Dacian Gold (ASX:DCN) found more gold at the Jupiter prospect which is a part of the Mt Morgans project in Western Australia. Hole 18, which was drilled approximately 50 meters west of a previous hole, returned an intercept of 17.2 meters at 4.8g/t gold, including 3.3 meters at in excess of 0.5 ounces of gold per tonne. More importantly, the mineralization remains open in all directions, so there’s additional exploration potential.
It’s obviously encouraging to see the company continues to intersect the gold structure, and more intercepts like this will increase the current JORC-compliant resource estimate of 923,000 ounces of gold at an average grade of 3.1g/t. The new hole was drilled approximately one kilometer south of the Jupiter pit which currently has a JORC-compliant resource estimate of 73,000 ounces of gold at a grade of 2.8g/t.
Dacian is currently trading at almost $30 per ounce of gold in the ground which isn’t cheap, but it looks like the market is already pricing in additional exploration success which will result in more ounces being added to the resource estimate.
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Disclosure: The author holds no position. Please see our disclaimer for current positions.
