Dacian Gold Limited (ASX: DCN) has announced a maiden Mineral Resource Estimate of 946,000t @ 1.10g/t for 34,000oz for the McKenzie Well project at its Mt Morgans Gold Operation (MMGO) in Western Australia.
The initial Mineral Resource estimate follows a targeted two-phase RC drilling program that began in May 2020.
DCN said that further infill drilling programs are set to commence next quarter with mining studies planned thereafter.
Exploration program at McKenzie Well
Dacian had commenced its $15M exploration program at the McKenzie Well project, with the aim of delivering both satellite and base load opportunities across its Mt Morgans tenement package.
The company said that its initial RC drilling program identified strong mineralisation along 400m of strike length of Banded Iron Formation (BIF). DCN noted that the mineralisation is predominantly BIF hosted with the grade and geometry of the mineralisation being influenced by a large-scale fold closure to the south east of the deposit.
The company said that a total of 90 RC drill holes for 8,350m were completed as part of the Company’s two-phase drill program that commenced in July 2020. The holes were designed to further test the BIF stratigraphy and confirm the orientation and distribution of grade around the fold structure.
The company said that it reviewed available data on historical targets across the Mt Morgans tenement package and identified McKenzie Well as a priority greenfields target.
Initial MRE for McKenzie Well
Dacian said that following the geological desktop review, field reconnaissance, mapping, and interpretation were completed resulting in an improved geological understanding and an updated interpretation for McKenzie Well.
The results of company’s first phase drilling program that began in May 2020 to test the interpretation refined the geological model. The project was approved for a second phase of drilling in 2020, aimed at defining continuity of mineralisation on two of the three identified fold limbs.
The company’s initial Mineral Resource estimate for McKenzie Well followed the targeted two-phase reverse circulation (RC) drilling program.
Dacian said that the exploration activities have now returned the maiden Mineral Resource estimate for McKenzie Well of 946,000t at 1.10g/t for 34,000oz, reported above a cut-off grade of 0.5g/t.
The company said that McKenzie Well deposit reflects a potential satellite open pit opportunity, on a current mining lease, for the Mt Morgans gold operation outside of the current mine plan.
Dacian said that further work would include infill drilling to increase Mineral Resource confidence, mine studies, and metallurgical testwork.
DCN announced that a third-phase Mineral Resource definition drill program of 56 holes for 3,715m is planned to commence next quarter. The company said that the program is planned to improve the confidence of the Mineral Resource estimation with mining studies for potential inclusion into the mine plan to begin thereafter.
Dacian noted that further expansion opportunities at McKenzie Well lie in testing of the Opaleye limb. The Company said that it is considering a further expansionary drill program later in 2021.
Dacian Managing Director, Leigh Junk said: “Our exploration strategy of targeting both satellite and base load opportunities at Mt Morgans is culminating in some new discoveries. Satellite open pit opportunities like McKenzie Well have the potential to make a meaningful impact on our production profile, and in combination with our existing pipeline of development projects, support our strategy to bolster and extend the Mt Morgans mine plan over time.”
* Image source: Dacian Gold Limited