Dacian Gold has updated its mine plan for Mt Morgans, revealing the company’s strong confidence in its flagship Western Australian project.
The company reported an updated eight-year mine plan that estimates 1.1 million ounces of production across the 2020–27 financial years at an all-in sustaining cost of $1280–1380 per ounce.
Mt Morgans’ updated figures include average annual production of 170,000 ounces of gold for the first five years at a slightly higher all-in sustaining cost of $1340–1440 an ounce.
Dacian executive chairman Rohan Williams said there was an opportunity to grow the operation further through the underexplored project area by converting existing mineral resources not currently in the life-of-mine plan.
The company’s recently discovered drilling prospects, Morgans North and Basin Margin, could also be added, Williams continued.
“This updated life of mine review confirms the strong production and cash flow generating capacity of Mt Morgans over the next eight years,” Williams said.
“We have taken learning from our first full year of production at Mt Morgans and applied it to the current ore reserve to deliver a high-margin gold production profile over the next eight years.
“With forecast gold production of over one million ounces over the next eight years, based almost exclusively on ore reserves, and an (all-in cost base) of between $1280–1389, which includes all capital, we are confident that the Mt Morgans operation will deliver strong margins and cash flow.”
Dacian’s guidance for the 2020 financial year stands at 150,000–170,000 ounces, slightly ahead of the previous year’s 150,000-160,000-ounce target (revised downwards in March 2019 from an initial peak of 180,000 ounces).