Dacian Gold Limited Drilling Results Confirm Open Pit Potential at Jupiter

Perth, Australia (ABN Newswire) - Dacian Gold Ltd. ("Dacian" or "the Company") (ASX:DCN) is pleased to announce further significant drilling results have been returned from its 100% owned Jupiter prospect situated 20km south west of Laverton in Western Australia.

As part of an initial assessment into the prospectivity of Jupiter, Dacian has now completed a 55 hole, 7000m RC drilling program aimed at testing for open pit potential along an 800m segment of the recently defined Cornwall Shear Zone ("CSZ") (see Figure 1). The results from the initial 17 holes were released to the ASX on 23 July 2014 (Initial Drilling Confirms Open Pit Potential at Jupiter). The remaining 38 holes are the subject of this announcement.

The 55 hole drilling program is consistent with Dacian's stated FY2015 Exploration Strategy to:

(i) Define the mineralisation limits of new discoveries on the CSZ at Jupiter and Millionaires at Westralia, and

(ii) Define the size of the ore systems at Jupiter and Westralia.

The results from the 23 July 2014 ASX announcement supported the Company's view that the CSZ demonstrated open pit potential where the CSZ structure intersects the larger Heffernans syenite body.

In an announcement made to the ASX on 30 September 2014 (Significant Surface Mineralisation Identified at Jupiter), surface transects of rock-chip sampling showed continuous zones of at-surface mineralisation over the outcropping Heffernans syenite body, as well as exposed parts of the CSZ; and where narrow syenite dykes are exposed away from the larger Heffernans body.

As described above, the aim of the 55 hole, 7000m RC drilling program was to test a 1km segment of the CSZ. The more specific aims, which reflect the key headings in this announcement, are to test:

(i) for open pit potential where the CSZ intersects the Heffernans syenite.

(ii) for open pit potential where the CSZ is exposed at, and near the surface, away from Heffernans.

The 55 holes were drilled on either 40m x 40m centres or 80m x 80m centres over 17 sections.

All holes drilled intersected the CSZ close to its interpreted target position demonstrating the well-developed and consistent nature of the structure.


Drill Results Testing Where the CSZ Intersects the Heffernans Syenite

Seven of 38 new drill hole results that comprise this announcement were drilled to test where the CSZ intersects the Heffernans syenite. Better results are listed below; and all drill results are described in Table 1 and Appendix I of this report in link below. True thickness of the intersections from the drill holes reported below is close to the down-hole interval.

- 14JURC077 16m @ 2.0 g/t gold from 136m

- 14JURC026 14m @ 1.4 g/t gold from 132m

- 14JURC069 6m @ 3.9 g/t gold from 157m

- 14JURC028 8m @ 1.8 g/t gold from 17m, and 3m @ 9.5 g/t gold from 39m

- 14JURC044 8m @ 1.6 g/t gold from 104m

- 14JURC024 7m @ 1.4 g/t gold from 84m

Figure 2 in link below is cross section 1200N through Heffernans and shows the new result from 14JURC077 as well as previously reported Dacian drilling (14 JURC prefixes). The Dacian drilling confirms the strong continuity of thick, high grade mineralisation along a 350m dip extent of the CSZ, both where it cuts the Heffernan's syenite, and importantly, where it is developed up-dip, away from the main syenite body, toward the surface.

Note also in Figure 2 the presence of several high grade intersections sitting above (also referred to as being hangingwall to) the CSZ (eg 2m @ 9.9 g/t, 3m @ 7.3 g/t, 6m @ 2.4 g/t, 4m @ 1.6 g/t, and 13m @ 1.3 g/t). Follow up infill drilling in between the approximate 80m spaced Dacian drill holes on section 1200N will assist in determining what continuity may exist between these hangingwall mineralisation positions.

