The start of site work came after the company received key approvals from the Western Australian Department of Mines and Petroleum.

Early works will comprise earthworks for the 416-person accommodation camp, Westralia mine infrastructure and preparations for the installation of pumping infrastructure for dewatering the Westralia pit.

The company is still awaiting approval to dewater the pit. Underground mining is scheduled to begin in May.

Dacian is also negotiating to purchase a second-hand accommodation village, which the company has previously said could take $10 million off the capital costs.

The company remains on track to pour first gold in the March 2018 quarter.

“We continue to make strong progress at Mt Morgans on numerous fronts and remain on track to be in production in the March quarter, 2018,” Dacian executive chairman Rohan Williams said.

Dacian secured $150 million in debt financing from three banks just before Christmas, but will still need to raise the balance of the capital costs via the equity markets in the current half.

Ore will be sourced from the Westralia underground and Jupiter open pit.

Production is set to average 186,000 ounces of gold per annum at AISC of $1039/oz in the first four years.

The project has a payback period of 21 months, using a $1600/oz gold price.

Dacian shares were up by 2c to $2.38.