The Mount Morgans gold project in Western Australia is proving its worth to owner Dacian Gold, with the emerging gold play reporting a spectacular intercept from its drilling program at the project’s Cameron Well discovery.

Dacian (ASX:DCN) reported all six of the first-ever reconnaissance diamond drill holes at Cameron Well intersected gold mineralisation, including one bonanza-grade intercept of 2.3 metres at 311.3 grams per tonne gold.

Outstanding gold hit from first drilling at Cameron Well deposit. Picture: Dacian Gold

The news saw shares in Dacian hit an intraday high of $2.26, up almost 7 per cent.

Dacian Gold executive chairman Rohan Williams said Cameron Well was emerging as a potential game-changer for the company.

“The fact that all six of our initial diamond holes drilled into the first bedrock target have intersected gold mineralisation is fantastic result so early into our exploration campaign,” he said.

“As we develop a clearer understanding of the orientation and geometry of the structures, we will be able to target our drilling appropriately. However, early signs are very encouraging and suggest that Cameron Well has excellent potential to become the third major gold system at Mt Morgans.”

Mr Williams said further diamond drilling was planned to test three other bedrock targets.

“This aggressive exploration program will take place at the same time as we continue construction at Mount Morgans where we remain on target to start gold production in March 2018,” he said.

Dacian has also begun an initial reverse circulation in-fill drilling program to test the 1.5km long mineralised structure.

Mount Morgans project

 The Mount Morgans Project consists of a 520km2 contiguous tenement package situated in the Laverton gold district which is known to contain some 30 million ounces of gold, making it the second highest endowed gold district in Western Australia behind Kalgoorlie.

Regional location of Mt Morgans project. Picture: Dacian Gold

The Laverton gold district is also the highest growth gold district in Australia over the last 25 years.

According to Mr Williams, Laverton is one of the world’s best endowed gold districts.

“We strongly believe there is outstanding potential to grow the mineral resource base at Mt Morgans given the lack of modern-day exploration methodology applied to what is clearly a very highly endowed gold district,” he said.

The project is in a good neighbourhood for gold mining, less than 25 km from two +2 million ounce gold deposits (Granny Smith and Lancefield) and two +8 million ounce gold deposits (Wallaby and Sunrise Dam).

The Company’s Westralia Prospect has a pre-mined endowment of over 2.5 million ounces and the Jupiter deposit has a pre-mined endowment of 1.5 million ounces.

In the three years of exploration the Company has undertaken since listing, Dacian has discovered 2.2 million ounces at Westralia and Jupiter at a discovery cost of <$7/oz.

The current Mineral Resource for the Mount Morgans Gold Project is 44.7 million tonnes at 2.3 g/t gold for 3.3 million ounces.

The current Ore Reserve for the Mount Morgans Gold Project as announced on the 21 November 2016 is 18.6 million tonnes at 2.0 g/t gold for 1.2 million ounces.

Dacian is the tenth company since the 1980’s to take ownership of the Mount Morgans project. The company took ownership of it in 2012 after the previous owner Range River Gold went into administration.

The company remains on target to begin gold production from Mount Morgans in March next year.

Dacian is currently trading at about $2.13.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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