralisation.

The permits are largely contiguous, and generally surround the Kalongwe Mining Cu-Co Project and have

significant discovery potential for high-grade sediment hosted Cu and Co mineralisation.

Five (5) high priority prospects, some with multiple target areas, have been identified from the technical

review of Ivanhoe data.

Field investigation of the Kambundji Prospect identified copper mineralisation exposed in outcrop and

artisanal workings over a distance of about 200 m. The structure hosting the mineralisation has an

estimated strike extent of 8 km. Rock chip samples collected in the area returned values of up to 4.95% Cu.

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Victorian Brown Coal Tenements

Rehabilitation works were concluded at the EL 4507 and EL 4510 sites in accordance with licence

conditions and to the satisfaction of the Victoria State Department of Economic Development, Jobs,

Transport & Resources.

Corporate

Entered into an AU$1.5 million convertible loan financing agreement with Tembo Capital to commence

exploration work associated with the Regal-Ivanhoe JV, necessary metallurgical test work for the Kalongwe

Definitive Feasibility Study (“DFS”) and working capital.

Cash on hand at 30 June 2015 was AU$1,594,000.

Messrs. Gillespie and Edgar resigned from the Board of Directors in June 2015.

Mr. Mark Savich was appointed interim Chairman.

The former business office in Melbourne (Australia) was vacated for a smaller and less expensive office as

part of a corporate cost saving strategy.

Regal presented and or exhibited at the following conferences:

RIU Sydney Resources Round-up, Sydney, Australia (13-14 May 2015),

Australian Copper Conference in Brisbane, Australia (16-17 June 2015), and

Sprott-Stansberry Natural Resources Symposium in Vancouver, Canada (27-31 July 2015).

The Directors of Regal Resources Limited (ASX: RER) (“Regal” or “the Company”) are pleased to present

their Quarterly Activities Report for the period ended 30 June 2015.

Kalongwe High-Grade Copper-Cobalt Project (Katanga Province, DRC)

Overview

The Company’s flagship project is the Kalongwe deposit (or “the Project”) that hosts a near surface

oxide JORC resource of 302,000t contained copper and 42,000t contained cobalt, with an average

copper grade of Cu of 2.71% Cu, has been delineated (ASX: RER, 5 February 2015) (Table 1).

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Table 1: Kalongwe Cu-Co Project-Mineral Resource estimate (February 2015).

Weathering

profile Domain Measured Indicated Inferred

Total

Tonnage

(Mt)

Ave.

Cu

(%)

Ave.

Co

(%)

Tonnes

Cu

Tonnes

Co

Oxide Cu Only1 1.24Mt@

3.35% Cu

2.45Mt @

2.27% Cu

1.24Mt @

1.60% Cu

4.94 2.37 - 117,200 -

Mixed3 2.07Mt @

3.76% Cu

1.67 Mt @

2.72% Cu

0.35Mt @

1.98% Cu

4.08 3.19 0.66 130,000 26,800

Primary Cu Only1 - 1.20 Mt@

2.65% Cu

0.41Mt@

1.63% Cu

1.61 2.39 - 38,400 -

Mixed3 - 0.51 Mt@

3.06% Cu

0.03Mt@

2.22% Cu

0.54 3.02 0.52 16,400 2,800

Total Cu

Domains

3.31Mt @

3.61 % Cu

5.83 Mt @

2.55 % Cu

2.03Mt @

1.70% Cu

11.17 2.70 *0.27 302,000 29,700

Oxide Co Only2 0.37Mt @

0.66% Co

1.34Mt @

0.59% Co

0.38Mt @

0.43% Co

2.09 - 0.57 - 11,900

Primary Co Only2 - 0.18Mt @

0.53% Co

0.02Mt @

0.43% Co

0.2 - 0.52 - 1,000

Total Co

Domains

1.24Mt @

3.35% Cu

2.45 Mt @

2.27% Cu

1.24Mt @

1.60% Cu

2.29 - 0.57 - 13,000

Notes:

1. The Cu only domains were reported by selecting blocks with Cu >= 0.5%.

2. The Co only domains were reported by selecting blocks with Co >= 0.2%.

3. The Mixed Domains (blocks located within overlapping Cu and Co domains) were reported by selecting blocks with Cu >= 0.5%. The Co grade from

these blocks was also reported.

