We've seen and continue to see RER push this project forward fast and hard, which, if executed properly is always a positive IMO
Their first placement gave them a good chunk of money "$3.4m placing the Company in a strong financial position" With both the first and second placement to give them the cash to "accelerate exploration at Regal’s newly acquired Kalongwe Cu-Co project"
We've seen to SP react mid November last year, when it more than doubled upon the ANN that Regal acquired an interest in the Kalongwe project. If they can get great grades out of the ground (personally I'm hoping for some consistent signs of 2-4%+ Cu) we may well see a similar reaction. Not only is the project in a renowned area, and only 15km from Kamoa (considered to be Africa’s largest high grade copper discovery) but the previous drill results from Kalongwe present up to 4.14% Cu.
In saying that, we don't even need grades that high... In the 21's century the average grade of copper ores is below 0.6% Cu, with ore minerals being less than 2.0% of the total volume of the ore rock
Now, I was a little bit weary as to why it was initially drilled by Ivanhoe mines with no further work. But im confident that Ivanhoe would have prioritised the Kamoa mine as it was a much larger, pre-defined target. Don't get me wrong, thats not to say Kalongwe isn't going to be a treasure, I believe its going to hold some great grades and mass tonnage.
I mean who doesn't want their seat warmed before they sit on it?!
As for getting the exploration and drilling phases, I hold our MD high in respects of his ability, and RER has stated they have a highly experienced copper exploration team with a track record of success of exploration in the DRC and who have also been involved in the development of a copper mine in Katanga.
IMO good team, good project, all that's left is good results and we'll get our good SP.
NZC Price at posting:
5.3¢ Sentiment: Buy Disclosure: Held
