Dacian Gold launches construction at Mt Morgans

The Mt Morgans gold project. Image: Dacian Gold

Construction has started at Dacian Gold’s Mt Morgans project in Western Australia.

According to Dacian, the start of construction ensures Mt Morgans remains on track for first gold production in the March quarter of next year.

Several WA Government approvals recently cleared the way for construction to begin, including acceptance of the mine proposal and mine closure plan, and the project management plan.

The company also received a native vegetation clearing permit from the WA Government last month.

In an ASX announcement, Dacian reported that earthworks associated with the construction of Westralia mine infrastructure and a 416-person accommodation village had started or would commence shortly.

Dacian chairman Rohan Williams explained: “We continue to make strong progress at Mount Morgans on numerous fronts and remain on track to be in production in the March quarter, 2018.”

In November 2016, Dacian released its Mt Morgans feasibility study, which delivered ore reserves of 18.6 million tonnes at two grams of gold per tonne for 1.2 million ounces.

Capital costs to build the project are an estimated $220 million, which includes $172 million of infrastructure and $48 million of mine establishment costs for the underground Westralia mine area and the Jupiter open pit.

Dacian forecasts an eight-year mine life for its Mt Morgans mine, with annual output of 186,000 ounces of gold over the first four years.

Mt Morgans, which was acquired by Dacian in 2012, is around 20km west of Laverton in WA’s Goldfields region.

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