Regis Resources Ltd. (ASX:RRL, Regis) is pleased to announce the development of the Havana Underground Project (Havana Underground Project or the Project) has been approved by the Tropicana Joint Venture. The Project will deliver incremental gold production above the existing planned Tropicana production, targeting to contribute gold ounces primarily in 2027 through to 2029.
Managing Director and Chief Executive Officer of Regis Resources, Mr Jim Beyer said: “The approval of the Havana Underground Project is further demonstration of the underground growth optionality across 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. It also demonstrates the positive impact any additional underground growth can have on value.”
Regis, through its joint venture partnership with AngloGold Ashanti (NYSE: AU; JSE: ANG), holds 30% of the Tropicana Gold Mine, located 330km east-northeast of Kalgoorlie in Western Australia. The Tropicana deposit has a known strike length of approximately 6km and defines a northeast trending mineralised corridor approximately 2km wide. The deposit comprises four known mineralised zones, which include Boston Shaker, Tropicana, Havana and Havana South.
The Havana Underground Project will establish an underground mine beneath the currently producing Havana open pit. The Project’s underground mineralisation extends from ~500m to ~700m below the surface and is open at depth. Access will be via a portal from the Havana open pit and a link drive from the Tropicana decline.
The Project will leverage existing infrastructure at Tropicana, including the workshop, camp, process plant and other infrastructure. However, the Project will require additional minor power, communication, ventilation and dewatering infrastructure.
All underground mining activities and associated support services will be undertaken by a suitably experienced contract miner. Havana underground ore extraction will be optimised by longitudinal sub- level stoping with pillars mined on retreat from the extremities of the orebody. This method is currently used in the Boston Shaker and Tropicana underground mines. The Havana underground ore will supplement current ore sources and will be processed through the existing ~9.4Mtpa process plant.
The Project mining costs are not expected to be materially different from those across other existing underground mining areas at Tropicana and will not negatively impact the current consolidated Tropicana underground mining costs.
The Havana Underground Project will be accommodated under the current Tropicana regulatory approvals from October 2018 and no further approvals are required under Part IV of the Environmental Protection Act 1986 (WA).
With the establishment of the Havana Underground Project, Tropicana will produce gold from three underground production areas and these additional gold ounces will expand the existing production profile at Tropicana. The Havana underground orebody remains open at depth and, should ongoing exploration deliver successes similar to that seen historically, Regis believes there is ongoing potential to deliver additional mine life and enhance value. Furthermore, the establishment of the Havana Underground Project highlights the underground optionality that exists within Tropicana, which will continue to be explored via ongoing underground drilling programs.
The current FY25 growth capital expenditure guidance for Tropicana is a range of $0M to $5M and assumed a proportion of preliminary capital expenditure for the Project. With the final approval of the Project, Regis now forecasts FY25 growth capital expenditure at Tropicana of $10M to $15M.
