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REGIS RESOURCES LIMITED — AGM Information 2023
Nov 22, 2023
65733_rns_2023-11-22_67fd7099-e564-4c71-a15d-0ff1e91a3191.pdf
AGM Information
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A future with growth
2023 Annual General Meeting Jim Beyer – Managing Director and CEO 23 November 2023
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Acknowledgment of country
The Board, Executive and Team at Regis Resources acknowledges the First Nations peoples - the Mantjintjarra Ngalia, Noongar, Spinifex and Wongatha peoples in Western Australia, and the Wiradjuri people in New South Wales - as the original inhabitants of the lands on which our Company currently operates and plans to develop new operations. We recognise their ongoing connections with land, waters, and community, and pay our . respects to elders past and present
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a future with growth
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Cautionary statement
This presentation contains only a brief overview of Regis Resources Limited and its associated entities (“Regis or RRL”) and their respective activities and operations. The contents of this presentation, including matters relating to the geology of Regis’ projects, may rely on various assumptions and subjective interpretations which it is not possible to detail in this presentation and which have not been subject to any independent verification.
This presentation contains a number of forward-looking statements that are subject to risk factors associated with gold exploration, mining and production businesses. It is believed that the forward looking statements in this presentation are reasonable based on information available as at the date of this presentation but known and unknown risks and uncertainties, and factors outside of Regis’ control, may cause the actual results, performance and achievements of Regis to differ materially from those expressed or implied in this presentation. These risk factors include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Readers are cautioned not to place undue reliance on forward looking statements. No representation or warranty, express or implied is made as to the accuracy, currency or completeness of the information in this presentation, nor the future performance of Regis. Except as required by applicable law or regulations, Regis does not undertake to publicly update or review any forward-looking statements, whether as a result of new information or future events. Current and potential investors and shareholders should seek independent advice before making any investment decision in regard to Regis or its activities.
Mineral Resources, Ore Reserves and Exploration Results are extracted from the Mineral Resource and Ore Reserve Statement released to the ASX on 20 June 2023 and the Quarterly Activities Report released on 28 July 2023 (the Relevant ASX Announcements).
In each case, appropriate Competent Person’s consents were obtained for the release of that information in the Relevant ASX Announcements and those consents remain in place for subsequent releases by the Company of the same information in the same form and context, until the consent is withdrawn or replaced by a subsequent report and accompanying consent.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the Relevant ASX Announcements and in each case the Production Targets, forecast financial information and estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning that information in the Relevant ASX Announcements, continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original ASX announcement.
This presentation uses mineral reserves and mineral resources classification terms that comply with reporting standards in Australia. These standards differ significantly from the requirements of the United States Securities and Exchange Commission that are applicable to domestic United States reporting companies and, therefore, are not comparable.
Past performance and pro-forma financial information given in this document, including in relation to upgrades to resources and reserves, is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance, nor of Regis’ views on the Company’s future financial performance or condition. Investors should note that past performance of Regis, including the historical trading prices of its shares, cannot be relied upon as an indicator of and provides no guidance as to) Regis’ future performance, including the future trading price of its shares. The historical information included in this presentation is, or is based on, information that has previously been released to the market.
As noted above, an investment in Regis shares is subject to known and unknown risks, some of which are beyond the control of Regis. Regis does not guarantee any particular rate of return or the performance of the Company, nor does it guarantee the repayment of capital from Regis or any particular tax treatment.
The distribution of this presentation (including an electronic copy) outside of Australia (including the United States) may be restricted by law and any such restrictions should be observed. Any non-compliance with these restrictions may contravene applicable securities laws.
References to Tropicana are at 30% ownership unless otherwise noted.
ASX announcements are available on the Company’s website at www.regisresources.com.au
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Exploration Target
Exploration Target at Garden Well (noted on Slide 11) is extracted from ASX release “Mineral Resource and Ore Reserve Statement” dated 20 June 2023. The Exploration Target on the Garden Well underground deposit is based on drilling data up to 30 March 2023.
The Exploration Target is estimated to contain between 9Mt and 18Mt at a grade ranging between 2.3 g/t Au and 2.9 g/t Au across the deposit. The Exploration Target area includes the known Garden Well underground mineral system as well as potential down plunge depth extensions and open areas along strike, both North and South, with a 1,000m vertical extent from +350m RL to -650m RL.