*It is assumed for the purposes of this Mineral Resource that Cu grades in the Co only domains, and Co grades in the Cu only domains are 0%,

although low grade mineralisation was recorded in sample assays. Therefore the reported Cu% and Co% grades are diluted, where they are reported

in the other domains.

A Scoping Study (or “the Study”) has been completed that was based on the Measured and Indicated

resource categories of the deposit (ASX: RER, 21 April 2015). The purpose of the Scoping Study was to

evaluate the viability of developing a stand-alone mining operation at Kalongwe utilising a HMS plant

to process high-grade mineralisation during the earlier stages of mine development.

The results of the Study have highlighted the potential to fast track the development of mine at

Kalongwe.

Key Outcomes of the Scoping Study

Project Net Present Value (NPV @ 10% discount rate) Cu price $3/lb * $77.9 million

Project Internal Rate of Return (IRR) 81%

Payback 13 months

Capital Cost to Initial Production $38.9 million

Operating Costs (per pound (“lb”) Cu payable) $1.01per lb

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* Base Case is stated on a post-tax basis assuming 100% project at a copper price of $3.00/lb. All amounts

are in US dollars unless otherwise stated.

Ownership of the Project is held by Kalongwe Mining SA (“Kalongwe Mining“), a company currently

owned by Regal (30%), the international commodities trading company Traxys (30%) and La Generale

Industrielle et Commerciale au Congo SPRL (“GICC”) (40%). Exploration and development costs are

jointly funded by Regal and Traxys. Regal is the operator of the JV.

Regal is at an advanced stage in negotiations to increase its interest in Kalongwe Mining to 60% and as

the operator of the JV is focused on fast tracking the development of a mining operation at Kalongwe.

The Project is located in the Katanga Province of the DRC and is situated towards the western end of

the World Class, Central African Copperbelt.

It is some 20 km south from Ivanhoe Mines’ Kamoa deposit (considered to be Africa’s largest recent

high-grade copper discovery) and is approximately 45 km from the copper mining and processing

centre at Kolwezi, (Figure 1).

Figure 1: Map of the western Congolese part of the African Copperbelt (CACB) and the location

of the Kalongwe Project relative to principal Cu-Co deposits in the region. Inset shows location

of Kalongwe in the context of the CACB.

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Feasibility Study

On the basis of the highly encouraging Scoping Study outcomes the decision was taken to proceed to

a full Feasibility Study.

ALS Metallurgical Laboratories in Perth have been engaged to undertake a full metallurgical test work

programme on three sample composites to be prepared from large diameter diamond drill core,

representative of the ore scheduled to be mined over the first five (5) years of the anticipated mine life

The results of the test work will be used to develop a detailed mineral processing flow sheet to facilitate

improvements in the design of the HMS plant.

The Company’s consultant metallurgist has advised that the properties of the Kalongwe ore make it

eminently suitable for heap leaching or agitation leaching. For this reason, the test work programme

will also include an evaluation of the leaching characteristics of the mineralisation.

Permit Conversion

During the Quarter Kalongwe Mining SA (“KM”) was advised by the DRC Ministry of Mines that they

had approved two (2) key documents submitted to the Ministry in April 2015, as part of the application

to convert the Kalongwe project (PR 12198) to an exploitation (mining) licence.

In accordance with DRC Mining Code (2002) and Decree No. 038/2003 of 26 March 2003 (Mining

Regulations), Kalongwe Mining was required to submit an Environmental Impact Study (EIS) and

Environmental Management Plan of the Project (EMPP) as well as a technical study that demonstrates:

The existence of a deposit which is economically exploitable on a large scale,

The evidence of the existence of the financial resources necessary to complete the project

successfully, and

The plan for technical supervision of the development, construction and exploitation of the

mine.

The Ministry of Mines has informed KM that both the EIS and EMPP have been approved and the

Director of Mine Services has provided a favourable technical opinion for the development of open pit

mining operation at Kalongwe.

As a consequence of these approvals a recommendation has been sent to the Minister of Mines that

the Kalongwe licence be converted to a mining permit.

Once approval has been received from the Minister, KM will be required to transfer to the DRC State a

5% share of its 100% holding in the Kalongwe permit.

