Regis Resources (ASX:RRL,OTC Pink:RGRNF) said on Monday (September 9) that development of the Havana underground 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 site 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.
Regis said mining costs for Havana are expected to be similar to other existing underground mining areas at Tropicana.
Tropicana is located on the western edge of the Great Victoria Desert and as mentioned was discovered in 2005. Regis said that over 3 million ounces of gold have been mined via open pit during its life.
Following Tropicana's discovery, the joint venture made discoveries at Havana in 2006. Gold production from the first stope ore is anticipated to commence in Q3 of the 2027 fiscal year, and will continue over three years.
Life-of-mine output from Havana is set at 55,000 ounces of gold.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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