Mining company Regis Resources has started exploratory drilling near Blayney.
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In August the Perth-based mining company acquired three NSW exploration licences from Newmont Exploration Pty Ltd and Alkane Resources NL for $150 million.
Two of the three are located near Blayney, between Orange and Bathurst. The third lease is located west of Orange.
The three exploration licences cover a total area of 420 square kilometres.
The McPhillamy Gold Project, with an estimated resource of 2.5 million ounces of gold, was included in the acquisition and is located about 35 kilometres south east of the town of Orange and 30 kilometres west of Bathurst.
Exploration manager Tara French said the drilling program began in mid January but it is still very early days for the project. Five drilling rigs are currently in operation at McPhillamy.
“We have confidence in the project, although we still have a lot of work to do to get the drill core processed and submitted to the laboratory for gold analysis, but we are hopeful the results will be encouraging,” Ms French said.
Regis has an office based in Blayney and there are currently four permanent staff employed – a project geologist, a senior geologist, a field supervisor and the exploration manager, as well as five local contract staff.
“If the original resource estimate of 2.5 million ounces is accurate then we are looking at a mine with a 10-year life, which is significant and will provide jobs for local people,” Ms French said.
“Approximately 150 permanent positions would be required for an operation of this size.”
While drilling is ongoing at the McPhillamy deposit Regis will start studies and work aimed at satisfying the numerous technical requirements for completion of a definitive feasibility study into the potential development of an open pit mining project at McPhillamy.
This work is expected to take around two years to complete, while the Definitive Feasibility Study (DFS) is likely to take a further 12 months before Regis could start operations. Regis already has two operating gold mines in Western Australia and a third under construction.
“Following the completion of the resource drill out at the McPhillamy Project, we will be in a position to start regional exploration across our exploration licences, which cover approximately 400 square kilometres around the Blayney and Molong districts,” Ms French said. “I am optimistic that we will have further exploration success in the area.”