DACIAN GOLD 18 OCTOBER 2017
MT MORGANS TREATMENT PLANT NOW 50% BUILT AS KEY CAPITAL ITEMS ARRIVE ON SITE Project remains on time and on budget with less than six months to first productionDacian Gold Ltd (Dacian Gold or the Company) (ASX: DCN) is pleased to announce that its 100%‐owned Mount Morgans Gold Project (MMGP), located 25km south‐west of Laverton in WA, continues to meet its key targets, with the treatment plant now 50 per cent built.
The SAG mill has been delivered to site and the ball mill will arrive on site next week.
This strong progress means Mt Morgans remains on time and on budget to achieve first gold production in March 2018 - less than six months from now.
Figure 1 below shows the arrival of the two halves of the 8.5m diameter and 3.5m long SAG mill to the Mt Morgans site late last week.
Figure 1 - Arrival of the two halves of the 8.5m diameter, 3.5m long SAG mill to the Mt Morgans site.
The larger ball mill, which is 5.5m in diameter and 8.9m long, requires escorted transport to site from Fremantle Port and will arrive next week.
Dacian Gold Executive Chairman, Rohan Williams, said: "The arrival of these large‐scale capital items for the plant marks another key milestone for the development team, with the plant now over 50 per cent complete and the overall project on time and on budget - and firmly on track for first gold production less than six months from now."
"A lot of the structural steel has already been erected and recent progress at treatment plant site remains impressive. At the same time, underground mining at Beresford is now in full swing and mining at our second underground mine, Allanson, is about to start - to be followed by the start of open pit mining at Jupiter, later this year.
"As we move closer to first gold production, our exploration programs are also continuing to gather momentum - with a particular focus on Cameron Well, where we have two rigs currently operating.
"Dacian Gold is now just months away from becoming a substantial new Australian gold producer. Our rapid progress is due to the exceptional skills and work ethic of our employees, consultants and contractors, and I would like to take this opportunity to thank GR Engineering for their ongoing performance in the EPC of the Mt Morgans treatment plant."
For and on behalf of the Board
Rohan Williams Executive ChairmanAbout Dacian Gold Limited
Dacian Gold Limited (ASX: DCN) is less than 6 months away from gold production at its approximately 200,000ozpa, 100%‐owned Mt Morgans Gold Project, located near Laverton in Western Australia. With an initial Ore Reserve of 1.2Moz, a Mineral Resource of 3.3Moz (incl Ore Reserve) and highly prospective exploration tenure, Mt Morgans is set to become Australia's next significant, mid‐tier gold producer.
Mt Morgans is fully‐funded and permitted and benefits from being a brownfields site with excellent existing infrastructure and well understood geology being mined through conventional underground and open pit mining techniques. Total capital cost to develop the project is $A197M with A$107M dedicated to the construction of a 2.5Mtpa CIL treatment facility being constructed under a guaranteed maximum price EPC contract.
The Board, which comprises Rohan Williams as Executive Chairman and Robert Reynolds, Barry Patterson and Ian Cochrane as non‐executive directors, approved the construction of the project in late 2016.
Dacian Gold will also maintain an aggressive exploration spend on the project it believes will continue to yield gold discoveries that will increase mine life and project value.
