With that horror June quarter firmly in the rear view, it’s a case of ‘new (financial) year, new me’ for gold miner Dacian (ASX:DCN).

Two production guidance downgrades at the freshly minted Mt Morgans gold operation, plus the failure of fellow embattled miner Gascoyne Resources (ASX:GCY), culminated in a 3-day, minus-75 per cent share price bloodbath for Dacian in early June.

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The share price has since recovered to about $1.20 as the capital fright evaporates.

Today, Dacian told investors what they needed to hear — all the important operational benchmarks had improved in July.

The stock was up a touch over 7 per cent in early trade.


Total underground and open pit ore movements steadied at planned levels, and total mined grade at the Westralia underground increased from 2.5g/t to 3.5g/t gold.

Total production for FY20 will now be weighted about 45 per cent first half, 55 per cent second half, Dacian says.

The company still forecasts FY20 production of 150,000-170,000oz at an all-in sustaining cost of $1400 to $1500/oz.

AISC is a pretty good measure of the profitability of a project because it includes everything, from mining, refining and transport, through to administration and exploration.

“It is pleasing to start the FY2020 year with a plus 16,000-ounce month, positioning us to meet expectations set with our recently updated Life-of-Mine,” Dacian Gold’s Rohan Williams says.

“Importantly the mill to claimed production reconciliation was excellent at 102 per cent, again confirming the good correlation between grade control models and mill production.”


In more small cap gold news:

Everyone is talking about Spectrum Metals (ASX:SPX), its high-grade Penny North gold discovery and corresponding 6 month, 2000 per cent share price increase.

But don’t forget about Venus Metals (ASX:VMC) and Rox Resources (ASX:RXL) which are about to kick off a 5000m aircore drilling program right next door.

Spectrum’s discoveries are located within a prominent magnetic low, which extends into the Venus-Rox Youanmi joint venture tenements:

Venus says this “presents a highly prospective setting for high-grade gold mineralisation of the Penny West and Penny North type”. This drilling program is expected to wrap up by late August.