June 2022
onlyASX RELEASE
20 July 2022
Issued Capital as at
30 June 2022
1,085.1M shares outstanding
Market Capitalisation as at 30 June 2022
use$89.0M @$0.082 per share
BOARD
Mick Wilkes
Non-Executive Chair
Eduard Eshuys personalNon-Executive Director
Sue-Ann Higgins
Non-Executive Director
SUBSTANTIAL SHAREHOLDERS
as at 30 June 2022
G ld R ad (6.8%)
Paradice (6.7%)
Perennial (6.2%)
Regal Funds (6.7%)
REGISTERED OFFICE
L v l 19, 58 Mounts Bay Road Perth WA 6000
Australia
For
Production up 45% from the March Quarter
Operations & Development
- Improved safety performance
- Improved gold production over previous quarter:
- June quarter production of 34,182 oz at an AISC of $1,522/oz Cash
- Improved mill performance at 3.1m tonnes on an annualised basis:
- Record ore milled for the quarter of 776,720t
- Full year FY22 production was 90,809 oz, (guidance 93,000-97,000oz), at AISC of $1,955/oz (guidance $1,850-$1,950/oz)
- Redcliffe project deferred
Exploration & Growth
- Jupiter extension drill program continued to confirm mineralisation of significant width and scale associated with the Syenite intrusive system below the open pits, with key intercepts reported for the quarter included:
- Drillhole 22JUDD0818W1:
- 268.8m @ 0.8g/t from 396m
- Drillhole 22JUDD0822:
- 39.7m @ 3.0g/t from 262m
- Drillhole 22JUDD0819:
- 146.0m @ 0.6g/t from 307m
- 22.6m @ 1.3g/t from 173m
- 15.2m @ 1.0g/t from 236m
- Drillhole 22JUDD0808:
- 185m @ 0.4g/t from 207m
- Drillhole 22JUDD0828:
- 102.5m @ 0.7g/t from 291m
- 44.1m @ 1.1g/t from 471m
- 24.3m @ 1.3g/t from 169m
For personal use only
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- Drillhole 22JUDD0833:
- 14.9m @ 1.2g/t from 305m
- 11.1m @ 2.2g/t from 369m
- 41.5m @ 2.1g/t from 667m
- 55.2m @ 0.9g/t from 548m
- Drillhole HFRD_inpit_0016:
- 73m @ 3.2g/t from 124m
- Drillhole HFRD_inpit_0017:
- 77m @ 1.4g/t from 123m
- Drillhole HFRD_inpit_0014:
- 81m @ 1.3g/t from 92m
- Drillhole 22JUDD0829
- 162.4m @ 1.0g/t from 289.7m
- 26.0m @ 2.2g/t from 426.0m
- 10.3m @ 2.7g/t from 197.1m
- Drillhole 22JUDD0836
- 92.7m @ 1.2g/t from 452.4m
- Exploration and growth drilling of 23,987m for the quarter
Corporate & Finance
- Cash and gold on hand at 30 June 2022 of $21.6M, with debt of $2.0M
- Post quarter end $12.6M placement proceeds received 12 July 2022
- Forward hedge position was 10,500oz at an average gold price of $2,667/oz
Dacian Gold Limited (Dacian Gold or the Company) (ASX: DCN) provides its operating and financial results for the quarter ending 30 June 2022.
For personal use only
OPERATIONS & DEVELOPMENT
OVERVIEW
The Company is pleased to advise its 12-month rolling Total Recordable Injury Frequency Rate (TRIFR) has continued to fall, and at 30 June 2022 was 5.4 (31 March 2022: 6.6).
The Mt Morgans Gold Operation (MMGO) recovered 34,182oz during the June quarter, up 45% on March 2022 quarter, at an All in Sustaining Cost (AISC) of $1,522/oz.
The open pit production performed strongly, with the scheduled thick ore zones from the Doublejay 07 reached in late February and providing the majority of processing plant feed for the quarter.
While the Company's management of Covid-19 at its operation has resulted in minimal on-site transmission, with measures put in place to mitigate the risks associated with Covid-19, the ongoing impact on supply chains and skilled labour shortage continues to challenge the Company's operations and cost base. Underground stoping and development continued to suffer from this, with extraction of stopes previously planned for the June quarter now expected in July and August.
As a result, full year production for FY22 was 90,809 oz at AISC of $1,955/oz, being below the bottom end of production guidance of 93,000 to 97,000 oz, and marginally above the top end of AISC guidance of $1,850-$1,950/oz.
On 17 June 2022 the Company announced that the rapid change of the operating environment over the previous 6 months had seen significant inflationary cost pressures, which resulted in an increase in cost base, prompting a review of the operating strategy as follows:
- Open pit mining operations at Jupiter were suspended at the end of June 22;
- Underground operations to continue until the previously developed stopes have been mined in Q1, FY23;
- Hub (Redcliffe) project suspended awaiting mining approvals;
- Processing of existing stockpiles to commence in Q1, FY23;
- Drill testing at Jupiter to continue following encouraging results.
Given the pivot in production to processing low grade stockpiles, a grade control and metallurgical testwork program has been initiated over the historic heap leach stockpile, representing approximately 3.5Mt of the low grade ore reserves, to identify any opportunities for preferential treatment. A total of 5,600m of grade control drilling was completed in June, with the program continuing in July. This new operating strategy replaces the previously adopted Five Year Mine Plan (refer to Dacian 2021 Annual Report released to ASX on 22 October 2021) as the Company moves forward focussed on exploration, increasing Resources and developing a leaner operating model.
