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REGIS RESOURCES LIMITED Interim / Quarterly Report 2017

Jan 15, 2017

65733_rns_2017-01-15_c8bce7b9-9974-4774-88cc-f4baf13489b1.pdf

Interim / Quarterly Report

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11
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REGIS RESOURCES LTD

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DECEMBER 2016 QUARTERLY REPORT & EXPLORATION UPDATE

22

DISCLAIMER & COMPETENT PERSONS 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. 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. To the maximum extent permitted by law, Regis does not warrant the accuracy, currency or completeness of the information in this presentation, nor the future performance of Regis, and will not be responsible for any loss or damage arising from the use of the information. The information contained in this presentation is not a substitute for detailed investigation or analysis of any particular issue. Current and potential investors and shareholders should seek independent advice before making any investment decision in regard to Regis or its activities.

The information in this presentation that relates to Exploration Results is extracted from the ASX announcement released 16 January 2017 entitled “Quarterly Report to 31 December 2016” and for which Competent Person’s consents were obtained. The Competent Person’s 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place for subsequent releases by the Company of the same information in the same form and context, until the consent is withdrawn or replaced by a subsequent report and accompanying consent.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 information in this presentation that relates to Mineral Resources or Ore Reserves is extracted from the Mineral Resource and Ore Reserve Statement released to the Australian Securities Exchange on 7 July 2016 and the ASX announcement released on 29 July 2016 entitled “Maiden Resource of 547,000 Ounces at Tooheys Well” and for which Competent Person’s consents were obtained. The Competent Person’s 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 original ASX announcements released on 7 July 2016, 29 July 2016 and 16 January 2017 and, in the case of estimates or Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the original 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.

ASX announcements are available on the Company’s website at www.regisresources.com.au

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33

REVIEW OF FY2017 Q2 OPERATIONS

DUKETON CONTINUES TO DELIVER STRONG CASHFLOW

Q2
Q1

FY17

FY17
Ore mined (Mbcm)
1.1
1.1
Waste mined (Mbcm)
7.3
5.8
Stripping ratio (w:o)
6.5
5.3
Ore mined (Mtonnes)
2.8
2.7
Ore milled (Mtonnes)
2.50
2.62
Head grade (g/t)
1.08
0.98
Recovery (%)
92
91
Gold production
(ounces ‘000)
80
75

Cash cost (A$/oz)
804
850
Cash cost inc royalty
(A$/oz)
874
920
All in Sustaining Cost
(A$/oz)1
951
946

OPERATIONS

  • Q2 gold production 80,090 ounces

  • Up 7% on Q1

  • Run rate above FY16 and in upper half of FY17 guidance of 300-330koz

  • Run rate maintainable for FY17 as satellite projects Gloster & Erlistoun come on line

  • Q2 throughput (-4%) & recovery (+1.5%) v Q1

  • Q2 grade of 1.08g/t: 11% higher than Q1

  • Both GW and RMT grades improved 11-12%

  • RMT improving as southern zone reaches fresh rock

  • Positive impact of 1.18g/t grade from Gloster

COSTS

  • Q2 cash costs $804/oz & AISC $951/oz

  • Both below lower end of FY17 guidance range

  • In line with Q1 – higher production offset by higher strip ratio of start-up projects

OPERATING CASH-FLOW

  • Q2 operating cashflow $64.5m (Q1: $59.6m)

  • Continuation of strong operating cashflow underpinning cash build and dividends

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1 AISC calculated on a per ounce of production basis 2 operating cash flow is quoted under the Appendix 5B classification protocol and as such does not include payments for pre-strip and deferred mining costs as these are classified as investing activities.