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The Mining Code provides that the granting of an exploitation permit which entitles its holder to the

exclusive right to conduct exploration, development, construction and mining activities for those

minerals for which the permit is given. It also allows its holder to build the installations and

infrastructure required for the mining exploitation, use the water and forestry resources inside the

mining perimeter, process, transport and market the minerals.

Exploration Activities

Within the Kalongwe Project area there are a number of fragments of Lower Roan Mine Series rocks, up

to 700 m in length that have been identified from historic regional mapping, (Figure 2). The Lower Mine

Series is host to over 80% of copper deposits in the DRC.

Following the completion of the resource drill out of the Mines Series fragment hosting the Kalongwe

deposit, the exploration effort is now being targeted on testing the other fragments of Mines Series

rocks that outcrop over a distance of 2.5 km, and also to test for potential new zones of copper

mineralisation hosted in the Grand Conglomerate Formation, Nguba Group (host to the world class

Kamoa Cu deposit, located approximately 20 km north-west of Kalongwe) which has been mapped

over the northern half of PR 12198.

During the Quarter a total of five (5) trenches were excavated for a total of 1,350 m, (Figure 2). The

trenches were laid out to cover a broad area of anomalous copper and cobalt in soil anomalies

underlain by the “Grand Conglomerate” rock succession.

Trench #3 and Trench #5 were sited in close proximity to very distinctive vegetation anomalies of the

type in the Central African Copperbelt that are typically associated with high levels of cobalt values in

soils. The areas covered by the vegetation anomalies were investigated for bedrock exposure. A

number of rock samples were collected and submitted to the laboratory for analysis, (Table 1).

A total of 406 channel samples were collected. All samples will initially be dried, crushed and undergo

initial hand-held XRF analysis. Samples that report anomalous values will be submitted to the

laboratory for analysis.

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Figure 2: Soil geochemical map of PR 12198 showing the location on recent trenches completed by the Kalongwe

JV and interval of anomalous Cu/Co mineralisation indicated by the hand-held Niton XRF analysis.

Table 1: Laboratory assay results of rock chip samples collected during trenching and mapping.

Prospect Sample

ID UTM_EAST UTM_NORTH

Sample

type Cu% Co% Comment

kalongwe L7475 305325.00 8782077.00 Rock chip 0.02 0.01 Outcrop



kalongwe L7483 304652.00 8782091.00 Rock chip 0.14 0.01 TR_05





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Prospect Sample

ID UTM_EAST UTM_NORTH

Sample

type Cu% Co% Comment





Regal-Ivanhoe Joint Venture (Fold and Thrust Belt Joint Venture / “FTBJV”)

In April 2015, the Company announced it had entered into a JV agreement with Ivanhoe Mines, to

acquire up to a 98% interest in a package of highly prospective tenements located near the western

end of the Central African Copperbelt in the Katanga Province, DRC (ASX: RER, 22 April 2015).

The JV covers an area of approximately 350 sq. km and consists of permits PRs 688, 689, 702, and

portions restricted to the geological domain of the Fold and Thrust Belt of PRs 690 and 701, (Figure 3).

Within the area covered by the JV are regional scale anticlinal folds, faults and thrust structures. These

are considered to offer high quality exploration targets as they can present windows onto the

mineralised rocks of the Lower Roan Mine Series, (Figure 3).

Historical exploration undertaken by Ivanhoe, including geophysical data interpretation, geological

mapping, geochemical sampling, Auger, RC and diamond drilling, identified a number of significant

targets that include economic intersections of Cu mineralisation, (Figure 3).

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Figure 3: Location map of the FTBJV licences, significant copper deposits and regional towns

and delineated exploration targets within the FTBJV area.

Figure 4: District-scale geological map of the FTBJV

area and target areas for 2015 field season.

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During the Quarter the Company commenced a review of the historic Ivanhoe project database. Five (5)

high-priority follow-up targets have so far been identified from the data review, and the Company has

commenced field investigation of the Kambundji East and Monwezi Prospects, (Figures 4).

The Kambundji East Prospect is located about 45 km by road south of Kolwezi and about 25 km east

of Kalongwe (Figures 4 and 5).

It is situated near the western termination of a major east-west trending faulted fold along which

several fragments of Roan (R2) sediments have been mapped. The JV project area covers about 17 km

of this trend, (Figure 4).

Two fragments of mineralised R2 sediments, striking broadly east-west and dipping steeply to the

south, with a combined strike length of about 200 m, were identified from various outcrop exposures

seen in pits, trenches, and artisanal workings.

