Regis gives green light to Garden Well

Regis Resources says production is set to commence at its Garden Well gold project around September 2012 - just two and a half years after discovery drilling - after releasing a study which put capital costs for the mine at $109 million.

The Subiaco-based gold miner said in a statement to the ASX today that its definitive feasibility for Garden Well showed a "very robust and highly profitable project" and flagged total gold production of 1.57 million ounces.

The study forecast average annual gold production of 180,000oz, with life of mine cash operating costs of $555/oz.

Regis said development of the mine, which had secured board approval, would be funded by internal cash flows, and an extension of corporate debt facilities.

It said project development would commence in July, with production slated for the September 2012 quarter.

"Achievement of this timetable will be a remarkable achievement for Regis given that it will mean that the deposit will have transitioned from discovery drill hole to first gold production in only two and a half years," Regis' statement said.

Regis managing director Mark Clark said development of Garden Well would elevate the company into the mid-tier of global gold producers, with total production of around 350,000oz for fiscal 2012/13.

Regis is currently producing gold from its Moolart Well mine, also at the Duketon gold project, near Laverton.

At 9:44AM Regis shares had gained 2.1 per cent, to trade at $2.37.