Engineering & Mining Journal

NOV 2017

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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Page 19 of 83

REGIONAL NEWS - AUSTRALIA/OCEANIA 18 E&MJ • NOVEMBER 2017 First Ore Mined at Mount Morgans Beresford Underground Dacian Gold has achieved another key de- velopment milestone at its Mount Morgans gold project, located 25 kilometers (km) southwest of Laverton in Western Austra- lia, with underground mine development at Beresford intersecting first ore on Octo- ber 4, four weeks ahead of schedule. Underground mining commenced at Beresford in mid-May and, by the end of September, 1,837 meters (m) of under- ground development had been complet- ed compared with the feasibility study schedule of 1,509 m, a total of 328 m ahead of schedule. The first ore, which was scheduled to be mined on November 5, was exposed on the 2297 access drive as planned, and comprised a highly sulphidized band- ed iron formation unit against a highly competent and visually distinct hanging wall basalt unit. Beresford is one of the two under- ground mines that form part of the 1.6-mil- lion-ounce Westralia Mineral Resource at Mount Morgans. Mining is scheduled to commence this month at the second un- derground mine at Westralia, Allanson. "Project construction at Mount Mor- gans is on time and on budget, ensuring we remain firmly on track to start produc- tion from March next year," said Dacian Gold Executive Chairman Rohan Williams. "At the same time, we are running a highly promising exploration campaign, includ- ing the ongoing drilling program at the emerging Cameron Well discovery, which has the potential to generate substantial growth at Mount Morgans and generate further significant value for shareholders." Dacian completed its IPO as a junior explorer less than five years ago and now has mined the first ore from the two 1-mil- lion-oz discoveries the group has made since then and, in less than 6 months, they will be Australia's newest midtier gold producer. Proposed WA Royalty Increase Blocked in Parliament A plan to increase the royalty on gold pro- duced in Western Australia (E&MJ, October 2017, p. 18), announced in early August by the state's Labor government, was voted down in the Western Australia Parliament on October 10 by a coalition of the oppo- sition Liberal party and several minority parties. The government had planned to raise gold royalties from 2.5% to 3.75% from January 2018 in an attempt to raise almost A$400 million for use in curtail- ing the state's debt, which, according to a report in WAtoday, is expected to peak at around A$43.8 billion by 2020. The planned increase had met with vociferous opposition from gold mining companies, gold sector workers, suppli- ers, and small businesses and contractors that provide services to the industry. A statement issued by the Chamber of Minerals and Energy of Western Austra- lia quoted AngloGold Ashanti Senior Vice President Mike Erickson as saying, "The disallowance of the proposed gold royalty increase is a great outcome for jobs and for Western Australia." "A strong gold sector is vitally import- ant to WA's economic growth prospects. The proposal to increase the gold royalty rate from 2.5% to 3.75% was ill-advised and would have led to job losses because of the closure of marginal mines, the cur- tailment of other mining operations, and exploration — the lifeblood of our indus- try — grinding to a halt. "Thank you to all the MPs who lis- tened to the workers and supported the disallowance motion." Construction Activity Begins at Heron's Woodlawn Project Heron Resources has initiated construc- tion activity at its Woodlawn zinc-copper- lead redevelopment project 250 kilome- ters (km) southwest of Sydney, New South Wales, Australia. Ertech, which has the earthworks contract, is fully mobilized, including 45 personnel and a fleet of four scrapers, two bull dozers, five excavators, An aerial view of the wing wall and the primary crusher under construction at Dacian's Mount Morgans gold project. (Continued on p. 30)

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