The Regis Resources Limited (ASX: RRL) share price is pushing higher on Monday morning.
In early trade the gold miner's shares are up almost 1% to $3.74.
What did Regis announce?
Investors have been buying the gold miner's shares today after it announced that its board has approved the development of a new underground mine under the current Garden Well open pit.
This follows a recently completed positive Feasibility Study (FS) on the Garden Well South (GWS) underground gold project. That study revealed a maiden GWS underground mineral resource estimate of 2.4Mt at 3.6g/t gold for 270,000 ounces.
Management has advised that development will commence in the March 2021 quarter, with the processing of the first underground development ore scheduled for the December 2021 quarter. After which, stope production is scheduled to commence in the June 2022 quarter.
The project has an all-in sustaining cost (AISC) of A$950 to A$1,050 an ounce, with growth capital of A$15 million to A$20 million.
Pleasingly, it may not stop there for Regis. It notes that there is considerable opportunity for additional resources down plunge of the existing GWS resource.
"A major milestone."
Regis Resources' Managing Director, Jim Beyer, believes this is a major milestone for the company and its shareholders.
He commented: "The development decision for a second underground mine at our Duketon Operation is another major milestone in the Regis goal of delivering increased shareholder value through organic growth projects."
"This new underground mine will be a key element in achieving and maintaining our aim for the Duketon Operation to become a reliable 400koz per annum producer. Further, we believe that the approved Garden Well underground is not only a robust investment in its current form but just as importantly has the potential to increase life and value through down plunge exploration," Mr Beyer concluded.
