The Australian Mining Review - - FRONT PAGE - CAMERON DRUM­MOND

PRO­DUC­TION from Dacian Gold’s flag­ship $ 197 mil­lion Mt Mor­gans project near Laver­ton, WA is ex­pected to start this month, less than three years af­ter the Dacian board ap­proved its de­vel­op­ment.

The fast- tracked gold project has been Dacian’s sole fo­cus since its $ 20m ini­tial pub­lic of­fer­ing ( IPO) onto the ASX in 2012.

At that time, Mt Mor­gans had a re­source base of 840,000 ounces ( oz) of gold.

In the years that fol­lowed, ex­plo­ration work un­cov­ered a fur­ther two, 1 mil­lion- plus ounce ( moz) gold de­posits at Wes­tralia and Jupiter.

Mt Mor­gans now has a to­tal min­eral re­source base of 3.3moz to pro­duce 200,000oz a year across an ini­tial eight- year mine life.

The project’s es­ti­mated all- in sus­tain­ing costs ( AISC) of $ 1039/ oz in­cludes two new un­der­ground mines ( Beres­ford and Al­lan­son) be­neath the his­tor­i­cally mined Wes­tralia pit, which are ex­pected to de­liver 492,000oz at a low AISC of $ 837/ oz over an ini­tial four year mine life.

The large open pit at Jupiter con­tains 643,000oz at an ex­pected AISC av­er­age of $ 1193/ oz over an eight year pe­riod.

Dacian has en­joyed lower than ex­pected in­fras­truc­ture costs, re­duced from $ 172m to $ 149m.

That in­fras­truc­ture in­cludes a new 2.5 mil­lion tonne per an­num ( mtpa) CIL

There’s a lot to like about the rapid de­vel­op­ment of Dacian Gold’s Mt Mor­gans gold project. The miner has set a vig­or­ous pace on the road to pro­duc­tion, al­ready com­ing in un­der its ini­tial project cost by $23 mil­lion.

treat­ment plant and tail­ings stor­age fa­cil­ity; 400 per­son ac­com­mo­da­tion vil­lage, mine ser­vice fa­cil­i­ties at Wes­tralia and other re­lated mine in­fras­truc­ture.

Dacian ex­ec­u­tive chair­man Ro­han Wil­liams said the de­vel­op­ment and con­struc­tion of Mt Mor­gans was pro­ceed­ing ex­actly to plan.

“Thanks to the out­stand­ing work by our staff and con­trac­tors, Dacian has achieved what we said we would do,” Mr Wil­liams said.

“We re­main on time and on bud­get, which means the project is be­ing de- risked by the day and we are get­ting closer to pro­duc­tion and cash- flow by the day.

“It’s an ex­cit­ing time for the com­pany as we con­tinue our trans­for­ma­tion from de­vel­oper to gold pro­ducer.” To help bring down the Mt Mor­gans AISC, Dacian has been con­cen­trat­ing on prov­ing up fur­ther re­sources at Wes­tralia, as Beres­ford and Al­lan­son are ex­pected to be two of Aus­tralia’s low­est cost- per- ounce de­posits.

Dacian said it would be pri­ori­tis­ing the de­posits as early pro­duc­tion and ex­pan­sion sources to max­imise the cash- mar­gin from the early stage min­ing at Mt Mor­gans.

“It re­mains a core fo­cus for Dacian to ex­tend the Wes­tralia mine area ore re­serve life be­yond 2021, and the 3.5mt at 6.5 grams per tonne ( g/ t) for 715,000oz of in­ferred min­eral re­source that lies di­rectly along strike and be­neath pro­vides the com­pany with the po­ten­tial to ex­tend the mine life at both Beres­ford and Al­lan­son,” the com­pany stated.

“This ex­cit­ing dis­cov­ery comes on the eve of Dacian Gold’s trans­for­ma­tion into Aus­tralia’s next sig­nif­i­cant mid-tier gold pro­ducer.” Ex­plo­ration and Ex­pan­sion


Mt Mor­gans lies in the eastern edge of the Yil­garn Cra­ton.

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