PRECIOUS METALS

Strong start for Mt Morgans

Dacian Gold off to a good start at the Mt Morgans mine with the new operation meeting guidance

This article is 7 years old. Images might not display.

Mt Morgans produced 34,155 ounces of gold, within Dacian's guidance of 30,000-40,000oz.

The mine met or beat Dacian's targets in the early stages of its ramp-up after having poured first gold on March 29.

Mill throughput averaged 6600 tonnes per day. Nameplate is 8000tpd.

Recoveries averaged 90.9% versus the feasibility study forecasts of 91.4%.

Underground mining rates were 1400tpd and open pit rates were 4500tpd, against steady stage rates of 3000tpd and 5000tpd respectively.

The average grade from the underground was 4.2 grams per tonne gold and from the open pit, 0.9gpt, versus reserve grades of 4.6gpt gold and 1.4gpt respectively.

Dacian executive chairman Rohan Williams said the mine had performed strongly on all fronts.

"We have done precisely what we said we would do," he said.

"This should be of much comfort to investors because it reflects the professionalism of our employees and mining contractors (Mcmahon and RUC) as well as our EPC contractor, GR Engineering, which built the 2.5Mtpa treatment plant on time and on budget.

"It also shows that the mine and plant are operating in line with our expectations, which means we are well on track to meeting our next round of performance targets."

Williams said the mine was on track to meet commercial production in the December quarter and achieve guidance of 180,000-210,000oz for the 2019 financial year.

Dacian won't report cash costs until the mine reaches commercial production. However, it remains confident all-in sustaining costs at that time will be in line with previous forecasts of A$1000 an ounce.

The company is due to release an updated resource for the Westralia underground this month, as well as an anticipated maiden resource for the Cameron Well deposit - what could be a possible third ore source for Mt Morgans.

Dacian had $72.6 million cash at the end of the quarter before creditor payments of $18 million.

Shares in Dacian opened 5.9% higher at $2.90, the highest level in about a month.

Expert-led Insights reports and Analytics tools built on robust data, rigorous analysis and expert commentary covering mining Risk, Projects, ESG, Leadership, and Investor Sentiment.

Expert-led Insights reports and Analytics tools built on robust data, rigorous analysis and expert commentary covering mining Risk, Projects, ESG, Leadership, and Investor Sentiment.

editions

Investor Sentiment Insights 2026

Discover what investors have planned for mining in 2026 in our industry-leading survey

editions

World Risk Insights 2025 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 120 jurisdictions globally, assessed across six risk categories and an industrywide survey.

editions

ESG Index 2025: Benchmarking the Future of Sustainable Mining

The ESG Index provides an in-depth evaluation of the ESG performance of 60+ of the world’s largest mining companies. It assesses companies across 10 weighted indicators within 6 essential ESG pillars.

editions

Leadership Insights 2025

Leadership Insights reveals key trends in priority mining issues through interviews with 15+ top mining company executives and an industrywide survey.