15/07/2019 - 15:37

Encouraging results for Dacian and Gascoyne

15/07/2019 - 15:37

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Struggling gold miners Dacian Gold and Gascoyne Resources have both taken a small step in the right direction, after they announced positive production results today.

Gascoyne Resources says June's output at Dalgaranga was a record.

Struggling gold miners Dacian Gold and Gascoyne Resources have both taken a small step in the right direction, after they announced positive production results today.

Dacian announced that production for the June quarter of 36,658 ounces achieved the updated production guidance of between 36,000oz and 38,000oz.

The company’s all-in-sustaining-cost for the June quarter was $1,519 per ounce, achieving the lower end of the updated AISC guidance of between $1,500/oz and $1,600/oz.

Last week, Dacian released an update to its Mt Morgans mine plan, which noted significant potential to increase its annual production rate and was welcomed by investors.

Shares in Dacian Gold plunged up to 68 per cent in one day last month, after a significant downgrade of June quarter production guidance from the flagship Mt Morgans operation.

Its previous guidance for the June quarter, issued in March, came in at between 50,000oz and 55,000oz at an AISC of between $1,050/oz and $1,150/oz.

It was the second time in in just over three months Dacian lowered its production guidance.

Also today, Gascoyne Resources announced that its Dalgaranga operations reached a record monthly output of 6,561oz in June, making it the first month above 6,000oz.

It said it was cash flow positive for June, and a mine plan had been developed to ensure the company’s existence would be viable for at the least the next six months.

Last month, Gascoyne went into voluntary administration, less than three months after it raised $24.5 million from investors.

Gascoyne consistently failed to meet production targets at its flagship Dalgaranga project, located near Mt Magnet, after first gold was poured last May.

Shares in Dacian closed trade up 4.1 per cent at 63 cents each.

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