A personal update after talking to John Black on 03/01/19. Any incorrect information below are unintended misinterpretations by myself. For this reason, I tried to keep it short and factual. If interested in the current developments of Regulus, I (and John) encourage you to reach out to him personally. For novice investors, I included some additional links to kick-start any personal due diligence. And last, thanks to John for his time and thanks to the people that reached out and provided me with additional questions. As always, do your own DD before investing your hard earned cash.
Drill hole status:
- Holes 21-30 are finished. Hole 24,27 & 28 went around 1000m deep. Hole 26 went 1300m deep. With the current contractor drilling is going better, almost no lost holes and better control. At the moment they are drilling at three different zones; 1) Sub-area 1 (dark pink) where they are mainly hitting high grade High Sulfidation (HS) material with deeper skarn zones 2) the Northern zone or officially the sub-area 2 (light pink). Drilling is done from CMC's ground as we await permits for sub-area 2 drilling. Here the target is shallow skarn material 3) other targets; Hole 30 is exploring an entirely new area to the northwest (click on the map to see a larger version);
Assays:
- Next batch in the next two weeks (mid-January)
- Previously released highlights:
Resource Estimate:
- Will include all holes up to 27. This means we get a first view on the 'northern' skarn material defined by holes 20,23,25 & 26. Only assays of hole 20 have been released as of yet (270.92 m with 0.54% Cu, 0.86 g/t Au and 51.24 g/t Ag (1.62% CuEq) in clean, skarn material)
- Last Resource estimate was based upon 17000 meters. This update will add +20000 meters
- Resource modeling consultant(s) visited the AntaKori site for a full week in December. Number crunching is ongoing and a final report is expected in February
- As the original estimate was done in 2012, there are several opportunities for improvement. Both on used parameters and on the interpretation of the geo model
- As Regulus can use CMC’s data, the possible confidence and extrapolating of mineralization that this extra data brings could provide the opportunity to include ore - on Regulus ground -that wasn’t included in the previous estimate.
- At this stage, they are viewing it as one big open pit
- Expect conservative metal price assumptions to be used as this is preferred by industry players (aka potential buyers)
- Besides some indications (annual & quarterly report notes), there is no official commitment from CMC to update their resource (+900Mt) in parallel in Q1 19. Fingers crossed.
Liquidity:
- For the Mgmt. team and the larger shareholders, the focus is on the end game. The ways to possibly create more liquidity are not without its consequences
- Active promotion is through attending key conferences throughout the year, it’s not the intention to raise this to a higher level at the moment although they are exploring the option of entering social media channels as an effective way to reach out to retail (any concrete tips, drop me a PM)
- Next conference attendance will be VRIC 20-21/01 (https://cambridgehouse.com/vancouver-resource-investment-conference) and AME Roundup 28-31/01 (https://roundup.amecb.ca)
Arsenic in the HS material:
- Bottom line: We wouldn’t spend resources on this asset if we wouldn’t think this is a potential economical deposit in the making. It a matter of finding out the CapEx & OpEx costs associated
- Little Metallurgical tests have been done, this will come between RE2 (Q1 19) and RE3 (2020)
- John is very much up-to-date with the current global developments in As treatment options
- The current resource modeling consultancy has been chosen also for their experience in As rich deposits and they have lots of market data available.
- Focus on discovering shallow, clean, skarn material as demonstrated by Hole 20
2019 drill plans:
- Threefold:
o Expand the resource & find its limits. So, none or limited infill drilling at this stage
o Continue drilling the northern target “underneath”
o After receiving all necessary permits; Drill sub-area 2
- Rainy season is Dec-April, drilling continues year-round and will accelerate as we head back into the dry season.
- Total meterage will be around the same as 2018’s (approx. 20-25km)
2019 Goals:
- Release the Resource Update. Planned in February, in time for the PDAC 3-6 March
- Grow the deposit in inferred category at least up until a possible PEA (2020 schedule). Optimal spacing of holes will flow out of the upcoming resource model work
- Get the permits in place to start drilling sub-area 2. Paperwork is ongoing
- Renew drill contractor contract at a more competitive price
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Website: https://www.regulusresources.com
Latest presentation: https://www.regulusresources.com/wp-content/uploads/201811_London_Presentation.pdf
Presentation: Regulus Resources - 121 Mining Investment London November 2018 https://www.youtube.com/watch?v=-I8_1TC0gto
Metals Investment Forum May 2018 - John Black, CEO & Director of Regulus Resources Inc.: https://youtu.be/J5WXB7tttY4
Brent Cook talks rocks with Kevin Heather of Regulus Resources: https://youtu.be/kbSHGfg2slM
