Moolart Well Gold Deposit Resource Update

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Moolart Well Gold Deposit Resource Update Powered By Docstoc
					12 October 2007

Manager Announcements
Company Announcements Office                                                             ABN 28 009 174 761
Australian Securities Exchange
4th Floor, 20 Bridge Street                                                   Level 11, 461 Bourke Street
Sydney NSW 2000                                                          Melbourne Victoria 3000 Australia
                                                                             Telephone: +61 3 8602 6500
                                                                              Facsimile: +61 3 8602 6560
Dear Sir,

Moolart Well Gold Deposit Resource Update
Key Points:
    •   Moolart Well gold deposit resource increased to 1.56 million ounces;

    •   Duketon Gold Project resource base increased to 2.84 million ounces;

    •   Moolart Well Laterite and Oxide zone Indicated Resource increased to
        686,000 ounces; expected to be converted into mining reserves;

    •   This update should provide a sufficient resource base to commence the
        development of the Project.

Regis Resources NL (ASX:RRL) is pleased to
announce that independent consultant Golder
Associates Pty Ltd has completed a new
resource calculation for the Company’s 100%
owned Moolart Well gold deposit. Moolart Well
is the central deposit in the Duketon Gold
Project located 130km north of Laverton in
Western Australia (see Fig 1).

The resource calculation includes a complete
reassessment of all drilling, sampling and survey
data, a detailed QAQC (Quality Assurance
Quality Control) review and includes all drilling
completed up to July 2007.

The Moolart Well gold deposit is the largest of
eight deposits comprising the Duketon Gold
Project, all of which are located on granted
mining leases.      The current development
concept is to construct a gold processing facility
at the Moolart Well mine site and truck gold ore
from the other seven deposits to this regional

A Feasibility Study on the Duketon Gold Project
is well advanced and applications for
environmental assessment of the proposed
development are anticipated to be submitted
shortly.                                                   Fig 1. Duketon Gold Project resources.

Moolart Well Resource
The updated Moolart Well gold resource is
presented in table 1 below. The total resource
figure has increased to 1.147 million ounces in
Indicated and Inferred resources at a 0.5-1.0g/t
gold cut-off grade, with a further 417 koz
(‘000oz) ounces in low grade resources above
0.3g/t but below 0.5g/t cut-off grade.

The resource model was based on 25m (north-
south) x 12.5m (east-west) x 5m (vertical)
blocks. The laterite resource was calculated by
constrained ordinary kriging and the oxide
resource by indicator kriging within a 0.1g/t
outline. The influence of high grade assays in
all zones was reduced by adjusting block
weighting parameters.

As a consequence of this update total resources
for the Duketon Gold Project have increased to
2.846 million ounces of gold in all categories
(table 3).

The Laterite Zone resource contains 462 koz
down to approximately 20m vertical depth and is
all classified within the Indicated category. The
mineralisation extends over 5km in a north-south
direction over widths of up to 1km. The laterite
mineralisation resource has an average
thickness of 4m and is covered by colluvial
material with an average thickness of 5m. The
resource for the laterite mineralisation in the
Boston area to the north has not yet been
calculated, and is expected to be added to the
laterite resource inventory shortly (Fig 2).

Further evaluation of the laterite grade
variography is currently underway and should
allow re-classification of a significant proportion
of the laterite resource into the Measured
category shortly.

Higher grade zones in several locations within
the laterite resource sheet (up to 11m at 6.4 g/t
gold at Lancaster) will allow maximisation of
early project cashflow scheduling through the
priority scheduled mining of these areas.
                                                                   Fig 2. Moolart Well Laterite Zone resources
                                                                   and drillhole location.
Table 1. Moolart Well Resource

                           Indicated                        Inferred           Total Resources     cut-off
                    million grade gold               million grade gold     million grade gold     grade
                    tonnes g/t       koz             tonnes g/t      koz    tonnes g/t      koz      g/t source
Moolart Well
  Laterite            10.3       1.39          462                           10.3   1.39    462     0.5   Golder
  Oxide                4.8       1.44          224    11.0     1.10   387    15.8   1.20    611     0.5   Golder
  Sulphide                                             1.5     1.53    73     1.5   1.53     73     1.0   Golder
  Low grade            8.3       0.38          103    22.0     0.44   315    30.3   0.43    417     0.3   Golder
Moolart sub-total     23.5       1.05          789    34.5     0.70   775    57.9   0.84   1,564
     Source: Golder = Golder Associates 2007

The Oxide Zone lode systems are depicted
graphically in Fig 2 at a 0.5g/t gold cut off grade.
Infill drilling on 50m x 25m centres in the
southern area has significantly increased the
continuity of lode systems and consequently
converted 35% of the oxide zone resource of
611 koz (above 0.5g/t) into the Indicated
category, mainly from the southern Lancaster
and Stirling areas.