Study work has identified that Garden Well underground is a potentially large mineralised system, with significant untested resource potential in the south direction and at depth. Known mineralisation patterns suggest continuity at depth, but significant resource risk and uncertainty remains. The potential quantity and grade of the Exploration Target is conceptual in nature and therefore is an approximation. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The Exploration Target has been prepared and reported in accordance with JORC Code 2012.
The Exploration Target has been reasonably defined based on a review of the Garden Well deposit using existing data, including drill hole databases, geophysical data sets and the 2022 Mineral Resource Estimate (MRE) data. The MRE included block models for the Garden Well open pit, Garden Well South underground and Garden Well Main underground resources. The drill data shown as gram-metre intervals was used to assist in defining the volumes used to quantify the Exploration Target. The number of drill holes and assays used to support the definition of Exploration Target comprises 672 drill holes and 96,750 assays.
The Exploration Target mineralised zones are constructed to form a volume for block model estimation with the same parameters as the Garden Well underground resources. Tonnage estimates are generated by applying bulk densities from the Garden Well deposit and underground mining shapes assume the same mining methods and cost structure as for the Garden Well South underground operation.
To mitigate the risk and further evaluate the Exploration Target, a high-level drill program has been proposed. The proposed drilling schedule has been designed with Stage 1 testing of the initial target area expected to be completed by December 2023. Further stages of drill testing will be planned based on the results of Stage 1.
ASX announcements are available on the Company’s website at www.regisresources.com.au
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Long life assets in tier 1 locations
Strong platform to launch disciplined growth
Darwin
10+ years McPhillamys
Duketon 6+ years
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Stabilised operational performance
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Substantial growth potential from underground mines
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NT
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QLD
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One of Australia’s largest
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undeveloped open-pittable gold deposits
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Final key NSW approval received in March 2023
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SA Brisbane
MCPHILLAMYS
NSW
Sydney
Adelaide
Canberra
VIC
Melbourne
TAS
Hobart
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DUKETON
TROPICANA
Perth
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Tropicana 10+ years
- 30% stake in a Tier-1 asset that consistently generates exceptional returns
Total Resources 7Moz Total Reserves 4Moz
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Delivered ~$200M operating cash flow in FY23
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Commercial production declared at Havana open pit
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FY23 highlights
A platform for improving cash flows and scale
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Record gold production of 458 koz
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Cash flow from operations of $455M
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Group LTIFR reduced to 0.9
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Cash and bullion of $243M*
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AISC cost margin of $666/oz
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3[rd] biggest Australian gold miner on the ASX
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- Based on cash and bullion on hand of 13,371oz at $2,884/oz
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FY23 highlights
Continuing year on year progress
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Commercial production at new mines
Carbon and diesel reduction
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Commenced* commissioning of 9MW solar at Duketon
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Garden Well South underground (Duketon)
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Havana open pit (Tropicana)
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Committed to 62MW renewable energy facility at Tropicana
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270% increase in rehabilitated land
Exploration Target established at Garden Well Main
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Total gold at 0.8Moz to 1.3Moz • Total rehabilitated to date land increased to 12%
