Dacian Gold (ASX:DCN) is gearing up to release a definitive feasibility study towards the end of this year, which will include all most recent resource updates and upgrades.
It has been less than three years since Dacian started to drill at the Jupiter prospect, a part of the Mt Morgans project, which had a resource estimate of just 73,000 ounces. After having drilled tens of thousands of meters, the total resource estimate at the Jupiter zone now contains 1.4 million ounces of gold, of which a little bit over 80% is contained in the measured and indicated resource basis. This update as well as the resource update at Westralia boosted the total resources at Mt Morgans to 3.3 million ounces at an average grade of 2.3 g/t, with approximately 2/3rd of the total resource estimated to be in the measured and indicated categories.
We expect the upcoming DFS to also have another look at the underground mine scenario at Mt Morgans, where a few hundred thousand ounces were expected to be recovered from an underground mine. However, as the mineralized zones are quite wide, it’s not impossible Dacian might be able to use a bulk mining method as the best option to mine the ore.
The company’s share price is now trading 1045% higher compared to November 2013 when we first discussed Dacian’s potential.
Go to Dacian’s website
The author has no position in Dacian Gold. Please read the disclaimer
