Proactiveinvestors Australia Regis Resources Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia Regis Resources Ltd RSS feed en Tue, 23 Apr 2019 18:21:41 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Regis Resources begins underground gold mine development at Rosemont ]]> https://www.proactiveinvestors.com.au/companies/news/218547/regis-resources-begins-underground-gold-mine-development-at-rosemont-218547.html Regis Resources Limited (ASX:RRL) has begun underground mine development at its Rosemont Gold Project in WA with decline development advanced to more than 150 metres.

The company approved the development of an underground mining operation directly below the current Rosemont open pit as part of an expansion of existing operations to exploit an initial underground resource of 1.4 million tonnes at 5.1 g/t for 230,000 ounces.

Portal development at the southern end of the Rosemont open pit then followed in February 2019 with the mine decline currently advanced to over 150 metres.

A “major step” to deliver underground growth strategy

Regis managing director Jim Beyer said: “It has been extremely pleasing to see the Rosemont team commence development of our underground mine.

“This is another major step as we continue to deliver the underground growth strategy that Regis has been pursuing at Duketon - it is also satisfying to see that the recently completed pre-feasibility study demonstrates an increasingly robust UG operation.

“As we have stated before, we believe the development of this initial underground position at Rosemont provides an excellent platform to continue to grow our production and this is already proving to be the case.

“I am also very excited to see the underground exploration picture develop further with the recently completed 2D seismic survey indicating the potential for ongoing growth beneath the current resource with a potential large feeder structure to the Rosemont mineralisation visible.

“This structure will be a priority targeted by our exploration team.”

Upgraded mineral resource estimate of 1.7 million tonnes at 5.6 g/t

An updated mineral resource estimate of 1.7 million tonnes at a grade of 5.6 g/t for 314,000 ounces has also been completed, which represents a 37% increase in contained ounces from the previous estimate recorded in March 2018.

The updated estimate was used as the basis for a pre-feasibility study which highlights three separate zones to be extracted – Rosemont South, Rosemont Central and Rosemont Main for which mine development has begun.

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Mon, 15 Apr 2019 15:58:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218547/regis-resources-begins-underground-gold-mine-development-at-rosemont-218547.html
<![CDATA[News - Regis Resources approves underground development at Rosemont Gold Mine ]]> https://www.proactiveinvestors.com.au/companies/news/202158/regis-resources-approves-underground-development-at-rosemont-gold-mine-202158.html Regis Resources Ltd (ASX:RRL) has received board approval to develop an underground gold mine directly below the operating open pit at its Rosemont project north of Laverton in Western Australia.

The combined open pit and underground mine is scheduled to deliver 10.3 million tonnes at 1.72 g/t gold for 570,000 ounces over a 5-year mine life.

Open pit reserves make up 62% of this schedule with the remaining 38%, or 214,000 ounces, to be delivered from the underground operation.

UG mine “a robust business in its own right”

Regis executive chairman Mark Clark said: “The decision to approve the first development of an underground mine at one of our Duketon operations is a very exciting step for Regis.

“We believe that the approved Rosemont underground operation is a robust business in its own right, but just as importantly will see the infrastructure in place to grow that mine through exploration from an established underground footprint.

“This growth opportunity will be targeted both laterally between the two mining zones and at depth and along strike.”

Delivering an extra plus-35,000 ounces

The underground component of the expanded operation has a resource estimate of 1.4 million tonnes at 5.1 g/t gold.

Mining rates of the expanded operation will continue to be around 2.1 million tonnes per annum, with the underground component of this schedule being in the range of 480-600,000 tonnes per annum.

Once the underground operation is at fully capacity, the combined open pit and underground mine will produce at a run rate of 120-130,000 ounces per annum.

This is an estimated 35-45,000 ounce increase on production from the average grade of the open pit alone.

Clark said: “There is a very strong opportunity to replicate this development path at Garden Well in the near term and then at other Duketon satellite pits in due course.”

Significant underground exploration effort

The operating cost of the combined operation is expected to be $1,015 per ounce, with the underground component alone $1,154 per ounce.

Pre-production capital for the underground expansion is expected to be $29.4 million and a further $9.7 million forecast over the life of mine.

Maximum cumulative cash outflow is expected to be $38.5 million.

Both surface and underground infrastructure included in this capital investment will also service a significant underground exploration effort along the highly prospective 4-kilometre Rosemont shear zone.

Upgraded mineral resource estimate

Development work, including permitting, ordering of long lead capital items and underground mining contract tendering, will commence in the current quarter.