The mineralised units extend under a hill which has a vegetation anomaly following the fault trend,

(Figures 5 and 6).

The R2 sediments consist of the classic R2 Mines Series facies including the Dstrat-RSF-RSC-SD rock

facies which are the principal host rocks for the bulk of mineralisation in the Congolese part of the

African Copperbelt (e.g. Kolwezi, Tenke-Fungerume, Kinsevere, Kalongwe and others). Predominantly

stratabound oxide copper mineralisation was observed in rocks exploited by artisanal miners from the

Dstrat-RSF and upper RSC-SD horizons, (Figure 6).

Rock chip samples were collected from various artisanal workings situated across the prospect area,

(Table 2). The rock chip samples were sent to a laboratory in Lubumbashi, DRC for analysis. Assay

results for these samples ranged up to 4.95% Cu highlighting the prospectivity of the area.

The Company is planning a more extensive and detailed programme of geochemical sampling and

mapping which will test a further 8 km of strike of east-west trending structure.

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Figure 5: Kambundji Prospect area geological map with rock

chip sample locations on backdrop of aerial photograph.

Figure 6: Kambundji geological cross section and outcrop photograph

from artisanal workings and exposure of mineralised R2 rocks.

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Table 2: Analytical results for rock chip samples collected from the Kambundji East Prospect. The results confirm historic reported results and identify Kambundji East as a high priority drill target.

Prospect Sample

ID UTM_EAST UTM_NORTH Sample type Cu% Co% Comment

Kambundji L7500 328897.00 8786548.00 Rock chip 4.95 0.01 Workings



Zibwe L7503 332583.00 8796039.00 Rock chip 0.75 0.40 Outcrop

Zibwe L7504 332562.00 8796051.00 Rock chip 0.03 0.01 Outcrop




The Monwezi Prospect borders the Kalongwe (PR12198) tenement, (Figure 7), and covers the

extension of the structures and geology that host the Kalongwe deposit.

Multiple highly anomalous rock chip samples (greater that 0.1% Cu) were collected by Ivanhoe in the

central part of the Monwezi Prospect, (Figure 7), from where trenching exposed multiple fragments of

R2 rocks, The trench samples showed continuous soil anomalies over 10’s of meters at above 250 part

per million (“ppm”) Cu and above 450 pmm Co.

Historic drilling by Ivanhoe reported an intersection in DKAL_056, 8 m @ 2.6% Cu in a fragment of R2

Mine Series rocks.

Regal geologists are re-logging the historic core to identify and assess the controls on mineralisation.

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Figure 7: Geological map of the Monwezi Prospect area and locations of

anomalous rock chip samples, trench locations and historic drill holes.

Regal SK - South Kivu - Gold Project

With Regal’s sole focus and efforts directed on the extensive exploration work programme for the

Kalongwe Project, the Company is in decisions to withdraw from the Regal SK Joint Venture and to

relinquish all of its interest in the project.

Victorian Brown Coal Tenements

The Exploration Licences (EL) 4507 and 4510 expired at the end of 2014. Western Victoria Energy Pty

Ltd (“WVE”), a wholly owned subsidiary of Regal, and the holder of the ELs took the decision to waive

its legal right to renew the licences and subsequently surrendered the tenements.

During the Quarter, rehabilitation works at the tenements were concluded in accordance with the

conditions set out in the respective licences and to the satisfaction of the Victoria State Department of

Economic Development, Job, Transport & Resources. The rehabilitation bonds for both EL 4507 and EL

4510 have been returned in full to WVE.

Corporate

Regal has cash reserves of AU$1,594,000 (unaudited) as at 30 June 2015 and has 217,045,458 ordinary

shares and 86 million unlisted options on issue.

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During the Quarter, the Company entered into an AU$1.5 million, convertible loan financing

agreement, with the mining private equity group, Tembo Capital, an existing significant shareholder in

the Company (ASX release: 28 May 2015).

Funds provided by the Loan Agreement is intended, among other things, for:

The commencement of exploration work on permits that form part of the FTBJV agreement with

Ivanhoe Mines, (ASX release: 22 April 2015),

Metallurgical test work required for the Kalongwe DFS, and

Working capital purposes.

Messrs Gillespie and Edgar officially resigned as Company Directors during June 2015.

