Western Australian gold developer Dacian Gold (ASX:DCN) has increased its total Mineral Resource Estimate (MRE) by 500,000 ounces across its Mt Morgans Gold Operation and Redcliffe projects in Western Australia.
The company reports its group mineral resources have increased from 2.2 million ounces to 2.7 million ounces after an extensional drilling campaign more than doubled the mineral resource at the Jupiter open pit to 830,000 ounces.
The company’s total MRE now comprises 53 million tonnes @ 1.6g/t Au for 2.7 million ounces, with Mt Morgans consisting of 40 million tonnes @ 1.6g/t Au for 2.1 million ounces, while the Redcliffe Project hosts 13 million tonnes @ 1.6g/t Au for 670,000 ounces.
Additionally, Dacian says its global ore reserves after depletion have increased from 101,000 ounces to 274,000 ounces in the last 12 months, with the addition of 131,000 ounces from Jupiter and 72,000 ounces from Redcliffe.
With the 2.9-million-tonne-per-annum Mt Morgans processing plant currently on care and maintenance, the company reports it remains focused on developing a ‘low-risk, sustainable’ mine plan to restart production.
Commenting on the updated MRE, Dacian Gold Non-Executive and Independent Chair Craig McGown says: “Resource and reserve growth is fundamental in Dacian’s strategy to resume mining and production at Mt Morgans.
Resource growth, combined with the application of the Genesis Mining Services low-cost open pit mining model, has enabled reserves to be reinstated at Jupiter and reserves to be increased at Redcliffe, which bodes well for the eventual restart of open pit mining at Mt Morgans.
“Our expanded resource base of 2.7 million ounces plus exploration upside provides scope for further increases in reserves as we progress work on our restart strategy for Mt Morgans”
Our expanded resource base of 2.7 million ounces plus exploration upside provides scope for further increases in reserves as we progress work on our restart strategy for Mt Morgans.”
Dacian Gold is an ASX-listed gold explorer and developer with a 2.9-million-tonne-per-annum processing facility and a ‘highly prospective’ land package in the Leonora and Laverton region of Western Australia. The company’s portfolio includes the Mt Morgans and Redcliffe projects in Western Australia.
The company had $37.8 million cash and gold at hand on 31 March, according to its latest quarterly report published on 27 April 2023.
Write to Harry Mulholland at Mining.com.au
Images: Dacian Gold Ltd
