Dacian is set to reach commercial production targets at its Mt Morgans gold operation near Laverton, Western Australia after achieving first ore at the Allanson deposit.
Allanson is one of three underground declines at Mt Morgans’ Westralia mining area. The other two declines within Westralia are the Beresford North and Beresford South deposits.
Dacian also announced that it was set to hit another milestone with stoping scheduled to begin at Beresford North in the next few days.
Each deposit is expected to produce an average of 1000 tonnes a day at Westralia.
At the end of the September 2018 quarter, the company was achieving an average of 1900 tonnes a day at Westralia, with the majority coming from Beresford South.
Mt Morgans has a 2019 financial year target of 180,000–210,000 ounces of gold.
The $200 million Mt Morgans project achieved first gold in March 2018 with an initial ore reserve of 1.2 million ounces and a mineral resource of 3.5 million ounces.
“The start of ore development at our third underground production decline at Allanson marks another important step in the ramp-up [of Mt Morgans] with mining activities across all three underground mining centres,” Dacian executive chairman Rohan Williams said.
“This, together with continued strong progress at the Jupiter open pit, means we are confident of achieving commercial production as planned by the end of 2018 as we progressively increase production in each of the successive quarters during the year.”
Mt Morgans includes Westralia and the Jupiter open pit mining area, which are around 15 kilometres apart.