Mr Mark Savich was appointed interim Chairman.

The Melbourne corporate office relocated on 1 May 2015 as part of a cost reduction program initiated

by the Board of Directors.

The company attended the following industry specific conferences during the reporting period as

strategic marketing initiatives to attract new shareholders and investors:

13-14 May 2015: RIU Sydney Resources Round-up (Sydney, Australia),

16-17 June 2015: Australian Copper Conference (Brisbane, Australia), and

28-31 July 2015: Sprott-Stansberry Natural Resources Symposium (Vancouver, Canada).

Cautionary Statement

Scoping Studies are commonly the first economic evaluation of a project undertaken and may be based

on a combination of directly gathered project data together with assumptions borrowed from similar

deposits or operations to the case envisaged.

This announcement has been prepared in compliance with the JORC Code 2012 Edition and the ASX

Listing Rules. The Company advises the Study results and production targets reflected in this

announcement are forecasts and estimates, and are preliminary in nature.

The results of the Study are based on lower-level technical and economic assessments, and are

insufficient to support estimation of Ore Reserves or to provide assurance of an economic development

case at this stage, or to provide certainty that the conclusions of the Study will be realised.

Results of the Study also demonstrate that the proposed Kalongwe Stage 1 Project is sensitive to

operating costs, ore grade, concentrate grade and quality and Copper/Cobalt price. Changes in these key

factors will have a material effect on the future economic performance of the Project.

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Forward-looking Statements

This release contains statements that are "forward-looking". Generally, the words "expect," "intend,"

"estimate," "will" and similar expressions identify forward-looking statements. By their very nature,

forward-looking statements are subject to known and unknown risks and uncertainties that may cause

our actual results, performance or achievements, or that of our industry, to differ materially from those

expressed or implied in any of our forward-looking statements. Statements in this release regarding the

Company's business or proposed business, which are not historical facts, are "forward looking"

statements that involve risks and uncertainties, such as estimates and statements that describe the

Company's future plans, objectives or goals, including words to the effect that the Company or

management expects a stated condition or result to occur. Since forward-looking statements address

future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual

results in each case could differ materially from those currently anticipated in such statements.

Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as

of the date they are made.

On behalf of the Board of Directors,

David Young

Managing Director

For further information, please contact:

David Young

Managing Director / CEO

Regal Resources Limited

Ph: +61 3 9626 2435

Ian Pamensky

Company Secretary /

Financial & Commercial Manager

Regal Resources Limited

Ph: +61 3 9626 2435

Email: [email protected]

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Information Note

Information about the Kalongwe Project referred to above, insofar as it relates to exploration results is

based upon information previously contained in the ASX announcement “Regal acquires an interest in

an advanced high-grade Copper/Cobalt Project in the Katanga Copperbelt, DRC and Regal to Complete

Fundraising and Commence Exploration at the Kalongwe Copper Project, DRC” which contained

information compiled by the Competent Persons: Mr David Young and Dr Simon Dorling, dated and

released to ASX as separate announcements on 14 November, 2012 and on 2 December, 2012. Further

detail can be obtained from the above announcement, which is available from the ASX website,

www.asx.com.au and the Company’s website, www.regalresources.com.au. The Competent Person Mr

David Young is a full time employee of the Company. The Company confirms that it is not aware of any

new information or data that materially affects information as it relates to exploration results included

in the announcements referred to, and that the form and context in which the competent person’s (Mr

David Young and Dr Simon Dorling’s) findings are presented have not been materially modified.

Competent Persons Statement

Scientific or technical information in this release that relates to Exploration Results has been prepared by

Mr David Young and Dr Simon Dorling, the Company’s Managing and Technical Directors. Mr David

Young is a member of the Australian Institute of Mining and Metallurgy (AusIMM) and Dr Simon Dorling

is a member of the Australasian Institute of Geoscientists (MAIG) and both have sufficient experience

which is relevant to the style of mineralisation under consideration and to the activity which they are

undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code

for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code). Mr David

Young and Dr Simon Dorling consent to the inclusion in this report of the information, in the form and

context in which it appears.

