Dacian Gold awards Mt Morgans project contract to Macmahon

4 December 2017 (Last Updated December 4th, 2017 11:35)

Dacian Gold has awarded a mining services contract for its Mt Morgans gold project in Western Australia (WA) to Macmahon Contractors.

Dacian Gold awards Mt Morgans project contract to Macmahon
RC grade control drilling on Heffernans Hill ahead of first ore mining scheduled later this month. Credit: Dacian Gold Limited. 

Dacian Gold has awarded a mining services contract for its Mt Morgans gold project in Western Australia (WA) to Macmahon Contractors.

The contract for the Jupiter open pit marks the final contract before production begins at the project in March next year.

Under the terms of the contract, Macmahon will offer services for an initial term of 60 months.

“With a production rate of 200,000oz a year, Mt Morgans will be the biggest gold mine to come online in Australia for six years.”

The contractor has a 31-month extension option.

Dacian Gold executive chairman Rohan Williams said: “We are on the countdown to production and cashflow. Project construction is progressing rapidly, with the CIL treatment plant now over 75% complete, underground mining 743m ahead of schedule and eight drilling rigs operating around the site.

“And now, we have secured Macmahon as the open pit mining contractor, with mining at Heffernans to start this month.

“With a production rate of 200,000oz a year, Mt Morgans will be the biggest gold mine to come online in Australia for six years.”

The company is expected to begin open-pit mining later this month.

The first ore will be mined from the Heffernans Hill area, where grade control drilling is in progress.

In October, Dacian mined first ore at Mt Morgans’ Beresford underground, which forms part of the 1.6Moz Westralia mineral resource.