Name of the Project
Mount Morgans gold project.

Location
The project is located in the Laverton gold district, in Western Australia.

Client
Dacian Gold.

Project Description
A feasibility study on the project has shown it to be technically and economically feasible, beginning with an initial ore reserve of 18.58-million tonnes grading 2 g/t gold for 1.2-million ounces over eight years.

The study proposes a large underground mining complex at Westralia, which comprises the Beresford and Allanson underground mines; and a single large openpit at Jupiter. Both operations will feed a new 2.5-million-tonne-a-year carbon-in-leach (CIL) treatment facility to be built close to the Jupiter pit.

Infrastructure at the mine includes the CIL treatment facility; a 416-person accommodation village; construction of mine service facilities at the Westralia and Jupiter mine areas; an administration complex; power reticulation; establishment of raw water supply; re-establishing haul and service roads; and phone, data and radio communications.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Project payback is estimated at 21 months using a gold price of A$1 600/oz.

Value
Infrastructure capital costs are estimated at A$172-million.

Mine establishment costs are estimated at A$48-million.

Duration
The CIL plant is expected to be commissioned in the first quarter of 2018.

Latest Developments
Dacian Gold has approved the construction of the project, subject to procuring acceptable terms to finance the project.

Meanwhile, Dacian Gold has also released a prefeasibility study (PFS) on the potential to expand the Westralia mine area, including increasing the Mount Morgans reserve from 18.58-million tonnes to 21.4-million tonnes by potentially increasing the Westralia mine area. The PFS shows a potential increase of the Westralia mine area ore reserve of 492 000 oz to 938 000 oz.

The study further shows potential average gold production of 197 000 oz/y for the first seven years and the mine life increasing from eight years to potentially nine years. According to the PFS, the expansion will require an additional A$3-million in capital, with no additional financing or material permitting required.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Dacian Gold, tel +618 6323 9000, fax +61 8 6323 9099 or email .info@daciangold.com.au