Regis Announces Production Jump in 2019

Regis Resources (ASX:RRL,OTC Pink:RGRNF) reported that at the end of December, gold output was up 3,216 ounces from the previous quarter to 90,849 ounces.

Highlights are as follows:

• Quarterly gold production of 90,849 ounces saw cash flow from operations increase by AU$17.5 million to AU$100 million for the December quarter
• Cash and bullion increased by AU$21.4 million to AU$168.8 million at the end of the quarter, after payment of AU$32.4 million in capitalised mining costs, AU$10.4 million on exploration and feasibility projects, AU$15.2 million in income tax payments and AU$17.0 million on a number of significant capital projects.
• Cash cost before royalties for the quarter were AU$866 per ounce. This reduction in quarterly cash costs was favourably impacted by the higher gold production as well as ongoing capitalised development of satellite pits during the December quarter.
• AISC for the quarter reduced from AU$1,234 per ounce in the September quarter to AU$1,219 per ounce in the December quarter with this reduction principally driven by the higher gold production this quarter.
• Full year production guidance remains unchanged with a production range of 340,000-370,000 ounces.
• After excluding the royalty cost impact associated with the higher prevailing gold price (currently ~AU$18 per ounce), the full year AISC is now forecast to be at the upper end of the AU$1,125-AU$1,195 per ounce* guidance range, primarily driven by accelerated material movement and higher drill and blast costs which are currently the focus of a cost improvement project.
• Rosemont underground development continued to progress with key ventilation and escape way infrastructure underway. Still targeting first stoping trials in the current March quarter.
• Potential for significant mine life extension for Rosemont underground resources with high grade gold (0.3 meters at 43.9 grams per tonne (g/t)) intersected 750 meters below surface, 285 meters below the deepest existing planned development.
• With the completion of the McPhillamys development application and the environmental Impact statement public exhibition period, the process of responding to submissions received has commenced.
• This will be submitted to the NSW department of planning, industry and environment in due course.
• Continued encouraging results for the potential Garden well underground including 2.7 meters at 6.5 g/t and 8 meters at 4.7 g/t gold. The underground project progressed well with the scoping study nearing completion. The preliminary feasibility study( PFS) is expected to start in the current March quarter.
• Significant drill intercepts at the Baneygo project continues to support the potential for underground resources. Results include 6 meters at 6.7 g/t and 2 meters at @ 9.9 g/t gold. In addition, shallow intercepts provide encouragement for additional open pit oxide resources including 4 meters at 14.3 g/t from 20 meters down hole and 4 meters at 2 g/t from 20m down hole.
• Promising results received from shallow drilling at the ranch open pit prospect located 4km south of Baneygo show potential for additional oxide Resources with 4 meters at 16.2 g/t and 12 meters at 1g/t gold.
• Early drill testing of the Gloster underground target continues to deliver high grade drill intercepts. Results included 1 meter at 57.7 g/t and 2 meters at 5.2 g/t gold.

Click here to read the whole Regis Resources (ASX:RRL,OTC Pink:RGRNF) press release.