Showing posts with label Argentina. Show all posts
Showing posts with label Argentina. Show all posts

Friday, May 22, 2015

Struggling Argentina expects US$14 billion in mining exports

 

Argentina, the poster child of nations that default on their loans, is trying hard to pull itself back up by leaning in one of its once key sectors: the mining industry.

According to Buenos Aires-based Quevedo Law Firm Principal, Ignacio Celorrio, the country’s recovering mining industry could generate exports worth more than US$14 billion within five years, as Argentina emerges from several years of declining resource deals and sales.

Speaking in Sydney during the second day of the Paydirt 2015 Latin America Down Under Conference, Celorrio said the export target was a realistic horizon considering the country’s projects pipeline.

The return to higher exports would be driven in part by at least 16 major projects now likely to go into production within the next few years

“The return to higher exports would be driven in part by at least 16 major projects now likely to go into production within the next few years,” he said.

The reactivation of such ventures, which have a current capital value of over US$28 billion, will be a welcome boom for Argentina’s mining industry, according to the expert.

Celorrio acknowledged that any resurgence would not be without its challenges.

“The current drop in internal commodity prices, limited access to project capital, and internal Argentinian economic issues, have delayed good development projects,” he said.

Signs of life

While Argentina’s economy is projected to show little or negative growth this year, its stock market is rallying and investors are buying the countries' debt.

The nation’s s Merval stock market is up 45% so far this year, more than Europe's stellar performance and way more than the S&P 500.

Yesterday JPMorgan Chase & Co. announced it wants to make Buenos Aires its regional hub by tripling its staff on expectations of a more stable monetary outlook, Bloomberg reported.

Even citizens, battered by rising food prices and electric bills, seem to be feeling better lately. The country's consumer confidence index is up over 40% from a year ago, according to Torcuato di Tella University, a private university in Buenos Aires.

Struggling Argentina expects US$14 billion in mining exports

(Source: Torcuato di Tella University)

There is also light at the end of the tunnel provided by the upcoming presidential elections in October, analysts agree.

“The anticipated move to a more pro-investment national administration will help deliver returns to the first new players in the country’s mining future,” said Celorrio.

“The country is well past the ‘hectic learning period’ it experienced in the 1990s and now has a very attractive and protective regulatory mining framework for private owners of mineral rights,” he added.

Official figures show that an improved project start-up had the potential to boost Argentina’s mineral exports 150% by 2021. This has the potential to generate 70,000 mining jobs and another 62,000 indirect jobs among suppliers.

Minera IRL Limited: Appointment of Interim CEO and Non-Executive Director and Update on Filing of 31 December 2014 Financial Statements

LIMA, PERU--(Marketwired – - May 5, 2015) - Minera IRL Limited ("Minera IRL" or the "Company") (IRL.TO) (MIRL.L) (MIRL.L) is pleased to announce the appointment of Dr Diego Benavides as interim CEO and Mr Robin Fryer as an independent non-executive director of the Company with immediate effect.

Dr Benavides is a founding executive of the Company and has to-date held the following positions in the Company's subsidiaries: Executive President/General Manager of Minera IRL S.A. (Peru) and Compañía Minera Kuri Kullu S.A (Peru); Chairman of the Board of Minera IRL Argentina S.A. and Minera IRL Chile S.A. He is a lawyer by training with extensive experience in the Latin American mining industry.

Mr Fryer had a long and distinguished career with Deloitte LLP where he led the global mining and metals industry practice. He is a chartered accountant and US certified public accountant, and is an independent non-executive director and chair of the audit committee of Shanta Gold Limited.

Further details on Dr Benavides and Mr Fryer are set out in the Appendix to this release.

Commenting on the appointments, Mr. Hodges, Executive Chairman of Minera IRL, stated: "This has been a difficult period for Minera IRL, and challenges remain, however with these appointments, we are moving forward to continue building towards the future.

The board is pleased that Diego has agreed to assume the role of interim CEO and looks forward to working with him in this new capacity, and on behalf of all of the directors we are delighted to welcome Robin to Minera IRL. We are fortunate to have secured someone with Robin's financial experience, which importantly includes an understanding of mining operations in South America."

