Regency Mines makes 'great' operational progress

Natural resource exploration and development company Regency Mines updated the market on its operations on Friday, reporting that MET Coal production had continued at Omega, with improved production following operational disruptions during the move to a new location at the end of 2018.

The AIM-traded firm said activity was increasing at the Mambare joint venture in Papua New Guinea, with a “significant” GPR programme planned for 2019, pursuing the goal of a DSO operation and mining license.

ESTEQ had continued to develop its investments with Allied Energy, refocusing on the “promising” local grid and combined heat and power arenas.

Curzon Energy, meanwhile, remained focussed on its intention to participate in a multi-TCF gas opportunity in Texas to supplement its existing CBM project.

Regency said its 50% stake in the Dempster Vanadium project, which was announced recently, offered an exploration upside in the battery metals space.

“The key move of a highwall miner at the end of 2018 to a new location should provide three years of coal production and now enables increased output and operating efficiencies,” said Regency chairman Andrew Bell.

“Once the second mining machine is moved to its new location we expect to see overall operations reaching a new level of turnover and profitability.

“Many other initiatives are under way to tune up performance and increase production, and we look to the future with confidence.”

Bell said that at Mambare, the hiatus that followed the failure of its former joint venture partner was now over, and a “new and committed” partner had come forward out of the old structure, just in time for the firm to meet the challenges of recovering nickel and cobalt demand.

“The outlook for the Mambare joint venture is transformed by this and we and our partners are stepping up activity with some significant initiatives that we hope will lead to the grant of a mining lease and may lead to DSO production.

“At ESTEQ, AES and vanadium explorer DVY we are increasing our battery metal footprint and developing what may this year become a significant and cash flow-generative business at AES.”

Bell said that at Curzon, Regency was awaiting developments.

“Overall, great progress is being made and we thank shareholders for their support.”