The 2017 PFS states:Maiden Ore Reserve Estimate at the...

The 2017 PFS states:

Maiden Ore Reserve Estimate at the McPhillamys Gold Project (MGP) is 60.1 million tonnes at 1.05g/t Au for 2,034,000 ounces of gold. A gold price of A$1,400 per ounce was used in Ore Reserve pit optimisation

(I wonder if a gold price, say A$1600 - A$1800 per ounce was used, what the reserve figure would look like? Hope we will see some nice surprises in the DFS.)

This increases Regis’ total gold Reserves to in excess of 4.2 million ounces.

Pre-feasibility level study shows the MGP is a robust, large scale open pit gold mine:

7 million tonne per annum mining and processing operation

Gold production averaging 192,000 ounces per annum over a nine year mine life

Capital cost of development estimated at A$215 million (including water pipeline)

Life of mine All In Sustaining Cost of operation estimated at A$990 per ounce

Post capex, pre-tax NPV5% of A$525 million at A$1,600/oz gold price

Understandably capex and AISC will now be substantially higher than the original PFS estimates. However POG has also increased, wouldn’t the NPV5% increase proportionally? Hypothetically for example:

PFS

Increase %

DFS ?

Capex (A$ mil)

215

40%

301

AISC (A$)

990

40%

1386

POG (A$)

1,600

40%

2240

NPV5% (A$ mil)

525

40%

735

Although the capex will be more likely in the 400 millions as per latest Diggers and Dealers Presentation. I think it would be palatable to the market if the reserve gets updated also.