Why the Regis Resources (ASX:RRL) share price is pushing higher

The Regis Resources Limited (ASX:RRL) share price is on the move on Monday after announcing a new development…

| More on:
Hand holding gold nugget reflecting Newcrest Mining share price today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »

Three businesspeople leap high with the CBD in the background.
Share Market News

Boom! ASX 200 blasts to new record highs

ASX 200 investors just sent the benchmark index into uncharted territory.

Read more »