Regal Resources (ASX:RER) has announced an updated resource estimate at its Kalongwe copper-cobalt project in the Democratic Republic of Congo. The new resource estimate now contains 650 million pounds of copper as well as almost 100 million pounds of cobalt in all resource categories. We are quite happy with the update as the company has added 10% more copper to its resource.
What’s even more important is that approximately 250 million pounds of copper are found close to surface in oxide ore at an average grade of in excess of 2.25% copper. This is an important development as it looks like Regal is succeeding in its efforts to define a high-grade near-surface resource which would be amenable for open pit mining.
Regal currently owns 30% of the Kalongwe project but is negoatiating an agreement with JV-partner Traxys which owns another 30%. Should the company be successful in securing a 60% ownership in Kalongwe, Traxys will likely end up being a significant shareholder in Regal.
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Disclosure: The author holds no position in Regal Resources. Please see our disclaimer for current positions.
