Dacian Gold is on track to establish a 10-year mine life while averaging more than 200,000 ounces a year at its Mt Morgans gold operation near Laverton in West Australia.
Mt Morgans’ total ore reserve has increased by 16 per cent to 1.4 million ounces.
Dacian has upgraded the Westralia deposit reserve by 17 per cent to 575,000 ounces. The Jupiter deposit, meanwhile, remains at 611,000 ounces. Both deposits give Mt Morgans a product visibility that extends through to at least 2025.
In the 1990s, the same deposits were mined and treated at Mt Morgans, with 740,000 ounces of gold produced over 10 years.
Now the Westralia mine is developing into one of the largest new underground gold mines in Australia.
Dacian chairman Rohan Williams said the ore reserve update capped off an excellent year for the company and showed that Mt Morgans was delivering on both the production and exploration fronts.
Williams is confident the company will deliver its vision to establish a mine life of over 10 years, at an annual production rate of 200,000 ounces a year, with its 3.5 million ounces in resources.
“With commercial production on track to be achieved this month, we are continuing to demonstrate a strong track record of achieving our key targets as we ramp up production and grow the inventory and mine life at Mt Morgans,” Williams said.
“Several important programs are underway to continue growing our mineral resources and ore reserves at Westralia, while at Cameron Well the maiden ore reserve provides a foundation to start the development of our third mining centre.”
Cameron Well, Dacian Gold’s third mining centre discovered last year, contributes to the company’s total ore reserve with an estimated 45,000 ounces. It is located midway between the Westralia and Jupiter deposits.