The information in this report that relates to Mineral Resources is based on information compiled by Mr

David Williams, a Competent Person, who is a Member of The Australasian Institute of Mining and

Metallurgy. David Williams is employed by CSA Global Pty Ltd, an independent consulting company. Mr

Williams has sufficient experience which is relevant to the style of mineralisation and type of deposit

under consideration and to the activity which he is undertaking to qualify as a Competent Person as

defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral

Resources and Ore Reserves”. David Williams consents to the inclusion in the report of the matters based

on his information in the form and context in which it appears.

The information in this document relating to the Kalongwe Cu-Co Deposit Resource estimate is extracted

from the Company’s ASX announcement entitled ‘Upgraded JORC Resource at Kalongwe 302,000t

Copper and 42,700t Cobalt’ dated 5 February 2015 and is available to view on

www.regalresources.com.au. The Company confirms that it is not aware of any new information or data

that materially affects the information included in the original market announcement and that, in the

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case of Mineral Resources or Ore Reserves, all the material assumptions and technical parameters

underpinning the estimates in the relevant market announcement continue to apply and have not

materially changed.

Assumptions on the process plant, infrastructure, capital & operating costs (excl. mining) as related to

the broader Scoping Study are provided by Mr Clive Hart. Mr Hart is the CEO of DRA Pacific Pty Ltd,

(Perth, Australia), and is a Member of the AusIMM. Mr Botha has sufficient relevant experience to qualify

as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Mineral

Resources and Reserves”. Mr Hart has consented to the inclusion of this information in the document in

the form and context in which it appears.

Assumptions on the metallurgical test work programme and interpretation as related to the broader

Scoping Study are provided by Mr Graeme Miller. Mr Miller is a Director of Miller Metallurgical Services

Pty Ltd, (Brisbane, Australia), and is a Fellow of the AusIMM CP. Mr Miller has sufficient relevant

experience to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for

Reporting of Mineral Resources and Reserves”. Mr Miller has consented to the inclusion of this

information in the document in the form and context in which it appears.

Assumptions on the mining factors, operating costs and mine plan are provided by Mr Ross Cheyne. Mr

Cheyne is the Managing Director of Oreology, (Perth, Australia), and is a Fellow of the AusIMM. Mr

Cheyne has sufficient relevant experience to qualify as a Competent Person as defined in the 2012

edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Cheyne has

consented to the inclusion of this information in the document in the form and context in which it

appears.

Under the JORC Code (2012), Clause 9, consent has been sought and obtained, where applicable, from

the Competent Persons listed above for any initial public release of information related to this report.

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TENEMENT SCHEDULE

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Appendix 5B

Mining exploration entity quarterly report

Appendix 5B

Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

REGAL RESOURCES LIMITED

ABN Quarter ended (“current quarter”)

23 106 294 106 30 June 2015

Consolidated statement of cash flows

Cash flows related to operating activities

Current quarter

$A’000

Year to date

(12 months)

$A’000

1.1 Receipts from product sales and related debtors

- -

1.2 Payments for (a) exploration and evaluation

(b) development

(c) production

(d) administration

(e) site care and maintenance

(131)

-

-

(381)

(332)

(452)

-

-

(1,674)

(771)

1.3 Dividends received - -

1.4 Interest and other items of a similar nature received 3 17

1.5 Interest and other costs of finance paid - -

1.6 Income taxes paid - -

1.7 Other – rehabilitation costs (26) (26)

Net operating cash flows

(867)

(2,906)

Cash flows related to investing activities

1.8 Payment for purchases of: (a)prospects

(b)equity investments

(c)other fixed assets

-

-

-

-

-

-

1.9 Proceeds from sale of: (a)prospects

(b)equity investments

(c)other fixed assets

-

-

-

-

-

-

1.10 Loans to other entities - -

1.11 Loans repaid by other entities - -

1.12 Other – Funds advanced to Associated company,

Kalongwe Mining SA (includes Kalongwe permit

$574,000 second part payment)

- Deposits refunded

(118)

103

(2,747)

103

Net investing cash flows

(15)

(2,644)

1.13 Total operating and investing cash flows (carried

forward)

(882) (5,550)

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1.13 Total operating and investing cash flows (brought

forward)

(882) (5,550)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc. - 3,200

1.15 Proceeds from sale of forfeited shares - -

1.16 Proceeds from borrowings - -

1.17 Repayment of borrowings - -

1.18 Dividends paid - -

1.19 Other (capital raising costs)

Convertible Loan

-

1,500

(147)

1,500

Net financing cash flows

1,500 4,553

Net increase (decrease) in cash held

618

(997)

1.20 Cash at beginning of quarter/year to date 975 2,426

1.21 Exchange rate adjustments to item 1.20 1 165

1.22 Cash at end of quarter 1,594 1,594

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities Current quarter

$A'000

1.23

Aggregate amount of payments to the parties included in item 1.2

171

1.24

Aggregate amount of loans to the parties included in item 1.10

-

1.25

Explanation necessary for an understanding of the transactions

Wages and Consultancy fees paid to directors and director related entities during the quarter.

