A definitive feasibility study 12 years in the making by Perth-based gold producer Regis Resources has outlined the long-life potential of the company’s McPhillamys project in NSW.
A definitive feasibility study 12 years in the making by Perth-based gold producer Regis Resources has outlined the long-life potential of the company’s McPhillamys project in NSW.
The study outlined a robust project with a post-tax payback of 6.1 years at a gold price of $3,000 per ounce, mining an ore reserve of 56 million tonnes at 1.1 grams per tonne gold over almost a decade.
Based on an average all-in sustaining cost of $1,580/oz, Regis said it had the potential to deliver gross revenue of $5.2 billion and pre-tax cash flow of $1.5 billion.
Pre-production capital requirement to deliver the project came in at $996 million.
Regis managing director Jim Beyer said the study demonstrated the potential recognised in McPhillamys – located on the Lachlan Fold Belt – when the project was acquired in 2012.
“McPhillamys is a long-life, low operating cost, expandable open pit project,” he said.
“It will produce profitable ounces for our shareholders while generating significant benefits for our local and regional communities and other stakeholders.”
Mr Beyer said more work would be done to add further value to the McPhillamys project picture.
The goldminer expects to make a final investment decision on McPhillamys in the 2026 financial year.
“We will work on optimising the capital requirements and seek to expand the current mining inventory,” Mr Beyer said.
A top-five WA gold producer by ounces, McPhillamys would be a first foray away from the state for Regis if brought to production.
Regis currently produces from the Duketon mine near Laverton and owns 30 per cent of the Tropicana joint venture with AngloGold Ashanti, east of Kalgoorlie.
Its assets churned out 418,000oz of gold over the year to March 31, according to Data & Insights.
The DFS delivery comes as rumours swirl over a potential tie-up between Regis and Gold Road Resources, as consolidation takes hold of the state’s gold mid-tier amid a record price environment.
Red 5 and Silver Lake Resources merged earlier this year, while a deal between Westgold and Canada-listed Karora Resources looks to be a formality after it was approved by the latter’s shareholders over the weekend.
Regis shares edged 0.1 per cent lower at 1.45pm, to trade at $1.91.