44

DUKETON

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55 FY2017 Q2 OPERATING RESULTS

Duketon Northern
Operations
Duketon Southern
Operations
Total
Q2 Q1 Q2 Q1 Q2 Q1
Ore mined (Mbcm )
Waste mined (Mbcm)

Stripping ratio (w:o)
Ore mined (Mtonnes)

Ore milled (Mtonnes)
Head grade (g/t)

Recovery (%)
Gold production (ounces)
Cash cost (A$/oz)
Cash cost inc royalty (A$/oz)
All in Sustaining Cost(A$/oz)

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66 FY2017 Q2 OPERATING RESULTS

Duketon Northern
Operations
Duketon Northern
Operations
Duketon Southern
Operations
Duketon Southern
Operations
Total Total
Q2 Q1 Q2 Q1 Q2 Q1
Ore mined (Mbcm ) 0.4
0.4
0.7
0.7
1.1
1.1
Waste mined (Mbcm) 2.5
1.9
4.8
3.9
7.3
5.8
Stripping ratio (w:o) 6.7
5.2
6.5
5.3
6.5
5.3
Ore mined (Mtonnes) 0.7
0.8
2.0
1.9
2.8
2.7
Ore milled (Mtonnes) 0.76
0.77
1.75
1.85
2.50
2.62
Head grade (g/t) 1.03
0.95
1.10
0.99
1.08
0.98
Recovery (%) 93.6
91.0
91.5
90.7
92.1
90.8
Gold production (ounces) 23,430
21,334
56,660
53,278
80,090
74,612
Cash cost (A$/oz) 672
675
859
920
804
850
Cash cost inc royalty (A$/oz) 740
745
928
990
874
920
All in Sustaining Cost (A$/oz) 993
803
933
986
951
946

DUKETON NORTHERN OPERATIONS

  • Gold production 23,430oz up 10% on Q1:

  • 8% increase in grade due to 1.18g/t grade from Gloster satellite operation

  • 3% increase in recovery, mainly the result of higher grade

  • Another strong quarter of >3mtpa equivalent throughput

  • AISC up 24% to $993/oz due to high start up stripping ratio at Gloster and first time Gloster costs in AISC

  • AISC expected to taper over coming quarters as the DNO stripping ratio reverts to budget of 3.6 for FY17

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77 FY2017 Q2 OPERATING RESULTS

Duketon Northern
Operations
Duketon Northern
Operations
Duketon Southern
Operations
Duketon Southern
Operations
Total Total
Q2 Q1 Q2 Q1 Q2 Q1
Ore mined (Mbcm ) 0.4
0.4
0.7
0.7
1.1
1.1
Waste mined (Mbcm) 2.5
1.9
4.8
3.9
7.3
5.8
Stripping ratio (w:o) 6.7
5.2
6.5
5.3
6.5
5.3
Ore mined (Mtonnes) 0.7
0.8
2.0
1.9
2.8
2.7
Ore milled (Mtonnes) 0.76
0.77
1.75
1.85
2.50
2.62
Head grade (g/t) 1.03
0.95
1.10
0.99
1.08
0.98
Recovery (%) 93.6
91.0
91.5
90.7
92.1
90.8
Gold production (ounces) 23,430
21,334
56,660
53,278
80,090
74,612
Cash cost (A$/oz) 672
675
859
920
804
850
Cash cost inc royalty (A$/oz) 740
745
928
990
874
920
All in Sustaining Cost (A$/oz) 993
803
933
986
951
946
Q1 production 56,660oz: 6% higher than Q1 – 11-12% higher grade at both Rosemont & Garden Well
Rosemont transitioning into fresh ore in southern end of the main pit where problematic depletion zone in Q1
Garden Well northern cutback grades improving with depth
Throughput 1.75mt (7mtpa) 6% lower than Q1 due to impact of harder ore blend at Rosemont until 2nd half CY17
AISC of $933/oz down 7% on Q1: in line with production increase
Stripping at Erlistoun not included in AISC for Q2 as still pre-production but will be included in Q3 when
commercial production is declared
DUKETON SOUTHERN OPERATIONS

