Regency Mines shares jump on positive progress at nickel mine

Regency Mines surged Wednesday as the company reported progress in the testing of nickel at a mine in Perth, Australia.

The mining company's partner Direct Nickel said the first stage of its nickel extraction process at the test plant in Perth showed promising results.

Direct has developed a hydrometallurgical extraction process for limonite and saprolite ores which the company has dubbed as a "game changer".

The plant complted its second 10-day campaign with leaching, solid/liquid separation and intermediate product precipitation operating satisfactorily.

The first two campaigns were carried out, producing 100% saprolite ore and on a 50/50 saprolite-limonite mix.

Direct also announced hot commissioning on laterite material from Indonesia had commenced last month at a purpose-built test facility and operations would continue this year.

Shares in Regency - a stakeholder of Direct and joint-venture partner in the nickel-cobalt laterite Mambare project in Oro Province, Papua New Guinea - rose 8.39% following the update.

"It is good news that from the beginning the testwork is performing well both chemically and metallurgically. We look forward to further news as the testing continues," Regency Chairman, Andrew Bell, said.

RD