ABN 61 154 262 978
ANNUAL
REPORT
CORPORATE DIRECTORY
DIRECTORS
Rohan Williams
Executive Chairman
Barry Patterson
Non-Executive Director
Robert Reynolds
Non-Executive Director
Ian Cochrane
Non-Executive Director
COMPANY SECRETARY
Kevin Hart
REGISTERED OFFICE AND
PRINCIPAL PLACE OF BUSINESS
Suites 14-16
890 Canning Highway
Applecross WA 6153
AUDITOR
Grant Thornton Audit Pty Ltd
10 Kings Park Road
West Perth WA 6005
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 11
172 St Georges Terrace
Perth WA 6000
STOCK EXCHANGE LISTING
The Company’s shares are quoted on the Australian
Securities Exchange. The home exchange is Perth,
Western Australia.
ASX CODE
DCN – Ordinary shares
COMPANY INFORMATION
The Company was incorporated and registered under
the Corporations Act 2001 in Western Australia on 23
November 2011.
The Company is domiciled in Australia.
CONTACT
Telephone: 08 9226 4622
Facsimile: 08 9226 4722
Email:
Website:
info@daciangold.com.au
www.daciangold.com.au
TABLE OF CONTENTS
Chairman’s Letter to Shareholders
Review of Operations
2016 Mineral Resources & Ore Reserves Statement (DCN: 100%)
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes In Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
Tenement Schedule
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4
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27
40
41
42
43
44
45
73
74
77
79
CORPORATE GOVERNANCE
Please refer to the Company’s website www.daciangold.com.au for the
2016 Corporate Governance Statement and Policies.
CHAIRMAN’S LETTER TO
SHAREHOLDERS
Dear Fellow Shareholder,
It is with great pleasure that I present to you Dacian Gold’s fourth annual report.
The 2016 year was the most significant year of your Company’s short history. In every respect it was a transformational
year.
In the 12 months to 30 June 2016, the Company’s share price has risen almost 600% from $0.43 to $2.90, making
Dacian Gold one of the best performers on the ASX. The market capitalisation of Dacian Gold during this same
period increased from $41 million to $380 million. During this significant increase in both share price and market
capitalisation, the only equity contribution made during this period was a $25 million fully underwritten issue completed
in November 2015 at a share price of $0.69. The $25 million equity raising financed much of the activities described
in the pages that follow.
The excellent market performance of Dacian Gold is attributed to the market’s growing recognition that the Mt Morgans
Gold Project (MMGP) is a new, high quality gold project that has size, scale, significant exploration optionality and
access to considerable existing infrastructure in Australia’s second largest gold district, at Laverton in WA.
The last 12 months has seen three main areas of Company focus: a major, approximately 90,000m resource in-fill
and extension drill program; the MMGP Feasibility Study and an ongoing exploration effort that is, and will remain, a
Dacian Gold core corporate objective for many years to come.
The 90,000m drilling program was all oriented diamond and RC drilling that was aimed at upgrading the Mineral
Resource at our Westralia and Jupiter discoveries. The drill program was highly successful with a 176% increase in
the Measured and Indicated Mineral Resource categories at Westralia (now at 905,000 ounces) and a corresponding
69% increase at Jupiter (now at 1,120,000 ounces). Numerous thick and high grade intersections were returned from
the drill-out, several of which are highlighted in the following pages.
The total Measured and Indicated Mineral Resource for the MMGP is now at 2.2 million ounces; and the total Mineral
Resource inventory is at 3.3 million ounces, up almost four times from the 842,000 ounce resource base at the time of
the Company’s November 2012 IPO.
The Feasibility Study, which is investigating the MMGP as a +220,000 ounce per annum gold production centre, is
nearing completion with results planned to be released in Q4 this calendar year. Fundamental to the Feasibility Study
is the improved Measured and Indicated Mineral Resource base which are the subject of detailed underground mine
designs at Beresford and Allanson, both at Westralia; and at Jupiter, where a large open pit mining complex measuring
over 1.8km in strike is being designed.
In addition to the mine design studies, other Feasibility work programs nearing completion include detailed metallurgical
testwork studies, process plant and tailing storage facility design and associated site selection geotechnical studies;
environmental studies; infrastructure layout designs that include; accommodation village, offices, workshops, power
supply and reticulation; road networks; communication networks; surface and ground water studies including water
exploration.
The Dacian Gold Board will meet in late CY2016 to assess the results of the Feasibility Study with a view to proceeding
to construction and development, should the results determine mine development is warranted; as well as a preferred
financing route. If a decision to proceed with construction is made, it is envisaged the construction period will take
place during CY2017, with gold production targeted for Q1 CY2018.
As I mentioned at the beginning of this Chairman’s letter, 2016 has been a transformational year for your Company on
every level. It has come about through the very hard working efforts of Dacian Gold employees, and on behalf of the
Board, I would like to extend a sincere thank you to them for their professionalism and excellent work ethic.
2
The 2017 year will undoubtedly be another busy year for the Company. I am hoping that, with the commencement
of recently started exploration programs on prospects like Cameron Well, Callisto and Jupiter Regional, we will make
new gold discoveries and deliver on our vision of turning Mt Morgans into a long life and highly prosperous Western
Australian gold mining operation.
Thank you also to you, our shareholders, without whom there is not the support required to build Dacian Gold into a
new Australian mid-tier gold producer.
Rohan Williams
Executive Chairman
FY 2016 HIGHLIGHTS
Mt Morgans Gold Project
MMGP Mineral Resource now stands at 3.3 million ounces, with 2.2
million ounces in M&I categories, up 73% from last year
Major 90,000m drill program completed ahead of open pit and
underground mine design studies being completed as part of the MMGP
Feasibility Study
A total of 46,000m of diamond drilling completed at Westralia and
41,000m at Jupiter – made up of RC and diamond drilling
Westralia M&I Mineral Resources up 176% to 905,000 ounces, whereas
Jupiter M&I Resources up 69% to 1.12 million ounces. At Westralia,
Inferred Mineral Resources of 715,000 ounces at a grade of 6.6 g/t Au
lies below the M&I resources, thereby providing excellent potential for an
increase to M&I resources with ongoing in-fill drilling
Westralia Mineral Resource now totals 1.6 million ounces at a grade of
5.8 g/t Au, up from 5.1 g/t gold last year.
Corporate
Share price increased almost 600% from $0.43 to $2.90
Market capitalisation increased over 800% from $41 million to $380 million
Dacian Gold was one of the best performing stocks on the ASX during FY2016
Institutional shareholders now own 38% of the Company, up from 15%
Key management appointments made as well as strengthening the Board
3
REVIEW OF OPERATIONS
INTRODUCTION AND DACIAN GOLD’S CORPORATE OBJECTIVE
Dacian Gold’s Mt Morgans Gold Project (MMGP) is located 20km west of Laverton, being approximately 800km
north-east of Perth in Western Australia (see Figure 1). The project area is a 520 km² contiguous tenement package
comprising predominantly granted mining leases. The tenement package is situated in the Laverton gold district which
is known to contain some 30 million ounces of gold, making it the second highest endowed gold district in Western
Australia behind Kalgoorlie.
The MMGP has been the Company’s sole focus since its IPO on the ASX in November 2012. In the three years since
the Company’s IPO, Dacian has discovered two +1 million ounce gold deposits at Westralia and Jupiter (see Figure 2).
In last year’s Annual Report the Company described the results of the Mt Morgans Scoping Study that was released to
the market in late September 2015.
More details on the results of the Scoping Study are contained below, however, it was clear to Company management
that the MMGP was a project that showed considerable potential, and was therefore fast-tracked onto a detailed
Feasibility Study.
In November 2015, the Company announced a fully underwritten equity raising of $25 million (before costs) to be
completed at an issue price of $0.69 per share. The equity raising was designed to finance an approximately 90,000m
diamond and RC drilling program aimed at converting those Mineral Resources used in the Scoping Study that were
already not in the Measured and Indicated categories to these higher confidence Mineral Resource categories. In
addition, the $25 million equity financing was to enable the Company to complete the detailed Feasibility Study before
the end of CY2016 and to provide working capital.
Dacian Gold’s objective for CY2016 is to complete the MMGP Feasibility Study and to determine what level and style
of financing is required to construct the MMGP assuming the MMGP Feasibility Study shows mine development is
warranted.
Figure 1: Location of Dacian’s Project area in Western Australia
4
Figure 2: Regional location map showing distribution of Dacian’s Westralia, Jupiter and Transvaal Prospects as well
as major infrastructure items and proximal multi-million ounce gold deposits.
The Company believes there is a reasonable chance the Feasibility Study will show the MMGP is a project that is likely
to be developed. Subject to such a confirmation, Dacian Gold would undertake project construction in CY2017 ahead
of gold production in Q1 of CY2018.
It is clear to Dacian Gold that the MMGP is both highly endowed with gold mineralisation and under-explored, despite
several companies holding the project area over the last 20 years. Testament to this is the fact that inside 4 years,
Dacian Gold’s discoveries have increased the Mineral Resource base almost four-fold from 842,000 ounces at IPO to
over 3,300,000 ounces at the time of this report. The Company is also confident that additional gold mineralisation
will be discovered on the MMGP tenements, and accordingly the Company will retain an aggressive exploration
campaign as a corporate objective for many years to come.
5
REVIEW OF OPERATIONS
FEASIBILITY STUDY DRILLING PROGRAM
The release to the ASX of the MMGP Scoping Study on 30 September 2015 showed the project had the potential to be
a significant and likely low cost mid-tier WA-based gold producer, with the following key metrics:
• An initial 7 year Life of Mine producing 1.2Moz of gold at an AISC of A$929/oz.
• A site infrastructure capital expenditure of A$157M, which includes construction of a 2.5Mt/annum conventional
CIL treatment plant.
• Gold production was principally sourced from a large open pit mining complex at Jupiter and a large underground
mine at Westralia. Total mined production amounted to 16.0Mt at 2.5g/t Au for 1.3Moz contained gold.
The Life of Mine production of 1.2 Moz as depicted in the MMGP Scoping Study was based on detailed mine design
studies on a combination of Measured, Indicated and Inferred Mineral Resources at the Westralia, Jupiter and Transvaal
Prospects. At the time of the Scoping Study the Mt Morgans Mineral Resources totalled 3.0 million ounces of gold.
Given the positive outcome of the Scoping Study, Dacian Gold completed a $25 million equity raising designed in part
to fund a major resource in-fill drilling campaign. The drilling program had the specific objective of increasing the size
of the Measured and Indicated Mineral Resource so that mine design studies completed as part of the MMGP Feasibility
Study were able to potentially deliver an Ore Reserve base that could justify the commencement of mine development
at Mt Morgans.
The resource in-fill drilling was completed at the Westralia Deposit and the Jupiter Deposit.
At Westralia 71 oriented diamond drill holes for 35,000m was drilled into the Allanson underground position and 24
oriented diamond drill holes for 11,000m was drilled into the Beresford underground position.
At Jupiter, 313 RC drill holes for 34,000m and 37 oriented diamond drill holes for 7,000m were drilled.
Cautionary Statement – Scoping Study
Dacian Gold has concluded it has a reasonable basis for providing the forward looking statements that relate
to the Mt Morgans Scoping Study that are included in this report. The detailed reasons for that conclusion are
outlined in ASX announcement dated 30 September 2015, which has been prepared in accordance with the
JORC Code (2012) and the ASX Listing Rules. The Company advises that the Scoping Study results, Production
Targets and Forecast Financial Information contained in this report are preliminary in nature as the conclusions
are based on low- level technical and economic assessments, and are insufficient to support the estimation of Ore
Reserves or to provide an assurance of economic development at this stage. There is a low level of geological
confidence associated with Inferred Mineral Resources used in the scoping study and there is no certainty that
further exploration work will result in the determination of Indicated Mineral Resources or that the Production
Target itself will be realised. The stated Production Target is based on the Company’s current expectations of
future results or events and should not be relied upon by investors when making investment decisions. Further
evaluation work and appropriate studies are required to establish sufficient confidence that this target will be
met.
The Company confirms that all material assumptions underpinning the Production Target and Forecast Financial
Information contained in the Company’s ASX announcement released on 30 September 2015 continue to apply
and have not materially changed.
6
WESTRALIA DEPOSIT
Introduction
Gold mineralisation at Westralia was first discovered in 1896 and quickly led to the gazetting of the Mt Morgans
township. By 1903, 200,000 ounces of gold had been mined from 191,000 tonnes of ore at Westralia confirming
production grades of over 1 ounce of gold per tonne.
The gold at Westralia occurs within a well-defined mineralised banded iron formation (BIF) unit from which approximately
900,000 ounces at a grade of 4.5 g/t gold was produced up to 1998; with the majority being sourced from within
the Westralia open pit limits. Much of this pre-mined resource occurs over a horizontal strike distance of 1.5km and
lies within 500m of the surface.
Previous mining and on-site treatment of the deposit has demonstrated that the gold is free milling with recoveries of
91%-93% achieved historically from conventional site-based CIP/CIL processing.
Resource In-Fill Drilling Activity
As noted above the resource in-fill drilling activity during the year focused on Beresford at the south end of the Westralia
ore system and Allanson, located at the northern end. Figure 3 below shows the location of Beresford and Allanson in
relation to the Westralia open pit. Note the mineralisation remains open to the north, south and at depth.
Figure 3: Longitudinal section of the 3km long Westralia Deposit Mineral Resource (yellow shading) showing the location of the recently completed
24 hole, 11,000m in-fill diamond drilling program at Beresford and the 71 hole, 35,000m in-fill drilling program at Allanson. Note the high
proportion of +10g/t Au intersections from both drilling programs.
7
REVIEW OF OPERATIONS
ALLANSON DEPOSIT (formerly Morgans Underground)
During the 2016 FY the Company released the results from the 71 diamond drill holes from the priority in-fill diamond
drilling program at the Allanson Deposit. The principal aim of the in-fill drilling program at the Allanson Deposit was
to complete a 50m x 50m diamond drill pattern over the Allanson Inferred Resource.
The 50m x 50m in-fill drilling pattern provided sufficient geological confidence to contribute to the upgrade of 905,000
ounces of the 1.6 million ounce Westralia Mineral Resource to the Indicated and Measured resource categories.
