The Regis Resources Ltd (ASX: RRL) share price has surged higher at the open after an update on a key gold mining resource this morning.
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The Regis Resources Ltd (ASX: RRL) share price has jumped higher this morning after an early morning announcement from the Aussie gold miner. At the time of writing, shares in Regis are trading for $3.02, up 1.68%.
Why is the Regis Resources share price climbing?
This morning, Regis provided an update on its Ben Hur maiden ore reserve located near Laverton in Western Australia. The Aussie miner said that the acceleration of exploration following the 2020 acquisition has grown the Mineral Resource by 34 per cent. That has allowed the declaration of the maiden Ore Reserve at Ben Hur.
The total Mineral Resource for the Ben Hur deposit is estimated to be 10.3 megatonnes (Mt) at 1.2 grams per tonne (g/tonne). This equates to a total of 390,000 ounces of gold. As a result of the update, the Regis Resources share price shot 2.7 per cent higher at the market open.
Regis’ Ore Reserve Estimate for Ben Hur found probable reserves of 3.5 Mt of ore. This will be mined at 1.1 g/tonne for a total of 130,000 ounces of gold.
Shareholders appeared to receive this morning’s update favourably. Shares in the Aussie gold miner have been volatile in early trade while the S&P/ASX 200 Index (ASX: XJO) has climbed 0.8% higher after the Easter break.
What about other ASX gold miners?
It’s been broadly good news across major Resources sector shares. The Newcrest Mining Ltd (ASX: NCM) has also shot 1.4 per cent higher in early trade. Additionally, St Barbara Ltd (ASX: SBM) shares have also climbed higher.
However, the Incitec Pivot Limited (ASX: IPL) share price has slumped nearly 10 per cent lower to start the shortened trading week. That move comes after an pre-market update on its Waggaman Ammonia Plant.
The Regis Resources share price has been volatile to start the week and remains on watch in Tuesday’s trade. Shares in the Aussie gold miner surged higher after an update on its Ben Hur site which included a significant expansion of the Mineral Resource.
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Motley Fool contributor Ken Hall 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 Bruce Jackson.