Regis Resources reports a solid increase in Mineral Resources and Ore Reserves for 2024, driven by significant underground growth at Duketon and Tropicana. Exploration success at key sites underpins confidence in extending mine life and expanding underground operations.
- Group Mineral Resources rise to 7.5 million ounces
- Ore Reserves grow to 1.7 million ounces with underground gains
- Duketon underground Ore Reserves up ~550% since 2019
- Tropicana underground Ore Reserves increase ~202% since 2018
- Strong exploration results at Garden Well, Rosemont, Ben Hur, and Tropicana
Overview of Regis Resources’ 2024 Update
Regis Resources (ASX:RRL) has released its annual Mineral Resource and Ore Reserve update for the year ended 31 December 2024, showcasing a continuation of its disciplined growth strategy. The company reported a total Mineral Resource of 7.5 million ounces of gold and Ore Reserves of 1.7 million ounces, underpinned by robust underground expansion at its flagship Duketon and Tropicana operations.
CEO Jim Beyer highlighted the company’s systematic approach to exploration and mine planning, noting that 2024 marked the fifth consecutive year of underground Ore Reserve growth at Duketon. This consistent performance reflects Regis’ focus on converting Mineral Resources into Ore Reserves, a key metric for sustaining long-term production and extending mine life.
Significant Underground Reserve Growth at Duketon and Tropicana
Duketon’s underground Ore Reserves have surged by approximately 550% since the initial declaration in 2019, reaching 210,000 ounces after accounting for depletion. This remarkable growth is a testament to the success of Regis’ underground exploration programs and mining operations. Similarly, Tropicana has seen its underground Ore Reserves increase by around 202% since 2018, despite the withdrawal of reserves related to the McPhillamys project following regulatory changes.
Open pit Ore Reserves at Duketon also expanded to 640,000 ounces, supported by geological reinterpretations and favourable gold price assumptions. This growth across both open pit and underground domains reinforces the resilience and value of Regis’ asset base.
Exploration Success Fuels Confidence in Portfolio Growth
Exploration activities remain a cornerstone of Regis’ strategy, with ongoing drilling delivering high-grade intersections and expanding resource footprints. At Garden Well and Rosemont, underground exploration targets have been advanced, with significant mineralised zones identified outside current mining areas. The Ben Hur deposit continues to be a focus, with drilling aimed at unlocking its underground potential to support the company’s goal of operating at least four underground mines within Duketon.
At Tropicana, drilling at the Boston Shaker and Havana zones has yielded strong results, including high-grade extensions that bolster the underground resource base. The Cobbler underground target also shows promise as a blind extension of known mineralisation, with recent drilling confirming continuity.
Technical Rigor and Regulatory Context
Regis has maintained rigorous technical standards in resource estimation, adhering to the JORC Code 2012 guidelines. Detailed geological modelling, extensive drilling, and metallurgical testing underpin the reported figures. The company also navigated regulatory challenges, notably withdrawing Ore Reserves associated with the McPhillamys project following a Section 10 declaration, which impacted previously reported figures but did not affect the broader Mineral Resource base.
Environmental and social considerations continue to be integrated into project planning, with existing approvals in place and ongoing engagement with stakeholders. The company’s infrastructure and operational readiness support the planned underground expansions and ongoing open pit operations.
Strategic Outlook
Regis Resources’ 2024 update underscores a positive trajectory, with underground growth driving a more resilient and diversified production profile. The company’s commitment to exploration and resource conversion is expected to sustain this momentum, supporting its long-term strategy to expand underground mining and explore new open pit opportunities. Investors will be watching closely for further drilling results and regulatory developments, particularly around McPhillamys and other growth projects.
Bottom Line?
Regis’ sustained underground growth and exploration success position it well for future production resilience, but regulatory and geological uncertainties remain key watchpoints.
Questions in the middle?
- How will Regis manage the regulatory risks and potential delays related to the McPhillamys project?
- What is the timeline and capital requirement for bringing new underground mines like Ben Hur into production?
- Can ongoing exploration at Tropicana and Duketon deliver further large-scale open pit discoveries to complement underground growth?