Deflector_ open_pit_mining


ASX Announcement

8 February 2016


DORAY COMMENCES OPEN PIT MINING AT DEFLECTOR


Doray Minerals Limited (ASX:DRM, Doray) is pleased to advise that it has successfully achieved another milestone in its plans to become a multi-mine high-grade gold producer with the recent commencement of open pit mining at the Company's Deflector Gold Project ("Deflector").


Doray's open pit contractor, MACA Ltd (ASX:MLD) recently completed the first blast in the Deflector open pit and has commenced open pit mining operations during February, as forecast.


Doray's Managing Director, Allan Kelly, said the commencement of open pit mining represented another significant milestone in the rapid development of the Deflector Project and came less than a year after completing the takeover of Mutiny Gold in March 2015.


"We are very excited to have officially commenced mining operations at Deflector, our second high-grade WA gold operation, and look forward to bringing production online over the coming months," Mr Kelly said.


The Deflector Gold Project is a high-grade/low-cost gold-copper project with an initial mine life of six years and significant exploration upside. Doray is utilising its recent experience from the Andy Well Gold Project to optimise the construction, development and operation of Deflector.


The key remaining development milestones at Deflector are the commencement of ore commissioning of the new processing plant, in May, and the commencement of underground mining, scheduled for June.


Following construction and commissioning of Deflector in mid-2016, Doray is forecasting combined production from Andy Well and Deflector of 140,000 ounces per annum (plus copper and silver) and is targeting an average all-in sustaining cost (AISC) of less than A$1,000/oz (after by-product credits) across the two projects.



Figure 1. Commencement of open pit mining operations at the Deflector Gold Project.


Doray Minerals Ltd, 8 February 2016


For further information, please contact: Cameron Peacock

Investor Relations Doray Minerals Ltd

+61 (0)439 908 732

Investorrelations@dorayminerals.com.au

-ENDS-


Margie Livingston

Associate

AMN Corporate

+61 (0)438 661 131

margie@amncorporate.com


About Doray Minerals Limited


Doray Minerals Limited is an Australian gold producer, developer and explorer with two high-grade Western Australian gold assets: the operating Andy Well Gold Project (Andy Well); and the Deflector Gold Project (Deflector), which is due to commence production in mid-2016, following completion of development and construction.


Doray has a strategic portfolio of gold exploration properties within Western Australia and South Australia and each presents multiple discovery opportunities. The Company's Board and management team has a proven track record in discovery, development, and production.

Doray Minerals Limited issued this content on 08 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 08 February 2016 02:19:57 UTC

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