PERTH (miningweekly.com) – Construction has started at the A$220-million Mt Morgans gold project, in Western Australia, after owner Dacian Gold secured key regulatory approvals.
The company on Thursday said that the start of site-based construction work would ensure that the Mt Morgans project delivered its first gold production in the March quarter of next year.
The start of construction followed the approval of the mining proposal and the mine closure plan for Mt Morgans, with the project management plan also approved.
Dacian in December received a native vegetation clearing permit.
Earthworks for the accommodation village, as well as the office, workshop and temporary power station have not started.
Dacian is also preparing for the installation of pumping infrastructure for the dewatering of the Westralia openpit ahead of underground mining, which is scheduled to start in May this year. Pit dewatering will start once the company has received approval from the Department of Environment.
The Mt Morgans project is expected to deliver 186 000 oz over the first four years of an eight-year mine life, based on a 2.5-million-tonne-a-year carbon-in-leach operation.
A prefeasibility study into the expanded Westralia mine area has the potential to increase the mine life to nine years, with production in the first seven years expected to average 197 000 oz of gold.