The results from the final diamond drill holes from the Allanson Deposit were released prior to the end of the 2016 FY
(see ASX announcements of 1 June 2016, 21 March 2016 and 11 February 2016), with numerous excellent results
including (see also Figure 4):
• 3.6m @ 48.0 g/t Au from 527.4m in 15MMRD0064W1
• 3.0m @ 24.6 g/t Au from 269.6m in 16MMRD0048
• 5.6m @ 23.2 g/t Au from 469.3m in 16MMRD0068
• 4.3m @ 22.4 g/t Au from 317.7m in 16MMRD0105
• 6.2m @ 20.1 g/t Au from 419.8m in 15MMRD0034
• 4.3m @ 17.5 g/t Au from 421.4m in 16MMRD0041
• 1.2m @ 19.1 g/t Au from 207.6m in 16MMRD0092
• 2.9m @ 16.1 g/t Au from 230.2m in 15MMRD0037
• 1.9m @ 15.9 g/t Au from 196.8m in 16MMRD0052
• 4.0m @ 13.9 g/t Au from 528.0m in 15MMRD0064
• 4.5m @ 13.4 g/t Au from 252.5m in 15MMDD0060
• 2.1m @ 12.6 g/t Au from 284.1m in16MMRD0051
• 2.6m @ 11.9 g/t Au from 328.0m in 15MMRD0037
• 2.3m @ 8.1 g/t Au from 303.5m in 16MMRD0044
• 5.1m @ 7.4 g/t Au from 379.0m in 16MMRD0125
• 2.7m @ 7.2 g/t Au from 421.0m in 15MMRD0033
• 4.0m @ 7.0 g/t Au from 358.0m in 15MMRD0030
• 3.0m @ 6.5 g/t Au from 511.0m in 15MMRD0064W1
• 3.8m @ 6.1 g/t Au from 465.0m in 16MMRD0062
• 1 2.0m @ 5.7 g/t Au from 341.0m in 16MMRD0105
• 5.6m @ 5.1 g/t Au from 450.8m in 16MMRD0125
• 4.4m @ 5.0 g/t Au from 365.0m in 15MMRD0030
• 0.5m @ 26.8 g/t Au from 390.9m in 16MMRD0069
• 1.0m @ 11.9 g/t Au from 410.0m in 16MMRD0066
8
The principal mineralised surface at Allansons is located within the footwall banded iron formation (BIF) unit which lies
at the base of the 80-100m thick Westralia BIF package. Subordinate mineralised BIF units lie in the hangingwall, or
stratigraphically above, the principal mineralised footwall BIF unit.
Interpretation of the drill intersection results from Allanson drill-out suggests two and possible three sub-parallel
mineralised surfaces may be present. The Company is encouraged there may exist the possibility of multiple surfaces
being accessed from the potential mine development
Figure 4: Long section of the Allanson (formerly Morgans Underground) mineralisation showing results of the in-fill drilling program. The
mineralisation measures 700m long and up to 400m in dip (or vertical) extent.
9
REVIEW OF OPERATIONS
BERESFORD DEPOSIT (formerly Westralia Underground)
Figure 3 (page 7) shows the location of the Beresford mineralisation at the south end of the Westralia ore system. As
with the drilling completed at Allanson, the principal aim of the 24 hole, 11,000m in-fill resource drilling at Beresford
was to complete a 50m x 50m in-fill diamond drill pattern over the upper portions of the Westralia Mineral Resource
between 100m and 350m below the surface.
Numerous high-grade intersections were returned from the completed 24-hole in-fill diamond drilling program, including
(see ASX announcement 28 June 2016):
• 3.3m @ 84.3 g/t Au from 212.2m in 16MMRD0165
• 1 3.2m @ 14.1 g/t Au from 275.0m in 16MMDD0149
• 4.8m @ 26.3 g/t Au from 424.0m in 16MMRD0167W1
• 3.7m @ 18.0 g/t Au from 323.4m in 16MMRD0169
• 6.4m @ 12.1 g/t Au from 437.0m in 16MMRD0159W2
• 2.0m @ 15.9 g/t Au from 405.0m in 16MMRD0161W1
• 1.7m @ 10.2 g/t Au from 307.0m in 16MMRD0147
• 2.5m @ 9.7 g/t Au from 296.3m in 16MMRD0169
• 3.2m @ 8.9 g/t Au from 316.0m in 16MMRD0175
• 1.9m @ 10.5 g/t Au from 435.0m in 16MMRD0167
• 1 2.3m @ 4.5 g/t Au from 422.5m in 16MMRD0167W2
A feature of several of the drill holes were the
multiple high grade intersections returned from
separate BIF units intersected in those holes.
Detailed geological interpretation has led to
the identification of individual BIF units that can
be traced over many hundreds of metres, and
referred to as Hangingwall BIF, Central BIF and
Lower BIF (see Figure 5). All three BIF units
(Hangingwall, Central and Lower) exhibit high
grade gold mineralisation, with the Hangingwall
and Central BIF units containing the majority of
the gold mineralisation at Beresford.
Figure 5: Cross section through 10375N showing high
grade developed along each of the Hangingwall, Central
and Lower BIF units for a vertical distance of over 400m.
Note previously released Dacian Gold drill holes (13MMRD
series) and historic underground drill holes confirm excellent
BIF continuity and that the high grade mineralisation is present
for over 400m in vertical extent.
10
Figure 6: Longitudinal section of the 1.6 Moz Westralia Deposit showing the distribution of Measured, Indicated and
Inferred Mineral Resources.
Updated Westralia Deposit Mineral Resource
Following the 46,000m resource in-fill drilling program undertaken at Beresford and Allanson, the Company published
a revised Mineral Resource estimate for the Westralia Deposit which resulted in a 176% increase in the Measured
and Indicated Mineral Resource categories to 905,000 ounces of gold (refer ASX announcement 28 July 2016). The
total Westralia Deposit Mineral Resource increased to 8.6Mt @ 5.8 g/t Au for 1.6 million ounces. Significantly the
46,000m drilling program saw the overall Westralia Deposit grade increase 15% to 5.8 g/t Au.
Tabulated below is a summary of the updated Westralia Deposit Mineral Resource showing the proportion of the
resource that comprises oxide, transitional and fresh rock types; and also the respective portions of the resource that
comprise the Beresford, Allanson and Morgans North Mineral Resources.
Figure 6 above is a long section showing the distribution of the Measured, Indicated and Inferred Mineral Resources
that make-up the Westralia Deposit Mineral Resource.
Westralia Deposit
July 2016 Mineral Resource Estimate (2.0g/t Au Cut-off)
Measured
Indicated
Inferred
Total
Type
Oxide
Transitional
Fresh
Total
Tonnes
Mt
0.02
0.02
0.4
0.4
Au
g/t
6.6
3.7
5.0
5.0
Au
Ounces
3,000
3,000
60,000
65,000
Tonnes
Mt
0.01
0.2
4.6
4.8
Au
g/t
4.6
3.6
5.5
5.5
Au
Ounces
1,000
18,000
821,000
840,000
Tonnes
Mt
0.2
3.3
3.4
Au
g/t
4.8
6.5
6.5
Au
Ounces
24,000
691,000
715,000
Tonnes
Mt
0.02
0.3
8.3
8.6
Au
g/t
6.0
4.2
5.9
5.8
Au
Ounces
4,000
45,000
1,572,000
1,621,000
Westralia Deposit
July 2016 Mineral Resource Estimate (2.0g/t Au Cut-off)
Measured
Indicated
Inferred
Total
Type
Beresford
Allanson
Morgans North
Total
Tonnes
Mt
0.4
0.04
0.4
Au
g/t
5.0
4.7
5.0
Au
Ounces
Tonnes
Mt
60,000
6,000
3.4
1.1
0.3
65,000
4.8
Au
g/t
5.1
7.2
3.7
5.5
Au
Ounces
Tonnes
Mt
562,000
245,000
33,000
2.6
0.7
0.2
Au
g/t
6.5
6.3
5.5
Au
Ounces
Tonnes
Mt
540,000
137,000
38,000
6.4
1.7
0.5
Au
g/t
5.7
6.9
4.2
Au
Ounces
1,162,000
382,000
77,000
840,000
3.4
6.5
715,000 8.6
5.8
1,621,000
Note: Totals may differ due to rounding
Mineral Resources reported on a dry basis
11
REVIEW OF OPERATIONS
JUPITER DEPOSIT
Introduction
The Jupiter Deposit occurs in the eastern half of the MMGP being approximately 20km east-south-east of the Westralia
Deposit. The Jupiter Deposit lies within the Jupiter Corridor which is defined as a 2km long north-south trend containing
three main syenite bodies, which from south to north, are termed Ganymede, Heffernans and the Doublejay. Several
smaller syenite dykes and intrusive bodies are found proximal to the three main syenites, and all are contained within
the Jupiter Corridor.
Approximately 150,000 ounces of gold was produced from Jupiter Open Pit now referred to as the Doublejay pits
during the period 1994-1996. On-site treatment of the deposit demonstrated that the gold is free milling with recoveries
of 91%-93% achieved historically from conventional CIP/CIL processing.
Post the completion of mining activities in 1996, the remnant resources remaining at Jupiter were 800kt at 2.8 g/t for
73,000 ounces (above a 1.5 g/t lower cut-off grade). All remaining resources were situated below the base of the
Doublejay pits.
Very limited exploration continued at Jupiter post the cessation of mining activities in 1996 with only two diamond drill
holes completed within the Jupiter Corridor until Dacian Gold commenced drilling in September 2013.
Shortly after Dacian Gold commenced drilling, it discovered high grade mineralisation at Heffernans. Ongoing drilling
and surface mapping programs confirmed the main control for the mineralisation that was discovered by Dacian Gold
within the Jupiter Corridor was the north-south striking, shallow east-dipping Cornwall Shear Zone (CSZ).
The CSZ lodes together with subordinate parallel lodes within the Doublejay, Heffernans and Ganymede syenite bodies
give rise to the mineralisation within the Jupiter Deposit Mineral Resource that was used for the September 2015 MMGP
Scoping Study.
As observed at Westralia, a portion of the Scoping Study mining inventory used in the Jupiter open pit mine designs
was Inferred Mineral Resource. Dacian Gold then embarked on a major 41,000m resource in-fill drilling program to
improve the classification of the Jupiter Deposit Mineral Resource so that during the subsequent Feasibility Studies, a
maiden Jupiter Ore Reserve can be established in order to determine if mine development could proceed.
Resource In-Fill Drilling Activity
The 41,000m resource in-fill drilling program comprised 313 RC drill holes for 34,000m to complete a 40m x 40m in-
fill and resource extension drill program over the 2km long Jupiter Mineral Resource; and 7,000m of diamond drilling
to be used for geotechnical assessment of the proposed open pit designs.
12
A combination of high grade intersections over 1-10m thickness and some very thick, lower grade intersections were
returned from the drilling programs. Results were reported in ASX announcements dated 8 February 2016, 14 March
2016, 9 May 2016, 16 June 2016, and include:
• 3.0m @ 106.9 g/t Au from 72m in 15JURC137
• 1.0m @ 43.6 g/t Au from 71m in 16JURC254
• 1.0m @ 39.8 g/t Au from 51m in 16JURC279
• 8.0m @ 26.3 g/t Au from 104min 15JURC114
• 2.0m @ 15.0 g/t Au from 36m in 16JURC287
• 3.0m @ 12.3 g/t Au from 87m in 15JURC209
• 4.0m @ 10.7 g/t Au from 28m in 16JURC221
• 01 2.0m @ 10.1 g/t Au from 39m in 16JURC332
• 6.0m @ 8.6 g/t Au from 42m in 16JURC318
• 01 8.0m @ 6.2 g/t Au from 158m in 16JURC254
• 06 7.0m @ 5.0 g/t Au from 145m (estimated true thickness is 35m) in 16JURC264
• 5.0m @ 3.3 g/t Au from 11m in 15JURC209
• 03 1.0m @ 2.7 g/t Au from 147m in 16JURC255
• 02 0.0 m @ 2.7 g/t Au from 14m in 16JURC399
• 01 8.0m @ 2.6 g/t Au from 148m in 16JURC312
• 6.0m @ 2.5 g/t Au from 38m in 16JURC378
• 13 3.0m @ 2.4 g/t Au from 87m in 16JURC311
• 010.0m @ 2.3 g/t Au from 246m in 16JURC143
• 01 1.0m @ 2.2 g/t Au from 30m in 16JURC211
• 02 2.0m @ 2.0 g/t Au from 95m in 16JURC288
• 010.0m @ 2.0 g/t Au from 6m in 16JURC216
• 015.0m @ 1.9 g/t Au from 71m in 16JURC255
• 01 1.0m @ 1.9 g/t Au from 12m in 16JURC326
• 08 7.1m @ 1.7 g/t Au from 244m and 38m @ 1.5 g/t Au from 385m in 16JUDD367
• 01 4.0m @ 1.6 g/t Au from 73m in 16JURC148
• 04 5.3m @ 1.5 g/t Au from 207.8m in 16JUDD403
• 01 7.0m @ 1.5 g/t Au from 238m in 16JUDD402
• 05 0.0m @ 1.5 g/t Au from 98m in 16JURC217
• 13 9.3m @ 1.3 g/t Au from 186.8m in 16JUDD409
• 07 9.4m @ 1.3 g/t Au from 123.6m in 16JUDD407
• 01 0.0m @ 1.2 g/t Au from 80m and 5m @ 5.1 g/t Au from 154m in 16JURC313
• 13 9.0m @ 1.2 g/t Au from 75m in 16JURC397
• 02 6.0m @ 1.1 g/t Au from 106m in 16JURC147
• 18 6.7m @ 1.0 g/t Au from 154m in 16JURD390
• 08 1.0m @ 1.1 g/t Au from 119m in 16JURC256
• 10 5.5m @ 1.0 g/t Au form 152.6m in 16JUDD406
• 16 7.0m @ 0.8 g/t Au from 162m in 16JURC321
• 08 9.0m @ 0.7 g/t Au from 216m in 16JURC312
• 06 9.0m @ 0.8 g/t Au from 90m and 93m @ 0.9 g/t Au from 193m in 16JURC303
• 08 2.0m @ 0.6 g/t Au from 0m in 16JURD390
13
REVIEW OF OPERATIONS
Figure 7 is a plan projection of the 1.4 million ounce Jupiter Deposit showing all drilling completed as well as the
distribution of the Measured, Indicated and Inferred Mineral Resources. Also shown in the location of the conceptual
open pits derived from the 2015 Scoping Study.
Figure 7: The 1.4 million ounce upgraded Jupiter Prospect Mineral Resource showing conceptual open pit
outlines, drill density with maximum grade intersected; and resource classification outlines.
14
Figure 8 is an example of the successful extensional drilling conducted during the year. It shows extensive mineralisation
intersected directly beneath the previously mined Jupiter (now called Doublejay) open pit, as well as below the conceptual
open pit identified during the MMGP Scoping Study. The mineralisation is seen to continue for at least 140m below
the historic open pit – which is the same depth the original pit mined to.
Figure 8: Cross section through the Doublejay open pit at 2080N. Note the thick intersections of 133m @ 2.4 g/t Au and
186.7m @ 1.0 g/t Au lying directly below the existing open pit and the conceptual open pit design (grey / black dashed
line).
15
REVIEW OF OPERATIONS
Figure 9 is a cross section through the Heffernans deposit, located 960m south of Figure 8 above. It shows the results
of the 40m x 40m resource in-fill drilling as well as the thick intersections returned from geotechnical drill holes that were
designed to test the rock strength of the intended walls to the Heffernans open pit. The intersections returned from the
geotechnical drilling are outside the conceptual pit shell derived from the Scoping Study.
Figure 9: Cross section through Heffernans at 1120N showing the location of geotechnical drill holes 16JUDD367 and
16JUDD024. Note the significant thick intersections in 16JUDD367 below the conceptual open pit (red/yellow labels).
Intersections from drilling completed in 2014 and 2015 are shown as red/white labels.
Updated Jupiter Deposit Mineral Resource
Following the 41,000m resource in-fill and extension drilling program undertaken at Jupiter, the Company published
a revised Mineral Resource estimate for the Jupiter Deposit which resulted in a 69% increase in the Measured and
Indicated Mineral Resource categories to 1,120,000 ounces of gold (refer ASX announcement 19 July 2016). Eighty-
two percent of the total Jupiter Deposit Mineral Resource, increased to 33.7Mt @ 1.3 g/t Au for 1.4 million ounces, is
now classified as Measured and Indicated Mineral Resource.
