Regis Resources (ASX: $RRL) announces approval of two underground mines and reserves increase

Regis Resources (ASX: $RRL) has approved the development of Garden Well Main and Rosemont Stage 3 underground mines, aiming to deliver a steady state annualised gold Production Target of between 100koz to 120koz from FY27. The two projects are expected to be value accretive across a range of gold prices and have the potential to extend mine life and enhance value through further exploration success.

Executive Commentary on Underground Growth Strategy

The Managing Director and Chief Executive Officer of Regis Resources, Mr Jim Beyer, expressed, 'The development decision for these value accretive underground mines is another important milestone as Regis progresses on delivering into its underground growth strategy. We continue to demonstrate the growth potential of our underground mines. At both Garden Well Main and Rosemont, we have again expanded our underground Reserves. Since we announced our Maiden Resource at Rosemont in 2019, each year, we have continued to enhance the value of the underground by increasing our Reserves. This is a trend across our underground mines that we aim to continue well into the future.'

Summary of Development Approval and Outlook

Regis Resources (ASX: $RRL) has approved the development of Garden Well Main and Rosemont Stage 3 underground mines, with the expectation of delivering a steady state annualised gold Production Target from FY27. The company aims to continue expanding its underground Reserves and enhancing the value of its underground mines through further exploration success. With a robust pipeline of underground targets, Regis is confident in identifying additional underground mining areas and delivering on its strategic objective of operating four to five underground mines within Duketon, producing 200koz to 250koz of gold each year. The material assumptions underpinning the Production Target include a marginal break-even gold price, and the company has provided a cautionary statement concerning the proportion of Inferred Mineral Resources and Exploration Target. Regis remains focused on its underground growth strategy while also exploring for additional high value, large scale open pits across its dominant holding across the Duketon Greenstone Belt.