DAO Mining has uncovered two gold bearing vein zones at its Gutain Davaa mine in Mongolia following exploration at the site.

The mine, which has achieved full throughput in the last month, is 270km from Ulaanbaatar city in Mongolia.

A new jumbo and loaders will be delivered to the mine in the first quarter of this year while underground development is currently in progress.

DAO Mining said by the end of the calendar year the site is expected to achieve its annual target production of 50,000oz.

During the next quarter the mine should be on schedule to finish the iron ore resource statement and pre-feasibility study.

During earlier exploration work including broad spaced RAB drilling, two gold-in-regolith anomalies were identified that need further work.