PERTH (miningweekly.com) – Junior gold miner Dacian Gold has reported an 11% increase in the indicated resource at its Mt Morgans gold project, in Western Australia.
A maiden mineral resource estimate of 245 000 oz has been declared at the Cameron Well deposit, with the project’s total measured and indicated resource now up to 2.5-million ounces.
The measured and indicated resource at the Westralia deposit also increased by 9%, to 989 000 oz, with the total Westralia resource now standing at 1.5-million ounces, and the total Mt Morgans mineral resource at 3.5-million ounces.
Dacian said on Monday that the increase to the mineral resource marked another key step towards the company’s goal of becoming a midtier gold producer with yearly production of over 200 000 oz, and a mine life of more than ten years.
“This outstanding result is important for three reasons; firstly it demonstrates that we are making great progress towards our goal of establishing a ten-year plus mine life with annual production of 200 000 oz/y, cementing our position as a significant new midtier Australian gold producer,” said executive chairperson Rohan Williams.
“Secondly, it shows the high confidence in the measured and indicated resource at Westralia have increased to 989 000 oz and kept the grade high, now at 5.2 g/t gold, which in combination with Cameron Well, positions us well for our ore reserve update later this year.
“And lastly; it shows there is substantial organic exploration upside remaining at Mt Morgans which we intend to unlock with an accelerated, multi-pronged exploration campaign.”
Williams said that the company was confident of further significant growth at the Cameron Well resource, with exploration programmes planned for the next 12 months.
“We are also excited by what looks to be outstanding potential to grow the mineral resource at Westralia at depth. The geological breakthroughs we have made in recent months have allowed us to identify where the high-grade trends of this large gold system are located, and we will set about testing these undrilled areas in parallel with accelerated drilling at Cameron Well.”