Name of the Project
Mt 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, the establishment of raw water supply, and re-establishing haul and service roads, as well as phone, data and radio communications.

The project is expected to deliver 186 000 oz of gold over the first four years of an eight-year mine life, based on a 2.5-million-tonne-a-year CIL operation.

A prefeasibility study on 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.

Potential Job Creation
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 have been reduced from A$172-million to A$148.9-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 declared commercial production at its Mt Morgans gold project during December, after mining rates across the operation had achieved feasibility study design levels.

Gold production during the December quarter reached 37 930 oz and is expected to progressively increase through the remainder of the 2019 financial year.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Construction at Mt Morgans is on time and within budget, ensuring that the company remains firmly on track to start production from March next year.

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