re: rey resources update Tech player turns hand to...

re: rey resources update Tech player turns hand to transcontinental exploration


REY Resources, a spin-off from electronic payment system company Customers Ltd, is seeking $10 million from a 40 million share offer at 25c to fund its Western Australian coal exploration and South American metals hunting exploits.

The company hopes to haves its shares first quoted on the Australian Stock Exchange on September 16.

Former Customers Limited chairman and managing director Julian Ludowici is to be Rey's executive chairman and company secretary. He was also BeMax's managing director when that company made its major mineral sands find in the Murray Basin and heads Ludowici Ltd, which supplies mineral processing equipment for coal washing plants and hard-rock screening.

Managing director Bruce Preston is an exploration geophysicist turned stockbroker who has worked with Robertson Research, MIM Holdings, Morgan Stockbroking and Bell Securities.

The company's non-executive board seats will be filled by Jose Bahamondes, Alan Humphris, Timothy Cooper and Peter Gower.

In WA, Rey will be targeting coal on its tenements in the Canning Basin and at Irwin River near Geraldton. It is also the preferred applicant for two petroleum exploration permits in the Canning Basin that would allow it to seek coal seam gas.

The company has 3970 square kilometres of ground at the Canning Basin for its Liveringa coal project and its coal seam hopes. It plans to spend $4 million over the next two years on drilling and core testing.

In its prospectus the company says reprocessing and interpretation of seismic data collected in the 1970s and 1980s from oil exploration surveys indicates thick coal seams encountered in oil wells drilled during that period could be extensive throughout the basin. The Canning Basin has not been extensively explored for coal.

At Irwin River the company has 25sqkm of ground about 80km east of Geraldton that has been previously explored by CRA (now Rio Tinto) and Precious Metals of Australia. In its prospectus Rey says PMA determined an inferred coal resource of 10 million tonnes.

The company has earmarked up to $1.5 million for a stage exploration program of Irwin River.

In South America Rey has five projects – three in Chile and two in Peru.

Its Chilean projects – Fenix, El Timon and Humitos – are primarily copper plays.

Fenix, a copper-molybdenum prospect, is to be Rey's "cornerstone" project on the continent and covers 53sqkm about 40km south of the Phelps Dodge-controlled Candelaria mine and 60km south of Copiapo.

The El Timon and Humitos tenements are also in the Copiapo region and have porphyry style copper prospects that Rey claims have potential to host low grade copper-gold deposits.

Gold is to be Rey's main focus in Peru. The company has the Kechua and San Fransisco prospects.

The Kechua area reportedly has a history of small scale mining of narrow gold veins associated with structures in narrow coal layers, while the San Francisco play is in the Chicama-Yanacocha gold district.


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