The company will also complete an update mineral resource estimate in the current quarter, which will include recent infill and extensional drilling.

Portal development at the southern end of Rosemont Main is expected to begin in the March quarter 2019 and processing of underground ore due in the December quarter 2019.

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Thu, 02 Aug 2018 21:31:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202158/regis-resources-approves-underground-development-at-rosemont-gold-mine-202158.html
<![CDATA[News - Regis Resources to forge ahead with expansion at Duketon gold project , targets 15c dividend ]]> https://www.proactiveinvestors.com.au/companies/news/161816/regis-resources-to-forge-ahead-with-expansion-at-duketon-gold-project-targets-15c-dividend-45254.html Regis Resources (ASX:RRL) is pushing ahead with plant expansion at Duketon project near Laverton, once stage 2 development is complete operating costs (before royalties) are forecast at just A$630 – 680 per ounce for the whole project.

This comes at a time when many gold producers are pulling in their horns due to the lower prevailing gold price.

The additional $20 million capital cost of the Rosemont Stage 2 development and the remaining $28.5 million to be spent on the current development will be funded out of operating cashflow.

Once Rosemont stage 2 development is complete this should result in a long term production rate for the whole Duketon Gold Project (including Moolart Well) of between 410,000 – 430,000 ounces of gold per annum.

Gold production for the June 2013 quarter was 72,134 ounces.

Regis is targeting a 15 cent per share fully franked dividend in relation to the 2013 financial year which would place the stock on a very healthy dividend yield of 4.4%.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 05 Jul 2013 16:40:00 +1000 https://www.proactiveinvestors.com.au/companies/news/161816/regis-resources-to-forge-ahead-with-expansion-at-duketon-gold-project-targets-15c-dividend-45254.html
<![CDATA[News - Regis Resources teams up with Macquarie Bank to advance Duketon Gold Project ]]> https://www.proactiveinvestors.com.au/companies/news/161815/regis-resources-teams-up-with-macquarie-bank-to-advance-duketon-gold-project-3195.html Gold-focused company Regis Resources (ASX: RRL) has accepted a formal offer from Macquarie Bank for a project loan, gold hedging and performance bond facilities for the Duketon Gold Project.

The offer includes a debt facility of $45 million, hedging facility of up to 300,000 ounces of gold and a performance bond facility of $5 million.

Shares in the Perth-based company last traded at 52c on the Australian Stock Exchange.

The debt facility will be applied towards the development cost of the Duketon Gold Project which is forecast at $73 million.

The drawdown of the debt facility is not expected to be required until the March 2010 quarter, with development of the DGP is on schedule for commissioning and first gold production in the September 2010 quarter.

The debt facility will be provided in two tranches, the first for $40 million and the second for $5 million.

Tranche two is a standby facility. The loan amortisation schedule requires full repayment of the debt facility by June 2014 however the company anticipates earlier repayment.

The gold hedging facility will be available to the company on execution of security documentation and satisfaction of a limited number of the facility conditions precedent.

Drawdown of the loan facility is subject to usual conditions precedent, including the completion of a gold hedging programme of 150,000 ounces. Gold reserves at the DGP are currently 603,584 ounces.

Regis managing director Mark Clark said the company would also  proceed with an equity issue to complete the funding of the development cost of the DGP along with exploration costs and working capital requirements.

The structure and timing of the equity issue will be advised to the market shortly.

“The Company has been able to negotiate very competitive debt financing terms for the development of the Duketon Gold Project," Mr Clark added.

"This is a reflection of Macquarie’s confidence in both the Regis management team and the robustness of the Duketon Gold Project. The negotiation of the debt facility, along with the imminent completion of the equity issue, marks the start of Regis’ long awaited transition from explorer to gold producer.”

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Mon, 09 Nov 2009 14:09:00 +1100 https://www.proactiveinvestors.com.au/companies/news/161815/regis-resources-teams-up-with-macquarie-bank-to-advance-duketon-gold-project-3195.html
<![CDATA[News - Regis Resources' new management reviews DFS, improves returns at Duketon Gold Project ]]> https://www.proactiveinvestors.com.au/companies/news/161814/regis-resources-new-management-reviews-dfs-improves-returns-at-duketon-gold-project-2102.html Regis Resources (ASX: RRL) has reviewed the April 2009 definitive feasibility study for development of the Company’s 100% owned Duketon Gold Project in Western Australia - with some startling results.