For further information please visit www.daciangold.com.au to view the Company's presentation or contact:
Rohan Williams Executive Chairman Dacian Gold Limited
+61 8 6323 9000
Paul Armstrong Investor Relations Read Corporate Pty Ltd
+61 8 9388 1474
Mount Morgans Gold Project Mineral Resources as at 28 July 2016
Deposit | Cut- off Grade | Measured | Indicated | Inferred | Total Mineral Resource | ||||||||
Au g/t | Tonnes | Au g/t | Au Oz | Tonnes | Au g/t | Au Oz | Tonnes | Au g/t | Au Oz | Tonnes | Au g/t | Au Oz | |
King Street* | 0.5 | - | - | - | - | - | - | 532,000 | 2.0 | 33,000 | 532,000 | 2.0 | 33,000 |
Jupiter | 0.5 | 994,000 | 1.7 | 54,000 | 22,889,000 | 1.4 | 1,006,000 | 5,739,000 | 1.1 | 197,000 | 29,623,000 | 1.3 | 1,257,000 |
Jupiter UG | 1.5 | - | - | - | - | - | - | 530,000 | 2.0 | 34,000 | 530,000 | 2.0 | 34,000 |
Jupiter LG Stockpile | 0.5 | 3,494,000 | 0.5 | 58,000 | - | - | - | - | - | - | 3,494,000 | 0.5 | 58,000 |
Westralia | 2.0 | 409,000 | 5.0 | 65,000 | 4,769,000 | 5.5 | 840,000 | 3,449,000 | 6.5 | 715,000 | 8,626,000 | 5.8 | 1,621,000 |
Craic* | 0.5 | - | - | - | 69,000 | 8.2 | 18,000 | 120,000 | 7.1 | 27,000 | 189,000 | 7.5 | 46,000 |
Transvaal | 2.0 | 367,000 | 5.8 | 68,000 | 404,000 | 5.3 | 69,000 | 482,000 | 4.7 | 73,000 | 1,253,000 | 5.2 | 210,000 |
Ramornie | 2.0 | - | - | - | 156,000 | 4.1 | 21,000 | 285,000 | 3.9 | 36,000 | 442,000 | 4.0 | 57,000 |
Total | 5,263,000 | 1.5 | 246,000 | 28,287,000 | 2.1 | 1,954,000 | 11,138,000 | 3.1 | 1,115,000 | 44,688,000 | 2.3 | 3,315,000 | |
* JORC 2004
Mt Morgans Gold Project Ore Reserves as at 21 November 2016
Deposit | Cut-off Grade Au g/t | Proved Tonnes Au g/t Au Oz | Probable Tonnes Au g/t Au Oz | Total Tonnes Au g/t Au Oz |
Beresford UG | 2.0 | 50,000 4.9 8,000 | 2,383,000 4.2 323,000 | 2,433,000 4.2 331,000 |
Allanson UG | 2.0 | - - - | 882,000 5.7 162,000 | 882,000 5.7 162,000 |
Transvaal UG | 1.4 | 193,000 4.7 29,000 | 325,000 3.4 36,000 | 518,000 3.9 65,000 |
Jupiter OP | 0.5 | 867,000 1.7 48,000 | 13,884,000 1.3 595,000 | 14,751,000 1.4 643,000 |
INITIAL ORE RESERVE | 1,110,000 2.4 85,000 | 17,475,000 2.0 1,115,000 | 18,585,000 2.0 1,200,000 |
In relation to Mineral Resources and Ore Reserves, the Company confirms that all material assumptions and technical parameters that underpin the relevant market announcement continue to apply and have not materially changed. The Mineral Resources and Ore Reserves Statement is based on, and fairly represents, information and supporting documentation prepared by the respective competent persons named below.
Mineral ResourcesThe information in this report that relates the Westralia Deposit Mineral Resource (see ASX announcement 28 July 2016), Jupiter Deposit Mineral Resource (see ASX announcement 19 July 2016), Transvaal Deposit Mineral Resource (see ASX announcement 16 September, 2015) and the Ramornie Deposit Mineral Resource (see ASX announcement 24 February, 2015) is based on information compiled by Mr Shaun Searle who is a Member of Australian Institute of Geoscientists and a full-time employee of RungePincockMinarco. Mr Searle has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Searle consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report that relates the Jupiter Low Grade Stockpile (see ASX announcement - 16 September, 2015) and is based on information compiled by Mr Rohan Williams who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Williams holds shares and options in, and is a director
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Dacian Gold Limited published this content on 18 October 2017 and is solely responsible for the information contained herein.
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