Updated notice of its results for the financial year ended 31 December 2014

The Company expects to announce its audited results for the financial year ended 31 December 2014 within the required filing deadline of 30 June 2015 (previously announced the end of April 2015). Minera IRL is considered a "designated foreign issuer" as such term is defined by Canadian Securities Regulators in National Instrument 71-102 - Continuous Disclosure and Other Exemptions Relating to Foreign Issuers, and as such is subject to the foreign regulatory requirements of the AIM market of the London Stock Exchange plc ("AIM"). Under the AIM Rules for Companies, the Company is required to publish its annual audited accounts which must be sent to shareholders within six months of its financial year end.

Appendix: Diego Francisco Helge Pablo Christian Benavides Norlander

 

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Minera IRL Limited Watchlist

0.10+0.01(+11.11%)

TorontoThu, May 21, 2015 3:30 PM EDT

In terms of the appointment of Dr Diego Francisco Helge Pablo Christian Benavides Norlander (aged 62) to the Board, there is no further information that is required to be disclosed pursuant to Schedule 2 paragraph (g) of the AIM Rules for Companies, save for the following:

Current directorships/partnerships:

Ingeniería y Tecnología Minero Metalúrgica S.A.

Past directorships/partnerships:

None

Under Peruvian law, all assets earned during a marriage, with a few exceptions, are commonly held in a legal entity separate from the two people within the marriage (the "Marriage"). On 25 April 2000, the Marriage of Diego Pablo Francisco Helge Christian Benavides Norlander and his then wife (from whom he was subsequently divorced) was declared insolvent under Peruvian law. That situation has been addressed by Mr. Benavides, who paid all the creditors in full. Therefore Mr. Benavides has never personally been declared insolvent and is completely able, without any limitations, to exercise fully his powers and rights under Peruvian law, including acting as officer, executive or director of companies.

Dr Benavides currently holds 1,782,600 shares and 1,100,000 options in Minera IRL Limited.

Appendix: Robin Anthony Fryer

In terms of the appointment of Mr Robin Anthony Fryer (aged 68) to the Board, there is no further information that is required to be disclosed pursuant to Schedule 2 paragraph (g) of the AIM Rules for Companies, save for the following:

Current directorships/partnerships:

Shanta Gold Limited

Past directorships/partnerships:

Partner of Deloitte LLP until 31 May 2009

About Minera IRL Limited

Minera IRL Limited is an AIM, TSX and BVL listed precious metals mining and exploration company with operations in Latin America. Minera IRL is led by a management team with extensive operating experience in South America. In Peru, the Company operates the Corihuarmi Gold Mine and is advancing its flagship Ollachea Gold Project towards production. For more information, please visit www.minera-irl.com.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this news release.

  • Stocks & Offerings

Contact:

Minera IRL
Daryl Hodges (Executive Chairman)
+1 (647) 271-3817
Minera IRL
Diego Benavides (Interim CEO)
+ (511) 418-1230
Minera IRL
Brad Boland (CFO)
+1 (416) 907-7363
Canaccord Genuity Limited
(Nominated Adviser & Broker, London)
Henry Fitzgerald-O'Connor
Chris Fincken
+ 44 (0)20 7523 8000
Buchanan (Financial PR, London)
Bobby Morse
Gordon Poole
+44 (0)20 7466 5000

Tuesday, March 12, 2013

Vale suspends $6 billion Argentine potash project

The Brazilian miner has put its Rio Colorado potash project in Argentina’s Mendoza province under review for suspension in December

Brazilian miner Vale SA said on Monday it has suspended a $6 billion potash project in neighboring Argentina that has been plagued by cost overruns, a decision that could renew trade tensions between South America's two largest economies.

    Vale said its Rio Colorado potash project in Mendoza province was no longer "in line with Vale's commitment to discipline in capital allocation". The company had put the project under review for suspension in December.

    Vale left the door open to restarting the project, however, if terms were to improve. It said more than 4,000 of the project employees would have preference in rehiring "if construction resumed," setting the stage for more negotiations with Buenos Aires over terms that would make it viable.

    Vale has invested $2.2 billion in Rio Colorado to date, one of the biggest foreign capital investments in Argentina, and has completed work on 40 percent of the mine, railway and port.

    If Vale eventually exits Rio Colorado, it would be a blow to Argentina's president, Cristina Fernandez, during a legislative election year. The project would have made Argentina one of the world's leading suppliers of potash, an essential fertilizer component in food production.

    Argentina's government said in a statement it "regretted Vale's unilateral decision to abandon (the project) despite the efforts of the government and provincial and municipal authorities to guarantee the project's continuation."