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OPEN PIT
For personal use only
A total of 822,595t @ 1.25g/t Au containing 33,162oz was mined from the Doublejay open pits at Jupiter during the June quarter, with 726,259t @ 1.34g/t Au containing 31,331oz delivered to the processing plant ROM pad for treatment (see Table 1).
A total of 0.95M bcm of material was mined from open pits during the quarter.
Table 1: Key open pit statistics
Key Open Pit Statistics | Unit | Jun 22 Q | Mar 22 Q |
Ore Mined - to ROM | t | 726,259 | 653,541 |
Mined Grade | g/t Au | 1.34 | 1.13 |
Contained Gold Mined | oz | 31,331 | 23,677 |
Ore Mined - to Stockpile | t | 96,336 | 92,199 |
Mined Grade | g/t Au | 0.59 | 0.57 |
Contained Gold Mined | oz | 1,831 | 1,701 |
Ore Mined - Total | t | 822,595 | 745,740 |
Mined Grade | g/t Au | 1.25 | 1.06 |
Contained Gold Mined | oz | 33,162 | 25,378 |
Waste Mined | t | 1,723,401 | 2,920,024 |
Total Material Mined | t | 2,545,996 | 3,665,764 |
Total Material Mined | bcm | 946,504 | 1,343,551 |
Open Pit Mining Cost | $/t | 9.88 | 6.15 |
A total of 14,170m of RC grade control drilling was completed during the quarter across the open pits.
UNDERGROUND
The Westralia and Craic underground mines produced 48,595t @ 2.9g/t Au for 4,575 contained ounces (see Table 2).
Ore was produced from development and stoping activities at Craic, Beresford, and Allanson mine areas, with stoping contributing approximately 36% of the underground mined ore tonnes in the quarter (March Qtr: 20%).
Table 2: Key underground statistics
Key Underground Statistics | Unit | Jun 22 Q | Mar 22 Q |
Stope Ore Mined | t | 17,569 | 6,189 |
Development Ore Mined | t | 31,026 | 23,904 |
Total Ore Mined | t | 48,595 | 30,092 |
Mined Ore Grade | g/t | 2.93 | 3.46 |
Contained Gold Mined | oz | 4,575 | 3,346 |
Metres Developed - Capital | m | 126.0 | 533.4 |
Metres Developed - Operating | m | 609.7 | 472.8 |
Total Development | m | 735.7 | 1,006.2 |
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PROCESSING
For personal use only
A total of 776,720t of ore was milled during the quarter (equivalent to an annualised rate of 3.1M tonnes per annum), at an average feed grade of 1.49g/t Au containing 37,220oz (see Table 3).
A total of 34,182oz was recovered for the quarter at a recovery rate of 91.8%.
Table 3: Key processing statistics
Key Processing Statistics | Unit | Jun 22 Q | Mar 22 Q |
Ore Milled | t | 776,720 | 741,991 |
Processed Grade | g/t Au | 1.49 | 1.08 |
Contained Gold | oz | 37,220 | 25,645 |
Gold Recovery | % | 91.8 | 92.1 |
Processing Cost | $/t | 22.99 | 20.79 |
G&A Cost | $/t | 2.37 | 2.74 |
Gold Recovered | oz | 34,182 | 23,608 |
Gold Sold | oz | 34,968 | 22,410 |
Gold-on-Hand | oz | 1,577 | 1,839 |
Average Sale Price | A$/oz | 2,555 | 2,505 |
REDCLIFFE DEVELOPMENT
The Company progressed the Hub and GTS open pits to a development ready position at 30 June 2022, subject to pending approvals. Grade control drilling was completed for both pits. Given delays in government approvals, coupled with the escalating costs, the Company is re-considering future production options at Hub and GTS which align with the new strategy for the MMGO. Accordingly, no decision has been made in relation to commencement of mining at Redcliffe in the near future and cost mitigation has commenced on pre-development activities.
EXPLORATION & GROWTH
During the quarter, the Company invested $7.3M in exploration and growth activities, up from $6.1M in the March quarter, reflecting an acceleration of inground activity following completion of initial baseload targeting work.
A total of 15,731m was drilled across key targets, principally, the Jupiter extension program (8,244m of diamond drilling) and Cameron Well (1,590m of diamond drilling and 3,141m of RC drilling), with 2,756m of RC drilling at the Southern tenements. A further 8,256m of resource definition drilling was conducted at the MMGO (6,159m underground diamond drilling at Westralia and 2,097m of RC drilling at Doublejay and Marven open pits).
JUPITER EXTENSION
During the quarter the Company continued the extension drilling program at the Jupiter mining complex, intersecting significant mineralisation within the syenite intrusive system (see ASX announcements 17 June and 30 June 2022).
- Drillhole 22JUDD0818W1:
- 268.8m @ 0.8g/t from 396m, including:
- 22.9m @ 2.2g/t from 642m
- Drillhole 22JUDD0822:
- 39.7m @ 3.0g/t from 262m
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Dacian Gold Limited published this content on 19 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 July 2022 22:33:05 UTC.