Regis Resources has issued a release to the Australian Stock Exchange announcing they do not expect to progress the McPhillamys Gold Project at Kings Plains to a feasibility study level in the near term.

The company said this was primarily the result of a 20 per cent drop in the gold price since acquisition of the project.

Since the acquisition of  McPhillamys, Regis has accumulated knowledge of the geological, operating and infrastructure parameters, including the securing of a long term source of process water.

Although Regis still said McPhillamys remains viable at the current gold price, if  infrastructure requirements can be solved, the return on investment does not currently meet its criteria.

Regis will continue to undertake cost effective work on McPhillamys with a view to being in the best possible position to expedite development if and when circumstances allow.

This work would include the continuation of environmental baseline monitoring and ongoing investigations relating to securing a long term source of process water.

The Board of Regis said the significant gold resource at McPhillamys remains an important project in the company’s portfolio.