Dacian Gold has a positive outlook for growth following sputtering production results, with ongoing life-of-mine updates to its Laverton operations in Western Australia.
The development and exploration company produced 21,400 ounces of gold during the March quarter, allowing 2021 production guidance to remain at 110,000-120,000 ounces.
Dacian Gold managing director Leigh Junk said the company, however, was dissatisfied with the results.
“While we were anticipating that production for the March quarter would be our lowest for the financial year, the result was below expectations,” he said.
“The short-term challenges encountered have been addressed with a plan for the June quarter to end the year strongly.”
The challenges referred to operator shortages in Western Australia as a result of a tightening labour market, an effect felt by numerous mining companies across the state.
Dacian stated that measures had now been implemented to retain operator personnel and more mining vehicles were able to be mobilised, heightening production rates.
The company expects an updated life-of-mine plan to be completed during the September quarter.
The plan should allow the company’s Laverton operations – which incorporate the Mt Morgans and recently acquired Redcliffe projects – to deliver annual production rates of around 110,000 ounces per year for an initial mine life of five years.
“The growth platform that we have established at Mt Morgans has been bolstered during the quarter with the addition of the Redcliffe project, which leverages our significant infrastructure in the region to increase and extend our production with an updated life-of-mine plan due for completion later this year,” Junk said.
The addition of the Redcliffe gold project was completed in March after a merger with NTM Gold.