Regal Resources Inc.

October 01, 2010 12:32 ET

Regal Resources Announces Drill Core and Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 1, 2010) - Regal Resources Inc. (CNSX:RGR) (the "Company" or "Regal") -

Mr. Gregory M Thomas President of Regal Resources Inc. is pleased to announce that the company has discovered preserved drill core from historic drilling completed on the company's Patagonia property in Arizona. The core is in marked storage containers and is being cataloged to determine the drill holes and exact footage. The company estimates that more than 30,000 feet of core may be present. Previous acquisition of historic data has provided exact location and assays of all known drill holes on the property. Regal believes the Patagonia property to be exceptional in its quality of grade and size potential and plans to assay select sections of the core to confirm the company's historical drilling. These results will help qualify the property to NI 43-101 standards. This process may also provide critical information to construct a deposit model and prioritize targets for future drilling. The cost of this work is estimated at approximately $200,000. The cost of drilling 30,000 feet of core at today's prices would be well in excess of $1.5mm.

The Patagonia project is located near Nogales, Arizona, 45 miles (72 kilometers) south of Tucson. The project is located in the prolific Laramide porphyry copper province along the trend of the Cananea Mine (7.14 billion tons @ 0.41% copper) to the south, and the Resolution Copper deposit to the north (1.5 billion tons @ 1.5% copper). The property consists of 280 claims totaling 5600 acres (2266.2 hectares), and contains several areas of drilling completed by Kerr-McGee, Anaconda, Norandex and others. This historic work has identified four primary targets and several secondary targets. The four main targets were identified by geologic mapping and core drilling conducted from 1952 through 1992. The targets include the BX Breccia, Thunder Deep, Thunder shallow and Humboldt Skarn.

The Company proposes a private placement of 5,000,000 units for gross proceeds of $500,000. Each unit will consist of one common share and one share purchase warrant. Each warrant will enable the holder to purchase one common share for 15 cents for one year.

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

This news 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
    Regal Resources Inc.
    Graham B. Abbott
    (604) 730-0234