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Jul 2016 - Dacian Gold Limited

Dacian Gold Limited (DCN) – Completing its DFS and targeting potential gold production of ~250kozpa at an AISC of ~A$900/oz for ~10years

  • Dacian is making material progress in its DFS to produce gold from its Mt Morgans Gold Project (MMGP) comprised of two prospect complexes at Westralia and Jupiter, located ~35km west of Laverton in WA. The DFS could be completed by the end of SQ 2016, raising finance in DQ16, construction in 2017, with gold production from MQ2018.
  • The designed treatment rate is 2.5mtpa for a plant located near Jupiter, but we/ERA would expect that to be the 80th percentile guarantee by an EPC Company and hence ~3mtpa could be achievable. Possibly ~2mtpa could come from open-cuts mining the Jupiter syenite, and ~1mtpa from the Westralia BIF (banded iron) underground operations.
  • The Scoping study released in September 2015 envisioned a ~6.5 year production life. However, in ERA's opinion the mine life could be at least 10 years, as the Jupiter project's Doublejay & Heffernans pits appear capable of being taken ~130m deeper at relatively lower additional strip ratios (due to visual and proven [geotech] sidewall competency), which could add >7mt of ore. With potentially >2mt from Westralia (the central part remains undrilled, the depth remains open and the ore shoots have been re-interpreted).
  • The Dacian geological team is extremely strong in innovative geology, using techniques ERA has not seen before: Such as identifying shallow angled north dipping thrusts controlling the high grade ore shoots at Westralia, (switching from the previously perceived steep southerly dipping ore shoots, and identifying significant new areas for exploration); applying BIF facies to identify the banded iron units (associated with grade) at Millionaires (Westralia); and applying magnetic susceptibility to all their drillholes at Jupiter, inferring that the syenites may link at ~500m deep, & many other syenite targets.

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Jul 2016 - Dacian Gold Limited

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  • Written by: Keith Goode
  • Monday, 25 July 2016