Dacian Gold’s drilling at Jupiter in less than three years has increased the Mineral Resource base from 78,000 ounces
to 1.4 million ounces. Of the total Mineral Resource 816,000 ounces lies within 150m of the surface giving rise to a
significant 5,000 ounces per vertical metre level of endowment.
16
Tabulated below is a summary of the updated Jupiter Deposit Mineral Resource showing the proportion of the resource
that comprises oxide, transitional and fresh rock types.
July 2016 Mineral Resource Estimate (0.5g/t Cut-off Above 0mRL, 1.5g/t Cut-off Below 0mRL)
Measured
Indicated
Inferred
Total
Jupiter Deposit
Type
Oxide
Tonnes
Mt
Au
g/t
Au
Ounces
Tonnes
Mt
0
2,000
1.0
3.1
52,000
18.8
58,000
Au
g/t
1.4
1.2
1.4
Au
Ounces
Tonnes
Mt
42,000
0.1
117,000
0.04
847,000
6.1
Au
g/t
1.9
0.9
1.1
Au
Ounces
Tonnes
Mt
6,000
1,000
1.1
3.2
223,000
25.9
3.5
Au
g/t
1.4
1.2
1.4
0.5
Au
Ounces
49,000
120,000
1,123,000
58,000
112,000
22.9
1.4
1,006,000
6.3
1.2
231,000
33.7
1.3
1,350,000
Transitional
0.04
Fresh
Jupiter LG Stockpiles
Total
1.0
3.5
4.5
1.2
1.7
0.5
0.8
The corresponding Mineral Resource tables for the respective portions of the Jupiter Deposit that comprise the Doublejay,
Heffernans and Ganymede Mineral Resources are tabulated below:
July 2016 Mineral Resource Estimate (0.5g/t Cut-off Above 0mRL, 1.5g/t Cut-off Below 0mRL)
Measured
Indicated
Inferred
Total
Doublejay Deposit
Type
Oxide
Transitional
Fresh
Total
Tonnes
Mt
Au
g/t
0.04
1.0
1.0
1.2
1.7
1.7
Au
Ounces
0
2,000
52,000
54,000
Tonnes
Mt
0.04
1.1
7.4
8.5
Au
g/t
1.0
1.1
1.3
Au
Ounces
1,000
36,000
302,000
1.3
339,000
Tonnes
Mt
Au
g/t
Au
Ounces
Tonnes
Mt
0.04
1.1
69,000
10.4
Au
g/t
1.0
1.1
1.3
Au
Ounces
1,000
38,000
423,000
2.1
2.1
1.0
1.0
69,000
11.6
1.2
463,000
July 2016 Mineral Resource Estimate (0.5g/t Cut-off Above 0mRL, 1.5g/t Cut-off Below 0mRL)
Heffernans Deposit
Type
Oxide
Transitional
Fresh
Total
Type
Oxide
Transitional
Fresh
Total
Indicated
Inferred
Au
g/t
1.4
1.3
1.5
1.5
Au
Ounces
22,000
61,000
505,000
588,000
Tonnes
Mt
0.03
0.03
3.4
3.4
Au
g/t
2.2
0.9
1.2
1.2
Au
Ounces
2,000
1,000
128,000
131,000
Ganymede Deposit
July 2016 Mineral Resource Estimate (0.5g/t Au Cut-off)
Indicated
Inferred
Au
g/t
1.4
1.0
1.3
1.2
Au
Ounces
19,000
19,000
40,000
79,000
Tonnes
Mt
0.1
0.6
0.7
Au
g/t
1.8
1.3
1.3
Au
Ounces
4,000
0
26,000
31,000
Tonnes
Mt
0.5
1.4
10.5
12.4
Tonnes
Mt
0.4
0.6
1.0
2.0
Tonnes
Mt
0.5
1.5
13.9
15.9
Tonnes
Mt
0.5
0.6
1.6
2.7
Total
Au
g/t
1.4
1.3
1.4
1.4
Total
Au
g/t
1.5
1.0
1.3
1.3
Au
Ounces
24,000
62,000
633,000
719,000
Au
Ounces
23,000
20,000
66,000
109,000
17
REVIEW OF OPERATIONS
MMGP FEASIBILITY STUDY
The objective of the Mt Morgans Gold Project (MMGP) Feasibility Study is to deliver an Ore Reserve similar to the
results obtained from the Scoping Study released to the ASX on 30 September 2015. If Dacian Gold is able to deliver
a Feasibility Study result similar to the Scoping Study, then there is a high likelihood the Dacian Gold Board will decide
to proceed with mine development and construction in early 2017.
Key to achieving the positive results observed in the Scoping Study was the requirement to improve the confidence of
the Mineral Resource which was successfully achieved through the completion of an approximately 90,000m RC and
diamond drilling program (see section above titled Feasibility Study Drilling Program). As a result of this major drilling
program, 1.12 million ounces of the Jupiter Deposit now sit in the Measured and Indicated Mineral Resource category
and 905,000 ounces of the high grade Westralia deposit sits in the Measured and Indicated Mineral Resource
categories.
Dacian Gold also receives a significant benefit in its quest to develop the MMGP due to the extensive infrastructure that
is already associated with the project and surrounding area. The MMGP is situated in a brownfields site that saw the
production of over 1 million ounces of gold during the late 1990s; the majority of which were won from the Westralia
and Jupiter Deposits. Examples of the in-place infrastructure include:
•
•
Established townships with public airports at nearby Laverton and Leonora;
Public and private road networks including sealed highways lie within the project tenure;
• An existing excellent quality raw water source lies within the project area that previously was used in treatment of
Mt Morgans ores;
• A new gas pipeline transects the entire tenement package from west to east;
• A Telstra telecommunications tower sits only 8km north of Westralia, within Dacian Gold tenure; and
• An existing accommodation camp and office complex is in place; however will likely be replaced by a new
accommodation village to be built on the same site as the previous accommodation village.
18
During the course of the year, a considerable effort was made toward the MMGP Feasibility Study. Work programs
undertaken during the year and nearing completion at the time of writing this report included:
• Advancement of comprehensive metallurgical test-work programs from both Westralia and Jupiter using RC and
diamond core samples obtained from the major resource in-fill drill program.
• Collection of mine geotechnical data from core obtained from diamond drill holes that were part of the resource
in-fill drill program.
• Advancement of detailed process plant, tailings storage facility and site infrastructure design work by GR
Engineering Services Ltd as required for feasibility cost estimation.
• Completion of detailed civil geotechnical field investigations in and around the areas proposed for construction of
the processing plant and associated tailings storage facility.
•
Engagement of specialist mining consultants Orelogy to complete open pit mining study work for the proposed
Jupiter open pits and Entech to complete mining study work related to the Westralia underground mining complex.
• Completion of environmental field surveys related to development of the project and as required for regulatory
approvals.
• Completion of field work to determine the groundwater regime around the proposed open pit and underground
mines as input for mine geotechnical assessments and to determine dewatering requirements.
• Continuation of groundwater exploration drilling programs to locate additional raw water supplies to supplement
proposed supply from existing water bores within the project area.
• Advanced discussions with relevant government agencies and stakeholders.
•
Recruitment of a Chief Financial Officer, Processing Manager and Mining Manager to assist with finalisation of the
MMGP feasibility study and commence preparations for project development.
Dacian Gold will release the results of the MMGP Feasibility Study in Q4 of CY2016.
19
REVIEW OF OPERATIONS
EXPLORATION ACTIVITY
As noted in the Dacian Gold’s Corporate Objective section above, the Company remains confident it will build on
its initial success at Westralia and Jupiter; and continue to make new gold discoveries within the MMGP. It therefore
remains a core Corporate Objective that Dacian Gold maintains an ongoing aggressive exploration initiative during its
feasibility and potential construction campaigns.
During the year, and in addition to the 90,000m RC and diamond drilling program it completed as part of the
Westralia and Jupiter resource in-fill and extension drilling, Dacian Gold commenced reconnaissance exploration on
several exciting new and under-explored prospects, named Cameron Well, Jupiter Regional and Callisto.
JUPITER REGIONAL PROSPECT
The Jupiter Regional Prospect is the area in an around the 1.4 million ounce Jupiter deposit. The Company completed
an ultra-detailed ground magnetic survey by collecting magnetic readings along a 2km east-west line, for every 50m,
over a 5km distance. The approximately 10km² survey involved the walking and collection of magnetic readings over
a distance of 382 kilometres (see ASX announcement 4 November 2015).
Figure 10 shows the result of the ultra-detailed magnetic survey in relation to the outline of the 1.4 million ounce Jupiter
Deposit Mineral Resource. Several key drill targets are evident from the results of the magnetic survey and include from
north to south:
•
•
•
The untested bulls-eye magnetic anomaly called Rosetta; as well as a smaller positive magnetic anomaly immediately
south of Rosetta;
The large Europa magnetic anomaly lying immediately east of the Jupiter Deposit resource outline; and
The conspicuous linear trends labelled Corridor A and Corridor B that show a magnetic character similar to that
seen inside the Jupiter Deposit Mineral Resource.
At the time of writing this report, Dacian Gold has completed approximately 300 RAB drill holes along parts of
Corridors A and B together with drill testing areas not previously explored south of and to the west of the Jupiter Deposit
resource outline. Assays are awaited and will be released to the market once they are to hand.
A single RC hole as drilled into Rosetta in late 2015 which intersected magnetic basalt associated with structure and
low level gold mineralisation. Further follow-up work is warranted at Rosetta.
Europa was tested with two diamond drill holes during early 2016. The purpose of the drilling was to identify the
source of the magnetic anomaly ahead of more accurately defining its shape prior to diamond drill testing. The initial
two diamond drill holes confirmed the source of the magnetic anomaly as magnetic basalt. Follow up three-dimensional
magnetic modelling is planned for later in CY2016, with diamond drilling to occur afterwards.
20
Rosetta
Doublejay
Heffernans
Europa
Corridor B
Corridor A
Figure 10: Jupiter Regional ultra-detailed ground magnetics (TMI). The 1.4 million ounce Jupiter Deposit Mineral Resource is shown as yellow
outline. Note the variable magnetic response from within the Mineral Resource envelope: mineralised syenites display both positive magnetism
(red circular features as seen at Heffernans) and negative magnetism (blue circular features as seen at Doublejay). Also note the discrete and
unexplained Europa and Rosetta positive magnetic anomalies as well as the linear trends of combined positive and negative magnetic anomalies
within the newly identified Corridor A and Corridor B. All of the new magnetic anomalies and Corridors represent drill-ready targets.
21
REVIEW OF OPERATIONS
CAMERON WELL PROSPECT
The Cameron Well Prospect is located 5km east of Westralia and was last explored in the1990s. During its only
previous exploration – some 15 years ago – significant intersections at shallow depths were returned, as shown in
Figure 11. The intersections define near-flat, north-dipping gold lodes in an interpreted syenite complex; similar in style
and host to that seen at the Jupiter and Wallaby gold deposits located 12km and 20km to the south-east respectively.
Figure 11: Shallow high grade intersections returned from drilling completed at Cameron Well in the 1990s (note hole prefix
92- and 94- indicates the drilling was completed in 1992 and 1994 respectively). The drilling suggests flat, north dipping lodes
are present within an interpreted syenite complex – analogous to that seen at the Jupiter and Wallaby deposit to the east. Note
also NSA = no significant assay.
As part of the 1990s drilling at Cameron Well, broad areas of highly anomalous gold was seen in an area less than
1km north of the cross section shown above in Figure 11. Both the broad areas of anomalism and the higher grade
zones as seen in Figure 11 appear to be associated with a large ring-like magnetic anomaly interpreted to be caused
by a syenite body; and is shown in Figure 12.
The larger, broader anomaly is defined by wide-spaced reconnaissance RAB drilling on 100m x 100m centres. Dacian
Gold management is highly encouraged that despite the broad nature of the reconnaissance drilling, the northern
anomaly shown in Figure 12 contains 20 holes that intersect 1g/t – 3g/t Au; 5 holes that intersect 3g/t – 5g/t Au and
5 holes that intersect plus 5g/t Au.
The combination of shallow high-grade, flat north-dipping lodes and strongly anomalous gold values intersected in the
100m x 100m spaced reconnaissance RAB drilling, all located on a circular magnetic feature thought to be a syenite,
is highly encouraging. Given this level of mineralisation is seen over a distance of 2km makes it worthy of a significant
exploration effort to more fully understand the extent and nature of this shallow, but extensively mineralised position.
Dacian Gold have completed a 133 hole RAB program further defining the extents of the mineralisation over 2.5km x
2km (See ASX Announcement 1 September 2016).
22
CALLISTO PROSPECT
Figure 12: Cameron Well Prospect showing anomalous areas
in association with a large ring-like magnetic anomaly thought to
represent a syenite intrusive. The high grade cross section seen in
Figure 11 above is located within the southern approximately circular
anomaly (with label of “Best Result of 7m@15g/t Au). The broad
highly anomalous region in the larger shape at the top of the image.
The Callisto Prospect lies 6km south of the Jupiter Deposit
and 7km west of the world-class +8Moz Wallaby gold
deposit. It is defined as a significant 1km long x 500m wide
positive magnetic anomaly lying beneath approximately
85m of Lake Carey clay sediments and is situated 4km from
the Lake Carey shoreline. Due to its remoteness and being
in a difficult location to explore, it has only seen very minor
historic exploration with a total of three previous holes
drilled. None of the previous holes drilled explained the
source of the magnetic anomaly.
Dacian Gold believe the magnetic anomaly may be due to
a large magnetic alteration event that is associated with the
intrusion of syenite bodies as seen at the nearby Jupiter and
Wallaby mines. At both Wallaby and Jupiter, the magnetic
alteration event precedes a major gold mineralisation event.
Dacian Gold has embarked on a scissor-diamond drilling
program aimed at testing the source of the magnetic
anomaly. Two 800m deep diamond holes will be drilled
into the geophysically modelled magnetic body as shown
below in Figure 13. Note the 2001 drill hole shown in
Figure 13 was stopped short of testing the modelled
magnetic body.
At the time of writing this report, Dacian Gold was drilling
the two holes. It will release the results of the drilling to the
market as they become available.
Figure 13: Modelling of the magnetic anomaly that defines the Callisto Prospect is to be tested by two 800m deep oriented scissor diamond
drill holes, as shown. Note the location of the 2001 drill hole failed to test the interpreted magnetic model position.
23
2016 MINERAL RESOURCES & ORE RESERVES
STATEMENT (DCN: 100%)
MOUNT MORGANS GOLD PROJECT MINERAL RESOURCES AS AT 28 JULY 2016
Cut-off
Grade
Au
g/t
0.5
0.5
1.5
0.5
2.0
0.5
2.0
2.0
Deposit
King Street*
Jupiter
Jupiter UG
Jupiter LG Stockpile
Westralia
Craic*
Transvaal
Ramornie
Total
Measured
Indicated
Inferred
Total Mineral Resource
Tonnes
-
994,000
-
3,494,000
409,000
-
367,000
-
Au
g/t
-
1.7
-
0.5
5.0
-
5.8
-
Au
Oz
-
Tonnes
-
54,000
22,889,000
-
58,000
-
-
65,000
4,769,000
-
69,000
68,000
404,000
-
156,000
Au
g/t
-
1.4
-
-
5.5
8.2
5.3
4.1
Au
Oz
-
Tonnes
532,000
1,006,000
5,739,000
-
-
530,000
-
840,000
3,449,000
18,000
69,000
21,000
120,000
482,000
285,000
Au
g/t
Au
Oz
Tonnes
2.0
1.1
2.0
-
6.5
7.1
4.7
3.9
33,000
532,000
197,000
29,623,000
34,000
530,000
-
3,494,000
715,000
8,626,000
27,000
73,000
36,000
189,000
1,253,000
442,000
Au
g/t
2.0
1.3
2.0
0.5
5.8
7.5
5.2
4.0
Au
Oz
33,000
1,257,000
34,000
58,000
1,621,000
46,000
210,000
57,000
5,263,000
1.5
246,000 28,287,000
2.1
1,954,000 11,138,000
3.1
1,115,000 44,688,000
2.3
3,315,000
* JORC 2004 Mineral Resource
Total Mineral Resources stated in the 2015 Mineral Resources and Ore Reserves Statement (MROR) for the Mount
Morgans Gold Project was 41,730,000 tonnes at 2.2 g/t for 3,008,000 ounces (refer 2015 Annual Report).