DUKETON SOUTHERN OPERATIONS

  • Q1 production 56,660oz: 6% higher than Q1 – 11-12% higher grade at both Rosemont & Garden Well

  • Rosemont transitioning into fresh ore in southern end of the main pit where problematic depletion zone in Q1

  • Garden Well northern cutback grades improving with depth

  • Throughput 1.75mt (7mtpa) 6% lower than Q1 due to impact of harder ore blend at Rosemont until 2[nd] half CY17

  • AISC of $933/oz down 7% on Q1: in line with production increase

    • Stripping at Erlistoun not included in AISC for Q2 as still pre-production but will be included in Q3 when commercial production is declared

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88

CASHFLOW WATERFALL

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Strong cash-flow from operations of $64.5m for Q2 (Q1: $59.6m) and cash build after allowing payment of pre-strip & cutbacks ($10.3m), income tax ($13m) & growth capex ($2.4m) in the quarter

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9 9

DEVELOPMENT FAMOUS BLUE GEOLOGY ERLISTOUN GOLD DEPOSIT

NEXT CAB OFF THE RANK - MOVING TOWARDS PRODUCTION

  • Simple open cut mining and road haulage operation

  • Mining commenced and first ore hauled late in Q2, processing to commence Q3

  • Low startup capex - <$3m in FY2017.

  • More than 4 years additional mill feed to the Garden Well processing plant

  • Moderate strip ratio 8.4

  • Very clean ore - >90% mill recovery expected & soft ore to benefit GW mill throughput

  • Reserve 3.8mt @ 1.48g/t for 181koz

  • Expected 15koz of production in FY2017at AISC < $1,000/oz

  • Up to 50kozpa in FY18 and beyond

  • Stage 2 to be scheduled in conjunction with Tooheys Well

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1010

EXPLORATION UPDATE

DUKETON - SIGNIFICANT RESULTS IN Q2

Completed 49,223m (Q1: 37,179m) of drilling on 12 gold projects

  • Tooheys Well – 2.5km S of Garden Well

  • 547,000 oz resource estimated in Q1

  • Infill drilling continues to return high grades

  • EM survey nearing completion to target extensional drilling

  • Rosemont South

  • Strong intercepts outside current reserves

  • Opportunity to add O/P & U/G inventory

  • 15,000m drilled in Q2 & continuing

  • Rosemont Main

  • 6,000m programme underway to test U/G targets below pit design

  • Strong intercepts outside current reserves

  • c10,000m of drilling remaining in phase 1

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Proximity to 10mtpa milling infrastructure presents excellent exploration opportunity

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1111

TOOHEYS WELL GOLD PROJECT

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A SIGNIFICANT NEW PROJECT

  • Gold shear zones hosted by chert, shale and BIF

  • Early shallow AC holes ineffective

  • Extensive drill-out in 2015 and 16 culminated in maiden resource at 0.4g/t lower cut:

Tonnes
Gold Grade
Gold Metal
(Mt)
(g/t)
(koz)
Inferred
14.6
1.16
547
Resource above 1.0g/t cut-off is
6.7Mt at 1.77g/t for 379koz –
70% of quoted resource
  • Infill drilling underway for reserve estimation in Q3.

  • Q2 infill results include:

  • 41m @ 2.91g/t from 93m

  • 42m @ 2.28g/t from 161m

  • 10m @ 3.82g/t from 56m

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12 12

TOOHEYS WELL GOLD PROSPECT

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DRILLING CROSS SECTION 6909340mN

  • Steep E dipping high grade gold shear

  • Chert BIF and shale host rocks

  • Weathered 80-160m

  • Significant intercepts (2015/16)

  • 39m @ 2.86g/t from 53m

  • 17m @1.90g/t from 95m

  • 27m @ 2.48g/t from 55m

  • 50m @ 2.75g/t from 85m

  • 53m @ 1.72g/t from 245m

  • 34m @ 1.45g/t from 203m

  • 17m @ 1.92g/t from 155m

  • Fresh rock intersections

  • Good widths of mineralisation at depth

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13 13

EXPLORATION UPSIDE TOOHEYS WELL-GARDEN WELL CORRIDOR

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UNTESTED POTENTIAL NORTH & SOUTH OF TOOHEYS WELL

North

  • TW structure interpreted to join gold shear zones at Chert Ridge (GW) 2.5km north.

