Dacian Gold’s Mt Morgan Project is located 20km west of Laverton, being approximately 750km northeast of Perth in Western Australia. The project area is a 520 km2 contiguous tenement package comprising predominantly granted mining leases.
The tenement package is situated in the Laverton gold district which is known to contain some 30 million ounces of gold, making it the second highest endowed gold district in Western Australia behind Kalgoorlie. The Laverton gold district is also the highest growth gold district in Australia over the last 25 years.
Within 25 km of Dacian’s project area there are two +2 million ounce gold deposits (Granny Smith and Lancefield) and two +8 million ounce gold deposits (Wallaby and Sunrise Dam). The Company’s Westralia Prospect has a pre-mined endowment of over 2.5 million ounces and the Jupiter deposit has a pre-mined endowment of 1.5 million ounces.
In the three years of exploration the Company has undertaken since listing, it has discovered 2.2 million ounces at Westralia and Jupiter at a discovery cost of <$7/oz. The current Mineral Resource for the Mt Morgans Gold Project is:
44.7 million tonnes at 2.3 g/t gold for 3.3 million ounces.
The current Ore Reserve for the Mt Morgans Gold Project as announced on the 21 November 2016 is:
18.6 million tonnes at 2.0 g/t gold for 1.2 million ounces.
REGIONAL AND PROJECT GEOLOGY
The Mount Morgans Gold Project tenements are located within the North-Eastern Goldfields (NEG) Province of the Archaean Yilgarn Craton and cover a large portion of the highly gold prospective Laverton Tectonic Zone (LTZ). The region hosts a number important gold and nickel deposits. Within 25km of the Project, the following major gold deposits occur: Sunrise Dam (>10Moz), Wallaby (> 8Moz), Granny Smith (>2Moz) and Lancefield (>2Moz).
The Project straddles the core and western limb of the Mt. Margaret anticline which plunges moderately to the south and has a north-north west trending fold axis. Rock types are dominated by mafic volcanics, mafic intrusives, minor ultramafics and metasediments, and a narrow band (<100m wide) of a regionally continuous banded iron formation (BIF). These primary rock types have been intruded by concordant and discordant felsic porphyry dykes and sills as well as local thin lamprophyre dykes. Syenite stocks have intruded the hinge zone of the Mt Margaret Anticline as well as late structures throughout the Project area. All rocks have undergone regional greenschist facies metamorphism. Large granite intrusions form the core of the Mt Margaret anticline.
Gold mineralisation occurs in a number of styles at Mt Morgans. The majority of historic production has come from BIF-hosted replacement style mineralisation (Westralia) where extensive sulphide replacement and silicification of the magnetite has occurred forming large tonnage moderate to high grade deposits.
Syenite related gold mineralisation occurs at the Jupiter deposit where the total pre-mined resource inventory is 1.5 million ounces of gold. The geology and mineralisation at Jupiter is very similar to that at the nearby >7Moz Wallaby deposit operated by Gold Fields, located 8km to the southeast
Another large and highly anomalous syenite complex is located at Cameron Well, situated between Westralia and Jupiter. The Company’s exploration focus will be aimed at Cameron Well as it has many similarities with both Jupiter and Wallaby.
Basalt hosted shear zone related mineralisation is also extensive, with sericite-silica-carbonate-sulphide alteration zones forming medium to high grade orebodies at Transvaal and Ramornie.
Splay shear hosted vein arrays in mafic and ultramafic rocks also host gold mineralisation at the project. These are typically smaller deposits including Recreation, King Street and Back’o Beyond.