The change between the 2015 and 2016 MROR Statement were due to revised Mineral Resource estimates occurring
at the Company’s 100% owned Westralia and Jupiter deposits.
The Westralia Mineral Resource has increased from 9,269,000 tonnes at 5.1 g/t for 1,520,000 ounces to 8,626,000
tonnes at 5.8 g/t for 1,621,000 ounces (refer ASX releases 16 September 2015 and 28 July 2016).
The Jupiter Mineral Resource has increased from 26,550,000 tonnes at 1.3 g/t for 1,085,000 ounces, to 29,623,000
tonnes at 1.3 g/t for 1,257,000 ounces (open pit) and 530,000 tonnes at 2.0 g/t for 34,000 ounces (underground).
This Mineral Resource for Jupiter includes the split of open and underground resources reported (refer ASX releases 16
September 2015 and 19 July 2016).
There is no change to the previously reported Mineral Resources for the King St, Craic, Jupiter LG stockpile, Transvaal
and Ramornie deposits.
MOUNT MORGANS GOLD PROJECT ORE RESERVES AS AT 15 SEPTEMBER 2015
Deposit
Craic*
Total
Cut-off
Au g/t
3.9
Proved
Au g/t
-
-
Tonnes
-
-
Probable
Total
Au Oz
Tonnes
Au g/t
Au Oz
Tonnes
Au g/t
Au Oz
-
-
28,000
28,000
9.2
9.2
8,000
28,000
8,000
28,000
9.2
9.2
8,000
8,000
* JORC 2004 Ore Reserve
CHANGES IN MINERAL RESOURCES SINCE 30 JUNE 2016
Since 30 June 2016 the Mineral Resource estimates for the Mount Morgans Gold Project have increased from 41,730,000
tonnes at 2.2 g/t for 3,008,000 ounces to 44,688,000 tonnes at 2.3 g/t for 3,315,000 ounces following revisions to
Mineral Resource estimates for the Westralia and Jupiter deposits (refer ASX releases 19 July 2016 and 28 July 2016).
There has been no change to the previously reported Ore Reserve for the Craic deposit since the 2015 MROR Statement.
The Company confirms that all material assumptions and technical parameters pursuant to the mineral resource and Ore
Reserve estimates at the time of the relevant market announcements continue to apply and have not materially changed.
24
GOVERNANCE
Dacian Gold maintains strong governance and internal controls in respect of its estimates of Mineral Resources and Ore
Reserves and the estimation process.
Dacian ensures its sampling techniques, data collection, data veracity and the application of the collected data is at
a high level of industry standard. Contract RC and diamond drilling with QA/QC controls approved by Dacian are
used routinely. All completed holes are subject to downhole gyro or EMS surveys and collar coordinates surveyed with
DGPS. All drill holes are logged by Dacian geologists. Diamond core is oriented and photographed. Dacian employs
field QC procedures, including addition of standards, blanks and duplicates ahead of assaying which is undertaken
using industry standards including fire assay at Intertek and Bureau Veritas laboratories in Perth and Kalgoorlie.
Assay data is continually validated and stored in DataShed. Geological models and wireframes are built using careful
geological documentation and interpretations, all of which are validated by peer review. Resource estimation is
undertaken by independent consultants and reported under JORC 2012. Estimation techniques are industry standard
and include block modelling using Ordinary Kriging. Application of other parameters including cut off grades, top cuts
and classification are all dependent on the style and nature of mineralisation being assessed.
Ore Reserve estimation is overseen by in house mining engineers using third party consultants to complete feasibility
studies in mining, metallurgical, geotechnical, environmental and social matters. Results are verified by independent
third party Ore Reserve specialist consultancies.
25
2016 MINERAL RESOURCES & ORE RESERVES
STATEMENT (DCN: 100%)
COMPETENT PERSON STATEMENT
The Mineral Resources and Ore Reserves Statement is based on, and fairly represents, information and supporting
documentation prepared by the respective competent persons named below.
The Mineral Resources Statement as a whole has been approved by Mr Rohan Williams. Mr Williams is a holder of
shares and options in, and is the Executive Chairman and a full-time employee of, the Company, and is a Member of
the Australasian Institute of Mining and Metallurgy. Mr Williams has sufficient experience that is relevant to the style
of mineralisation and type of deposit under consideration and to the activity currently being undertaken to qualify as
a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’.
Mr Williams has approved the Mineral Resources and Ore Reserves Statement as a whole and consents to its inclusion
in the Annual Report in the form and context in which it appears.
The information in this report that relates to the Mineral Resource is based on information compiled by Mr Rohan
Williams who is a director and full time employee of Dacian Gold Limited and a Member of The Australasian Institute
of Mining and Metallurgy. Mr Williams has sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as
defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves. Mr Williams consents to the inclusion in the report of the matters based on his information in the form and
context in which it appears.
The information in this report that relates to Mineral Resources (other than Westralia, Jupiter, Ramornie and Transvaal),
Exploration Targets and Exploration Results is based on information compiled by Mr Rohan Williams, a director and full
time employee of Dacian Gold Limited and a Member of The Australasian Institute of Mining and Metallurgy.
The information in this report that relates to Mineral Resource estimates for Westralia, Jupiter, Ramornie and Transvaal
(not including Jupiter low-grade stockpile) is based on information compiled by Mr Shaun Searle, a Senior Consultant
Geologist and full time employee at RungePincockMinarco and a Member of Australian Institute of Geoscientists.
The information in this report that relates to Ore Reserves is based on information compiled by Mr Bill Frazer, a director
and full time employee of Mining One Pty Ltd and a Member of The Australasian Institute of Mining and Metallurgy.
Mr Williams and Mr Frazer have sufficient experience which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the
2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr
Williams and Mr Frazer consent to the inclusion in the report of the matters based on their information in the form and
context in which it appears.
All information relating to Mineral Resources and Ore Reserves (other than the King Street and Craic) were prepared
and disclosed under the JORC Code 2012. The JORC Code 2004 Mineral Resource and Ore Reserve have not been
updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since
it was last updated.
26
DIRECTORS’ REPORT
The Directors present the financial statements of Dacian Gold Limited (“the Company”) and its controlled subsidiaries
(“the Group”) for the year ended 30 June 2016. In order to comply with the provisions of the Corporations Act 2001,
the Directors Report is as follows:
DIRECTORS
The following persons were Directors of Dacian Gold Limited during or since the end of the year and up to the date of
this report, were in office for this entire period unless stated otherwise:
Rohan Williams BSc (Hons), MAusIMM
(Executive Chairman)
Mr Williams was founding CEO and Managing Director of Avoca Resources Ltd,
and led that company from its $7 million exploration IPO in 2002 until its merger
with Anatolia Minerals in 2011 to form Alacer Gold Corp, which valued Avoca
at $1 billion. At the time of the merger, Avoca Resources Ltd was the third largest
ASX listed Australian gold producer.
Serving as the merged group’s Chief Strategic Officer until the end of 2011,
Mr Williams resigned as a Non-Executive Director of Alacer Gold Corp on 10
September 2013.
Prior to his time with Avoca Resources Ltd, Mr Williams worked with WMC Resources Limited where he held Chief
Geologist positions at St Ives Gold Mines and the Norseman Gold Operation. He has 25 years of experience, including
over 19 years in the world class Kalgoorlie-Norseman gold belt.
Mr Williams also serves on the Board of the Telethon Kids Institute.
On 14 March 2014 Mr Williams became Executive Chairman of the Company. Prior to this date Mr Williams undertook
the Chairman’s role on a Non-Executive basis.
Other than as stated above Mr Williams has not served as a Director of any other listed companies, in the 3 years
immediately before the end of 2016 financial year.
Robert Reynolds MAICD, MAusIMM
(Non-Executive Director)
Mr Reynolds was the Non-Executive Chairman of Avoca Resources Ltd from 2002
until it merged with Anatolia Minerals to form Alacer Gold Corp in 2011. Mr
Reynolds was Non-Executive Chairman of Alacer Gold Corp until 23 August
2011.
With over 35 years commercial experience in the mining sector, Mr Reynolds has
worked on mining projects in a number of locations including Australia, Africa and
across the Oceania region and has extensive experience in mineral exploration,
development and mining operations.
Mr Reynolds was a long term Director of Delta Gold Limited and was a Director of Extorre Gold Mines Limited when it
was acquired by Yamana Gold for CAD$414 million on 22 August 2012. Mr Reynolds currently holds Directorships
with Canadian companies Rugby Mining Limited and Exeter Resource Corporation. Mr Reynolds was previously a
Director of ASX listed companies Chesser Resources, Convergent Minerals Limited and Global Geoscience Limited.
Other than as stated above Mr Reynolds has not served as a Director of any other listed companies, in the 3 years
immediately before the end of 2016 financial year.
27
DIRECTORS’ REPORT
Barry Patterson ASMM, MAusIMM, FAICD
(Non-Executive Director)
Mr Patterson is a mining engineer with over 50 years of experience in the mining
industry and is a co-founder, and Non-Executive Director, of ASX listed GR
Engineering Limited.
Mr Patterson was also a founding shareholder of leading engineering services
provider JR Engineering, which became Roche Mining after being taken over
by Downer EDI in 2002. He also co-founded contract mining companies Eltin,
Australian Mine Management and National Mine Management.
Mr Patterson has served as a Director of a number of public companies across a range of industries. He was formerly
the Non-Executive Chairman of Sonic Healthcare Limited for 11 years, during which time the company’s market
capitalisation increased from $20 million to $4 billion, and Silex Systems Limited.
Other than as stated above Mr Patterson has not served as a Director of any other listed companies, in the 3 years
immediately before the end of 2016 financial year.
Ian Cochrane BCom LLB (Appointed 26 February 2016)
(Non-Executive Director)
Mr Cochrane is a corporate lawyer and was widely regarded as one of Australia’s
leading M&A lawyers until his retirement from the practice of law in December
2013.
Educated in South Africa where he completed degrees in Commerce and Law, he
immigrated to Australia in 1986 and joined national law firm Corrs Chambers
Westgarth and then Mallesons Stephen Jaques, specialising in Mergers &
Acquisitions.
In 2006, Mr Cochrane co-established boutique law firm Cochrane Lishman, which was eventually acquired by the
global law firm Clifford Chance in early 2011.
Mr Cochrane is currently the Chairman of VOC Group Limited and a Director and Deputy Chairman of diversified ASX-
listed mining services group Ausdrill Limited. He is also a Director of Wright Prospecting Pty Ltd and Ardross Estates
Pty Ltd.
He was previously Chairman of Little World Beverages Limited which produced the Little Creatures beers and was taken
over by Lion Nathan in 2012. He was also previously a Director of Rugby WA and the West Australian Ballet.
Other than as stated above Mr Cochrane has not served as a Director of any other listed companies, in the 3 years
immediately before the end of 2016 financial year.
COMPANY SECRETARY
Kevin Hart B.Comm, FCA
Mr Hart is a Chartered Accountant and was appointed to the position of Company
Secretary on 27 November 2012. He has over 25 years’ experience in accounting
and the management and administration of public listed entities in the mining and
exploration industry.
He is currently a partner in an advisory firm, Endeavour Corporate, which
specialises in the provision of company secretarial and accounting services to
ASX listed entities.
28
INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY
The following relevant interests in shares and options of the Company were held by the Directors as at the date of this
report:
Director
Rohan Williams
Robert Reynolds
Barry Patterson
Ian Cochrane
Number of fully paid ordinary shares
Number of options over ordinary shares
5,924,637
2,575,000
5,031,819
196,464
5,000,000
300,000
300,000
300,000
The Directors’ interests in options over ordinary shares as at the date of this report include the following options that
are currently vested and exercisable:
Director
Rohan Williams
Robert Reynolds
Barry Patterson
Ian Cochrane
Number of options vested and exercisable
3,000,000
300,000
300,000
300,000
Further details of the vesting conditions applicable to these options are disclosed in the remuneration report section of
this Directors’ Report.
SECURITIES
Shares
During the period the Company issued 36,256,254 ordinary fully paid shares at 69 cents per share pursuant to a
fully underwritten accelerated institutional and retail non-renounceable entitlement offer and share placement raising
approximately $25 million before costs.
During or since the end of the financial year, the Company issued ordinary shares as a result of the exercise of options
as follows (there were no amounts unpaid on the shares issued):
Date options granted
Issue price of options ($)
Number of shares issued
9 October 2012
28 February 2014
83 cents each
56 cents each
750,000
500,000
Options
At the date of this report unissued ordinary shares of the Company under option are:
Number of Options
5,400,000
500,000
1,000,000
2,000,000
1,500,000
1,650,000
300,000
500,000
Exercise Price
83 cents each
56 cents each
64 cents each
45 cents each
121 cents each
122 cents each
205 cents each
372 cents each
Expiry Date
9 October 2017
28 February 2019
24 September 2019
17 November 2019
30 September 2020
31 January 2021
28 February 2021
30 June 2021
29
DIRECTORS’ REPORT
DIVIDENDS
No dividends have been paid or declared since the start of the financial year and the Directors do not recommend the
payment of a dividend in respect of the financial year.
PRINCIPAL ACTIVITIES
The principal activity of the Company during the financial year was mineral exploration and development activities at
its wholly owned Mt Morgans Gold Project in Western Australia.
There have been no significant changes in the nature of these activities during the financial year.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Group during the financial year, not otherwise disclosed
in this report.
REVIEW OF OPERATIONS
Operating results and financial position
The net loss after income tax for the financial year was $21,832,884 (30 June 2015: $8,048,428). Included in this
loss for the financial year is an amount of $19,141,580 (30 June 2015: $6,501,354) in respect of exploration and
evaluation costs not capitalised, and increases to provisions for rehabilitation liabilities of $52,076 (2015: $670,669).
At the end of the financial year the Group had $9,648,425 (30 June 2015: $4,624,894) in cash and at call deposits.
Capitalised mineral exploration and evaluation expenditure is $8,131,847 (30 June 2015: $8,131,847).
Summary of Activities
During the 2016 financial year the Company has maintained its high level of exploration activity, primarily focused
on the Westralia and Jupiter deposits at the Mt Morgans Gold Project. The Company plans to complete the definitive
Feasibility Study and pursue project financing by the end of calendar year 2016.
The Group has incurred exploration and feasibility costs of over $21.8 million during the 2016 financial year, which
has included completing in excess of 127,500 metres of drilling, comprising over 49,000 metres of diamond core
drilling, over 53,000 metres of RC drilling and over 25,000 metres of RAB and air core drilling.
