Regis Resources will develop a new underground mine under the existing Garden Well open pit at its Duketon gold operations, near Laverton.
The company announced this morning that its board had approved the project after completing a feasibility study on the Garden Well South project. Work is expected to get underway in the first quarter of next year, with processing expected by late in 2021.
Regis managing director Jim Beyer said the decision was a major milestone for Regis.
"This new underground mine will be a key element in achieving and maintaining our aim for the Duketon Operation to become a reliable 400koz per annum producer. Further, we believe that the approved Garden Well underground is not only a robust investment in its current form but just as importantly has the potential to increase life and value through down plunge exploration," he said.
The new project holds an estimated resources of 2.4Mt at 3.6g/t Au for 270,000 ounces.