Dacian Gold has discovered some of the thickest and highest-grade gold mineralisation ever intersected at the Mt Morgans site near Laverton, Western Australia.
It is good news for Dacian, which significantly lowered its quarterly guidance and raised its per-ounce costs at Mt Morgans just a few weeks ago due to ongoing performance and equipment issues.
The company’s latest discovery, which was made north of Mt Morgans’ Westralia deposit from 25 diamond drilled holes totalling around 9200 metres, returned extremely high-grade intercepts including 1.7 metres at 127 grams of gold a tonne, 14.3 metres at 12.7 grams a tonne, and 31 metres at 6.3 grams per tonne.
Dacian reported in an ASX announcement that the new drilling results “confirm[ed] the company’s view that Westralia is a very significant ore system”.
The discovery was returned over an area or around 500 metres by 250 metres. Dacian explained that high-grade mineralisation north of Westralia had now been defined for 750 metres when previous high-grade gold samples recovered from a 350-by-300-metre area north of the Allanson ore reserve in February 2019 were taken into account.
“The strong potential of this discovery is demonstrated by the excellent grades, thickness and continuity of the mineralisation, together with its relatively shallow location just north of the existing Westralia mine area and infrastructure, and below a historic pit,” Dacian Gold executive chairman Rohan Williams said.
“Importantly, the best results have been returned on the northernmost section with the mineralisation remaining completely open to the north along the known north-trending high-grade zones seen throughout the mine.”
Dacian’s production guidance for the June quarter was slashed earlier this month from 50,000–55,000 ounces to 36,000–38,000 ounces.
The company even hinted at the possibility of incorporation, having hired Treadstone Resource Partners to perform a strategic review of funding initiatives of “several unsolicited enquiries from corporate entities”, according to a statement released on June 5.