As a result of the extensive infill and extensional drill programs undertaken during the 2016 financial year, the Company
announced Mineral Resource upgrades in July 2016. Refer to ASX announcements dated 19th and 28th July 2016 for
Jupiter and Westralia respectively.
Since the end of the financial year the Company has commenced regional exploration programs and continues to
advance the Mt Morgans Gold Project Feasibility Study targeting first production in the first quarter of calendar year
2018. The Company expects to announce maiden Ore Reserves for Jupiter and Westralia in the near future.
The Group incurred exploration and feasibility costs of $19,141,580 during the 12 months ended 30 June 2016 (30
June 2015: $6,501,354).
Further details of the Company’s activities including significant drill results returned for the 2016 financial year are
included in the Review of Operations in this Annual Report.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant ASX releases
and the form and context of the announcements have not been materially modified. In the case of estimates of Mineral Resources, the Company
confirms that all material assumptions and technical parameters underpinning the relevant market announcements continue to apply and have not
materially changed.
30
EVENTS SUBSEQUENT TO THE REPORTING DATE
There has not arisen in the interval between the end of the reporting period and the date of this report, any item,
transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company to affect
substantially the operations of the Group, the results of those operations or the state of affairs of the Group in subsequent
financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Group intends to continue to undertake appropriate exploration and evaluation activities sufficient to maintain
tenure of its prospective mineral properties, until such time that informed decisions can be made in order to commercially
exploit or relinquish such properties.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group holds various exploration licences to regulate its exploration activities in Australia. These licences include
conditions and regulations with respect to the rehabilitation of areas disturbed during the course of its exploration
activities.
So far as the Directors are aware, all exploration activities have been undertaken in compliance with all relevant
environmental regulations.
OFFICER’S INDEMNITIES AND INSURANCE
During the year the Company paid an insurance premium to insure certain officers of the Company. The officers of the
Company covered by the insurance policy include the Directors named in this report.
The Directors and Officers Liability insurance provides cover against all costs and expenses that may be incurred in
defending civil or criminal proceedings that fall within the scope of the indemnity and that may be brought against the
officers in their capacity as officers of the Company. The insurance policy does not contain details of the premium paid
in respect of individual officers of the Company. Disclosure of the nature of the liability cover and the amount of the
premium is subject to a confidentiality clause under the insurance policy.
The Company has not provided any insurance for an auditor of the Company.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings
on behalf of the Company, or to intervene in any proceedings to which the Group is a party, for the purpose of taking
responsibility on behalf of the Group for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Group with leave of the Court under section 237
of the Corporations Act 2001.
31
DIRECTORS’ REPORT
NON-AUDIT SERVICES
During the year Grant Thornton the Company’s auditor, has not performed any other services in addition to their
statutory duties:
Total remuneration paid to auditors during the financial year:
Audit and review of the Company’s consolidated financial statements
32,251
32,978
2016
$
2015
$
Other services
Total
-
-
32,251
32,978
The Board considers any non-audit services provided during the year by the auditor and satisfies itself that the provision
of any non-audit services during the year by the auditor is compatible with, and does not compromise, the auditor
independence requirements of the Corporations Act 2001 for the following reasons:
• all non-audit services are reviewed by the Board to ensure they do not impact the impartiality and objectivity of
the auditor; and
•
the non-audit services provided do not undermine the general principles relating to auditor independence as set
out in APES 110 Code of Ethics for Professional Accountants, as they do not involve reviewing or auditing the
auditor’s own work, acting in a management or decision making capacity for the Group, acting as an advocate
for the Group or jointly sharing risks and rewards.
32
REMUNERATION REPORT (AUDITED)
Remuneration paid to Directors and Officers of the Group is set by reference to such payments made by other ASX
listed companies of a similar size and operating in the mineral exploration industry. In addition, reference is made to
the specific skills and experience of the Directors and Officers.
Details of the nature and amount of remuneration of each Director, and other Key Management Personnel if applicable,
are disclosed annually in the Company’s Annual Report.
Remuneration Committee
The Board has adopted a formal Remuneration Committee Charter which provides a framework for the consideration
of remuneration matters.
The Remuneration & Nomination Committee is responsible for reviewing and making recommendations to the Board
which has ultimate responsibility for the following remuneration matters:
1. Setting remuneration packages for Executive Directors, Non-Executive Directors and other Key Management
Personnel; and
2.
Implementing employee incentive and equity based plans and making awards pursuant to those plans.
Non-Executive Remuneration
The Company’s policy is to remunerate Non-Executive Directors, at rates comparable to other ASX listed companies in
the same industry, for their time, commitment and responsibilities.
Non-Executive Remuneration is not linked to the performance of the Company, however to align Directors’ interests with
shareholders’ interests, remuneration may be provided to Non-Executive Directors in the form of equity based long term
incentives.
1. Fees payable to Non-Executive Directors are set within the aggregate amount approved by shareholders at the
Company’s Annual General Meeting;
2. Non-Executive Directors’ fees are payable in the form of cash and superannuation benefits;
3. Non-Executive superannuation benefits are limited to statutory superannuation entitlements; and
4. Participation in equity based remuneration schemes by Non-Executive Directors is subject to consideration and
approval by the Company’s shareholders.
The maximum Non-Executive Directors fees, payable in aggregate are currently set at $500,000 per annum.
Executive Director and Other Key Management Personnel Remuneration
Executive remuneration consists of base salary, plus other performance incentives to ensure that:
1. Remuneration packages incorporate a balance between fixed and incentive pay, reflecting short and long term
performance objectives appropriate to the Company’s circumstances and objectives; and
2. A proportion of remuneration is structured in a manner to link reward to corporate and individual performances.
Executives are offered a competitive level of base salary at market rates (based on comparable ASX listed companies)
and are reviewed regularly to ensure market competitiveness.
Use of Remuneration Consultants
To date the Company has not engaged external remuneration consultants to advise the Board on remuneration matters.
33
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Incentive Plans
The Company provides long term incentives to Directors and Employees pursuant to the Dacian Gold Limited Employee
Option Plan, which was last approved by shareholders on 16 November 2015.
The Board, acting in remuneration matters:
1. Ensures that incentive plans are designed around appropriate and realistic performance targets and provide
rewards when those targets are achieved;
2. Reviews and improves existing incentive plans established for employees; and
3. Approves the administration of the incentive plans, including receiving recommendations for, and the consideration
and approval of grants pursuant to such incentive plans.
Engagement of Non-Executive Directors
Non-Executive Directors conduct their duties under the following terms:
1. A Non-Executive Director may resign from his/her position and thus terminate their contract on written notice to
the Company; and
2. A Non-Executive Director may, following resolution of the Company’s shareholders, be removed before the
expiration of their period of office (if applicable). Payment is made in lieu of any notice period if termination is
initiated by the Company, except where termination is initiated for serious misconduct.
In consideration of the services provided by Mr Robert Reynolds, Mr Barry Patterson and Mr Ian Cochrane as Non-
Executive Directors, the Company will pay them $60,000 plus statutory superannuation per annum.
Messrs Reynolds, Patterson and Cochrane are also entitled to fees for other amounts as the Board determines where
they perform special duties or otherwise perform extra services or make special exertions on behalf of the Company.
During the financial year ended 30 June 2016, the Company incurred no costs in respect of additional services
provided by Directors.
Engagement of Executive Directors
The terms of Mr Rohan Williams Executive Services Agreement governing his role as Executive Chairman are summarised
below.
In respect of his engagement as Executive Chairman, Mr Williams will receive a base salary of $438,000 per annum
inclusive of statutory superannuation (Total Fixed Remuneration, TFR). Any increase in salary is subject to the discretion
of the Board.
The Company or Mr Williams may terminate the contract at any time by the giving of six months’ notice. In addition,
there are certain specific termination notice periods applicable to Company change of control events or ill health. The
Company may elect to pay Mr Williams in lieu of part or all of the notice period specified in the contract.
Mr Williams may also receive a short term performance based reward in the form of a cash bonus up to, 40% of the
TFR. The performance criteria, assessment and timing of which are determined at the discretion of the Board.
Mr Williams may participate in the Dacian Gold Limited Employee Option Plan and other long term incentive plans
adopted by the Board.
34
Engagement of Executives
Mr Grant Dyker commenced in the capacity of Chief Financial Officer on 10 February 2016. The terms of Mr Dyker’s
employment contract are summarised below.
Mr Dyker will receive a base salary of $328,500 per annum inclusive of statutory superannuation.
The Company or Mr Dyker may terminate the contract at any time by the giving of six months’ notice. In addition,
there are certain specific termination notice periods applicable to Company change of control events or ill health. The
Company may elect to pay Mr Dyker in lieu of part or all of the notice period specified in the contract.
Mr Dyker may be invited to participate in incentive schemes. The performance criteria, assessment and timing of which
are determined at the discretion of the Board.
Mr Dyker may participate in the Dacian Gold Limited Employee Option Plan and other long term incentive plans
adopted by the Board.
Voting and comments made at the Company’s 2015 Annual General Meeting (‘AGM’)
At the last AGM 99.9% of the shareholders voted to adopt the remuneration report for the year ended 30 June 2015.
The Company did not receive any specific feedback at the AGM regarding its remuneration practices.
Short Term Incentive Payments
The Board may, at its sole discretion, set the Key Performance Indicators (KPIs) for the Executive Directors or other
Executive Officers. The KPIs are chosen to align the reward of the individual Executives to the strategy and performance
of the Company.
Performance objectives, which may be financial or non-financial, or a combination of both, are determined by the
Board.
No Short Term incentives are payable to Executives where it is considered that the actual performance has fallen below
the minimum requirement.
Following a performance evaluation process in respect of the 12-month period ended 31 December 2015, Short Term
incentive payments were made to Executives.
The Executive Chairman sets the KPIs for other members of staff, monitors actual performance and may recommend
payment of short term bonuses to certain employees to the Board for approval.
Shareholding Qualifications
The Directors are not required to hold any shares in Dacian Gold under the terms of the Company’s constitution.
Consequences of Company Performance on Shareholder Wealth
In considering the Company’s performance and benefits for shareholder wealth, the Board provide the following
indices in respect of the current financial year and previous financial years:
2016
2015
2014
2013
Loss for the year attributable to shareholders
$21,832,884
$8,048,428
$5,620,640
$5,806,907
Closing share price at 30 June
$2.90
$0.43
$0.35
$0.17
As an exploration company the Board does not consider the loss attributable to shareholders as one of the performance
indicators when implementing Short Term Incentive Payments. The Board considers that the success of exploration and
feasibility programs, safety and environmental performance, the securing of funding arrangements and responsible
management of cash resources and the Company’s other assets are more appropriate performance indicators to assess
the performance of management.
35
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Remuneration Disclosures
Current Directors and Key Management Personnel of the Group have been identified as:
Mr Rohan Williams
Executive Chairman
Mr Ian Cochrane
Non-Executive Director (Appointed 26 February 2016)
Mr Barry Patterson
Non-Executive Director
Mr Robert Reynolds
Non-Executive Director
Mr Grant Dyker (ii)
Chief Financial Officer (Appointed 4 February 2016)
The details of the remuneration of each Director and member of Key Management Personnel of the Company is as
follows:
30 June 2016
Short Term
Post
Employment
Other Long
Term
Base Salary
and consulting
fees
Short Term
Incentive
Superannuation
Contributions
Value of
Options (i)
$
$
$
$
Current Directors and Key Management Personnel:
Rohan Williams
403,000
160,000
35,000
142,268
Ian Cochrane
Barry Patterson
Robert Reynolds
20,000
46,667
46,667
Grant Dyker (ii)
116,667
-
-
-
-
1,900
4,433
4,433
155,904
-
-
Value of
Options as
Proportion of
Remuneration
%
19.2%
87.7%
0.0%
0.0%
Total
$
740,268
177,804
51,100
51,100
11,083
75,668
203,418 37.2%
TOTAL
633,001
160,000
56,849
373,840
1,223,690
(i) The fair value of options is calculated at the date of grant using the Black Scholes option pricing model and
allocated to each reporting period evenly over the period from grant date to vesting date. The value disclosed in
the above tables is the portion of the fair value of the options recognised in the reporting period.
(ii) Mr Dyker was appointed Chief Financial Officer on 4 February 2016 and commenced his role 10 February 2016.
30 June 2015
Short Term
Post
Employment
Other Long
Term
Base Salary
and consulting
fees
Short Term
Incentive
Superannuation
Contributions
Value of
Options (i)
$
$
$
$
Total
$
Current Directors and Key Management Personnel:
Rohan Williams
403,000
Barry Patterson
Robert Reynolds
40,000
40,000
TOTAL
483,000
-
-
-
-
35,000
162,737
600,737
3,800
3,800
5,243
5,243
49,043
49,043
42,600
173,223
698,823
Value of
Options as
Proportion of
Remuneration
%
27.1%
10.7%
10.7%
36
(i) The fair value of options is calculated at the date of grant using the Black Scholes option pricing model and
allocated to each reporting period evenly over the period from grant date to vesting date. The value disclosed in
the above tables is the portion of the fair value of the options recognised in the reporting period.
Details of Performance Related Remuneration
Total Short Term incentives paid to Directors or Key Management Personnel of the Company during the period ended
30 June 2016 was $160,000. No Short Term incentives were paid to Directors or Key Management Personnel of the
Company during the financial year ended 30 June 2015.
Options Granted as Remuneration
2016
During the 2016 financial year there were 300,000 options over unissued shares issued to the Company Director
Mr Ian Cochrane, pursuant to the Dacian Gold Limited Employee Option Plan. Details of the options issued to Mr
Cochrane are as follows:
Grant Date
Exercise price
per Option
Expiry Date
Number
of Options
Granted
Vesting Date
Total Value
of Options
Granted
26 February 2016
$2.05 each
28 February 2021
300,000 26 February 2016
$155,904
During the 2016 financial year there were 1,500,000 options over unissued shares issued to Executive Mr Grant Dyker,
pursuant to the Dacian Gold Limited Employee Option Plan. Details of the options issued to Mr Dyker are as follows:
Grant Date
Exercise price
per Option
Expiry Date
Number
of Options
Granted
Vesting Date
5 February 2016
$1.22 each
31 January 2021
750,000
31 January 2018
5 February 2016
$1.22 each
31 January 2021
375,000
31 January 2019
5 February 2016
$1.22 each
31 January 2021
375,000
31 July 2019
Total Value
of Options
Granted
$224,333
$112,166
$112,166
2015
During the 2015 financial year there were 2 million options over unissued shares issued to the Company’s Executive
Chairman Mr Rohan Williams, pursuant to the terms of his Executive Services Agreement and following shareholder
approval of the issue at the Company’s 2014 annual general meeting. Details of the options issued to Mr Williams are
as follows:
Grant Date
Exercise
price per
Option
Expiry Date
Number
of Options
Granted
Vesting Date
Total Value
of Options
Granted
18 November 2014
46 cents each
17 November 2019
2,000,000
18 November 2016
$201,320
Exercise of Options Granted as Remuneration
There were no ordinary shares issued on the exercise of options previously granted as remuneration to Directors or
Key Management Personnel of the Company during either the financial year ended 30 June 2015 or 30 June 2016.
37
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Equity instrument disclosures relating to key management personnel
Option holdings
Key Management Personnel have the following interests in unlisted options over unissued shares of the Company.
