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Regis builds case to add to reserves, resources at Duketon and Tropicana

Fellow mid-tier Regis Resources (ASX:RRL) looked onshore for its big expansion, buying 30% of AngloGold’s Tropicana gold mine in WA this year from IGO (ASX:IGO) for ~$900 million.

Many of the questions around Regis include concerns about mine life at its flagship Duketon operations and the price paid for the Tropicana stake.

While IGO is now trading at record highs on its narrative shift into battery metals, Regis Resources has been listless in 2021.

Its shares fell amid broader negative sentiment in gold this morning, but does look to have identified some opportunities to extend the life of some of its Duketon mines and head further underground both at Duketon and Tropicana.

Best results in a dump of drilling data today included hits of 10m at 13.2g/t, 26m at 7.6g/t and 19m at 5.7g/t at Moolart Well, where its reserve life is around three years, some of the best in 11 years in fresh rock at the project which has a measured and indicated resource grade of just 0.7g/t.

The Commonwealth prospect at Duketon North also returned an early stage hit of 16m at 7.6g/t. Results have also firmed the potential for new underground mines at Garden Well at Duketon South and beneath the Havana pit at Tropicana.

“Our investment in organic growth continues to return positive results at both Duketon and Tropicana. This supports our view that these operations will have mine lives well in excess of the current reserves,” Regis MD Jim Beyer said.

RBC mining analyst Alexander Barkley said the results were a “positive” for Regis.

“We consider the potential for new underground mines at Garden Well Main and Havana have firmed,” he wrote in a client note.

“However, we consider the price paid for acquiring Tropicana presumed additional underground production.”

“Therefore all underground extension drilling could have high expectations, in our view. Key upcoming catalysts in the April-2022 Reserve and Resource update and 2022 Havana Underground PFS.”

10 days old article... May be someone is not happy. this may explain why shares are falling for 10days.