Similar hangingwall intersections have been identified above the CSZ in several of the seven new holes testing the Heffernans area. These new drill results include:

- 14JURC026 11m @ 1.3 g/t gold from 53m
- 14JURC026 16m @ 1.0 g/t gold from 103m

- 14JURC069 4m @ 1.6g/t gold from 123m

- 14JURC069 5m @ 2.0g/t gold from 137m

As described above with Figure 2, several intersections have been returned above or in the hangingwall to the CSZ. There is also evidence of mineralisation being developed immediately below, or in the footwall to, the CSZ. Figure 3 above shows examples of this mineralisation (eg 35m @ 2.0 g/t and 6m @ 1.4 g/t). Several of the seven new drill hole results testing Heffernans also show footwall mineralisation. Better examples from the new drill hole results include:

- 14JURC025 9m @ 4.3 g/t gold from 206m

- 14JURC069 6m @ 1.6g/t gold from 211m

South of the main Heffernan syenite body, the up-dip component of the CSZ is consistently mineralised at shallow depths as shown in Figure 4 on cross section 1080N.


Drill Results Testing the Near Surface Expression of the CSZ

Thirty one of the 38 new drill hole results that comprise this announcement were designed to test the near surface expression of the CSZ for open pit potential. Most of this drilling was completed over a 400m strike north of Heffernans (toward the Jupiter pit), with a small number of holes drilled south of Heffernans toward the Ganymede syenite (see Figure 1). Full details of all drill results are provided in Table 1, and Appendix I. The better results include:

- 14JURC013 4m @ 4.6 g/t gold from 32m

- 14JURC054 6m @ 3.1 g/t gold from 10m

- 14JURC056 7m @ 2.9 g/t gold from 48m

- 14JURC053 11m @ 2.0 g/t gold from 90m

- 14JURC049 11m @ 1.8 g/t gold from 86m

- 14JURC052 14m @ 0.9 g/t gold from 25m

- 14JURC061 2m @ 3.1 g/t gold from 60m

- 14JURC058 4m @ 1.9g/t gold from 45m

- 14JURC059 4m @ 1.6g/t gold from 73m

- 14JURC063 6m @ 1.5g/t gold from 132m

- 14JURC065 3m @ 1.5g/t gold from surface


Summary and Next Steps

The results from the initial 55 hole 7000m RC drilling program testing an 800m strike of the CSZ has confirmed the Company's view that there is excellent potential for a new open pit development at Jupiter.

The next steps for ongoing exploration at Jupiter are to:

(i) Commence infill drilling the mineralised areas defined by the completed 55 hole RC drilling program with a view to improving geological confidence and grade continuity. This is planned for the December quarter.

(ii) Commence drill testing those parts of the CSZ which have not been the subject of Dacian drilling. Such drilling will commence in the December quarter and likely continue through the March quarter, and include where:

a. the CSZ intersects the Ganymede syenite south of Heffernans,

b. the CSZ intersects the large, high intensity magnetic anomaly immediately south-east of the Jupiter pit,

c. the CSZ intersects the larger of the syenite dykes away from Heffernans and Ganymede, and

d. the CSZ intersects the syenite beneath the smaller Jenny pit at Jupiter. Dacian believes the mining completed in 1996 at Jenny is limited to mineralisation in the hangingwall of the CSZ, and that it is possible the CSZ has not been mined.

(iii) undertake resource estimate studies for the mineralised areas that demonstrate good geological and grade continuity. This will commence in the December quarter.

The next steps described above are consistent with Dacian's stated FY2015 Exploration Objectives which are to:

- Define the mineralisation limits of new discoveries at the CSZ at Jupiter and Millionaires at Westralia, and

- Define the size of the ore systems at Jupiter and Westralia.

To view figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-DCN-694547.pdf


About Dacian Gold Limited:

Dacian Gold Ltd. (ASX:DCN) is a well-funded, Western Australian focused gold exploration and development company, headquartered in Perth. In November 2012, the company raised $20 million in its IPO to explore its 100% owned Mt Morgans gold project, located in the Laverton District of Western Australia's North Eastern Goldfields.



Contact:

Dacian Gold Ltd.
Rohan Williams, Executive Chairman
T: +61-8-9226-4622
E: rohan.williams@daciangold.com.au
www.daciangold.com.au