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Jul 2015 - Dacian Gold Limited

Dacian Gold Limited (DCN) – Starting its PFS at Mt Morgans Targeting Production of >150kozpa at an AISC ~A$1000/oz from ~2018

  • Dacian has started its PFS assessing the potential development of two wholly owned mining complexes at Mt Morgans, located ~35km west of Laverton in WA. The two complexes are an underground operation on the BIFs (banded iron formation) at Westralia and potentially a number of open-cuts at its syenite-hosted Jupiter Prospect.
  • To date, Dacian has made 4 new discoveries at Mt Morgans, namely the 850koz (4.6mt @ 5.8g/t) resource at Westralia over a strike length of ~1km of the HW (hangingwall lode(s)); intersections NW on the HW lode beyond the previously perceived cut-off zone - (now a roll and repeat) at Westralia for up to 2km; unmined footwall lodes possibly up to 3km long; and ~1.1moz (813koz of 15.1mt @ 1.7g/t (0.9g/tCOG), and 303koz of heap-leachable 17.9mt @ 0.5g/t low grade) at Jupiter (being Heffernans and the re-interpreted Doublejay).
  • In ERA's view, conceptual production could be >150kozpa at an AISC of ~A$1000/oz for >10years, based on a 1mtpa @ 1.8g/t open-cut operation at Jupiter (~52kozpa @ 90% recovery), and 0.8mtpa @ 5g/t (+/- 1g/t or ~116kozpa +/- 24kozpa @ 90% recovery) from an underground operation at Westralia, through a ~1.8mtpa plant. The operation at Jupiter would probably have a heap leach component that (like its original operation that used a dump-leach) could add a further ~>15kozpa, (i.e. [52 + (92 to 140) + 15]kozpa).
  • Dacian does pose the question in its presentations of just how big its Westralia Prospect could be. Dacian has potentially 3 largely unmined lodes possibly up to 3km long of which one of them has 850koz (and still open at depth) on ~1km of lode. And that is without considering the satellites near Westralia such as Transvaal, the adjacent ~parallel sheared basalt orebodies south of Westralia, or the rest of the ~15km long mostly untested BIFs.
  • Jupiter's prospects have a number of similarities to Wallaby. In addition to the stacked lode sequence already encountered at Heffernans, a stacked lode sequence has been identified at Doublejay increasing resources to ~1.1moz. To which can be added exploration beneath the Doublejay opencuts, the gap between Heffernans and Doublejay, Ganymede, possibly Cameron Well, and some of the other numerous drill-ready syenite targets that have been waiting for the salt lakes to dry out, to start drilling them.
  • Written by: Keith Goode
  • Wednesday, 01 July 2015