  • Early drilling encouraging:

  • 15m @1.15g/t & 25m @ 1.41g/t

  • Drilling planned for Q2

  • 4 lines, 320m strike, 22 holes +3,000m

South

  • TW mineralisation located on the northern flank of a >1km long magnetic high

  • Southern half of MAG high under cover and poorly drilled

  • EM survey commenced Q2, refine model

    • & locate pyrrhotite host unit within BIF
  • Follow with better targeted drilling in Q3

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14 14

ROSEMONT SOUTH & MAIN UNDERGROUND OPPORTUNITIES

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3D long section from south east showing planned Rosemont South & Main drilling, phase 1 and 2

Phase 1 drill programmes underway at Rosemont South and below Rosemont Main Pit:  Returning numerous high grade intercepts  Drilling to continue in Q3 and beyond

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15 15

ROSEMONT SOUTH PROJECT

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POTENTIAL FOR OPEN PIT & UNDERGROUND MINING INVENTORY EXTENSION

  • Testing high grade shoots 50-300m below surface over 500m strike, some outside reserves

  • Drilled 95 holes for 15,480m in Q2 – numerous high grade intercepts shown above

  • Drilling continuing Q3 and beyond

  • Continued significant results pointing to both open pit and underground opportunities

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16 16

ROSEMONT SOUTH PROJECT

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DRILL RESULTS IN Q2

  • Gold hosted in a steeply east dipping 345° trending quartz-dolerite unit

  • Gold mineralised quartz-dolerite unit is approx 80m wide.

  • Q2 Results (all outside reserves):

  • 2m @ 108.5g/t Au from 125m

  • 4m @ 27.29g/t Au from 162m

 2m @ 51.26g/t Au from 103m

 5m @ 16.21g/t Au from 125m

  • 4m @ 19.81g/t Au from 193m

  • 2m @ 38.55g/t Au from 261m

  • Drilling continuing with focus on establishing continuity and geometry of high grade mineralisation

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17 17

ROSEMONT SOUTH PROJECT

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BUILDING ON DRILL RESULTS IN Q1

Q1 Results

  • 10m @ 30.11g/t Au from 48m

  • 4m @ 7.72g/t Au from 52m

  • 2m @ 18.48g/t Au from 74m

  • 13m @ 2.61g/t Au from 126m

  • 17m @ 4.41g/t Au from 153m

  • 29m @ 3.81g/t Au from 175m , including:

  • 5m @ 8.54g/t Au from 175m

  • 6m @ 4.95g/t Au from 188m *

  • 3m @ 6.92g/t Au from 201m

  • 9m @ 3.60g/t Au from 107m

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  • Intercept is outside current reserves

18 18

ROSEMONT MAIN PIT

UNDERGROUND PROJECT

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POTENTIAL FOR UNDERGROUND MINING INVENTORY EXTENSION

  • Testing high grade shoots 100-200m vertically below ultimate open pit design depth

  • Drilled 62 holes for 13,610m in Q2 – numerous results shown above

  • Approx 10,000m drilling remaining in phase 1 programme

  • Early holes drilled to date are encouraging for underground opportunities

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19 19

ROSEMONT MAIN PIT UNDERGROUND PROJECT

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DRILL RESULTS IN Q2

  • Gold hosted in a steeply east dipping 345° trending quartz-dolerite unit

  • Gold mineralised quartz-dolerite unit is approx 80m wide.

