Dacian Gold Limited has commenced commercial production at its 100 per cent‐owned Mt Morgans Gold Operation (MMGO), 37 kilometres west-southwest of Laverton in Western Australia.
With an initial Ore Reserve of 1.4 million ounces (Moz) and a Mineral Resource of 3.5 Moz (including Ore Reserves), Mt Morgans is considered to be the largest new gold mine to come on stream in Australia in the past six years.
The declaration of commercial production follows combined mining rates across the MMGO, which achieved Feasibility Study design levels during the December quarter.
Dacian has stated that gold production for the December quarter totalled 37,930 ounces, a significant increase on the prior quarter and in line with the company’s guidance of progressively increasing production through FY19.
Gold poured for the December quarter also totalled 38,479 ounces.
Underground mining has commenced across all three declines at Westralia (Beresford South, Beresford North and Allanson), with higher-grade ore in the Cornwall Shear Zone of the Jupiter open pit anticipated to be mined later in the March quarter.
Dacian Gold Executive Chairman and CEO, Rohan Williams, said the declaration of commercial production was another example of the company meeting its development and production targets.
“We are pleased to have achieved this important milestone – exactly when we said we would,” he said.
“It was an outstanding quarter, with production increasing 30 per cent from the September quarter. Again, this ramp-up is in line with our stated objective of materially increasing quarterly production levels over the course of FY2019.”
More information on the Mt Morgans Gold Operation can be found here.