Regis Resources has reinstated the entire ore reserve for its McPhillamys gold project in New South Wales and revealed a viable new development pathway that bypasses a contentious federal environmental decision.
The reinstatement follows an intensive preliminary feasibility study (PFS) centered on an alternative integrated waste landform (IWL) strategy.
The new plan completely avoids the northern portion of the site which was subject to a Section 10 declaration under the Aboriginal and Torres Strait Islander Heritage Protection Act in August 2024, a move thatpreviously forced the withdrawal of the project’s reserves and triggered a AU$192 million write-off.
Under the new strategy, conventional valley-fill tailings will be replaced by mechanically dewatered filtered tailings. This material will be safely co-disposed within the main mine waste dump on land fully owned by Regis, ensuring zero encroachment on the declared heritage area.
The updated PFS reinforces the project’s robust economics. Based on a spot gold price of AU$4,000 per ounce, McPhillamys is projected to deliver an average annual gold production of 190,000 ounces at an all-in sustaining cost (AISC) of AU$1,718 per ounce.
The project is expected to generate AU$7.1 billion in gross revenue, yielding a post-tax net present value (NPV) of AU$1.13 billion and an internal rate of return (IRR) of 21.8 per cent. Total pre-production capital expenditure is estimated at AU$1.08 billion.
With the IWL breakthrough, Regis has reinstated a total probable ore reserve of 56 million tonnes at 1.1 grams per tonne, containing 1.89 million ounces of gold.
Regis Resources CEO, Jim Beyer, commended the technical teams for finding a sound pathway forward well ahead of initial five-to-10-year estimates.
“The IWL approach is a technically sound and practical pathway forward, and one that keeps McPhillamys within the accessible project footprint,” Beyer said.
While the New South Wales government has granted several key infrastructure components State Significant Infrastructure status, Regis is awaiting the outcome of a separate Federal Court judicial review challenge over the original Section 10 declaration.
Subject to final permitting, Regis is targeting a final investment decision (FID) in the first half of 2028.
“We remain committed to moving ahead with this valuable asset for the long-term benefit of our shareholders and the communities of the Central Tablelands region of New South Wales,” Beyer said.
