Dacian Gold has finished its first quarter of solely using open pit and stockpile ore by producing 27,162 ounces of gold at the Mt Morgans mine in Western Australia, putting it on track to meet its full-year operating guidance.
The company ceased underground mining activities at Mt Morgans in September, as it restructured its production plans to take advantage of higher spot gold prices and boost the company’s financial position.
The December quarter performance sets Dacian at 59,961 ounces of gold for the first half of the 2021 financial year, on target to meet the full year guidance of 110,000 to 120,000 ounces of gold.
This momentum will also provide Dacian with stability as it works to consolidate the Mt Morgans operations with NTM Gold’s Redcliffe gold project, after announcing a merger between the two companies last November.
Dacian managing director Leigh Junk said the stronger balance sheet due to consistent operations at Mt Morgan contributed to the announcement of the merger with NTM Gold.
“We have been active on a number of fronts during the quarter with our operations delivering another robust result that has translated into a significantly improved financial position for the company,” Junk said.
“The consistency of our operations over the past several quarters and stronger balance sheet has culminated in the NTM Gold merger announcement, which meets our stated objective to explore regional consolidation that leverages our significant infrastructure in the Laverton goldfields.
“We look forward to continuing this momentum for the remainder of the 2021 financial year.”
Dacian has already started on its exploration growth strategy ahead of the merger, completing drilling programs at targets within its southern extension zone during the quarter.
It also progressed technical studies for the Greater Westralia mining area, identifying the Craic and Transvaal deposits as potential additional mining targets to include in near-term production.
The company is current completing resource definition drilling at the Craic and Transvaal targets with dewatering activities set to commence in the March quarter.