Regal Resources (ASX: RER) will shortly commence diamond drilling at its Kalongwe high grade copper and cobalt project in the Democratic Republic of Congo.
The costs of the program will be co-funded with Traxys Europe SA, under the terms of a binding MOU the two companies signed in November 2013.
Traxys is a global logistics solutions provider for the mining and energy industries, with annual turnover of around $5 billion.
Kalongwe is located in the Central African Copperbelt, 15 kilometres south of Ivanhoe Mines' Kamoa Copper deposit which has an Indicated Mineral Resource of 739 tonnes at 2.67% copper.
Known copper and cobalt mineralisation occurs in the core of a fold structure over a 2.7 kilometres; over 90% of the copper-cobalt mines in the Copperbelt are hosted in similar structural-geological settings.
Previous drilling at Kalongwe undertaken Ivanhoe delineated broad zones of high-grade oxide copper and cobalt mineralisation, including hits of 90 metres at 3.38% copper and 0.93% cobalt.
Regal has signed a drilling contract with Sinodrill for 1800 metres of diamond core drilling, expected to begin this week.
The company also controls high grade gold projects in the area, is well funded, and capitalised at $5 million.
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