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• Grade at 2.3g/t to 2.9g/t
21% female employees
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33% female Board members
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Above industry average
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39% reduction in abstracted groundwater
- Total abstracted groundwater of 1.65GL
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*completed in August 2023
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Investment phase of producing assets is over…
…transitioning to the cash build phase with accompanying increase in return on investment (ROI)
Cash build phase will accelerate in FY25
Completed Jun Q FY23
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Commercial production at Garden Well underground (Duketon) Commercial production at Havana open pit (Tropicana)
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At the end of FY24
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FY25 will see the initiation of planned ramp down in waste movement (Tropicana) Release ~$170M/yr* of additional pre-tax cash flow through completion of the existing hedge book (Corporate)
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- at gold price of A$3,100/oz
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The pathway to 500koz per year with margin
A business with scale and multiple organic growth options
FY24 to FY26
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Target 500koz in FY27
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Ramp up and optimise undergrounds
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Duketon Grow Garden Well Reserve and expand production 200-250 [#] koz
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Rolling Reserve replacement
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Ramp up Havana open pit and reduce waste movement from FY25
Tropicana 135-150^koz
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Commence access decline and deliver Feasibility Study
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Final investment decision in FY24
McPhillamys 165-180koz
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Construct and commission ready for first gold pour in FY27
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Ongoing
delivery
required to
maintain rates
beyond FY27
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500koz pa – a key target behind our objectives
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Assumes no new open pit discovery
^ During open pit and underground phase
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Duketon has bright future underground
300koz+ producer where the transition underground is showing its potential
Garden Well in August 2021 - Then
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Garden Well underground mine commenced with portal and start of development
Surface drill holes indicated continuity of mineralisation in the north
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Duketon has bright future underground
300koz+ producer where the transition underground is showing its potential
Garden Well in August 2023 - Now
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Exploration decline into Garden Well Main complete
Exploration Target of 0.8 to 1.3Moz
established along with first Resource at the northern end
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Tropicana – a genuine tier 1 asset
Long term mine life with no end in sight
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Tropicana
Havana
Boston Shaker
Havana South
Tropicana
Underground
Havana South Boston Shaker
22m @ 3.0
Underground Underground
Havana
(Conceptual) 3m @ 8.3
Underground
3m @ 4.4
(PFS)
25m @ 4.0 22m @ 4.0
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Strong cash generation over the life of the mine
Mine life targeted to 10+ years
Underground Reserves outpacing depletion
Decrease in material movement from FY25
Installing 62MW of clean energy (solar/wind/battery)
Development/Stopes by year
already mined 2023 Au (g/t) 2024 >10.0 2025 onwards 1.6 to 10.0
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McPhillamys – long life mine
Top tier project producing up to 200koz per year over 10+years in Australia
NSW state IPC determination received in March 2023
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Expecting response on Federal Section 10 shortly
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Final investment decision expected June quarter FY24
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Design is a 7Mtpa throughput with a conventional Carbon-In-Leach flowsheet Located on the highly endowed Lachlan Fold belt which hosts over 150Moz of gold Grade gets better at depth Exploration to accelerate in FY24
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McPhillamys – just the start of the province