    The government said Vale was demanding a series of concessions including advance rebates of value-added tax, export tax waivers and a reduction in investment commitments that would have cost the state some $3 billion over the course of two years.   

     TRADE TENSIONS

    The failure to find middle ground on the project complicates relations between Brazil and Argentina at a time when growth in global trade is slowing and tension between the two countries is already growing.

    New barriers in Brazil chilled the regional trade in auto parts last year, contributing to a contraction in Argentina's auto industry. The two countries also exchanged accusations over trade obstructions after Argentina started slowing its import process, helping to prop up local industry and its trade balance.

    Brazil's state-run oil company Petrobras is in talks to sell off some $400 million worth of Argentine refineries and other assets, Reuters reported last month.

    If Rio Colorado does not go ahead, the farm sectors in Brazil and Argentina will remain dependent on potash imports from a small cartel of global suppliers in Canada, Russia and Jordan. Brazil imports 90 percent of its potash.     

    STAKES

    Analysts said Rio Colorado likely will not have a major financial impact on Vale, no matter whether the project is sold or resumed, considering that 90 percent of the company's revenues and much of its investments are still in iron ore.

    "This change was already well-defined," said Aluisio Lemos, an analyst at Agora Corretora in Rio de Janeiro. "The tone set by the current management has already been about prioritizing certain projects and exiting others that are not considered strategic."

    Vale posted its first quarterly loss in 10 years last month, taking a $5.7 billion hit from money-losing operations. Though the world's second largest mining company says it remains committed to the fertilizer sector, it is part of a broader shift among miners away from less profitable assets in the face of lackluster metals prices.

    Preferred shares of Vale reversed losses in Sao Paulo trading after the announcement, to gain 1.4 percent at close.

    Brazil's Folha de S.Paulo newspaper reported over the weekend without naming sources that Rio Colorado's cost overruns had jumped 86 percent since the initial estimate to $11 billion.

Part of the problem has been inflation in Argentina, which according to private estimates has surpassed 25 percent per year and driven up labor and materials costs.

    Vale said in response to questions about the Folha report that it was seeking no changes to Argentine labor or tax law.

    In his last call with analysts in February, Vale Chief Executive Murilo Ferreira said the project "needs to remain attractive and have a foreseeable cash flow," adding that the company was still open to talks with the Argentine government.

Wednesday, January 30, 2013

Mining investment in Argentina grows 72% despite risky business climate

By Cecilia Jamasmie

Mining-related investments in Argentina increased a whopping 72% in 2012 compared to the previous year, said local consultancy firm IES Online on Tuesday.

Despite mounting government interventionism in the industry, foreign and local investors spent a total of $3.8 billion and the firm expects this trend to continue this year, with planned investments already amounting to more than $4 billion (or $20bn Argentine pesos).

Whether these investments will be actually carried out and whether the Argentine mining sector can attract more ventures in 2013 is something the consultants did not talk about it, especially considering the socio-political risks the country poses.

Since Argentina recovered from the 2001/2002 currency crisis, the country has relied on an export-based economic growth model, which has made it increasingly dependent on Asian demand for commodities such as soya or beef.

President Cristina Fernandez de Kirchner – who succeeded her late husband Nestor Kirchner – has become infamous for her unorthodox economic approach and monetary policy, inherited from her predecessor. Government intervention in the economy, explains the UK Trade and Investment office in a report published earlier this year, has become increasingly common and her administration has struggled to protect a shrinking trade surplus by implementing import restrictions.

Miners have been particularly affected by Fernandez’ measures. Vancouver-based Pan American Silver (TSX: PAA), for instance, had to halt investment in its Navidad project, the richest undeveloped silver deposit in the world, last year after local authorities submitted a draft law that would significantly increase the economic burden on mining companies.

And on Monday, after Brazil’s Vale (NYSE:VALE) announced it was temporarily suspending its $6 billion Rio Colorado potash project in the Argentine province of Mendoza, the provincial government reacted by sending Vale an ultimatum.  As reported by local newspaper Los Andes (in Spanish), the authorities told the Brazilian miner it had five working days to present a new timeline or the concession could be revoked.

