Name of the Project
Mount Morgans gold project.

Location
The project is located in the Laverton gold district, in Western Australia.

Client
Dacian Gold.

Project Description
A feasibility study on the project has shown it to be technically and economically feasible, beginning with an initial ore reserve of 18.58-million tonnes grading 2 g/t gold for 1.2-million ounces over eight years.

The study proposes a large underground mining complex at Westralia, which comprises the Beresford and Allanson underground mines; and one large openpit at Jupiter. Both operations will feed a new 2.5-million-tonne-a-year carbon-in-leach (CIL) treatment facility to be built close to the Jupiter pit.

Infrastructure at the mine includes the CIL treatment facility, a 416-person accommodation village, construction of mine service facilities at the Westralia and Jupiter mine areas, an administration complex, power reticulation, establishment of raw water supply, re-establishing haul and service roads, as well as phone, data and radio communications.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Project payback is estimated at 21 months using a gold price of A$1 600/oz.

Value
Infrastructure capital costs are estimated at A$172-million.

Mine establishment costs are estimated at A$48-million.

Duration
The CIL plant is expected to be commissioned in the first quarter of 2018.

Latest Developments
Construction has started at the Mount Morgans project.

The start of site-based construction work will ensure that the Mt Morgans project delivers its first gold production in the March quarter of next year.

The start of construction follows the approval of the mining proposal and the mine closure plan for the project in December, with the project management plan also approved.

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.

A prefeasibility study on the expanded Westralia mine area has the potential to increase the project’s mine life to nine years, with production in the first seven years expected to average 197 000 oz of gold.
 
Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Dacian Gold, tel +618 6323 9000, fax +61 8 6323 9099 or email .info@daciangold.com.au