  • Q2 Results (all outside reserves):

  • 4m @ 82.05g/t Au from 249m

 4m @ 33.54g/t Au from 280m

  • 13m @ 8.19g/t Au from 274m

 2m @ 39.28g/t Au from 241m

  • 1m @ 76.80g/t Au from 263m

  • 8m @ 8.51g/t Au from 283m

  • Drilling continuing with focus on establishing continuity and geometry of high grade mineralisation

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2020

McPHILLAMYS (NSW)

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INFILL DRILLING UNDERWAY FOR PFS

  • Located Central-West NSW

  • Well established gold mining district

  • Cadia, Cowal, Northparkes+45Moz*

  • Gold resource 2.2Moz - 100% Regis owned

  • Infill Drilling Underway

  • 25,000m programme - 3 diamond & 1 RC rigs working

  • Reduce drill pattern to 50x25m (nominal)

  • 19 holes (7,250m) drilled in Q2.

  • Significant results include:  58m @ 2.74g/t Au from 45m

  • 121m @ 1.22g/t Au from 156m

  • 95m @ 1.38g/t Au from 257m

  • 83m @ 1.43g/t Au from 214m

  • 106m @ 1.00g/t Au from 195m

  • 62m @ 1.58g/t Au from 23m

  • Basis for resource update & ultimately reserve estimate

  • DD core for metallurgical studies

  • Moving towards PFS

  • Focus on securing key infrastructure

  • Advancing other long lead PFS/EIS works

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  • Recent quoted resources from public information

2121

RECAP OF PRESENTATION

  • Q2 gold production 80,090 ounces at AISC of A$951/oz

  • 7% higher than Q1 (74,612 oz)

  • Production run rate in upper half of FY17 guidance as GW and RMT grades improve and Gloster comes on line

  • AISC below lower end of FY17 guidance

  • Cash-flow from operations $64.5m for Q2 (Q1: $59.6m)

  • Cash and bullion holdings $129.7m (Q1: $103.1m)

  • $26.6m increase after high spend on growth capex - Gloster & Erlistoun

  • Continued strong drill results at Tooheys Well - reserve estimate expected in Q3

  • Further encouraging extensional (open pit & u/g) drill results at Rosemont

  • Drilling continuing at RMT South and RMT Main underground

  • Major infill drill programme underway at McPhillamys – strong results to date

  • Pushing project towards PFS

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2222

APPENDIX 1 JORC COMPLIANT ORE RESERVE ESTIMATES 31 MARCH 2016

Group Ore Reserves

as at 31 March 2016

Gold Gold Gold Proved Proved Proved Probable Probable Probable Total Ore Reserve Total Ore Reserve Total Ore Reserve Competent
Person3
Project 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)
Moolart Well1 Open-Pit > 0.4 1.6 0.77 39 3.3 1.00 105 4.8 0.93 144 D
Garden Well1 Open-Pit > 0.4 2.9 0.58 55 25.9 0.93 772 28.8 0.89 827 D
Rosemont1 Open-Pit > 0.4 3.4 1.45 157 8.3 1.53 407 11.6 1.51 564 D
Duketon Main Deposits Sub Total 7.9 0.99 251 37.4 1.07 1,284 45.3 1.05 1,535
Gloster Open-Pit > 0.5 - - - 7.0 1.00 226 7.0 1.00 226 D
Erlistoun Open-Pit > 0.5 - - - 3.8 1.48 181 3.8 1.48 181 D
Baneygo Open-Pit > 0.4 - - - 3.6 1.16 136 3.6 1.16 136 D
Petra Open-Pit > 0.5 - - - 0.6 1.26 25 0.6 1.26 25 D
Dogbolter Open-Pit > 0.5 - - - 0.3 1.57 16 0.3 1.57 16 D
Anchor Open-Pit > 0.5 - - - 0.1 2.07 6 0.1 2.07 6 D
Duketon Satellite Deposits Sub Total - - - 15.5 1.18 590 15.5 1.18 590
Regis Grand Total 7.9 0.99 251 52.9 1.10 1,874 60.8 1.09 2,125

Notes

The above data has been rounded to the nearest 100,000 tonnes, 0.01 g/t gold grade and 1,000 ounces. Errors of summation may occur due to rounding.

