PERTH (miningweekly.com) – ASX-listed gold miner Dacian Gold on Tuesday announced that it was tracking within its 2021 production guidance of 110 000 oz to 120 000 oz, following a strong December quarter.
The miner produced 27 162 oz of gold in the December quarter, with year-to-date production reported at 59 961 oz.
“This continues Dacian’s strong turnaround and positions us well to meet our annual targets during 2021,” said MD Leigh Junk.
Ore for the December quarter was predominantly sourced from the Heffernans and Mt Marven openpits, at the Mt Morgans gold operation, with stripping activities continuing at the Doublejay openpit, as planned.
Junk said on Tuesday that operating results at the Mt Morgans project had facilitated an additional performance-based debt repayment, which has reduced the company’s debt to A$23.4-million, with Dacian aiming to extinguish the debt from operating cashflows during 2021.
“Dacian’s growing financial strength is ideally timed with the pending merger with NTM and its compelling pipeline of development projects. We look forward to incorporating the Redcliffe gold project into Mt Morgans to extend mine life and to diversify and bolster production,” Junk added.
Dacian last year struck a merger agreement with NTM Gold under which Dacian would acquire all of the issued capital in NTM. NTM shareholders would receive 1 Dacian share for every 2.7 NTM shares held.
NTM’s Redcliffe gold project, which is currently estimated to host some 679 000 oz of gold, lies within 100 km of Dacian’s Mount Morgans gold operation.