2016
Name
Balance at start
of the year
Received during
the year as
remuneration
Other changes
during the year
Balance at the
end of the year
Vested and
exercisable at
the end of the
year
R Williams
I Cochrane
R Reynolds
B Patterson
G Dyker
Share holdings
5,000,000
-
-
300,000
300,000
300,000
-
-
-
1,500,000
-
-
-
-
-
5,000,000
3,000,000
300,000
300,000
300,000
1,500,000
300,000
300,000
300,000
-
The number of shares in the Company held during the financial year by key management personnel of the Company,
including their related parties are set out below. There were no shares granted during the reporting period as
compensation.
2016
Name
R Williams
R Reynolds
B Patterson
I Cochranei
G Dykerii
Balance at start of
the year
Acquisitions
pursuant to share
placements
Other changes
during the year
Balance at the end
of the year
5,200,000
2,100,000
4,100,000
-
-
724,637
475,000
931,819
-
-
-
-
-
196,364
137,455
5,924,637
2,575,000
5,031,819
196,364
137,455
1.
Ian Cochrane was appointed as a Director of the Company on 26 February 2016. The amount of shares held
above represents his shareholdings at his date of appointment.
2. Grant Dyker was appointed as Chief Financial Officer on 4 February 2016. The amount of shares held above
represents his shareholdings at his date of appointment.
Loans made to key management personnel
No loans were made to key personnel, including personally related entities during the reporting period.
Other transactions with key management personnel
During the financial year ended 30 June 2016 there have been no other transactions with, and are no amounts owing
to or owed by Key Management Personnel.
There were no other transactions with key management personnel.
End of Remuneration Report
38
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the Auditor’s Independence Declaration as required under Section 307C of the Corporations Act is set out
on the following page.
This report is made in accordance with a resolution of the Directors.
DATED at Perth this 1st day of September 2016.
Rohan Williams
Executive Chairman
39
AUDITOR’S INDEPENDENCE
DECLARATION
Auditor’s Independence Declaration
To the Directors of Dacian Gold Limited
Level 1
10 Kings Park Road
West Perth WA 6005
Correspondence to:
PO Box 570
West Perth WA 6872
T +61 8 9480 2000
F +61 8 9322 7787
E info.wa@au.gt.com
W www.grantthornton.com.au
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead
auditor for the audit of Dacian Gold Limited for the year ended 30 June 2016, I declare that,
to the best of my knowledge and belief, there have been:
a
b
no contraventions of the auditor independence requirements of the Corporations Act
2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the
audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
C A Becker
Partner - Audit & Assurance
Perth, 1 September 2016
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
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40
CONSOLIDATED STATEMENT OF PROFIT OR
LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2016
Revenue
Total Revenue
Employee expenses
Share based employee expense
Depreciation and amortisation expenses
Corporate expenses
Occupancy expenses
Marketing expenses
Financing expenses
Consolidated
30 June 2016
30 June 2015
Note
$
$
3
3
18
10
332,412
301,561
332,412
301,561
(1,237,520)
(563,361)
(629,723)
(295,179)
(245,595)
(215,319)
(304,702)
(136,151)
(146,796)
(80,816)
(160,672)
(62,065)
(31,202)
(3,539)
Exploration costs expensed and written off
11
(19,193,656)
(7,172,023)
Administration and other expenses
Loss before income tax
(438,605)
(154,031)
(22,056,059)
(8,380,923)
Income tax benefit/(expense)
4
223,175
332,495
Net loss for the period attributable to the members
of the parent entity
Other comprehensive Income
(21,832,884)
(8,048,428)
-
-
Total comprehensive result for the period attributable
to the members of the parent entity
17
(21,832,884)
(8,048,428)
Loss per share
Basic and diluted loss per share (cents)
5
(18.5)
(8.4)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying
notes.
41
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
AS AT 30 JUNE 2016
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Other financial assets
Property, plant and equipment
Exploration and evaluation assets
Total non-current assets
Total assets
Current liabilities
Borrowings
Trade and other payables
Total current liabilities
Non-current liabilities
Provisions
Trade and other payables
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Share based payments reserve
Accumulated losses
Total equity
Consolidated
30 June 2016
30 June 2015
Note
$
$
7
8
9
10
11
12
13
14
13
15
17
17
9,648,425
4,624,894
90,123
418,034
9,738,548
5,042,928
34,211
34,211
748,125
396,225
8,131,847
8,131,847
8,914,183
8,562,283
18,652,731
13,605,211
-
18,265
3,378,228
1,437,632
3,378,228
1,455,897
1,966,676
1,914,600
48,560
-
2,015,236
1,914,600
5,393,464
3,370,497
13,259,267
10,234,714
53,515,696
29,204,822
1,321,449
774,886
(41,577,878)
(19,744,994)
13,259,267
10,234,714
The above statement of financial position should be read in conjunction with the accompanying notes.
42
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2016
Consolidated
Issued capital
Accumulated
losses
Share based
payments
reserve
$
$
$
Total
$
At 1 July 2014
29,227,606
(11,696,566)
479,707
18,010,747
Total comprehensive result for the period:
- Loss for the period
-
(8,048,428)
- Costs incurred on release of securities from escrow
(22,784)
- Movement in share based payments reserve in
respect of options vesting
-
-
-
-
-
(8,048,428)
(22,784)
295,179
295,179
At 30 June 2015
At 1 July 2015
29,204,822
(19,744,994)
774,886
10,234,714
29,204,822 (19,744,994)
774,886
10,234,714
Total comprehensive result for the period:
- Loss for the period
-
(21,832,884)
- Issue of capital from capital raising
- Issue of capital from exercise of options
25,016,818
653,500
- Costs incurred in respect of capital raised
(1,442,604)
- Movement in share based payments reserve in
respect of options vesting
- Transfer from share based payments reserve to issued
capital on exercise of options
-
83,160
-
-
-
-
-
-
-
-
-
(21,832,884)
25,016,818
653,500
(1,442,604)
629,723
629,723
(83,160)
-
At 30 June 2016
53,515,696 (41,577,878)
1,321,449
13,259,267
The above statement of changes in equity should be read in conjunction with the accompanying notes.
43
CONSOLIDATED STATEMENT OF
CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2016
Cash flows from operating activities
Interest received
Other income
Research & development tax concession income
Interest paid
Consolidated
30 June 2016
30 June 2015
Note
$
$
316,771
243,506
15,641
69,730
555,670
-
(1,623)
(3,539)
Payments for exploration and evaluation
(17,412,277)
(5,527,770)
Payments to suppliers and employees
(2,142,236)
(968,478)
Net cash used in operating activities
7
(18,668,054)
(6,186,551)
Cash flows from investing activities
Proceeds on redemption of bonds and security deposits
Payments for bonds and security deposits
Payments for plant and equipment
Net cash used in investing activities
Cash flows from financing activities
-
-
(525,564)
(525,564)
16,335
(34,211)
(65,470)
(83,346)
Proceeds from issue of share capital (net of issue costs)
24,235,414
-
Repayment of borrowings
Payments on release of securities from escrow
Net cash used in financing activities
Net increase/(decrease) in cash held
Cash at the beginning of the period
Cash at the end of the period
(18,265)
(31,310)
-
24,217,149
(22,784)
(54,094)
5,023,531
(6,323,991)
4,624,894
10,948,885
9,648,425
4,624,894
7
7
The above statement of cash flows should be read in conjunction with the accompanying notes.
44
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of preparation of financial report
These financial statements are general purpose financial statements, which have been prepared in accordance with
requirements of the Corporations Act 2001 and comply with other requirements of the law.
The accounting policies below have been consistently applied to all of the years presented unless otherwise stated.
The financial statements have been prepared on a historical cost basis, except for available for sale investments
and derivative financial instruments which have been measured at fair value. Cost is based on the fair values of
consideration given in exchange for assets.
The financial statements are presented in Australian dollars.
These financial statements have been prepared on the going concern basis.
The financial report of the Company was authorised for issue in accordance with a resolution of Directors on 1st
September 2016.
Statement of Compliance
The financial report of the Group complies with Australian Accounting Standards, which include Australian Equivalents
to International Financial Reporting Standards (AIFRS), in their entirety. Compliance with AIFRS ensures that the financial
report also complies with International Financial Reporting Standards (IFRS) in their entirety. The Company is a for profit
entity for the purpose of preparing the financial statements.
Going Concern Basis for Preparation of Financial Statements
These financial statements have been prepared on the going concern basis which contemplates the continuity of normal
business activities and the realisation of assets and discharge of liabilities in the normal course of business.
As at 30 June 2016, the Group has net current assets of $6,360,320 (2015: $3,587,031). These net current assets
are considered sufficient by the Directors to meet all current minimum exploration expenditure commitments, settle all
debts as and when they become due as well as operating cash outflows of the Group. In addition, should the Company
require, the Board are confident of raising sufficient capital to fund the short term exploration and feasibility programs
as well as fund the working capital requirements of the Group.
Material accounting policies adopted in the presentation of these financial statements are presented below:
(b) Revenue
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are
net of returns, allowances and amounts collectable on behalf of third parties.
Interest income
Interest income is recognised on a time proportion basis and is recognised as it accrues.
(c) Income Tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on
the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable
to the temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial
statements, and to unused tax losses.
45
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Income tax (continued)
Deferred tax assets and liabilities are recognised for temporary timing differences at the tax rates expected to apply
when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantially
enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable
temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary
differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised
in relation to those timing differences if they arose in a transaction, other than a business combination, that at the time
of the transaction did not affect either accounting profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax
bases of investments in controlled entities where the parent is able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and liabilities are
offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise
the asset and settle the liability simultaneously.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in
equity.
Amounts receivable from the Australian Tax Office in respect of research and development tax concession claims are
recognised as a tax benefit in the year in which the claim is lodged with the Australian Tax Office.
(d) Other Taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
• when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in
which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as
applicable; and
•
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or
payables in the statement of financial position.
(e) Financing Costs
Net financing costs comprise interest payable on borrowings calculated using the effective interest method.
Borrowing costs are expensed as incurred and included in net financing costs.
(f) Cash and Cash Equivalents
Cash and short-term deposits in the statement of financial position comprise cash at bank and in hand. Cash equivalents
are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value. For the purposes of the statement of cash flows, cash and cash equivalents
consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.
46
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(g) Trade and Other Receivables
Trade receivables, which generally have 30–90 day terms, are recognised and carried at original invoice amount less
an allowance for any uncollectible amounts. An allowance for doubtful debts is made when there is objective evidence
that the Group will not be able to collect the debts. Bad debts are written off when identified.
(h) Property, plant and Equipment
Property, plant and equipment is stated at cost, less accumulated depreciation and any accumulated impairment losses.
Such cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing the parts is
incurred. Similarly, when each major inspection is performed, its cost is recognised in the carrying amount of the asset
as a replacement only if it is eligible for capitalisation. The assets’ residual values, useful lives and amortisation methods
are reviewed, and adjusted if appropriate, at each financial year end.
Depreciation is calculated on a straight-line basis or written down value over the estimated useful life of the assets as
follows:
Office & computer equipment
25%-50% straight line
Fixtures and fittings
33% written down value
Plant and equipment
33% written down value
Motor Vehicles
33% written down value
(i) Impairment
The carrying values of property, plant and equipment are reviewed for impairment at each reporting date, with
recoverable amount being estimated when events or changes in circumstances indicate that the carrying value may
be impaired. This assessment for impairment is discussed further in note 1(j).
(ii) De-recognition and Disposal
An item of property, plant and equipment is de-recognised upon disposal or when no further future economic
benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated
as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or
loss in the year the asset is de-recognised.
(i) Exploration and Evaluation Expenditure
Exploration and evaluation costs are written off in the year they are incurred, apart from acquisition costs and those
costs that are incurred on an area of interest that contains a JORC Ore Reserve.
Capitalised exploration and evaluation expenditures in relation to specific areas of interest are recognised as an
exploration and evaluation asset in the year in which they are incurred where the following conditions are satisfied:
(i) the rights to tenure of the area of interest are current; and
(ii) at least one of the following conditions is also met:
(a) the exploration and evaluation expenditures are expected to be recouped through successful development
and exploration of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the reporting date reached a stage
which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves,
and active and significant operations in, or in relation to, the area of interest are continuing.
47
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Exploration and Evaluation Expenditure (continued)
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies,
exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation and amortisation
of assets used in exploration and evaluation activities. General and administrative costs are only included in the
measurement of exploration and evaluation costs where they are related directly to operational activities in a particular
area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying
amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the
exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated being no larger than the
relevant area of interest) is estimated to determine the extent of the impairment loss (if any). Where an impairment loss
subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount,
but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant
exploration and evaluation asset is tested for impairment and the balance is then reclassified to development.
( j)
Impairment of Assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such
indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s
recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use
and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent
of those from other assets or groups of assets and the asset’s value in use cannot be estimated to be close to its fair
value. In such cases the asset is tested for impairment as part of the cash-generating unit to which it belongs. When the
carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit
is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment
losses relating to continuing operations are recognised in those expense categories consistent with the function of the
impaired asset unless the asset is carried at re-valued amount (in which case the impairment loss is treated as a re-
valuation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is
estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to
determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying
amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount
that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior
years. Such reversal is recognised in profit or loss unless the asset is carried at the re-valued amount, in which case the
reversal is treated as a re-valuation increase.
After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying
amount, less any residual value, on a systematic basis over its remaining useful life.
48
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(k) Trade and Other Payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services
provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged
to make future payments in respect of the purchase of these goods and services.
(l)
Interest Bearing Liabilities
All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable
transaction costs.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
effective interest method. Gains and losses are recognised in profit or loss when the liabilities are derecognised.
(m) Share Based Payments
Equity Settled Transactions:
The Group provides benefits to employees (including senior executives) of the Group in the form of Options, whereby
employees render services in exchange for Options (equity-settled transactions).
The cost of these equity-settled transactions with employees is measured by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value of the Options is determined by using an appropriate
valuation model.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked
to the price of the underlying Shares to which the Option relates (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period
in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees
become fully entitled to the Option (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects:
(i) the extent to which the vesting period has expired; and
(ii) the Group’s best estimate of the number of equity instruments that will ultimately vest.
No adjustment is made for the likelihood of market performance conditions being met as the effect of these conditions is
included in the determination of fair value at grant date. The income statement charge or credit for a period represents
the movement in cumulative expense recognised as at the beginning and end of that period.
No expense is recognised for Options that do not ultimately vest, except for Options where vesting is only conditional
upon a market condition.
If the terms of an Option are modified, as a minimum an expense is recognised as if the terms had not been modified. In
addition, an expense is recognised for any modification that increases the total fair value of the Option, or is otherwise
beneficial to the employee, as measured at the date of modification.
If an Option is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet
recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled Option
and designated as a replacement award on the date that it is granted, the cancelled Option and new awards are
treated as if they were a modification of the Option, as described in the previous paragraph.
49
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(n) Share Capital
Shares are classified as equity. Incremental costs directly attributable to the issue of Shares pursuant to the Offer or
Options are shown in equity as a deduction, net of tax, from the proceeds of issue.
(o) Basis of consolidation
The financial statements consolidate those of Dacian Gold Limited and all of its subsidiaries as at 30 June 2016. The
parent controls a subsidiary if it is exposed, or has rights to variable returns from its involvement with the subsidiary
and has the ability to affect those returns through its power over the subsidiary. All subsidiaries have a reporting date
of 30 June.
