Dacian Gold collects further encouragement from drilling at Mt Morgans

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THE DRILL SERGEANT: Dacian Gold (ASX: DCN) has received results from an ongoing broad spaced diamond drilling program testing for resource extensions at the south end of the Westralia BIF hosted gold deposit.

The Westralia deposit is located within the company’s 100 per cent-owned Mt Morgans gold project in Western Australia.

Results include:

–     A new intersection of 17.08 metres at 7.5 grams per tonne gold from 218.7 metres from drill hole 13MMRD003. A previously reported result from the same hole returned 5m at 6.8g/t gold from 202m;

–    Drill hole 13MMRD002 intersected 0.63m at 32.7g/t gold from 375.6m at the targeted BIF horizon testing in between two 300m spaced historic holes that previously intersected 3.85m at 6.9g/t and 2m at 5.8g/t gold; and

–     Drill hole 13MMRD005 tested the BIF target zone 150m along strike and to the south of 13MMRD003 and 170m up-dip of the historic 3.85m at 6.9g/t, and returned 2.61m at 2g/t from 204.4m and 1m at 5.1g/t from 219m.

 

Westralia long section showing historical intersections and Dacian drill holes. Source: Company announcement

 

Dacian Gold claimed the drilling has confirmed the existence of high-grade gold mineralisation in excess of 450m below the existing resource boundary at Westralia, and remains open at depth.

“These very broad spaced diamond drill intersections confirm our view that Westralia is not only a very large mineralised position, but that it also has the potential to host substantial high-grade shoots close to existing underground development,” Dacian Gold managing director Paul Payne said in the company’s announcement to the Australian Securities Exchange.

“We have commenced planning selected infill holes to define the shoot extent.

“This will be done in parallel with further first pass testing of the target horizon to the north of our initial drilling.”

Dacian is currently completing the final two holes of its initial seven hole program at Westralia and has commenced planning for selected infill drilling around the recent high-grade intersections.

This drilling is anticipated to recommence in April.

The company indicated that should results from the infill drilling confirm the continuity of mineralisation, Mineral Resource upgrade studies will commence later in 2013.

In addition to the planned infill drilling, first pass broad spaced diamond drilling will commence below the central part of the Westralia deposit in April-May.

Dacian explained its exploration strategy at Mt Morgans is aimed at delivering on the objective of defining at least 500,000 ounces of Ore Reserves.

Dacian considers mining an Ore Reserve of at least 500,000 ounces of gold is reasonably likely to provide sufficient returns to justify the investment capital required to construct an ore processing facility at Mt Morgans.