Friday, November 16, 2012

Regulus continues to extend Southwest copper-gold zone Rio Grande Project-Salta, Argentina

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Nov. 16, 2012) - Regulus Resources Inc. ("Regulus" or the "Company") (TSX VENTURE:REG) is pleased to announce results for an additional six drill holes from the current drilling program at the Rio Grande copper-gold-molybdenum project in Salta Province, Argentina. These holes were all drilled as 50 m offsets to well-mineralized holes previously reported from the Southwest high-grade copper-gold zone. Key results from these holes are summarized below and in Table 1. Drill hole locations are noted in Figure 1.

  • RGR-12-111 intersected oxide gold mineralization commencing from surface:
    • 112.00 m with 0.53 g/t Au and 0.01% Cu
    • including 64.00 m with 0.63 g/t Au and 0.01% Cu
  • RGR-12-111 intersected higher grade copper-gold sulphide zone at depth:
    • 195.50 m with 0.53 g/t Au and 0.36% Cu (1.31 g/t Au Eq)
    • including 67.50 m with 0.75 g/t Au and 0.50% Cu (1.82 g/t Au Eq)
  • RGR-12-107 intersected two zones of higher grade copper-gold sulphide zone at depth:
    • 34.00 m with 0.71 g/t Au and 0.47% Cu (1.57 g/t Au Eq)
    • including 12.00 m with 1.26 g/t Au and 0.72% Cu (2.54 g/t Au Eq) and
    • 32.00 m with 0.76 g/t Au and 0.71% Cu (2.09g/t Au Eq)
    • including 10.00 m with 1.51 g/t Au and 1.46% Cu (4.23 g/t Au Eq)
  • RGR-12-116 intersected higher grade copper-gold sulphide zone at depth:
    • 34.95 m with 1.10 g/t Au, 1.02% Cu, and 46.5 g/t Ag (3.71 g/t Au Eq)
    • including 14.40 m with 2.07 g/t Au, 2.12% Cu, and 104 g/t Ag (7.61 g/t Au Eq)

John Black, President and CEO of Regulus commented as follows: "We have now intersected the high-grade copper-gold Southwest zone on four parallel drill sections, spaced at approximately 50 metre intervals with a vertical extent of mineralization exceeding 500 m. Mineralization remains open both laterally and to depth but appears to be decreasing in grade, thickness and gold/copper ratio away from the high-grade core defined by drill holes RGR-11-086, RGR-12-099 and RGR-12-106. The geometry of the mineralized zone is now quite well constrained as a tabular zone with a northwest strike and dipping steeply to the northeast. The true thickness of the zone is variable and not fully constrained but appears to be approximately 40-80 m at a cut-off grade of 0.5% Cu Equivalent in the central portion of the zone. We are currently in the process of integrating the results of this drilling campaign to identify additional targets similar to the Southwest high-grade copper-gold zone within other portions of the Rio Grande ring structure."

Results of 2012 Drilling To Date

Twenty-seven drill holes (23,871 m) have been completed to date in the ongoing 2012 Rio Grande drilling program with additional drilling currently in progress. The drilling has concentrated in the immediate vicinity of the significant intercepts previously reported from drill holes RGR-11-86 and RGR-11-88 in the Southwest zone of the Rio Grande system (see Regulus news releases of December 14, 2011 and February 8, 2012). Results from the first thirteen holes of the 2012 drilling program have been previously released (August 14, September 20, and October 25, 2012) and results from an additional six holes are presented here. Please note that Regulus is also issuing an additional press release at the same time as this communication to announce the discovery of a significant new gold zone two kilometers to the northeast from the principal Rio Grande system. A single drill hole (RGR-12-118) was completed into the Northeast Gold target this campaign and intersected an interval of 297 m with 0.36 g/t gold and 0.06% copper starting from the surface. This mineralization occurrence is very similar in nature to Mansfield Minerals' (TSX VENTURE:MDR) Lindero gold deposit located ten kilometers to the southeast.

The locations of drill holes presented in this release are indicated on Figure 1. Please also refer to the Regulus Resources website,www.regulusresources.com for additional information about Regulus and the Rio Grande Project. Additional description of the holes presented in this release follows below.

