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.”
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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.