Dacian Gold confirms Westralia underground potential

THE DRILL SERGEANT: Dacian Gold (ASX: DCN) has received good news for its strategy to develop two high-grade underground mines at the company’s 100 per cent-owned Mount Morgans gold project (MMGP) in Western Australia.

The company has produced a series of high-grade drilling results from the Westralia Underground deposit which, along with the Morgans Underground deposit, form part of the Westralia prospect.

Two proposed underground mines at Westralia are in addition to a proposed open pit mining complex at the nearby Jupiter prospect.

Intersections returned from a recently completed 24-hole infill diamond drilling program at the Westralia Underground deposit include:

3.3m at 84.3 grams per tonne gold from 212.2m;
13.2m at 14.1g/t gold from 275m;
4.8m at 26.3g/t gold from 424m;
3.7m at 18g/t gold from 323.4m;
6.4m at 12.1g/t gold from 437m;
2m at 15.9g/t gold from 405m;
1.7m at 10.2g/t gold from 307m;
2.5m at 9.7g/t gold from 296.3m;
3.2m at 8.9g/t gold from 316m;
1.9m at 10.5g/t gold from 435m; and
12.3m at 4.5g/t gold from 422.5m.

Dacian explained the results will underpin a Mineral Resource upgrade for the Westralia prospect, which comprises both the Westralia Underground and Morgans Underground Mineral Resources.

A Mineral Resource upgrade for the Jupiter prospect is also due to be released, followed by a maiden Ore Reserve estimate for Jupiter.

“Whilst detailed engineering studies are still required to be completed, the latest results further strengthened the support for the two underground mines at Westralia,” Dacian Gold executive chairman Rohan Williams said in the company’s announcement to the Australian Securities Exchange.

“These new results are significant because they establish the presence of high-grade mineralisation close to the bottom of the open pit at Westralia.”

Website: www.daciangold.com.au