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 one 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, the establishment of raw water supply, re-establishing haul and service roads, as well as 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
GR Engineering Services (GRES) has entered into a conditional letter of intent (LoI) for an engineering, procurement and construction (EPC) contract at Dacian’s Mount Morgans gold project.

Under the terms of the LoI, GRES will design, build and commission a 2.5-million-tonne-a-year CIL treatment facility near the Jupiter openpit in the east of the 640 km2 Mount Morgans project area.

Ore will also be sourced from two new high-grade underground gold mines at Westralia, located 15 km west of the site of the new treatment facility.

GRES will also be responsible for the supporting infrastructure of the project, including the tailings storage facility, the raw water supply infrastructure, workshops and to support the Jupiter openpit, a main administration complex and the construction of a new section of haul road between the new treatment facility and the existing Jupiter haul road.

While the EPC contract is expected to be entered into by mid-March, GRES has started an early works programme, focusing on the completion of final engineering drawings, procuring tenders and placing orders for certain critical items ahead of the signing of the final EPC contract.

The project schedule will facilitate completion and first gold production in the first quarter of 2018.

The LoI follows the recently announced fully underwritten A$110-million equity raising that has completed the financing required for the construction of the project.

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