All transactions and balances between controlled entities are eliminated on consolidation, including unrealised gains
and losses resulting from intra-group transactions. Where unrealised losses on intra-group asset sales are reversed on
consolidation, the underlying asset is also tested for impairment from a group perspective. Amounts reported in the
financial statements of subsidiaries have been adjusted where necessary to ensure consistency with accounting policies
adopted by the Company.
Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year are recognised
from the effective date of acquisition, or up to the effective date of disposal, as applicable.
Non-controlling interests, presented as part of equity, represent the portion of a subsidiaries profit or loss and net assets
that is not held by the Company. The company attributes total comprehensive income or loss of subsidiaries between
the owners of the parent and the non-controlling interests based on their respective ownership interests.
(p) Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the Group and that are believed to be reasonable
under the circumstances.
Accounting for capitalised mineral exploration and evaluation expenditure
The Group’s accounting policy is stated at 1(i). A regular review is undertaken of each area of interest to determine
the reasonableness of the continuing carrying forward of costs in relation to that area of interest.
Mine restoration provisions estimates
The calculation of rehabilitation and closure provisions (and corresponding capitalised closure cost assets where
necessary) rely on estimates of costs required to rehabilitate and restore disturbed land to its original condition. These
estimates are regularly reviewed and adjusted in order to ensure that the most up to date data is used to calculate these
balances.
Significant judgement is required in determining the provision for mine rehabilitation as there are many transactions
and other factors that will affect the ultimate costs required to rehabilitate the mine site. Factors that will affect this
liability include future development, changes in technology, price increases, changes in interest rates and changes in
legislation.
Currently the Group bases its mine restoration provision on information provided by the Departments of Mines and
Petroleum.
50
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(p) Critical accounting estimates and judgements (continued)
Measurement of share based payments
The Group records charges for share based payments. For option based share based payments, management estimate
certain factors used in the option pricing model. These factors include volatility and exercise date of options. If these
estimates vary the share based payment expense would have been different.
(q) Adoption of new and revised accounting standards
In the financial year ended 30 June 2016, the Group has reviewed all of the new and revised Standards and Interpretations
issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1
July 2015. It has been determined by the Group that, there is no impact, material or otherwise, of the new and revised
standards and interpretations on its business and therefore no change is necessary to Group accounting policies.
The Group has also reviewed all new Standards and Interpretations that have been issued but are not yet effective for
the financial year ended 30 June 2016. As a result of this review the Directors have determined that there is no impact,
material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change
necessary to Group accounting policies.
NOTE 2 SEGMENT INFORMATION
The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board
of Directors in assessing performance and determining the allocation of resources.
Reportable segments disclosed are based on aggregating operating segments, where the segments have similar
characteristics. The Group’s sole activity is mineral exploration wholly within Australia, therefore it has aggregated all
operating segments into the one reportable segment being mineral exploration.
The reportable segment is represented by the primary statements forming these financial statements.
51
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
NOTE 3 REVENUE AND EXPENSES
Loss for the year includes the following specific income and expenses:
Gain on disposal of assets
Other income
Interest income
Legal expenses
Insurance
Office rent
Employee expenses:
Salaries and wages
Director fees and consulting expenses
Defined contribution superannuation
Consultant expenses
Other employment expenses
Less: allocated to exploration project costs
NOTE 4
INCOME TAX
a) Income tax expense
Current income tax:
Current income tax charge (benefit)
Current income tax not recognised
Research and development tax concessioni
Deferred income tax:
Relating to origination and reversal of timing differences
Deferred income tax benefit not recognised
Income tax expense/(benefit) reported in the Statement of Profit or Loss
and Other Comprehensive Income
Year ended
30 June 2016
Year ended
30 June 2015
$
-
15,641
316,771
21,990
79,591
87,595
$
909
69,730
230,922
3,198
35,057
30,495
3,246,853
1,442,864
113,333
292,483
-
80,000
133,115
-
342,617
104,231
(2,757,766)
(1,196,849)
1,237,520
563,361
(6,451,576)
(2,195,264)
6,451,576
(223,175)
2,195,264
(332,495)
6,845,277
2,125,563
(6,845,277)
(2,125,563)
(223,175)
(332,495)
i The Research and tax concession benefit recognised in the year ended 30 June 2016 relates to an application made in respect of
qualifying expenditure incurred during the 2013 financial year and lodged with AusIndustry during the period.
52
NOTE 4
INCOME TAX (CONTINUED)
b) Reconciliation of income tax expense to prima facie tax payable
Loss from continuing operations before income tax expense
(22,056,059)
(8,380,923)
Year ended
30 June 2016
Year ended
30 June 2015
$
$
Tax at the Australian rate of 30%
(2015 – 30%)
Tax effect of permanent differences:
Non-deductible expenses
Research and development tax concession
Capital raising costs claimed
Tax effect of other differences:
(6,616,818)
(2,514,277)
189,927
(223,175)
(167,272)
88,554
(332,495)
(80,716)
Net deferred tax asset benefit not brought to account
6,594,163
2,506,439
Tax (benefit)/expense
(223,175)
(332,495)
c) Deferred tax – Statement of Financial Position
Liabilities
Prepaid expenses
Capitalised exploration expenditure
-
(2,016)
(2,115,457)
(2,439,554)
(2,115,457)
(2,441,570)
Assets
Revenue losses available to offset against future taxable income
13,633,829
7,436,385
Rehabilitation provision
Employee leave provisions
Other financial assets
Accrued expenses
Deductible equity raising costs
Net deferred tax asset/(liability)
590,003
60,094
8,874
9,069
429,675
574,380
20,815
-
18,000
162,799
14,731,544
8,212,379
12,616,087
5,770,809
Deferred tax assets have been recognised to the extent that they extinguish deferred tax liabilities of the Company as
at the reporting date.
Net deferred tax assets have not been recognised, in either reporting period, in respect of amounts in excess of
deferred tax liabilities.
53
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
Year ended
30 June 2016
Year ended
30 June 2015
$
$
NOTE 4
INCOME TAX (CONTINUED)
d) Deferred tax – Statement of Profit or Loss and Other Comprehensive Income
Liabilities
(Increase)/decrease in prepaid expenses
(Increase)/decrease in accrued income
2,016
-
(871)
3,775
(Increase)/decrease in capitalised exploration expenditure
324,097
(2,007,558)
Assets
Increase/(decrease) in revenue losses available to offset against future
taxable income
6,197,443
3,996,941
Increase/(decrease) in rehabilitation provision
Increase/(decrease) in employee leave provisions
Increase/(decrease) in other financial assets
Increase/(decrease) in accruals
Increase/(decrease) in deductible equity raising costs
15,623
39,279
8,874
(8,931)
266,876
201,201
9,850
-
(2,527)
(75,248)
Deferred tax benefit/(expense) not recognised
6,845,277
2,125,563
The deferred tax benefit of tax losses not brought to account will only be obtained if:
(i) The Company derives future assessable income of a nature and an amount sufficient to enable the benefit from the
tax losses to be realised;
(ii) The Company continues to comply with the conditions for deductibility imposed by tax legislation; and
(iii) No changes in tax legislation adversely affect the Company realising the benefit from the deduction of the losses.
All unused tax losses of $45,446,094 (2015: $24,787,951) were incurred by Australian entities.
54
NOTE 5 EARNINGS PER SHARE
a) Basic earnings per share
Loss attributable to ordinary equity holders of the Company
b) Diluted earnings per share
Loss attributable to ordinary equity holders of the Company
Year ended
30 June 2016
Year ended
30 June 2015
Cents
(18.5)
(18.5)
$
Cents
(8.4)
(8.4)
$
c) Loss used in calculation of basic and diluted loss per share
Loss after tax from continuing operations
(21,832,884)
(8,048,428)
(d) Weighted average number of shares used as the denominator
Weighted average number of shares used as the denominator in calculating
basic and dilutive loss per share
No.
No.
118,222,614
96,100,000
At 30 June 2016 the Company has on issue 13,150,000 (2014: 10,150,000) unlisted options over ordinary shares that are not
considered to be dilutive as the potential increase in shares on issue would decrease the loss per share.
NOTE 6 DIVIDENDS
No dividends were paid or proposed during the financial year ended 30 June 2015 or 30 June 2016.
The Company has no franking credits available as at 30 June 2015 or 30 June 2016.
55
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
NOTE 7 CASH AND CASH EQUIVALENTS
Cash at bank1
Deposits at call2
Year ended
30 June 2016
Year ended
30 June 2015
$
$
6,138,645
4,594,144
3,509,780
30,750
9,648,425
4,624,894
1 Cash at bank earns interest at floating rates based on daily deposit rates.
2 Short term deposits, the duration of which is dependent on the immediate cash requirements of the Group. These deposits earn
interest at the respective short term interest rates.
At 30 June 2015 or 30 June 2016 the Group had no undrawn committed borrowing facilities.
Reconciliation to the Statement of Cash Flows:
For the purposes of the Statement of Cash Flows, cash and cash equivalents comprise cash on hand and at bank and
investments in money market instruments, net of any outstanding bank overdrafts.
Cash and cash equivalents as shown in the Statement of Cash Flows is reconciled to the related items in the Statement
of Financial Position as follows:
Cash and cash equivalents
9,648,425
4,624,894
Non-cash financing and investing activities:
There have been no non-cash financing and investing activities for the year ended 30 June 2016 (30 June 2015: Nil).
Cash balances not available for use:
There are no amounts included in cash and cash equivalents not available for use as at 30 June 2016.
Other than an amount of $30,750 on deposit in respect of the Company’s corporate credit card facility there were no
amounts included in cash and cash equivalents not available for use at 30 June 2015. During the period the terms of
the facility were amended and the deposit was redeemed.
56
NOTE 7 CASH AND CASH EQUIVALENTS (CONTINUED)
Reconciliation of loss after tax to net cash outflow from operating activities:
Loss from ordinary activities after income tax
(21,832,884)
(8,048,428)
Year ended
30 June 2016
Year ended
30 June 2015
$
$
Depreciation
Share based payments expense
Movement in assets and liabilities:
(Increase)/decrease in prepaid expenses
(Increase)/decrease in accrued income
(Increase)/decrease in other receivables
Increase/(decrease) in rehabilitation provision
245,595
215,319
629,723
295,179
6,720
(2,905)
332,495
(319,911)
(5,540)
52,076
(53,950)
670,669
Increase/(decrease) in employee leave provisions
130,930
32,832
Increase/(decrease) in trade and other payables
1,772,831
1,024,644
Net cash flow from operating activities
(18,668,054)
(6,186,551)
NOTE 8 TRADE AND OTHER RECEIVABLES
Current assets
R&D Concession tax benefit receivable
Other receivables
-
90,123
332,495
85,539
90,123
418,034
The R&D concession included in the 30 June 2015 prior period comparative relates to an application made in respect
of qualifying expenditure incurred during the 2014 financial year. This amount was received from the Australian
Taxation Office during the period. The R&D concession recognised in the current period of $223,175, as referred to in
note 4 relates to qualifying expenditure incurred during the 2013 financial year. This amount was also received from
the Australian Taxation Office during the period.
The Group has no trading activity and as such has no trading receivables. The Group does not consider any of its
current receivables to be subject to impairment.
57
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
NOTE 9 OTHER FINANCIAL ASSETS
Non-current assets
Security Bonds and Deposits:
Balance at the start of the financial year
Bonds redeemed during the financial year
Bonds paid during the financial year
Year ended
30 June 2016
Year ended
30 June 2015
$
$
34,211
-
-
16,335
(16,335)
34,211
34,211
34,211
Other financial assets at 30 June 2016 represent a security deposit of $34,211 in respect of the Company’s lease of
its Perth administration office.
NOTE 10 PROPERTY, PLANT AND EQUIPMENT
Carrying values
Office and computer equipment:
232,758
(177,399)
55,359
940,661
(528,959)
411,702
83,709
(43,834)
39,875
272,572
(143,345)
129,227
111,962
748,125
182,904
(124,892)
58,012
629,427
(396,170)
233,257
70,082
(26,516)
43,566
161,753
(100,363)
61,390
-
396,225
Cost
Depreciation
Plant and equipment:
Cost
Depreciation
Fixtures and fittings:
Cost
Depreciation
Motor vehicles:
Cost1
Depreciation
Work in progress:
Cost
58
NOTE 10 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Year ended
30 June 2016
Year ended
30 June 2015
$
$
Reconciliation of movements
Office and computer equipment:
Opening net book value
Additions
Depreciation
Plant and equipment:
Opening net book value
Additions
Depreciation
Fixtures and Fitting:
Opening net book value
Additions
Depreciation
Motor Vehicles:
Opening net book value
Additions
Depreciation
Work in Progress:
Additions
58,012
49,854
(52,507)
55,359
233,257
311,234
(132,789)
411,702
43,566
13,627
(17,318)
39,875
61,390
110,818
(42,981)
129,227
111,962
111,962
91,587
25,163
(58,738)
58,012
348,145
-
(114,888)
233,257
14,715
40,307
(11,456)
43,566
91,627
-
(30,237)
61,390
-
-
1 Included in the net book value of motor vehicles as at 30 June 2015 of $61,390 are assets secured under finance leases of
$49,098. The Group had no assets secured under finance lease at 30 June 2016. Details of finance lease liabilities are included
at note 12 and note 20b.
748,125
396,225
59
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
Year ended
30 June 2016
Year ended
30 June 2015
$
$
NOTE 11 DEFERRED EXPLORATION AND EVALUATION EXPENDITURE
Deferred exploration costs at the start of the financial year
Exploration and evaluation costs incurred
Movement in provision for rehabilitation costs1
8,131,847
19,141,580
52,076
8,131,847
6,501,354
670,669
Exploration and evaluation costs expensed and written off
(19,193,656)
(7,172,023)
8,131,847
8,131,847
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phase is
dependent upon the successful development or commercial exploitation of the respective areas.
1 The Group reviews its estimate for likely rehabilitation costs on an annual basis, and recognises the change in the resulting
provision as an expense in the Statement of Profit or Loss and Other Comprehensive Income in line with the accounting policy for
exploration and evaluation expenditure. Refer note 14 for details of the provision at the balance sheet date.
NOTE 12 BORROWINGS
Current liabilities
Finance lease due within 12 months
Non-current liabilities
Finance leases due after 12 months
-
-
18,265
-
The Group had no borrowings at 30 June 2016. Included in borrowings as at 30 June 2015 are amounts of $18,265
owing in respect of finance lease liabilities in respect of the acquisition of motor vehicles included as assets of the
Group.
See Note 19 for financial instrument disclosures relating to borrowings.
There are no other financing facilities available to the Group as at 30 June 2016 (30 June 2015: Nil).
60
NOTE 13 TRADE AND OTHER PAYABLES
Current liabilities
Trade and other payables
Accrued expenses
Employee leave liabilities
Non-current liabilities
Employee leave liabilities
Year ended
30 June 2016
Year ended
30 June 2015
$
$
2,665,370
1,308,248
561,105
151,753
60,000
69,384
3,378,228
1,437,632
48,560
-
Trade payables are non-interest bearing and normally settled on 30 day terms. See Note 19 for financial instrument
disclosures relating to trade and other payables.
NOTE 14 PROVISIONS
Non-current liabilities
Rehabilitation provision
1,966,676
1,914,600
The rehabilitation provision relates to the estimated obligations in relation to the environmental rectification works at
the Mt Morgans Gold Project.
