Regis’ Garden Well gold due to start mining in June

Regis Resources are soon to resume mining at the Garden Well
project, after three days of rain in February forced a shutdown of operations.

The gold miner has now finished with pumping water out of
the northern part of the Garden Well open pit, with the pumping contractor’s
equipment demobilised.

Regis said it will now remove sludge and sediment, about
one metre deep, and that mining is due to resume at the end of June.

Regis says it plans to focus on mining schedules and
throughput at Garden Well and Rosemount to optimise operations over the next
12-months.

The torrential downpour occurred between the 11th and 13th of February, and dropped 165mm of rainfall which caused severe flash-flooding of the open-cut pit.

It was described by Regis as a “one in 150 year rainfall
event”, in which 130mm fell within a 14 hour period.

See pictures of the mine flood here.

Regis issued a force majeure to MACA immediately after the
event, and initiated a trading halt on the ASX.

Regis have continued processing of ROM stockpiles in the meantime, and in the seven weeks leading to May 19 Garden Well has produced 14,620 ounces from 534,541 tonnes of ore milled.

Throughput has been adversely affected by wet ore on the crushing
circuit and a high proportion of harder chert ore.

Production guidance for 2015 has been lowered, and Regis’
focus at the Duketon Project will be aimed at optimising the mining schedules
and achieving the best possible steady state mill throughput rates at both
Garden Well and Rosemont.

Regis will also review operating costs across the board.

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