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.