- Dacian Gold (DCN) suspends open pit mining operations at Jupiter within the Mt Morgan project in Western Australia
- The suspension comes amid changes to its operations in order to navigate inflationary cost pressures, including a new CEO
- The company plans to pause the open pit mine by the end of this month, while open pit mining at Redcliffe will be pushed back
- However, the company will continue to focus its efforts on underground operations, processing existing stock piles, and drill testing at Jupiter
- General Manager for Geology and Exploration Dale Richards has been appointed to CEO, replacing Leigh Junk
- Shares dropped 36.8 per cent today to 10.8 cents at 12:06 pm AEST
Dacian Gold (DCN) have suspended open pit mining operations at Jupiter within the Mt Morgan project in Western Australia.
The suspension comes amid changes to its operations in order to navigate inflationary cost pressures, including a new CEO.
The company plans to pause the open pit mine by the end of this month, while open pit mining at Redcliffe will be pushed back.
However, the company will continue to focus its efforts on underground operations, processing existing stock piles, and drill testing at Jupiter.
Macmahon (MAH) was contracted for mining services at Jupiter, which will now be discontinued.
MAH CEO and Managing Director said the company appreciates its positive relationship with Dacian and will continue to focus on services as required.
“Macmahon is pleased to have been involved at Mt Morgans, and thanks our client Dacian and our dedicated workforce,” he said.
To execute these operational changes, General Manager for Geology and Exploration Dale Richards has been appointed to CEO, while Managing Director Leigh Junk has resigned.
Non-Executive Chair Mick Wilkes said the company was looking forward to unlocking value in the updated operations.
“In light of the current high inflationary environment, the board has taken the decision to reset the company strategy by discontinuing the current open pit mining operations at
Mt Morgans,” he said.
“In doing so we are pivoting to exploration and a focus on the significant potential we see beneath and alongside the Jupiter open pits.”
In more positive news, the company confirmed mineralisation of “significant” width and scale at Jupiter within the Mt Morgans gold project in Western Australia.
One of the best results intercepted 39.7 metres at 3 grams per tonne (g/t) of gold from 262.2 metres.
Shares dropped 36.8 per cent today to 10.8 cents at 12:06 pm AEST.