Further drilling could see more ounces added to the future mine plan
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Discovery Ridge has 390koz in Resource and with further drilling has the potential for Reserve additions
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Encouraging drill intercepts across the road at Kings Plains 85m @ 1g/t
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The investment case
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Strong financial platform with robust operating cash flows Scale and leverage to gold price Upcoming cash flow inflection point Hedge book removal by June 2024 Growth project with scale approaching delivery of feasibility study Exclusively in tier 1 locations
Trading discount will erode as cash builds and McPhillamys feasibility study is delivered
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Further information Ben Goldbloom Head of Investor Relations + 61 8 9442 2200
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FY24 guidance
A disciplined production plan
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| Operation | Duketon | Tropicana (30%) | Group |
|---|---|---|---|
| Production (koz) | 280 – 305 | 135 – 150 | 415 – 455 |
| AISC ($/oz) | 2,050 - 2,360 | 1,800 - 2,120 | 1,995 - 2,315 |
| Growth Capital ($M) | 85 - 95 | <5 | 85 – 95 |
| Exploration ($M) | 48 – 55 | ||
| McPhillamys ($M) | 22 - 25 |
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Focus for profitable ounces AISC includes $200/oz of non-cash stockpile draw Material reduction in growth capital in FY24 Duketon undergrounds to accelerate as open pits deplete
Tropicana open pit to accelerate ore production
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Reserve Table
| ORE RESERVES as at 31 December 2022(Regis Attributable) | ORE RESERVES as at 31 December 2022(Regis Attributable) | ORE RESERVES as at 31 December 2022(Regis Attributable) | ORE RESERVES as at 31 December 2022(Regis Attributable) | ORE RESERVES as at 31 December 2022(Regis Attributable) | ORE RESERVES as at 31 December 2022(Regis Attributable) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gold | Proved | Probable | Total Ore Reserve | Competent Person3 | ||||||||||
| Project1 | Equity | Type | Cut-Off (g/t)2 |
Tonnes (Mt) |
Gold Grade (g/t) |
Gold Metal (koz) |
Tonnes (Mt) |
Gold Grade (g/t) |
Gold Metal (koz) |
Tonnes (Mt) |
Gold Grade (g/t) |
Gold Metal (koz) |
||
| DNO ROM Ore Reserves | Open-Pit | ROM | 0.6 | 0.1 | 1.0 | <10 | 2 | 1.1 | 80 | 2 | 1.1 | 80 | B | |
| DNO LG Ore Reserves | Open-Pit | LG | 0.3 | 2 | 0.3 | 20 | 0.3 | 0.5 | <10 | 2 | 0.4 | 30 | B | |
| Duketon North Deposits Sub Total 2 |
0.4 30 3 |
1.1 90 5 0.7 110 |
||||||||||||
| DSO ROM Ore Reserves4 | Open-Pit | ROM | 0.5 | 9 | 1 | 200 | 7 | 1.3 | 290 | 16 | 0.9 | 490 | B | |
| DSO ROM Ore Reserves | Underground | ROM | 1.9 | - | - | - | 4 | 2.5 | 330 | 4 | 2.5 | 330 | C | |
| DSO LG Ore Reserves | Open-Pit | LG | 0.3 | 1 | 0.4 | 10 | 0.2 | 0.4 | <10 | 1 | 0.4 | 20 | B | |
| Duketon South Deposits Sub Total 10 |
1 210 11 |
1.7 620 21 1.2 840 |
||||||||||||
| Duketon Total | 100% | Sub Total | 12 | 0.6 | 230 | 14 | 1.6 | 710 | 26 | 1.1 | 950 | |||
| Tropicana ROM Ore Reserves5 | Open-Pit | ROM | 0.7 | 1 | 1.8 | 50 | 7 | 1.9 | 410 | 7 | 1.9 | 460 | F | |
| Tropicana ROM Ore Reserves5 Tropicana ROM Ore Reserves5 |
Underground Stockpiles |
ROM ROM |
2.5 0.6 |
1 2 |
2.9 | 110 60 |
- - |
- | 0 0 |
1 2 |
3.0 | 110 60 |
G F |
|
| 0.8 | - | 0.8 | ||||||||||||
| Tropicana Total | 30% | Sub Total | 4 | 1.6 | 220 | 7 | 1.9 | 410 | 11 | 1.8 | 630 | |||
| McPhillamys | 100% | Open-Pit | ROM | 0.4 | - | - | - | 61 | 1.0 | 2,020 | 61 | 1.0 | 2,020 | B |
| REGIS TOTAL | GRAND TOTAL | 16 | 0.9 | 450 | 81 | 1.2 | 3,150 | 98 | 1.1 | 3,600 |
Notes
The above data has been rounded to the nearest 1,000,000 tonnes, 0.1 g/t gold grade and 10,000 ounces. Errors of summation may occur due to rounding.
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Ore Reserves are reported inclusive of associated Stockpiles except for Tropicana.
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Cutoff grades vary according to oxidation and lithology domains. Listed cut-offs are the weighted average of these various cut-offs grades for that project classification. 3. Refer to Group Competent Person Notes.
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Regis owns 70% of the King John project - part of the DSO operations. This project has a total Ore Reserve of 20 koz at 100%. Only the 70% Regis share has been included in the above table. 5. Regis 30% holding in Tropicana. Tropicana previously reported in ASX release "Mineral Resource and Ore Reserve Update at Tropicana" dated 23 February 2023.
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Resource Table
