DCN - need to be quick and smart. Dacian considers merger after...

DCN - need to be quick and smart.

Dacian considers merger after Mt Morgans finds trouble
June 5, 2019News Vanessa Zhou

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Dacian Gold has lowered its production guidance at the Mt Morgans operations in Western Australia, blaming the return of underground performance issues.

The company projected its June quarter production to slide from 50,000–55,000 ounces of gold at an all-in sustaining cost (AISC) of $1050–1150 an ounce, to 36,000–38,000 ounces at $1500–1600 an ounce.

Dacian reported there had been reduced underground equipment availability, caused in part by an insufficient number of maintenance personnel, hurting the company’s ability to access scheduled higher grade stopes at Westralia.

The gold producer is also considering potential corporate and funding initiatives, which could culminate in a change of control or a merger.

“Dacian Gold and RUC Mining are both committed to maintaining a highly cooperative working relationship at Mt Morgans in order to maximise the production opportunities for the benefit of both parties,” RUC Cementation Mining Contractors managing director Barry Upton said.