Regis Resources has reinstated the Ore Reserve for its McPhillamys Gold Project at 56 million tonnes at 1.1 grams per tonne, totaling 1.89 million ounces of gold. This milestone comes following extensive development work on an alternative tailings strategy that resolves a significant obstacle the company faced after the federal Environment Minister’s Section 10 Declaration in August 2024. The new Prefeasibility Study confirms that the filtered tailings approach, known as the Integrated Waste Landform, represents a technically sound development pathway that keeps the project within accessible footprint while preserving its economic value.
The Integrated Waste Landform approach is significant because it will be co-disposed within the mine’s waste dump and sits entirely within land owned by Regis, avoiding encroachment on the Section 10 declared area that had rendered the original development strategy unviable. The NSW government has granted State Significant Infrastructure status to key project items including the waste landform and water pipeline, providing clarity on the regulatory approvals pathway and reducing execution risk on two critical infrastructure components.
At a gold price of A$4,000 per ounce, the updated PFS demonstrates compelling project economics. The operation is projected to deliver 190,000 ounces of average annual gold production over its first nine years with an All-In Sustaining Cost of $1,718 per ounce. Total gross revenue is estimated at $7.1 billion, underpinning a post-tax Net Present Value of $1.13 billion at a 5.5% discount rate and an Internal Rate of Return of 21.8%. Pre-production capital expenditure is estimated at $1.08 billion, including $78 million of contingency and $77 million of capitalised pre-production operating costs.
Regis is pursuing a dual-path strategy to advance the project. While the company is developing this alternative IWL pathway to maintain project momentum and provide optionality, it continues to pursue its legal rights by challenging the procedural fairness of the Section 10 Declaration through judicial review, with a decision pending from the Court. The company notes that work on the original tailings storage facility development approach from its 2024 Definitive Feasibility Study remains active and continues to be the preferred pathway.
The company is targeting a Final Investment Decision in the first half of calendar year 2028, subject to securing necessary approvals. Investors should monitor the outcome of the judicial review, which could materially enhance the project’s economics by potentially reinstating the original lower-cost development pathway. Additionally, the PFS does not include upside from other prospects in the district such as Discovery Ridge and Kings Plains, representing potential expansion opportunities not captured in current valuations. This announcement is price sensitive and flagged as material by the ASX.
View the full ASX announcement (PDF)
About Regis Resources Limited (ASX: RRL)
Regis Resources Limited is an Australian gold producer and explorer that engages in the exploration, evaluation, and development of gold projects. The company operates the Duketon Gold Project in the northeastern Goldfields of Western Australia and the Tropicana Gold Project east-northeast of Kalgoorlie in Western Australia.
If you would like to discuss this announcement or how it might affect your portfolio, request a callback or call us on 1300 889 603.