Further infill drilling in the northern part of the
deposit is expected to significantly increase lode
continuity, overall resources and resource grade
as the influence of high grade intersections

A small Sulphide Zone resource has been
calculated extending from the base of
weathering to approx. 90m vertical depth on a
lode system in a part of the Stirling Central area.
This particular target was drilled to establish
general structure and continuity of the lodes in
the area. Fig 2 shows an interpretation of the
oxide zone mineralisation above a 0.5g/t cut-off,
and most of these zones are contiguous with,
and extend into, the fresh rock sulphide zone
below 70m.

The effect of different cut-off grades on the
Moolart Well resource is indicated in Table 2.

Table 2. Effect of Cut-off grade on Moolart
Well Resource

 Cut-off          Tonnes          Grade          Gold
 grade g/t        million           g/t           koz
    0.3            57.92           0.84          1,564
    0.5            32.07           1.21          1,245
    0.8            18.03           1.62           978
NB combined laterite, oxide and sulphide resources
   Includes indicated, inferred and low grade resources

Further resource additions at Moolart Well are
expected to come from continuing infill drilling in
the northern areas, and from expansion of the
sulphide zone drilling at depth.

This resource update has produced a total of
686 koz of gold in the Indicated Resource
category above 0.5g/t cut-off, in both the laterite
and oxide zones at the Moolart Well deposit. A
detailed pit design and production of a mining
schedule is underway, and an initial mining
reserve statement expected shortly.                             Fig 2. Interpretation of Oxide-Fresh Rock
                                                                mineralisation zones below 20m depth, 0.5g/t
The expected mining reserves plus the                           cut-off grade, Moolart Well.
remaining Inferred resource inventory should be
sufficient for the Company to commence
development of the project.

Table 3. Regis Resources NL                            Resource Statement
                                 Indicated                      Inferred                   Total Resources            cut-off
                          million grade gold             million grade gold             million grade gold            grade
                          tonnes g/t       koz           tonnes g/t      koz            tonnes g/t      koz             g/t source
Moolart Well
  Laterite                  10.3      1.39       462                                      10.3      1.39       462     0.5   Golder
  Oxide                     4.8       1.44       224       11.0      1.10       387       15.8      1.20       611     0.5   Golder
  Sulphide                                                  1.5      1.53       73        1.5       1.53        73     1.0   Golder
  Low grade                 8.3       0.38       103       22.0      0.44       315       30.3      0.43       417     0.3   Golder
Moolart sub-total           23.5      1.05       789       34.5      0.70       775       57.9      0.84      1,564
Satellite Deposits
   Rosemont                                                14.7      1.72       815       14.7      1.72       815     1.0   GMS
   Dogbolter                                               0.9       2.91       87        0.9       2.91        87     1.0   RSG
   King John                                                0.7      3.18       72        0.7       3.18        72     1.0   RSG
   Baneygo                                                 0.8       1.70       43        0.8       1.70        43     0.5   RSG
   Erlistoun                                                1.4      4.34       193        1.4      4.34       193     1.0   RSG
   Russells Find                                           0.4       3.84       55        0.4       3.84        55     1.0   RSG
   Reichelts Find           0.1       3.69        17                                      0.1       3.69        17     1.0   RSG
Satellites sub-total        0.1       3.69        17       19.0      2.07      1,265      19.1      2.08      1,282

TOTAL RESOURCE              23.6      1.06       805       53.5      1.19      2,040      77.1      1.15      2,846
RRL equity                                                                                                    2,798
      Source: Golder = Golder Associates 2006, 2007; RSG=RSG Global 2002; GMS = Global Mining Services 2001
      Moolart Well resource drilling up to July 2007  Equity position as at 30 June 2007

This mineral resource statement has been compiled in accordance with the guidelines defined in the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2004 Edition).

The information in the statement of Mineral Resources for Moolart Well is based on information compiled by Mr Stephen
Godfrey of Golder Associates Pty Ltd and is a Member of Australasian Institute of Mining and Metallurgy and has sufficient
relevant experience to qualify as a Competent Person as defined in the JORC Code (2004). Mr Stephen Godfrey has
consented to the inclusion of this information in the form and context in which it appears.

Yours sincerely

David Walker
Managing Director

For further information contact:

Mr David Walker                                                                                                     Dr Michael Folie
Managing Director                                                                                                         Chairman
Regis Resources NL                                                                                              Regis Resources NL
03 8602 6500                                                                                                          03 8602 6500

The technical information contained in this report has been reviewed by Mr. David Walker who is a member of the
Australasian Institute of Mining and Metallurgy and has more than 20 years experience in the exploration industry.


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