Dacian Gold Limited (ASX: DCN) is into the business of mineral exploration and development. The Company is focused on the Mount Morgans Project which is located in the Laverton District of Western Australia's North Eastern Goldfields.
The company has briefed in its update, that the commercial production operation at its fully?owned Mt Morgans Gold Operation has been declared. The site is situated in the region of Western Australia.
The few highlights of the project are as follows:
- Dacian meets its target of achieving Commercial Production in December at the Mt Morgans Gold Operation (MMGO) in WA.
- The company has delivered a phenomenal December quarter performance. The gold production rose to 37,930 ounces, a rise of 30% on a QoQ basis.
- Cash and gold-on-hand increased to A$85.6 million on December 31, 2018.
This declaration was made on the January 1, 2019 and was followed by the report on the mining rates achieved and the feasibility study design levels achieved during the quarter of December. The company was very encouraged with the output it has achieved, the gold production for the quarter of December had an output of 37,930 ounces achieved. This showed a significant rise over the production level achieved at the previous quarters. However, such increased production was in line with the management’s estimates with an objective of enhancing production throughout the FY 2019. The quantity of gold which was poured in for the subject quarter amounted to 38,479 ounces.
The underground mining is being now done at its full capacity at all the three West Australia sites which are namely Beresford South, Beresford North, and Allanson. The works at the Jupiter open pit, a high-grade ore is expected, which is slated to be mined in the March quarter, 2019.
This integrated processes across the various sites will support the momentum which needed in operation and will also lead to a constant increase in the production over the coming quarters and the FY 2019.
Dacian Gold Executive Chairman and CEO Mr. Rohan Williams said that this declaration of commercial production is very encouraging for the company and can also be considered exemplary as the company was successful enough in meeting its development and production targets. He iterated that the management is very pleased with the phenomenal performance as was earlier guided by them and told that the quarter went out pretty well. The production for the December quarter increased by a robust 30 % vis-à-vis the September quarter. The ramp-up in the processes is in line that will lead to a substantial increase in the production over the FY 2019. The company had $85.6 million in cash and bullion versus $82.1 million at the end of the September quarter.
Meanwhile, the stock price of the company has fallen by 15.05 percent in the past six months as on 8 January 2019. DCN’s shares traded at $2.515 (-6.693% intraday) with the market capitalization of circa $572.55 Mn as on 9 January 2019. (AEST 02:26 PM).
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