PERTH (miningweekly.com) – Gold miner Regis Resources has reported a slight drop in gold production for the three months to September as head grades and recovery rates declined slightly.

Gold production in the first quarter ended September reached 81 567 oz, compared with the 87 260 oz produced during the June quarter, with the Duketon southern operations contributing 61 260 oz in the quarter, and the Duketon northern operations contributing the balance of 20 307 oz.

Regis on Friday reported that quarterly gold sales reached 60 900 oz during the three months to September, at an average price of A$2 256/oz to generate revenues of A$137.5-million, with 27 500 oz of bullion on hand at the end of the quarter.

Cash flow from operations were reported at A$85-million for the three months under review.

“During the September quarter, Regis has made a number of very positive steps progressing our value growth strategy. At the same time, the quarter has been more challenging operationally with some short term impacts affecting our overall production for the quarter,” said MD Jim Beyer.

“Despite this, the business continued to improve safety and build its cash reserves,” he added.

“Rosemont underground continued to increase its production levels and while still building in capacity and confidence, we expect to see its contribution to overall gold production continue to lift. With development to higher-grade Main zone progressing, we see this as a key part of delivering a production rate lift in the latter part of the year.”

Beyer noted that the Garden Well underground project also continued to shape up as another potential addition to Regis’ internal production growth as the company neared the completion of a definitive feasibility study.

“The acquisition of Ben Hur during the quarter and the associated ground is a welcome addition to our portfolio of value growth opportunities and we have already commenced work to confirm and grow the reserve potential,” he added.

Looking at the full 2021, Regis has set a production target of between 355 000 oz and 380 000 oz, with all-in sustaining costs targeted at between A$1 230/oz and A$1 300/oz.