Regency Mines' joint venture partner progressing with nickel extraction process

Direct Nickel (DNi), the joint venture partner of AIM-listed mining exploration company Regency Mines is progressing in its nickel extraction process test plant in Australia, an update from Regency has shown.

Regency has a holding of approximately 7.5% of the shares in DNi, its joint venture partner in the Mambare nickel-cobalt laterite project in Oro Province, Papua New Guinea, a project which has a license for the DNi 'Process'.

The DNi Process is a hydrometallurgical process for the treatment of nickel laterites.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

Regency reported that DNi had achieved the hot commissioning of Stage One of its nickel extraction process Test Plant in Perth, and that the first three months of operations had been successful with intermediate product circuits achieving design metallurgical performance.

The company added that in the latter stage of hot commissioning, the nitric acid recovery recycling circuit had been brought into operation.

Regency said that DNi regarded the performance as an indication that demonstration of the DNi Process on a continuous basis would be achieved this year as planned.

Regency CEO: DNi progress 'looking very promising'Andrew Bell, Chairman of Regency, commented: "The news that the first circuits to be tested are achieving design metallurgical performance is important, and as the acid recycling circuit now being tested has already undergone independent testing by Aker Solutions at their Charlotte, North Carolina facility the stage one progress is looking very promising."

He added: "We invested in and allied with this technology at a time when few others believed in it, and although the path has been a long one recent progress suggests that decision was correct. I believe this has the potential to be a disruptive technology for the nickel industry."

Regency Mines' share price was down 4.69% to 0.30p at 15:04 on Wednesday.

MF