PERTH (miningweekly.com) – Gold miner Regis Resources on Tuesday lowered its life-of-mine cash operating costs for its Western Australian gold operations, following a mineral resource and reserve update.

The company’s total Joint Ore Reserves Committee- (Jorc-) compliant ore reserve were estimated at 75.4-million tonnes, grading 1.04 g/t gold for 2.53-million ounces. 

The Garden Well project was now estimated to have a total reserve of 51.8-million tonnes, grading 0.93 g/t gold for 1.55-million ounces. The life-of-mine (LoM) cash costs for the production of these ounces were expected to be between A$850/oz and A$900/oz, over the ten-year mine life.

Over the next seven years of operation, the grade at Garden Well was expected to average 1.06 g/t gold, generating a yearly production of between 155 000 oz and 160 000 oz, at a cash cost of between A$750/oz and A$800/oz.

This compared with the A$1 299/oz cash costs reported in the three months to June at the operation.

Meanwhile, the Rosemont project was estimated to host a reserve of 12.8-million ounces, grading 1.29 g/t gold for 528 000 oz.

LoM cash cost for Rosemont over its six-year mine life was expected to average between A$850/oz and A$900/oz.

The grade at Rosemont over the next five years of operation would average slightly higher at 1.45 g/t gold, delivering a yearly production of between 85 000 oz and 90 000 oz, at a cash cost of between A$750/oz and A$800/oz.

This was compared with the cash cost of A$1 342/oz reported during the three months to June.

The company’s Jorc-compliant resource had been estimated at 256.2-million tonnes, grading 0.97 g/t gold for just over eight-million ounces. This was a 1.52-million-ounce reduction compared with the 2013 resource estimate, and followed on from the declassification of 2.14-million ounces of mainly low-grade and peripheral resource, owing to the first-time application of a long-term gold price of A$2 000/oz to economically constrain resources.

The reduction was offset by 630 000 oz of resource increases.