Regal Resources Inc.
CNSX : RGR

January 21, 2010 09:30 ET

Regal Resources Inc. to Acquire Arizona Copper-Molybdenum Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 21, 2010) - Regal Resources Inc. (CNSX:RGR) (the "Company" or "Regal")

Regal Resources Inc. a Vancouver based mineral exploration company announces it has entered into an option agreement to earn 100% interest in the Squaw Peak Copper-Molybdenum Project in Yavapai County, Arizona. The company will undertake cash payments of US$500,000, expenditures of US$2,800,000 and will issue 1,000,000 common shares of Regal over a 10 year period. The vendor will retain a 3% net smelter royalty.

Summary of the Squaw Peak Copper-Molybdenum Project

The Squaw Peak Project is composed of 40 unpatented mining claims covering a total of 800 acres and is located near Camp Verde, Arizona approximately half way between Flagstaff and Phoenix. The project is an advanced exploration property hosting a porphyry copper-molybdenum system with a current open-ended resource grading 0.4% copper and 0.025% molybdenum.

Historic work was conducted by Kennecott, Callahan, Phillips Petroleum, Essex and most recently by American Consolidated Minerals. The mineralized zone encompasses a northwest trending zone of sheeted veins and stock-works of quartz and sulfide in Precambrian granite and Laramide quartz monzonite. Copper, molybdenum, silver and minor gold had been mined during World War II from the current mineralized zone.

The 2008 exploration program conducted by American Copper Corporation included geologic mapping, soil sampling, airborne magnetic survey and a drill program. This work program discovered that the mineralized zone plunged to the northwest and is open-ended. The last hole drilled at Squaw Peak was positioned at the north end of the mineralized zone. This hole was mineralized from surface to a depth of 791 ft averaging of 0.56% copper equivalent. The drilling indicates the mineralized zone plunges moderately to the north and is thickening with depth. A large magnetic low (the North Target) occurs to the north of the mineralized zone indicating a possible altered intrusive body as the source of the near-surface mineralized zone. Listed below are historical drill holes previously published by American Copper Corporation in 2008.


Hole #

From (ft)

To (ft)
Interval (ft) Cu (ppm) Mo (ppm) Ag (ppm)
% Cu Equiv.
SP0801 0 55 55 6507 397 3.7 1.02
Entire DH 0 299 299 3465 154 1.7 0.48
SP0802 15 40 25 4552 96 9.0 0.60
  220 275 55 4829 199 3.0 0.66
  295 402.7 107.7 6410 242 1.7 0.85
Entire DH 0 402.7 402.7 4157 149 2.4 0.55
SP0803 10 40 30 10287 777 191.0 3.00
  25 30 5 8680 898 468.0 4.81
  240 270 30 6625 352 4.2 1.00
  300 480 180 6415 261 2.8 0.89
  535 555 20 6578 338 1.2 0.96
Entire DH 0 557.5 577.5 4645 204 12.1 0.73
SP0804 0 45 45 8331 961 0.8 1.68
Entire DH 0 301 301 3018 264 1.5 0.54
SP0805 0 65 65 8881 560 3.5 1.40
Entire DH 0 301.7 301.7 4534 269 1.7 0.70
SP0806 105 375 270 6217 383 2.4 0.97
  395 430 35 4830 323 0.9 0.77
Entire DH 0 557 557 4959 265 2.0 0.74
SP0807 15 35 20 6003 39 2.7 0.65
  125 175 50 5275 41 2.1 0.58
  260 280 20 6783 100 2.6 0.78
Entire DH 0 412.5 412.5 3526 51 1.5 0.41
SP0808 80 185 105 5941 289 2.8 0.87
Entire DH 0 304 304 4237 151 1.8 0.57
SP0809 10 293 283 3806 149 2.6 0.53
SP0810 10 30 20 2080 21 1.2 0.23
SP0811 425 895 470 1330 85 0.3 0.21
SP0812 320 863 543 3453 80 1.7 0.43
SP0813 10 801 791 3480 232 1.2 0.56

Regal plans to resume drilling as soon as permitting is completed. The initial program will both attempt to expand and quantify the mineralized zone and test the deep magnetic low.

Proposed Private Placement

The Company announces its intention to complete a non-brokered private placement consisting of the issuance of up to 3,000,000 units at a price of C$0.08. Each unit is comprised of one common share and one share purchase warrant. Each warrant will entitle the holder to purchase one common share at a price of $0.10.

General

The Company is also pleased to announce the appointment of Gregory M. Thomas to the position of President and Director. Mr. Thomas is currently the President and Director of TAC Gold Corporation, a public company exploring for gold in Nevada. The current President of Regal Harvey Dick will become Executive Chairman of the Board.

The technical information in this release has been reviewed and approved by Mr. Richard Kern, BSc., M.Sc., P. Geo. Registered Geologist Nevada & California; a 'qualified person', as defined by NI 43-101, Standards for Disclosure of Mineral Projects unless otherwise noted.

Regal Resources Inc. will continue to focus on the acquisition and development of advanced stage copper projects in the western United States.

This press release includes "forward-looking statements" including forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Regal Resources Inc. Statements regarding future fund raising and completion of the Acquisition are subject to all of the risks and uncertainties normally incident with the raising of capital and completing corporate transactions including, but are not limited to, financing risks, inflation and costs of goods and services, property title issues and regulatory approvals. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Regal Resources Inc. does not assume the obligation to update any forward-looking statement, except as required by applicable law.

Contact Information

  • Regal Resources Inc.
    Drew N Brass
    604.730.0234
    or
    Regal Resources Inc.
    Harvey Dick
    604.687.8607