Regulus Resources Inc. (“Regulus” or the “Company”) (TSXV:REG) is pleased to announce the results from three additional drill holes at the Company’s AntaKori copper-gold-silver project in northern Peru. The drilling campaign is underway in collaboration with Compañía Minera Coimolache S.A. (“Coimolache” or “CMC”), the operator of the Tantahuatay gold mine, immediately to the south of the AntaKori project (please refer to Regulus news releases of January 24, 2017 and April 5, 2017). Holes reported in this news release are AK-17-003A, drilled by Regulus and DHSF17-161 and DHSF17-164, drilled by Coimolache. The two companies are drilling simultaneously hence two numbering sequences for drill holes exist. Results are only reported herein for the portions of the drill holes that occur within Regulus concessions.

The AntaKori system hosts two principal styles of copper-gold-silver sulphide mineralization: 1) skarn and breccias within Cretaceous calcareous sedimentary rocks, likely associated with as-yet undiscovered porphyry mineralization; and 2) younger, epithermal high-sulphidation mineralization in overlying Miocene volcanic rocks and breccias that host the adjacent Tantahuatay heap-leach gold mine to the south. The younger high-sulphidation mineralization locally overprints the earlier skarn mineralization, particularly along the southern part of the AntaKori system. Drilling has commenced on the southernmost margin of the Regulus concessions and will proceed to the north over the next few months as permitting allows (see Figure 1). The initial holes will encounter the overlying Miocene volcanic rocks and high-sulphidation style mineralization prior to entering into the Cretaceous sedimentary sequence and skarn at depth. As the drilling progresses to the north, the volcanic rocks terminate and drill holes will commence directly in the skarn/porphyry environment within the Cretaceous sedimentary sequence.

AK-17-003A (938.1m) and DHSF17-161 (689m) were completed to targeted depths and cut both styles of mineralization, with well-developed skarn in the underlying Cretaceous calcareous sedimentary sequence. DHSF17-164 (303.8m) is a shallow hole that only crossed Regulus concessions for the interval from 78.9-109.7m depth within Miocene volcanic rocks. The more significant results from these three holes are listed below with additional details provided in Tables 1 and 2.

Highlights from drill holes AK-17-003A, DHSF17-161 – AntaKori Project:

  • DHSF17-161:  323.4 m with 0.52% Cu, 0.15 g/t Au and 8.28 g/t Au from 266.6 m depth

    • including 110.5 m with 0.67% Cu, 0.20 g/t Au and 11.81 g/t Ag

      • including 27.55 m with 1.03 % Cu, 0.24 g/t Au and 21.63 g/t Ag

    • including 53.00 m with 1.10% Cu, 0.23 g/t Au and 13.25 g/t Ag

      • including 28.00 m with 1.77 % Cu, 0.35 g/t Au, 20.94 g/t Ag and 0.77% Zn

    • All mineralization as skarn with relatively low As contents
    • 400 m step out from any previous drilling on Regulus concessions

  • AK-17-003A:  596.6 m with 0.35% Cu, 0.24 g/t Au and 5.49 g/t Ag from 241.1 m depth

    • including 144.7 m with 0.63% Cu, 0.57 g/t Au and 9.42 g/t Ag (HS mineralization)

      • including 51.9 m with 0.95% Cu, 0.98 g/t Au and 8.18 g/t Ag

    • including 107.5 m with 0.28% Cu, 0.15 g/t Au and 7.07 g/t Ag (skarn mineralization)
    • including 119.0 m with 0.34% Cu, 0.15 g/t Au and 2.08 g/t Ag (skarn mineralization)

These initial drill holes are located to the south and outside of the currently reported AntaKori NI 43-101 resource (see Southern Legacy news release of July 3, 2012; Wilson, 2012), which is very encouraging in terms of potentially adding additional tonnage to the AntaKori mineralized system.

John Black, Chief Executive Officer of Regulus, commented as follows: “We continue to be very encouraged with the results from drilling at the AntaKori project. Drill hole DHSF17-161 is particularly noteworthy in that it has encountered strong copper-gold skarn mineralization more than 400 m from any previous drilling in the Regulus concessions. The potential for a significant increase in resource tonnage in this direction is clear. We have now completed a series of five drill holes along the southern margin of our concessions, over a distance of approximately 900 m, with all holes encountering significant mineralization. Two additional drill rigs with greater depth capacity are now on site and will commence drilling this week. The arrival of the new rigs coincides with the approval of an extension to drilling permits which will allow us to advance to the north into the main part of mineralized skarn system as it is currently known. However, as we have learned with DHSF17-161, the full extent of this system is yet to be determined and we will be drilling continuously for the foreseeable future.”

Discussion of results and update on drilling program

The following table provides more detail regarding the mineralized intercepts encountered in drill holes DHSF17-161, DHSF17-164 and AK-17-003A. All three holes were drilled at a -70 degree angle to the northeast. The true widths of the mineralized intervals reported in Table 1 are difficult to ascertain and additional drilling will be required to constrain the geometry of the mineralized zones.

Table 1. AK-17-002 and DHSF17-160 results. Cu Eq and Au Eq values were calculated using copper, gold, silver and zinc (for intervals where zinc exceeds 1%). Metal prices utilized for the calculations are Cu – US$2.25/lb, Au – US$1,100/oz, Ag – US$14/oz, and Zn – US$1.00/lb. All intervals presented above consist of sulphide mineralization, with the exception of the narrow interval in DHSF17-164, which is partially oxidized. No adjustments were made for recovery as the project is an early stage exploration project and metallurgical data to allow for estimation of recoveries is not yet available. The formulas utilized to calculate equivalent values are Cu Eq (%) = Cu% + (Au g/t * 0.7150) + (Ag g/t * 0.0091) + (Zn % * 0.4444 (if Zn >1.0%)) and Au Eq (g/t) = Au g/t + (Cu% * 1.4026) + (Ag g/t * 0.0127) + (Zn% * 0.6234 (if Zn >1.0%)).


Table 2. DHSF17-161, DHSF17-164 and AK-17-003A results presented by lithology. HS = high sulphidation epithermal style mineralisation.

DHSF17-161 was drilled from the upper