Regis Resources (ASX:RRL,OTC Pink:RGRNF) said on Monday (September 9) that development of the Havana underground gold project has been approved by the Tropicana joint venture.
The joint venture is a partnership between Regis and AngloGold Ashanti (NYSE:AU), with the former owning 30 percent and the latter holding a 70 percent management stake in the initiative.
First gold was produced at Tropicana in 2013 after the site was discovered in 2005. The area currently contains four known mineralised zones: Tropicana, Boston Shaker, Havana and Havana South.
According to Regis, the underground Havana project will fall below the Havana open pit, which is now in production. Once it starts up, Havana will be the third underground mine at the Tropicana site.
The company said Havana will deliver "incremental gold production" above output already planned at Tropicana.
“Tropicana has consistently replaced underground Ore Reserves at levels beyond depletion, and the approval to develop the Havana Underground Project provides us with further confidence in the long-term future of Tropicana’s underground growth,” said Jim Beyer, managing director and CEO of Regis, in a press release.
Havana will be able to leverage existing infrastructure at Tropicana, including the workshop, camp and process plant. However, it will require additional minor power, communication, ventilation and dewatering infrastructure.
Mining costs for Havana are expected to be similar to those for Tropicana's existing underground mining areas.
Tropicana is located on the western edge of the Great Victoria Desert, and as mentioned was discovered in 2005. Over 3 million ounces of gold have reportedly been mined via open pit during its life.
Following Tropicana's discovery, the joint venture made a discovery at Havana in 2006.
Gold production from the first stope ore underground at Havana is anticipated to commence in Q3 of the 2027 fiscal year, and will continue over three years. Life-of-mine output from the asset is set at 55,000 ounces of gold.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
