Mine operations at Dapingzhang continued to evolve with the current reserves (announced March 2008) estimating 17.7Mt of ore that can sustain mining operations for seven years.

The Dapingzhang Mine is an open cut mining operation using excavators and trucks. The mining is undertaken by independent contractors under instruction from the Joint Venture company. Mining is arranged to follow the pit design and optimise resource extraction by ensuring minimal ore loss and dilution occurs.

Highlights of mining at Dapingzhang since Regent became involved in the operation include:

• The completion of the waste stripping at both the Dapingzhang and Dawaz pits ahead of schedule.
• Delivery of high grade zinc and copper / zinc ore ahead of schedule.
• Implementation of differential floatation.
• Production of highly saleable copper and zinc concentrates.
• Successful completion of the Dawaz Pit.

Scheduling of the operations continues to focus on the timely extraction of the high grade ore from the current pit stages (Stage 1 through 3), with waste stripping in the future pit stages commencing in a sequenced fashion to ensure an uninterrupted future supply of ore.

Currently three processing plants on site are set up with two stage crushing, multiple mills and floatation circuits creating copper and zinc concentrates which are sold to smelters under the conditions of off-take agreements. Credits are received for gold and silver in the concentrates.

With the combination of internal and external expertise the process of ensuring the Dapingzhang resource is optimised is a key focus of the operation.