Regis Resources is pressing ahead with plans to expand its processing facility at the Rosemont gold project, despite prevailing weakness in the gold market.
Regis said it would spend $20 million for the second stage expansion, which will kick off in September, once the first stage is complete. The stage 2 plant is expected to be commissioned in the June 2014 quarter.
The works will see the plant upgraded to produce between 410,000 ounces and 430,000 ounces of gold per year, at a cash cost (prior to royalties) of between $630/oz and $680/oz.
The ore will be sourced from two mines; Garden Well will produce 215,000 to 230,000 oz pa while Rosemont will produce around 100,00 oz pa.
The expansion will be funded out of operating cashflow.
Regis also announced today an increase in the Garden Well resource to 3.0 million oz and the reserve to 1.7 million oz.
At close of trade today, Regis Resources shares were up 7 per cent, finishing at $3.50.
