Targeting high grade gold

New life for the Mount Morgans gold project

Scoping Study estimates life-of-mine gold production of 1.2 million ounces at an All-In-Sustaining-Cost (AISC) of A$929/oz.

SCOPING STUDY

Quarterly Activities Report to 31 March 2016

LATEST COMPANY REPORT

UK Roadshow - Australia's Next Mid-Tier Gold Producer

CORPORATE PRESENTATION

Welcome to Dacian Gold

Dacian Gold Limited (ASX:DCN) is a Western Australian based gold development and exploration company that listed on the ASX in November 2012 to explore the Mount Morgans Gold Project (MMGP) in the Laverton district of Western Australia.

Mount Morgans is a historically high grade goldfield which has produced over 1.3Moz of gold at an average grade of 4.1g/t Au since the first discovery in 1896. The project comprises a land holding of 520km2.

Since listing, the Company has discovered over 1 million ounces of gold at each of the Westralia and Jupiter Projects; and the mineral resource inventory now exceeds 3 million ounces of gold. In less than three years, Dacian Gold has now added over 2.2 million ounces at a discovery cost of less than A$7/ounce.

Exploration drilling by Dacian Gold has confirmed the substantial size of the gold mineralisation systems present at both Westralia and Jupiter. At Westralia, Dacian Gold has defined a continuous zone of high grade mineralisation over 2.8km long: the resource now stands at 9.1Mt at 5.1 g/t for 1.5 million ounces of gold. At Jupiter, Dacian Gold has defined a continuous zone of near surface mineralisation over 1.8km long: the resource now stands at 27Mt at 1.3 g/t for 1.1 million ounces of gold.

In late 2015, Dacian Gold completed a Scoping Study for the MMGP that clearly showed Mt Morgans has the potential to be a significant, low-cost WA-based gold operation.

A quick summary of the results of the Scoping Study includes:

  • An average of 220,000 ounces of gold production per annum in the first 5 years of operation
  • All in sustaining costs of A$929/ounce
  • Site infrastructure capital is estimated at A$157 million, which includes a purpose-built 2.5Mtpa treatment facility

Dacian Gold also has the significant benefit of extensive existing infrastructure which includes: a newly constructed gas pipeline, haul roads, borefield with excellent quality water, operating camp, Telstra communications tower, granted Mining Leases and ready access to sealed airstrips at nearby Laverton and Leonora.

Following a successful A$25 million equity capital raising in December 2015, Dacian Gold is now fully funded to complete an 80,000m drill program in the first half of CY2016, complete a definitive Feasibility Study by the end of CY2016 and maintain its aggressive ongoing exploration drilling programs.

If the results of the Feasibility Study are positive, the Dacian Gold Board, along with prospective financiers, will consider a decision to mine at the end of CY2016. If mine construction proceeds, it will take place during CY2017 ahead of gold production commencing early CY2018.