McPhillamys reserve estimated at 2Moz

PERTH (miningweekly.com) – Gold miner Regis Resources has reported a maiden ore reserve of 60.1-million tonnes at its McPhillamys gold project, in New South Wales.

Grading at 1.05 g/t gold, the project is estimated to host an ore reserve of 2.03-million ounces.

“A maiden reserve in excess of two-million ounces and the robust prefeasibility economics at the McPhillamys gold project are a testament to the scale and quality of the project,” Regis executive chairperson Mark Clark said on Friday.

“We look forward to pushing ahead with completion of the final elements of the definitive feasibility study and then submitting permitting applications immediately thereafter. Development of the project is an outstanding organic growth opportunity for Regis,” he added.

Prefeasibility studies at McPhillamys have showed that a seven-million-tonne-a-year mining and processing operation, delivering gold production of 192 000 oz/y over a nine-year mine life, recovering a total of 1.73-million ounces.

The project is expected to require a capital investment of A$215-million, while life-of-mine all-in sustaining costs have been estimated at A$990/oz.

The prefeasibility study estimated a pre-tax net present value of A$525-million at a gold price of A$1 600/oz.

Regis is hoping to submit permit applications in the March quarter of next year, allowing construction to start in the December quarter of that year, and first production one year later.