RGR-12-107 From (m) To (m) Metres Au g/t Cu % Ag g/t Mo % Au Eq Cu Eq Mineral Zone
TD = 1092.10 206.00 226.00 20.00 0.10 0.51% 1.50 0.000%     Supergene
  347.00 366.00 19.00 0.35 0.12% 5.18 0.002%     Supergene
  394.00 414.65 20.65 0.41 0.30% 1.57 0.009% 1.01 0.59% Primary
  495.00 529.00 34.00 0.71 0.47% 0.90 0.006% 1.57 0.92% Primary
including 515.00 527.00 12.00 1.26 0.72% 1.19 0.003% 2.54 1.48% Primary
  690.00 722.00 32.00 0.76 0.71% 3.44 0.008% 2.09 1.22% Primary
including 708.00 718.00 10.00 1.51 1.46% 6.30 0.015% 4.23 2.47% Primary
RGR-12-109 From (m) To (m) Metres Au g/t Cu % Ag g/t Mo % Au Eq Cu Eq Mineral Zone
TD = 1107.30 310.75 802.00 491.25 0.22 0.20% 0.95 0.005% 0.61 0.36% Primary
  310.75 367.50 56.75 0.30 0.21% 1.05 0.002% 0.69 0.40% Transitional
  493.50 514.50 21.00 0.42 0.31% 1.46 0.004% 1.01 0.59% Primary
  523.00 558.00 35.00 0.28 0.24% 1.37 0.002% 0.73 0.43% Primary
  648.00 677.75 29.75 0.35 0.40% 0.88 0.008% 1.11 0.65% Primary
RGR-12-111 From (m) To (m) Metres Au g/t Cu % Ag g/t Mo % Au Eq Cu Eq Mineral Zone
TD = 985.50 4.50 116.50 112.00 0.53 0.01% 1.16 0.013%     Supergene
including 4.50 68.50 64.00 0.63 0.01% 1.56 0.014%     Supergene
  303.50 499.00 195.50 0.53 0.36% 1.85 0.019% 1.31 0.76% Transitional
including 374.50 442.00 67.50 0.75 0.50% 2.70 0.024% 1.82 1.06% Primary
RGR-12-113 From (m) To (m) Metres Au g/t Cu % Ag g/t Mo % Au Eq Cu Eq Mineral Zone
TD = 658.50 67.50 258.00 190.50 0.24 0.08% 0.51 0.003%     Supergene
  67.50 118.50 51.00 0.35 0.01% 0.59 0.001%     Supergene
  124.50 141.00 16.50 0.33 0.04% 0.56 0.001%     Supergene
  200.00 216.95 16.95 0.40 0.04% 0.53 0.006%     Supergene
  326.65 342.00 15.35 0.23 0.05% 1.50 0.009%     Supergene
  365.50 392.25 26.75 0.37 0.48% 1.42 0.010% 1.29 0.75% Transitional
RGR-12-115 From (m) To (m) Metres Au g/t Cu % Ag g/t Mo % Au Eq Cu Eq Mineral Zone
TD = 978.80 182.80 194.00 11.20 0.34 0.03% 0.59 0.004%     Supergene
  286.65 334.00 47.35 0.62 0.35% 1.66 0.006%     Supergene
  388.00 530.00 142.00 0.36 0.39% 1.82 0.012% 1.14 0.67% Primary
including 390.00 430.00 40.00 0.55 0.45% 1.37 0.021% 1.49 0.87% Primary
  799.00 815.00 16.00 0.35 0.12% 0.34 0.001% 0.57 0.33% Primary
  916.00 928.00 12.00 0.33 0.10% 0.13 0.001% 0.51 0.30% Primary
RGR-12-116 From (m) To (m) Metres Au g/t Cu % Ag g/t Mo % Au Eq Cu Eq Mineral Zone
TD = 1470.50 199.00 504.00 305.00 0.33 0.22% 9.54 0.002%     Supergene
  331.00 355.00 24.00 0.34 0.03% 0.36 0.004%     Supergene
  371.80 406.75 34.95 1.10 1.02% 46.52 0.003% 3.71 2.16% Transitional
including 382.10 396.50 14.40 2.07 2.12% 103.77 0.005% 7.61 4.44% Transitional
  416.00 502.00 86.00 0.30 0.26% 14.04 0.009% 1.06 0.62% Primary
  623.00 656.00 33.00 0.34 0.34% 70.06 0.010% 2.25 1.31% Primary
  868.20 1131.50 263.30 0.23 0.09% 1.01 0.007% 0.45 0.26% Primary
including 902.00 941.00 39.00 0.29 0.10% 0.43 0.005% 0.50 0.29% Primary
and 1028.00 1064.00 36.00 0.41 0.12% 2.33 0.006% 0.70 0.41% Primary
and 1105.45 1124.05 18.60 0.35 0.18% 1.01 0.011% 0.75 0.44% Primary

Table 1: Rio Grande Drill Results

*Copper equivalent calculation uses US$2.50/lb Cu, US$1,000/Oz Au, US$18.00/Oz Ag and US$10.00/lb Mo and is not adjusted for metallurgical recoveries as these remain uncertain. The formula to calculate Cu equivalent is Cu Eq. = (Cu x 1) + (Au x 0.5833) + (Ag x 0.0105) + (Mo x 4). Intercepts are reported as down-hole intercept lengths and may not necessarily represent true widths.

