Dacian's Mt Morgan improving

Dacian Gold’s Mt Morgans gold mine has made a strong start to the 2020 financial year
16th August 2019
Resources Rising Stars

Dacian Gold’s Mt Morgans gold mine has made a strong start to the 2020 financial year (reports MiningNews).

The operation, near Laverton in Western Australia, produced 16,188 ounces of gold in July.

The month's production puts Mt Morgans at an annualised run-rate of 194,256 ounces of gold, well above its guidance of 150,000-170,000oz.

"If these production rates can be maintained we see the possibility of potentially upgrading FY20 guidance, although its early days here with today's report representing only the first month's production for FY20," Argonaut Securities analyst James Wilson said.

Ore movement rates stabilised across the underground and open pit, with total mined ore grade at the Westralia underground increasing to 3.5 grams per tonne gold from 2.5gpt in the June quarter.

Processed grade increased to 2.2gpt gold from 1.8gpt in the June quarter, offsetting a drop in recoveries to 94% from 97%.

"It is pleasing to start the FY2020 year with a plus 16,000-ounce month, positioning us to meet expectations set with our recently updated life-of-mine," Dacian executive chairman Rohan Williams said.

"Importantly the mill to claimed production reconciliation was excellent at 102%, again confirming the good correlation between grade control models and mill production."

Mt Morgans production is expected to be weighted about 55% towards the second half of FY20.

Full-year cost guidance is A$1400-1500 an ounce.

Under a new eight-year mine plan released last month, Mt Morgans is forecast to generate cashflow of $55 million this financial year at an $1800 an ounce gold price.

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