Dacian lifts Mt Morgans gold reserves
21st December 2018
Resources Rising Stars
Dacian Gold has underpinned its gold production aims at its Mt Morgans gold operation near Laverton in the northern Goldfields to 2025 after upping its reserves by 16 per cent in a new update (reports The West Australian).
Dacian executive chairman Rohan Williams said the ore reserve increase from 1.2 million ounces to 1.39Moz showed there was exploration and growth potential at Mt Morgans.
“With 3.5 million ounces resources, we are confident we can deliver on our vision to establish a 10-plus year mine life at an annual production rate of about 200,000 ounces a year,” he said.
The figure includes a maiden estimate for Mt Morgans’ third mining centre, Cameron Well, of 45,000oz, while reserves for the key underground production centre of Westralia increased by 17 per cent to 575,000 ounces.
Reserves at its baseload Jupiter open pit remained at 611,000 ounces.
Dacian maintains that it is on track to achieve commercial production at Mt Morgans before the end of the year after opening its third mining front at Westralia, the Allansons decline, this month.
RBC Capital Markets mining analyst Paul Hissey, who has a $3.25-a-share price target and outperform rating on Dacian, said it was a positive step for the new mine, where first gold was poured in March.
“Beyond the near-term ramp-up trajectory we anticipate steady-state production levels of plus-200,000ozpa, which provides valuation support for our constructive view,” he said in a note.
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