To view "Figure 1: Rio Grande Drill Hole Location Map", please visit the following link: http://file.marketwire.com/release/regmap111.pdf

To view "Figure 2: Rio Grande – Section 613,350E", please visit the following link: http://media3.marketwire.com/docs/regmap2.pdf

Drill Hole Descriptions

The six drill holes presented here were all drilled to test for extensions of high-grade copper-gold mineralization previously reported in drill holes RGR-11-086, RGR-12-099, and RGR-12-106 at the Southwest high-grade copper-gold zone. The holes are typically lateral or vertical step outs of approximately 50 m from previous holes and most are oriented on north-south drill sections.

Drill results to date indicate that the high-grade mineralized zone is a tabular body striking approximately 150 degrees and dipping approximately 75-80 degrees to the northeast. The true thickness of the zone is variable and not fully constrained but appears to be approximately 40-80 m at a cut-off grade of 0.5% Cu Equivalent. Along strike to the east and west the thickness and average grade of the zone appears to be decreasing.

RGR-12-107 was drilled to the west as a cross hole to better determine the geometries of the mineralized zone and associated dykes. This hole intersected two zones of higher grade copper-gold sulphide zone at depth: 34.00 m with 0.71 g/t Au and 0.47% Cu (1.57 g/t Au Eq) and 32.00 m with 0.76 g/t Au and 0.71% Cu (2.09 g/t Au Eq). It is not yet clear if the zone has split into two parallel zones or if a single, narrower zone has been repeated by faulting.

RGR-12-109 was drilled beneath drill hole RGR12-99 but failed to intersect high-grade mineralization. It did encounter a long interval of low-grade mineralization (491 metres grading 0.22% Cu and 0.20 g/t Au) that may be the net result of dilution by late to post-mineral dykes and the effects of an overprint of late, copper-barren alteration.

RGR-12-111 was drilled below RGR-12-106 to test for the down dip extension of the high-grade copper-gold zone (please refer to the cross section in Figure 2). The hole intersected a near surface oxide gold zone with 112.00 m containing 0.53 g/t Au and 0.01% Cu including 64.00 m with 0.63 g/t Au and 0.01% Cu starting at surface. The hole extended the high-grade sulphide zone to 500 metres depth with an interval of 195.50 m containing 0.53 g/t Au and 0.36% Cu (1.31 g/t Au Eq.) including 67.50 m with 0.75 g/t Au and 0.50% Cu (1.82 g/t Au Eq).

RGR-12-113 was drilled above RGR-12-099 to test the leached cap above the high-grade copper-gold zone. As anticipated, the hole encountered gold oxide mineralization with low copper contents. The gold grade was somewhat lower than anticipated with an interval 190.50 m containing 0.24 g/t Au and 0.08% Cu. Within this interval there are narrow zones with gold grades in the 0.3-0.5 g/t range.

RGR12-115 was collared approximately 40 m to the east of RGR11-099. The hole intersected a number of mineralized zones including 47.35 metres with 0.35% Cu and 0.62 g/t Au in the oxide zone and 142 metres of sulphide mineralization with 0.45% Cu and 0.55g/t Au (1.14 g/t Au Eq.).

RGR-12-116 is located on the north-south drill section 50 m to the west of RGR-12-106. The hole intersected a narrow high-grade copper-gold sulphide zone at depth with 34.95 m of 1.10 g/t Au, 1.02% Cu, and 46.5 g/t Ag (3.71 g/t Au Eq) including 14.40 m with 2.07 g/t Au, 2.12% Cu, and 104 g/t Ag (7.61 g/t Au Eq). This hole was extended to depth to test for quartz stockwork gold mineralization like that encountered in hole RGR-12-100 to the south. Unfortunately the hole deviated considerably to the west and failed to test the area below RGR-12-100, although it did intersect a low grade zone of gold mineralization associated with quartz stockwork veining (263.30 m with 0.23 g/t Au and 0.09% Cu).

