Dacian’s exploration surge
A SUCCESSFUL $40m equity raising leaves Dacian Gold fully funded to accelerate exploration and extinguish a Jupiter life of mine royalty obligation.
Dacian executive chairman and chief executive Rohan Williams said the funds allowed the company to fast-track discovery of new mineral resources, and potentially new mines and higher production levels at its Mt Morgans operation.
The $12m cancellation of the Jupiter life-of-mine royalty would also allow Dacian to retain more of the cash generated by Mt Morgans.
The company said $25 million would be used to bring forward asset value by an estimated 24 months through aggressive exploration, targeting higher production rates and longer mine life at Westralia, and potentially unlocking Cameron Well as a third mining hub at Mt Morgans.
“We have substantially improved the exploration optionality at Mt Morgans with a new interpretation of the high grade zones at Westralia trending into areas of BIF never previously drill tested, and the new drill results at Cameron Well, which including 97m @ 3.1 g/t gold speak for themselves,” Dacian chief executive Rohan Williams said.
Mt Morgans produced 34,155 ounces in the June quarter – within original guidance of 30,000-40,000 ounces – and remains on track to deliver between 180,000oz and 210,000oz in FY2019.