| MINERAL RESOURCES as at 31 December 2022(Regis Attributable) | MINERAL RESOURCES as at 31 December 2022(Regis Attributable) | MINERAL RESOURCES as at 31 December 2022(Regis Attributable) | MINERAL RESOURCES as at 31 December 2022(Regis Attributable) | MINERAL RESOURCES as at 31 December 2022(Regis Attributable) | MINERAL RESOURCES as at 31 December 2022(Regis Attributable) | MINERAL RESOURCES as at 31 December 2022(Regis Attributable) | MINERAL RESOURCES as at 31 December 2022(Regis Attributable) | MINERAL RESOURCES as at 31 December 2022(Regis Attributable) | MINERAL RESOURCES as at 31 December 2022(Regis Attributable) | MINERAL RESOURCES as at 31 December 2022(Regis Attributable) | MINERAL RESOURCES as at 31 December 2022(Regis Attributable) | MINERAL RESOURCES as at 31 December 2022(Regis Attributable) | MINERAL RESOURCES as at 31 December 2022(Regis Attributable) | MINERAL RESOURCES as at 31 December 2022(Regis Attributable) | MINERAL RESOURCES as at 31 December 2022(Regis Attributable) | MINERAL RESOURCES as at 31 December 2022(Regis Attributable) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gold | Measured | Indicated | Inferred | Total Resource | Competent Person2 | |||||||||||
| Project1 | Equity | Type | Cut-Off (g/t) |
Tonnes (Mt) |
Gold Grade (g/t) |
Gold Metal (koz) |
Tonnes (Mt) |
Gold Grade (g/t) |
Gold Metal (koz) |
Tonnes (Mt) |
Gold Grade (g/t) |
Gold Metal (koz) |
Tonnes (Mt) |
Gold Grade (g/t) |
Gold Metal (koz) |
|
| Duketon North Open Pit3 | Open-Pit | 0.4 | 4 | 0.5 | 60 | 15 | 1.0 | 480 | 4 | 0.9 | 120 | 23 | 0.9 | 660 | A/B | |
| Duketon North Underground4 | Underground | 1.5 | - | - | - | - | - | - | 1 | 2.0 | 60 | 1 | 2.0 | 60 | A | |
| Duketon North Deposits | Sub Total | 4 | 0.5 | 60 | 15 | 1.0 | 480 | 5 | 1.1 | 180 | 24 | 0.9 | 720 | |||
| Duketon South Open Pit5,6 | Open-Pit | 0.4 | 15 | 0.6 | 280 | 15 | 1.2 | 580 | 3 | 1.3 | 120 | 33 | 0.9 | 970 | A | |
| Duketon South Underground7 | Underground | 1.5/1.7/1.8 | 2 | 3.4 | 240 | 2 | 2.6 | 210 | 4 | 2.4 | 320 | 9 | 2.7 | 770 | A | |
| Duketon South Deposits | Sub Total | 17 | 0.9 | 520 | 17 | 1.4 | 790 | 7 | 1.9 | 440 | 41 | 1.3 | 1,740 | |||
| Duketon Total | 100% | Total | 21 | 0.8 | 580 | 32 | 1.2 | 1,260 | 12 | 1.6 | 610 | 65 | 1.2 | 2,460 | ||
| Tropicana Open Pit8 | Open-Pit | 0.3/0.4 | 1 | 1.5 | 50 | 9 | 1.7 | 460 | 0.0 | 0.7 | 0 | 10 | 1.6 | 510 | E | |
| Tropicana Underground8 | Underground | 1.6 | 4 | 2.7 | 340 | 2 | 2.8 | 130 | 10 | 2.4 | 760 | 15 | 2.5 | 1,230 | E | |
| Tropicana Stockpiles8 | Stockpiles | 7 | 0.6 | 140 | - | - | - | - | - | - | 7 | 0.6 | 140 | E | ||
| Tropicana | 30% | Sub Total | 12 | 1.3 | 530 | 10 | 1.8 | 590 | 10 | 2.4 | 760 | 32 | 1.8 | 1,880 | ||
| McPhillamys | Open-Pit | 0.4 | - | - | - | 69 | 1.0 | 2280 | 1 | 0.6 | 10 | 70 | 1.0 | 2290 | A | |
| DiscoveryRidge | Open-Pit | 0.4 | - | - | - | 8 | 1.3 | 330 | 2 | 0.8 | 60 | 10 | 1.2 | 390 | A | |
| NSW Deposits | 100% | Sub Total | - | - | - | 77 | 1.1 | 2,610 | 3 | 0.8 | 70 | 80 | 1.0 | 2,680 | ||
| REGIS TOTAL | GRAND TOTAL | 34 | 1.0 | 1,110 | 119 | 1.2 | 4,470 | 25 | 1.8 | 1,440 | 178 | 1.2 | 7,020 |
Notes
The above data has been rounded to the nearest 1,000,000 tonnes, 0.1 g/t gold grade and 10,000 ounces. Errors of summation may occur due to rounding. All Mineral Resources are reported inclusive of Ore Reserves to JORC Code 2012 unless otherwise noted.
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Mineral Resources and Ore Reserves are reported inclusive of Ore Stockpiles.
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Refer to Group Competent Person Notes.
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Open Pit Mineral Resources for Duketon North are Moolart Well, Gloster, Dogbolter-Coopers, Petra, Commonwealth, Ventnor and Terminator.
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Underground Duketon North Mineral Resource is at Gloster. Resource reported within MSO shells at an economic cutoff of 1.5g/t.
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Open Pit Mineral Resources for Duketon South are Garden Well, Rosmont Open Pit, Toohey's Well, Baneygo, Erlistoun, Beamish, Reichelt's Find, Russell's Find, King John, King of Creation and Lancefield North.
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King John reported at 70% ownership.
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Underground Duketon South Mineral Resources are Rosemont Underground, Garden Well Underground, Toohey's Well, and Ben Hur. All resources reported within MSO shells. Garden Well Underground reported at an Economic cutoff of 1.8g/t, Rosemont Underground reported at an economic cutoff of 1.7g/t, Ben Hur, and Toohey's Well reported at an economic cutoff of 1.5g/t.
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Regis 30% holding in Tropicana. Tropicana previously reported in ASX release "Mineral Resource and Ore Reserve Update at Tropicana" dated 23 February 2023.
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