Dacian Gold delivers in maiden quarter, pledges more
13th July 2018
Resources Rising Stars
Dacian Gold has cleared its first significant hurdle, delivering on its maiden quarterly production guidance at a time fraught for new entrants and effectively de-risking full-year output (reports The West Australian).
Its shares surged after the newly minted gold producer revealed it had met its maiden quarterly production guidance at its Mt Morgans project near Laverton.
The Rohan Williams-led company announced it had produced 34,155oz in the June quarter, comfortably within its 30,000oz to 40,000oz guidance range.
Investors were heartened that it had also confirmed its full-year 2019 output forecast of 180,000oz to 210,000oz.
Dacian said it had met or exceeded its key performance benchmarks with respect to throughput, recoveries, grade and mining rates.
Mr Williams said Dacian had done precisely what it said it would do.
“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,” he said.
“We are on course to achieve commercial production by the end of this calendar year.”
GR Engineering built the 2.5Mtpa processing plant at the $197 million project and Macmahon and RUC are providing mining services.
Built on top of an historic gold field which has produced more than 1.3 million ounces since 1896, Mt Morgans has a 3.3Moz resource and 1.2Moz reserve on the back of discoveries made by Dacian.
Dacian shares ended up 19¢, or 6.9 per cent, at $2.93 on Friday, giving it a market capitalisation of more than $600 million.
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