Regis Resources (ASX:RRL) has reinstated its McPhillamys ore reserves of 56 million tonnes @ 1.1 grams per tonne gold for 1.89 million ounces, all classified as probable ore reserves.
This update comes as the company completes a Prefeasibility Study at its McPhillamys Gold Project in New South Wales and targets a final investment decision in the first half of calendar year 2028.
The new PFS demonstrates the project can deliver 190,000 ounces of average annual gold production over the first nine years at an all-in sustaining cost of $1,718 per ounce, based on a gold price of $4,000 per ounce.
Financial metrics show the project generates a gross revenue of $7.1 billion, with a net present value of $1.13 billion and post-tax internal rate of return of 21.8%.
Total pre-production capital is $1.08 billion, representing an increase of approximately $74 million compared to the previous Definitive Feasibility Study.
According to the study, McPhillamys will also process 60.6 million tonnes of ore at an average grade of 1.0g/t over 9.4 years, recovering 1.73 million ounces of gold using conventional crush, grind, and carbon-in-leach technology.
CEO Jim Beyer says the reinstatement of the McPhillamys ore reserves is a “significant milestone” for Regis.
“We have worked methodically to identify an alternative development pathway that preserves the value of the project and provides optionality,” Beyer says.
“Our technical and project teams have worked extremely hard to get us to this point, and I want to recognise their effort and rigour in advancing this solution.”
He adds that Regis is now focused on securing the necessary approvals required for an FID.
Regis Resources (ASX:RRL) is a gold producer and explorer, with projects in New South Wales and Western Australia.
Write to Paula Fabe at Mining.com.au
Images: Regis Resources
