Regis Boosts Buckingham-Wellington Ore Reserves to 251koz, Extends Production to FY31
Regis Resources has significantly increased Ore Reserves at its Buckingham-Wellington pits, extending Duketon North’s mine life and boosting production prospects with minimal new capital investment.
- Ore Reserves at Buckingham-Wellington rise from 128koz to 251koz
- Mine life extended by six years with production starting Q4 FY26
- Utilisation of existing Moolart Well mill capacity with no new infrastructure needed
- Strong financial metrics, $268M pre-tax NPV, 127% IRR, $3,524/oz AISC
- FY26 growth capital guidance raised to $220M–$235M for the group
Significant Reserve Upgrade at Duketon North
Regis Resources has announced a substantial update to its mine plan at the Buckingham and Wellington open pits within the Duketon North Operation. The company’s Probable Ore Reserves have nearly doubled, increasing from 128,000 ounces to 251,000 ounces of gold. This upgrade follows a detailed geological reinterpretation and trade-off study, which has extended the mine life by approximately six years, with production now scheduled to commence in the fourth quarter of fiscal year 2026.
Optimising Existing Infrastructure for Enhanced Cash Flow
The revised plan leverages the existing Moolart Well mill, utilising spare processing capacity that would otherwise become idle after current stockpile processing concludes towards the end of FY26. This strategic move allows Regis to bring forward ore processing from Buckingham-Wellington, which was previously slated for later processing at Duketon South. Importantly, this approach requires no new infrastructure or additional regulatory approvals, representing a low-capital, low-risk extension of current operations.
Robust Financial Outlook
Financially, the updated mine plan is compelling. At an average realised gold price of $5,387 per ounce, Regis projects an all-in sustaining cost of $3,524 per ounce, a pre-tax net present value (NPV) of $268 million at a 5.6% discount rate, and an internal rate of return (IRR) of 127%. The payback period is estimated at approximately 21 months, underscoring the project's strong cash flow generation potential. The company anticipates producing 223,000 ounces of recovered gold over the life of the mine, with peak annual production reaching 55,600 ounces.
Strategic Implications and Capital Guidance
Regis’ Managing Director, Jim Beyer, highlighted the disciplined and opportunistic nature of this development, noting that it enhances near-term cash flow without compromising higher-margin production at Duketon South. The company has consequently increased its FY26 growth capital guidance for Duketon to between $205 million and $215 million, with total group growth capital now forecast between $220 million and $235 million. This reflects the incremental investment required to bring the Buckingham-Wellington extension into production.
Maintaining Flexibility for Future Growth
The Buckingham-Wellington extension preserves Regis’ long-term strategic flexibility within the Duketon Greenstone Belt. Mining will proceed in three stages, with commitment to the third stage deferred until FY2028, allowing the company to adapt to market conditions and exploration success. Environmental and heritage considerations are managed under existing approvals, and mining below certain depths awaits regulatory clearance expected imminently, which does not impede initial mining stages.
Bottom Line?
Regis’ organic reserve growth at Duketon North not only extends mine life but also strengthens near-term cash flow, setting the stage for sustained value creation amid a supportive gold price environment.
Questions in the middle?
- How will the updated capital guidance impact Regis’ overall financial flexibility and shareholder returns?
- What are the risks associated with the pending regulatory approval for deeper mining stages at Buckingham-Wellington?
- Could further exploration within the Duketon Greenstone Belt unlock additional reserves to complement this extension?