The revised DFS shows a significantly improved financial return from the project and will allow financing of the development on competitive terms.

Net present value is estimated at $146 million, with an internal rate of return of 57% and a payback period of 17 months.

Average annual production is forecast at 90,000 ounces, with a mine life at Duketon of six years. Capital cost in the DFS has seen a significant reduction from $125 million (excluding contingency) to $73 million.

The new management team has shaken up many of the parameters assumed under the previous DFS.

Significantly, there has been no slippage in the potential commencement of operations at the Duketon Gold Project, in spite of the 12 week review and revision of the DFS undertaken since the appointment of the Company’s new board on 4 May 2009.

First gold production is scheduled for September 2010.

The preliminary timetable for development of Duketon:

August 2009: Secure project funding
September 2009: Commence plant site earthworks
December 2009: Commence plant construction
July 2010: Mill delivery and commencement of installation
September 2010: Commissioning and first gold production

As a result of the review, significant changes have been made to the development and operating parameters of the Duketon Project including:

• Reduction in nominal plant throughput from 2.5 million tonnes per annum (mtpa) to 2.0 mtpa.
• Change in mining method from scraper mining to truck and shovel excavation due to the haul distance to the processing plant, planned direct tipping of ore to the crusher and mining selectivity concerns;
• Inclusion of an allowance for the cost of grade control drilling in the laterites;
• Reduction in capital cost and
• Construction and other development activities will be managed in house by Regis.

Construction and other development activities will be managed in house by Regis as has been the case with several previous successful developments completed by this management team. This approach has contributed to the significant capital cost savings from the April 2009 DFS.

Risks to Development Timetable

Regis has indicated its ability to secure funding for the development on a timely basis through a mixture of debt and equity raisings will have a significant impact on whether the timetable can be achieved.

A standard condition of any debt financing for the project will be the requirement to grant appropriate security over the assets of the Company. Unfortunately however, the Company is not currently in a position to grant security to a project financier due to the existence of securities in favour of Newmont Mining Finance Pty Ltd, a subsidiary of Newmont Mining Corporation, the Company’s largest shareholder (23% interest).

These securities take the form of Mining Act mortgages over the key mining tenements and fixed and floating charges over all of the assets of the Company. The Company has commenced commercial negotiations with Newmont with the objective of releasing the securities to enable the project development timetable to be achieved.

If negotiations are not successfully finalised on a timely basis this will delay the construction of the project (and commencement of gold production) as the board considers it imprudent to commence development without ensuring that the capital cost is fully funded.

Regis has commissioned a review of its legal position in relation to the guarantee including reviewing the historical documentation and agreements (dating back to 1998) relating to the transactions which led to the guarantee being provided by the Company.

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Tue, 28 Jul 2009 14:02:00 +1000 https://www.proactiveinvestors.com.au/companies/news/161814/regis-resources-new-management-reviews-dfs-improves-returns-at-duketon-gold-project-2102.html
<![CDATA[News - Regis Resources to announce feasibility study results for Duketon Gold Project ]]> https://www.proactiveinvestors.com.au/companies/news/161813/regis-resources-to-announce-feasibility-study-results-for-duketon-gold-project-1151.html Regis Resources (ASX:RRL) has announced the completion of the Definitive (Bankable) Feasibility Study (DFS) for the Duketon Gold Project in Western Australia. The Duketon gold resource base has increased to 3.5 million ounces and the current management has increased the ownership of the asset to 100%.

Previous mining cost estimates were less than A$1.50 p/t.  Milling costs were estimated at A$8-11 p/t.  The target was 2.5mtpa, with 150,000 ounces per annum.

The board is extremely encouraged by the results of the DFS and in particular, its conclusion that Regis has the potential to produce gold very economically in the early years of operation, a factor which should enable the securing of finance on highly favourable terms.

The board is now reviewing the content of the DFS and will provide shareholders with an analysis of the detailed outcomes of the report and a proposed strategy for the development of the Duketon Gold Project shortly after Easter.

The bankable feasibility study was completed in conjunction with GR Engineering Pty Ltd which provided the initial engineering design and coordinated the independent technical expert requirements in the compilation of the study. The study comprises over 700 pages of discussion, detailed engineering drawings and financial analysis.

Regis Resources had $10m cash, long term debt and $85m in tax losses in January 2009.

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Wed, 01 Apr 2009 13:26:00 +1100 https://www.proactiveinvestors.com.au/companies/news/161813/regis-resources-to-announce-feasibility-study-results-for-duketon-gold-project-1151.html