Regis Resources shares leaping higher today on gold mine growth outlook

Regis Resources Ltd (ASX: RRL) shares are charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold stock closed yesterday trading for $6.45. In morning trade on Friday, shares are swapping hands for $6.58 apiece, up 3.2%.

For some context, the ASX 200 is up 0.1% at this same time.

This outperformance follows the release of Regis’ mid-year exploration update.

Here’s what’s grabbing investor interest.

Regis Resources shares lift on growth outlook

Year to date, the ASX 200 gold miner said it continued advancing priority underground and open pit targets. Regis reported this has improved its geological confidence across key growth areas as it assesses longer-term opportunities at its Duketon, McPhillamys, and Tropicana gold mines.

Regis Resources shares could get longer-term support from Duketon, with the miner declaring the initial open pit Mineral Resource declared for Beamish South. That came out at 7 million tonnes at 1.1 grams of gold per tonne for 270,000 ounces.

Also at Duketon, the miner said recent drilling at Garden Well and Rosemont Stage 3 have confirmed strong mineralisation. And ongoing drilling at Ben Hur supports the view of a potential underground mining opportunity.

At Kings Plains, situated close to the McPhillamys project, recent drilling results were said to support the potential for an open pit resource.

Regis Resources added that diamond drilling within its Tropicana Underground project continued to increase its confidence in the known mineralisation.

What did management say?

Commenting on the results helping boost Regis Resources shares today, CEO Jim Beyer said, “Regis holds a significant pipeline of opportunities, with almost 100 exploration prospects and projects at varying stages of maturity the subject of prioritised evaluation and testing across our portfolio.”

Beyer added:

At Duketon, we are encouraged by the initial Mineral Resource Estimate declared at Beamish South, and drilling will continue as we work to grow that Resource and assess its potential to support a future Ore Reserve. Ongoing drilling at Garden Well, Rosemont and Ben Hur continues to demonstrate the opportunity within the Duketon portfolio and we remain confident in our long-term underground growth pipeline.

At Tropicana, drilling across Boston Shaker, Tropicana Underground, Havana South and the Swizzler area has returned encouraging results, further reinforcing our view of Tropicana as an asset with meaningful exploration upside.

These results, including the initial Kings Plain depth extension testing, continue to validate our exploration strategy and reinforce our belief in the quality and scale of Regis’ asset base.

Looking to what could impact Regis Resources shares in the months ahead, Beyer concluded, “We see meaningful potential to grow our resource base and continue to extend mine life across the business.”

The post Regis Resources shares leaping higher today on gold mine growth outlook appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.