Regis Resources has set itself for a strong year of development, as both the McPhillamys and Garden Well gold projects continued towards becoming operational over the past quarter.
The McPhillamys gold project in New South Wales is Regis’ highest priority growth project as it has been touted as one of Australia’s largest undeveloped open pit gold projects.
Regis and the New South Wales Department of Planning, Industry and Environment (DPIE) have discussed approval to mine a 61 million tonne ore reserve, according to Regis managing director Jim Beyer.
“We continue to work constructively with NSW DPIE in relation to permitting for the McPhillamys project and remain confident that a recommendation by DPIE to the IPC (Independent Planning Commission) and a subsequent determination by the IPC will likely be made in the first half of the 2022 financial year,” Beyer said.
If approved, the project has the potential to produce 2.02 million ounces of gold.
At the average gold price for the March quarter, $2014 per ounce, this resource would be worth over $4 billion in gold sales.
Across the board, Regis produced over 85,000 ounces to maintain a production guidance of 355,000-380,000 ounces for the 2021 financial year, and Beyer said the quarter had progressed “broadly to plan.”
Regis completed a new portal and began initial decline development at the Garden Well underground project in Western Australia this past quarter.
These developments are hoped to allow access to a mined material of 1.85 million tonnes for 190,000 ounces of gold, according to the feasibility study.
“During the quarter our latest growth project, Garden Well South underground mine, started completion of the portal and commencement of decline development. This new mine will be an excellent addition to our production profile,” Beyer added.
As announced in mid-April, Regis has acquired a 30 per cent interest in the Tier 1 Tropicana gold mine in Western Australia.
Beyer said the deal had almost been completely settled, thanks to AngloGold Ashanti.
“We are pleased to note AngloGold Ashanti’s recent waiver of the pre-empt for the deal, leaving only ministerial approval for the transfer of the tenement interests as the remaining condition to ownership,” Beyer said.