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated

assets and liabilities but did not involve cash flows

Nil

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the

reporting entity has an interest

Nil

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Financing facilities available Add notes as necessary for an understanding of the position.

Amount available

$A’000

Amount used

$A’000

3.1 Loan facilities

- -

3.2 Credit standby arrangements

- -

Estimated cash outflows for next quarter $A’000

4.1 Exploration and evaluation / including funds advanced to

Associated company - Kalongwe Mining SA

285

4.2 Development

-

4.3 Production

-

4.4 Administration

410

Total

695

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in

the consolidated statement of cash flows) to the related items

in the accounts is as follows.

Current quarter

$A’000

Previous quarter

$A’000

5.1 Cash on hand and at bank 1,396 570

5.2 Deposits at call - -

5.3 Bank overdraft - -

5.4 Other (cash held restricted to expenditure on Regal

SK projects)

198 405

Total: cash at end of quarter (item 1.22) 1,594 975

Changes in interests in mining tenements Tenement

reference

Nature of interest

(note (2))

Interest at

beginning

of quarter

Interest at

end of

quarter

6.1 Interests in mining

tenements

relinquished, reduced

or lapsed

EL 4507

EL 4510

Licence Expired(1) - Surrendered

Licence Expired(1) - Surrendered

100%

100%

0%

0%

6.2 Interests in mining tenements acquired or

increased

- - - -

Notes:

(1) – Tenements held by 100% owned subsidiary Western Victoria Energy Pty Ltd

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Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Number issued Number quoted Issue value

(cents)

Paid-up value (cents)

7.1 Preference +securities

(description)

7.2 Changes during

quarter

(a) Increases

through issues

(b) Decreases

through returns of

capital, buy-backs,

redemptions

7.3 +Ordinary

securities

217,045,458

217,045,458

7.4 Changes during

quarter

(a) Increases

through issues

(b) Decreases

through returns of

capital, buy-backs,

redemptions

7.5 +Convertible debt

securities

(description)

7.6 Changes during

quarter

(a) Increases

through issues

(b) Decreases

through returns of

capital, buy-backs,

redemptions

7.7

Options (description and

conversion factor)

22,000,000

18,900,000

21,100,000

24,000,000

-

-

-

-

Exercise price

8.0

8.0

8.0

8.0

Expiry date

31/10/2017

28/10/2017

2/12/2017

10/02/2018

7.8 Issued during

quarter

7.9 Exercised during

quarter

7.10 Expired during

quarter

7.11 Debentures

(totals only)

7.12 Unsecured notes

(totals only)

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Compliance statement

1 This statement has been prepared under accounting policies which comply with

accounting standards as defined in the Corporations Law or other standards acceptable

to ASX (see note 4).

2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 31 July 2015

Print name: Ian Pamensky – Company Secretary

Notes

1 The quarterly report provides a basis for informing the market how the entity’s

activities have been financed for the past quarter and the effect on its cash position.

An entity wanting to disclose additional information is encouraged to do so, in a note

or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in

mining tenements acquired, exercised or lapsed during the reporting period. If the

entity is involved in a joint venture agreement and there are conditions precedent

which will change its percentage interest in a mining tenement, it should disclose the

change of percentage interest and conditions precedent in the list required for items

6.1 and 6.2.

3 Issued and quoted securities. The issue price and amount paid up is not required in

items 7.1 and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive

Industries and AASB 1026: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International

Accounting Standards for foreign entities. If the standards used do not address a topic,

the Australian standard on that topic (if any) must be complied with.

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Documents

2015 - ASX · 2015. 8. 2. · Sprott -Stansberry Natural Resources Symposium in Vancouver, Canada (27 31 July 2015). The Directors of Regal Resources Limited (ASX: RER) (“Regal”