  1. Mineral Resources and Ore Reserves are reported inclusive of ROM Stockpiles at cut-off grade of 0.4 g/t.

  2. Cutoff grades vary according to oxidation and lithology domains. Refer to Group Ore Reserves Lower Cut Notes.

  3. Refer to Group Competent Person Notes.

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2323

APPENDIX 2 JORC COMPLIANT MINERAL RESOURCES 31 MARCH 2016

Group Mineral Resources

Group Mineral Resources Group Mineral Resources Group Mineral Resources Group Mineral Resources Group Mineral Resources Group Mineral Resources Group Mineral Resources Group Mineral Resources Group Mineral Resources Group Mineral Resources Group Mineral Resources Group Mineral Resources
as at 31 March 2016
Gold Measured Indicated Inferred Total Resource Competent
Person2
Project 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)
Moolart Well1 Open-Pit 0.4 1.9 0.72 45 24.9 0.74 596 9.3 0.62 184 36.1 0.71 825 A
Garden Well1 Open-Pit 0.4 2.9 0.58 55 64.8 0.89 1,859 8.0 0.89 228 75.8 0.88 2,141 B
Rosemont1 Open-Pit 0.4 4.5 1.42 204 20.5 1.42 938 3.0 1.95 189 28.0 1.48 1,331 B
Duketon Main Deposits Sub Total 9.4 1.01 303 110.2 0.96 3,393 20.3 0.92 600 139.8 0.96 4,297
Tooheys Well3 Open-Pit 0.0 - - -
- - - 14.6 1.16 547 14.6 1.16 547 A
Gloster Open-Pit 0.4 - - - 14.7 0.79 374 6.6 0.73 154 21.3 0.77 528 A
Baneygo Open-Pit 0.4 - - -
9.2 0.96 283 1.9 0.95 57 11.1 0.96 340 A
Erlistoun Open-Pit 0.4 - - - 5.7 1.34 247 1.1 1.00 37 6.9 1.28 284 A
Dogbolter Open-Pit 0.4 - - - 3.5 1.11 128 0.5 1.02 16 4.0 1.10 144 A
Russells Find Open-Pit 0.4 - - - 2.1 1.07 71 0.3 0.90 10 2.4 1.05 81 A
Petra Open-Pit 0.4 - - - 1.2 1.08 42 0.1 1.09 2 1.3 1.08 44 A
KingJohn Open-Pit 0.4 - - - - - - 0.8 1.56 42 0.8 1.56 42 A
Reichelts Find Open-Pit 0.4 - - - - - - 0.8 1.11 28 0.8 1.11 28 A
Anchor Open-Pit 0.4 - - - 0.2 1.75 9 0.1 0.95 2 0.2 1.53 11 A
Duketon Satellite Deposits Sub Total - - - 36.6 0.98 1,155 26.8 1.04 895 63.4 1.01 2,049
Duketon Total 9.4 1.01 303 146.8 0.96 4,548 47.1 0.99 1,495 203.2 0.97 6,346
McPhillamys Total 0.4 - - - 69.2 0.94 2,087 3.9 0.98 123 73.2 0.94 2,210 B
Regis Grand Total 9.4 1.01 303 216.0 0.96 6,635 51.0 0.99 1,618 276.4 0.96 8,556

Notes

The above data has been rounded to the nearest 100,000 tonnes, 0.01 g/t gold grade and 1,000 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.

  1. Mineral Resources and Ore Reserves are reported inclusive of ROM Stockpiles at cut-off grade of 0.4 g/t.

  2. Refer to Group Competent Person Notes.

  3. As reported 29th July 2016

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