Dacian Gold has announced its Mt Morgans Gold Operation will close at the end of March and will be placed into care and maintenance.
This follows an update in June 2022, when the company announced it is completing the transition from mining to exploration and development.
The Company is currently processing historical dump leach material and is appropriately funded to complete the transition.
Processing of historical dump leach material will be suspended at the end of March 2023 and the ~2.9Mtpa Mt Morgans mill will be placed on care and maintenance.
Dacian Gold said the move will enable a de-risking of future production and growth opportunities.
This decision has been taken by the Board in light of a number of factors, including:
- Uncertainty regarding the stockpile grade
- Lead times to improve longer term water security
- Ongoing industry input costs and supply chain challenges and risks
- The prospect that the Ulysses ore will now be processed at Gwalia
- Retention of suitable low-grade stockpiles for a future restart of operations
The operational hiatus will enable Dacian to pursue a number of optimisation initiatives in the absence of production and cost pressures.
The targeted outcome is a robust, low risk, sustainable mine plan that will underpin the resumption of operations.
Dacian Non-Executive and Independent Chair, Craig McGown, said, “The decision to place Mt Morgans on care and maintenance was not taken lightly, especially given the impact on our loyal employees and contractors, and the community in which we operate.
“However, a period of care and maintenance will ultimately benefit all stakeholders by providing time to develop a robust, low risk, sustainable plan, necessary to underpin the future resumption of operations.
“On behalf of the Dacian Board and senior management, I would like to thank our people for their effort and dedication, and I look forward to the day when Mt Morgans is brought back on-line.
“While there will unfortunately be redundancies, where possible Dacian will redeploy employees under the shared management services agreement with Genesis”.
