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
Dacian Gold has launched a A$110-million equity raise, comprising a A$15.4-million institutional placement and a 1-for-3.1 accelerated nonrenounceable entitlement offer to complete the construction of its Mount Morgans project.

About eight-million new shares will be placed to raise A$15.4-million, with about 47-million new shares to be issued under the accelerated nonrenounceable entitlement offer, to raise a further A$94.4-million.

Shares will be priced at A$2 each, representing an 11.9% discount on the last closing price of Dacian shares on February 21.

“The equity raising completes the last piece of the funding package required to complete the construction of the Mount Morgans gold project . . . to first gold production,” executive chairperson Rohan Williams has said.

Dacian in December 2016 secured a A$150-million syndicated funding facility to partly fund the construction costs of the Mt Morgans project.

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