Rio Grande Copper-Gold-Molybdenum Project Summary

The Rio Grande Project is located approximately 55 km southwest of the Taca Taca porphyry copper deposit of Lumina Copper and 11 km west of the Lindero gold deposit of Mansfield Minerals in Salta Province, northwestern Argentina. A NI 43-101 compliant resource estimate was released for the project late last year (please refer to news release of December 6th, 2011).

The resource estimate, utilizing a 0.40% copper equivalent cut off grade, is summarized below:

  • Indicated Resource: 55,257,862 tonnes with 0.342% Cu, 0.359 g/t Au, 4.38 g/t Ag
  • Inferred Resource: 101,088,174 tonnes with 0.303% Cu, 0.308 g/t Au, 4.45 g/t Ag
  • Indicated Resource: 637,025 oz Au, 7,787,342 oz Ag, 416,240,000 lbs Cu
  • Inferred Resource: 1,002,458 oz Au, 14,449,042 oz Ag, 674,405,000 lbs Cu

Approximately 53% of the published resource is oxide mineralization, 35% is transitional oxide-sulphide mineralization and 12% is sulphide mineralization.

The current resource estimate utilized all drilling at Rio Grande prior to 2010. The Southwest Zone was discovered in late 2011 and is not included in the current resource estimate. Further drilling in 2012 has now revealed that several mineralization styles are present in the Southwest Zone and these will be referred to as the a) Southwest copper-gold sulphide, b) Southwest supergene copper, c) Southwest oxide gold, d) Southwest molybdenum, and the newly discovered e) Southwest gold quartz stockwork zones. The approximate spatial relationship between these zones is illustrated in Figure 2 below.

About Regulus Resources Inc.

Regulus Resources Inc. (TSX VENTURE:REG) is a mineral exploration company formed in December, 2010 in connection with the sale of Antares Minerals Inc. to First Quantum Minerals Ltd. (TSX:FM). Regulus has been exploring the Rio Grande Cu-Au-Ag porphyry project in Salta Province of NW Argentina as a 50/50 joint venture partner with Pachamama Resources and the two companies recently merged under the name of Regulus Resources to consolidate a 100% interest in the project and pursue an aggressive exploration program (see Regulus press releases of May 11 and May 16, 2012).

All of Regulus' exploration programs and pertinent disclosure of a technical or scientific nature are prepared by, or under the direct supervision of, Wayne Hewgill, P.Geo, and Regulus' COO, who serves as the qualified person (QP) under the definitions of National Instrument 43-101.

The Rio Grande samples were analysed with the following methods: Au – 30 g FA with AA Finish, Cu – four acid digestion for trace Cu and four acid digestion and AAS for ore grade Cu, 35 element Aqua Regia ICP-AES.

Regulus' security, chain of custody and quality control is described on their website and can be reviewed at:http://www.regulusresources.com/BestPractices/SamplingMethodologies.aspx

Forward Looking Information

Certain statements regarding Regulus, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Regulus' control.

Specifically, and without limitation, all statements included in this press release that address activities, events or developments that either Regulus expects or anticipates will or may occur in the future, including management's assessment of future plans and operations and statements with respect to the completion of the anticipated drilling program and the completion of a NI 43-101 compliant resource estimate, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Regulus' control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements. Although Regulus believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such risks and uncertainties include, but are not limited to: the impact of general economic conditions in Canada and Argentina, industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced, in Canada and Argentina, fluctuations in commodity prices and ability to complete operations due to factors beyond Regulus' control.

Although the forward-looking statements contained in this Press Release are based upon assumptions which management believes to be reasonable, Regulus cannot assure shareholders that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this press release, Regulus has made assumptions regarding: current commodity prices and royalty regimes; timing of receipt of regulatory approvals; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the impact of increasing competition; conditions in general economic and financial markets; effects of regulation by governmental agencies; royalty rates; future operating costs; and other matters.

Accordingly, Regulus does not give any assurance nor make any representations or warranty that the expectations conveyed by the forward-looking statements will prove to be correct and actual results may differ materially from those anticipated in the forward-looking statements. Regulus does not undertake any obligation to publicly update or revise any forward-looking statements other than required by applicable securities law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.