Reconciliation of movements in Rehabilitation Provision:
Balance at the start of the financial year
Increase/(decrease) in rehabilitation provision during the financial year
(note 11)
1,914,600
1,243,931
52,076
670,669
Balance at the end of the financial year
1,966,676
1,914,600
NOTE 15
ISSUED CAPITAL
a) Ordinary shares
The Company is a public company limited by shares. The Company was incorporated in Perth, Western Australia. The
Company’s shares are limited whereby the liability of its members is limited to the amount (if any) unpaid on the shares
respectively held by them.
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in
proportion to the number of and amounts paid on the shares held. On a show of hands every holder of ordinary shares
present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.
Ordinary shares have no par value. There is no limit to the authorised share capital of the Company.
61
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
NOTE 15
ISSUED CAPITAL (CONTINUED)
2016
No.
2015
No.
2016
$
2015
$
133,306,254
96,100,000
53,515,696
29,204,822
b) Share capital
Issued share capital
c) Share movements during the year
Balance at the start of the financial year
96,100,000
96,100,000
29,204,822
29,227,606
Share issue
Exercise of options
Less share issue costs
36,256,254
950,000
-
-
-
-
25,016,818
736,660
-
-
(1,442,604)
(22,784)
Balance at the end of the financial year
133,306,254
96,100,000
53,515,696
29,204,822
During the period the Company issued 36,256,254 ordinary fully paid shares at 69 cents per share pursuant to a
fully underwritten accelerated institutional and retail non-renounceable entitlement offer and share placement raising
approximately $25 million before costs.
d) Option plan
Information relating to the Dacian Gold Limited Employee Option Plan is set out in note 18.
NOTE 16 OPTIONS
Options on issue at the start of the financial year
Options issued
Options exercised
30 June 2016
30 June 2015
No
No
10,150,000
3,950,000
(950,000)
7,150,000
3,000,000
-
13,150,000
10,150,000
62
NOTE 16 OPTIONS (CONTINUED)
a) Options issued during the year
During the financial year the Company issued 3,950,000 options over unissued shares (2015: 3,000,000), as follows:
Options issued to:
Number of options
Exercise price
Expiry date
An officer and employees of the Company
pursuant to the Dacian Gold Limited
Employee Option Plan
An officer and employees of the Company
pursuant to the Dacian Gold Limited
Employee Option Plan
A Director of the Company pursuant to the
Dacian Gold Limited Employee Option
Plan
An employee of the Company pursuant
to the Dacian Gold Limited Employee
Option Plan
b) Options exercised during the year
1,500,000
$1.22
30 September 2020
1,650,000
$1.22
31 January 2021
300,000
$2.05
28 February 2021
500,000
$3.72
30 June 2021
During the financial year the Company issued 950,000 shares on the exercise of options (2015: Nil).
c) Options on issue at the balance date
The number of options outstanding over unissued ordinary shares at 30 June 2016 is 13,150,000 (2015: 10,150,000).
The terms of these options are as follows:
Number of options outstanding
Exercise price
Expiry date
5,700,000
500,000
1,000,000
2,000,000
1,500,000
1,650,000
300,000
500,000
83 cents
56 cents
64 cents
45 cents
$1.22
$1.22
$2.05
$3.72
9 October 2017
28 February 2019
24 September 2019
17 November 2019
30 September 2020
31 January 2021
28 February 2021
30 June 2021
e) Subsequent to the balance date
No options have been granted subsequent to the balance date and to the date of signing this report.
Subsequent to balance date and to the date of signing this report 300,000 options have been exercised at 83 cents
per share.
63
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
NOTE 16 OPTIONS (CONTINUED)
(f) Reconciliation of movement of options over unissued shares during the period including weighted
average exercise price (WAEP)
2016
2015
No. WAEP (cents)
No. WAEP (cents)
Options outstanding at the start of the yeari
10,150,000
71.0
7,150,000
Options granted during the year
3,950,000
159.6
3,000,000
Options exercised during the year
(950,000)
68.8
-
Options outstanding at the end of the year
13,150,000
97.7
10,150,000
80.2
52.3
-
72.0
i Number and WAEP of options outstanding at 1 July 2015 has been adjusted in accordance with the terms and conditions of the
Dacian Gold Limited Employee Option Plan. Details of the adjustment are noted below.
Adjustment to exercise price of unlisted options
As a result of the Company undertaking a pro rata entitlement offer of securities which was completed on 1 December
2015, the exercise price of a number of classes of options over unissued shares in the Company issued prior to the
offer has been recalculated.
The resulting reduction in exercise price, reflected in the table below, was calculated in accordance with the terms and
conditions of the options on issue and the Company’s employee share option plan. Further details of the Dacian Gold
Limited Employee Option Plan are included at note 18.
Date granted
Number of options
Expiry date
Original
exercise price
Amended
exercise price
9 October 2012
6,150,000
9 October 2017
28 February 2014
1,000,000
28 February 2019
25 September 2014
1,000,000
24 September 2019
18 November 2014
2,000,000
17 November 2019
5 October 2015
1,500,000
30 September 2020
84 cents
57 cents
65 cents
46 cents
$1.22
83 cents
56 cents
64 cents
45 cents
$1.21
Please note that any vesting conditions in relation to the options on issue remain unchanged.
(g) Weighted average contractual life
The weighted average contractual life for un-exercised options is 33 months (2015: 30 months).
64
NOTE 17 ACCUMULATED LOSSES AND RESERVES
2016
2015
Accumulated
losses
Share based
payments
reserve (i)
Accumulated
losses
Share based
payments
reserve (i)
$
$
$
$
Balance at the beginning of the year
(19,744,994)
774,886
(11,696,566)
479,707
Loss for the period
(21,832,884)
-
(8,048,428)
Transfer from share based payments reserves to
issued capital on exercise of options
Share based payments for the period
-
-
(83,160)
629,723
-
-
-
-
295,179
Balance at the end of the year
(41,577,878)
1,321,449
(19,744,994)
774,886
(i) The share based payments reserve is used to recognise the fair value of options issued but not exercised.
NOTE 18 SHARE BASED PAYMENTS
During the financial year 3,950,000 options over unissued shares were issued pursuant to the Company’s Employee
Share Option Plan. These options have been valued and included in the financial statements over the periods that they
vest. The share based payments expense for the period of $629,723 (30 June 2015: $295,179) relates to the fair
value of options apportioned over their respective vesting periods.
Basis and assumptions used in the valuation of options.
The options issued during the year were valued using the Black-Scholes option valuation methodology.
Date granted
Number
of options
granted
Exercise
price
(cents)
Expiry date
Risk free
interest rate
used
Volatility
applied
Value per
Option
(cents)
5 October 2015
1,500,000
5 February 2016
1,650,000
26 February 2016
28 June 2016
300,000
500,000
122
122
205
372
30 September 2020
31 January 2021
28 February 2021
30 June 2021
2.06%
2.00%
2.00%
1.75%
65%
60%
60%
60%
25.10
29.91
51.97
88.92
Historical volatility has been used as the basis for determining expected share price volatility. A discount of 30% in
respect of a lack of marketability has been applied to the Black-Scholes option valuation to reflect the non-negotiability
and non-transferability of the unlisted options granted.
65
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
NOTE 18 SHARE BASED PAYMENTS (CONTINUED)
Dacian Gold Limited Employee Option Plan
The establishment of the Dacian Gold Limited Employee Option Plan (‘the Plan”) was last approved by a resolution of
the shareholders of the Company on 16 November 2015. All eligible Directors, executive officers and employees of
Dacian Gold Limited who have been continuously employed by the Company are eligible to participate in the Plan.
The Plan allows the Company to issue free options to eligible persons. The options can be granted free of charge and
are exercisable at a fixed price in accordance with the Plan. Options issued under the Plan have vesting periods prior
to exercise, except under certain circumstances whereby options may be capable of exercise prior to the expiry of the
vesting period.
During the financial year ended 30 June 2016, 3,950,0000 (30 June 2015: 3,000,000) options over unissued shares
were issued to a Director and employees, pursuant to the terms of the Dacian Gold Limited Employee Share Option
Plan.
NOTE 19 FINANCIAL INSTRUMENTS
The Group has exposure to a variety of risks arising from its use of financial instruments. This note presents information
about the Group’s exposure to the specific risks, and the policies and processes for measuring and managing those
risks. The Board of Directors has the overall responsibility for the risk management framework and has adopted a Risk
Management Policy.
(a) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from transactions with customers and investments.
Trade and other receivables
The nature of the business activity of the Group does not result in trading receivables. The receivables that the Company
does experience through it’s normal course of business are short term and the most significant recurring by quantity is
receivable from the Australian Taxation Office, the risk of non-recovery of receivables from this source is considered to
be negligible.
Cash deposits
The Directors believe any risk associated with the use of predominantly only one bank is addressed through the use of at
least an A-rated bank as a primary banker and by the holding of a portion of funds on deposit with alternative A-rated
institutions. Except for this matter the Group currently has no significant concentrations of credit risk.
The Directors do not consider that the Group’s financial assets are subject to anything more than a negligible level of
credit risk, and as such no disclosures are made.
(b) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet
its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company’s reputation.
The Group manages its liquidity risk by monitoring its cash reserves and forecast spending. Management is cognisant of
the future demands for liquid finance resources to finance the Group’s current and future operations, and consideration
is given to the liquid assets available to the Group before commitment is made to future expenditure or investment.
66
NOTE 19 FINANCIAL INSTRUMENTS (CONTINUED)
(b) Liquidity risk (continued)
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding
the impact of netting agreements:
Carrying
amount
Contractual
cash flows
6 months
or less
6-12
months
1-2
years
2-5
years
More
than 5
years
$
$
$
$
$
$
$
2016
Trade and other payables
2,665,370
2,665,370 2,665,370
2,665,370
2,665,370 2,665,370
2015
Trade and other payables
1,308,248
1,308,248
1,308,248
-
-
-
Finance lease liabilities
18,265
19,886
17,046
2,840
1,326,513
1,328,134
1,325,294
2,840
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(c) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will
affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while optimising any return.
Interest rate risk
The Group has significant cash assets which may be susceptible to fluctuations in changes in interest rates. Whilst the
Company requires the cash assets to be sufficiently liquid to cover any planned or unforeseen future expenditure, which
prevents the cash assets being committed to long term fixed interest arrangements; the Group does mitigate potential
interest rate risk by entering into short to medium term fixed interest investments.
The Group does not have any direct contact with foreign exchange or equity risks other than their effect on the general
economy.
At the reporting date the interest profile of the Group’s interest-bearing financial instruments was:
Fixed rate instruments
Financial assets
Variable rate instruments
Financial assets
Carrying amount ($)
30 June
2016
30 June
2015
3,509,780
-
6,138,645
4,624,894
67
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
NOTE 19 FINANCIAL INSTRUMENTS (CONTINUED)
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) equity and profit
or loss by the amounts shown below. This analysis assumes that all other variables remain constant.
Profit or loss
Equity
1%
increase
1%
decrease
1%
increase
1%
decrease
2016
Fixed & variable rate instruments
96,484
(96,484)
96,484
(96,484)
2015
Fixed & variable rate instruments
46,249
(46,249)
46,249
(46,249)
(d) Fair values
Fair values versus carrying amounts
The fair values of financial assets and liabilities, together with the carrying amounts shown in the balance sheet are as
follows:
2016
Carrying
amount
Fair value
2015
Carrying
amount
Fair value
$
$
$
$
Cash and cash equivalents
Trade and other receivables
Borrowings
9,648,425
9,648,425
4,624,894
4,624,894
90,123
90,123
-
-
418,034
(18,265)
418,034
(18,265)
Trade and other payables
(2,665,370)
(2,665,370)
(1,308,248)
(1,308,248)
Net financial assets
7,073,178
7,073,178
3,716,415
3,716,415
(e) Impairment losses
The Directors do not consider that any of the Group’s financial assets are subject to impairment at the reporting date.
No impairment expense or reversal of impairment charge has occurred during the reporting period, other than the write
off of deferred exploration assets at note 11.
68
NOTE 20 COMMITMENTS
(a) Operating lease commitments:
Due within 1 year
Due after 1 year but not more than 5 years
Due after more than 5 years
Year ended
30 June 2016
Year ended
30 June 2015
$
$
97,680
41,400
-
92,082
135,584
-
139,080
227,666
The operating lease commitment relates to the lease of the Group’s Perth office and car parking for a 36 month term
from 1 December 2014. The lease includes an option to extend for an additional 3 year period following expiry of the
initial lease term on 30 November 2017.
(b) Finance lease commitments:
Finance lease arrangements in respect of the purchase of 2 vehicles were fully repaid at the end of the financial year,
see Note 12.
Details of the cash obligations in relation to the finance leases are included at note 19b.
Due within 1 year
Due after 1 year but not more than 5 years
Due after more than 5 years
-
-
-
-
18,265
-
-
18,265
Finance lease liabilities are secured over the underlying assets, see Note 10.
(c) Capital commitments:
The Company has no capital commitments contracted for at 30 June 2016 (30 June 2015: Nil).
(d) Exploration commitments
The Group has certain obligations for payment of tenement rent, shire rates and to perform minimum exploration work
on mineral leases held. These obligations may vary over time, depending on the Group’s exploration programmes and
priorities. At 30 June 2016, the Group had satisfied all of its exploration commitments pursuant to the leases, which are
currently approximately $3,138,118 per annum.
69
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
NOTE 21 CONTINGENCIES
Contingent liabilities
Other than the below there are no material contingent liabilities at the reporting date.
The Company must pay Macquarie Bank a royalty of 1% of gross revenue earned on 491,617 troy ounces of gold
produced on the Tenements and sold to an offtaker.
Contingent assets
There are no material contingent assets at the reporting date.
NOTE 22 RELATED PARTY DISCLOSURES
Other than the key management personnel related party disclosure in the Remuneration Report and in note 23, there
are no related party transactions to report.
NOTE 23 KEY MANAGEMENT PERSONNEL
(a) Directors and key management personnel
The following persons were Directors or Key Management Personnel of the Company during the current and prior
financial year:
Rohan Williams
Executive Chairman
Robert Reynolds
Non-Executive Director
Barry Patterson
Non-Executive Director
Ian Cochrane
Non-Executive Director
Grant Dyker
Chief Financial Officer
There were no other persons employed by or contracted to the Company during the financial year, having responsibility
for planning, directing and controlling the activities of the Company, either directly or indirectly.
(b) Key management personnel compensation
Details of key management personnel remuneration are contained in the Audited Remuneration Report in the Directors’
Report. A summary of total compensation paid to key management personnel during the year is as follows:
2016
$
793,001
373,840
56,849
1,223,690
2015
$
483,000
173,223
42,600
698,823
Total short-term employment benefits
Total share based payments
Total post-employment benefits
70
NOTE 24 EVENTS SUBSEQUENT TO THE REPORTING DATE
There has not arisen in the interval between the end of the reporting period and the date of this report, any item,
transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company to affect
substantially the operations of the Company, the results of those operations or the state of affairs of the Company in
subsequent financial years.
NOTE 25 AUDITORS REMUNERATION
Total remuneration paid to auditors during the financial year:
Audit and review of the Company’s financial statements
Other services
Total
NOTE 26 CONTROLLED ENTITIES
Parent Entity
Dacian Gold Limited
Subsidiaries
Dacian Gold Mining Pty Ltdi
Mt Morgans WA Mining Pty Ltdi
Year ended
30 June 2016
Year ended
30 June 2015
$
$
32,251
-
32,251
32,978
-
32,978
Ownership Interest
2016
%
100
100
2015
%
-
-
i During the year on 26 April 2016, these companies were incorporated. They are fully owned subsidiaries of the Company. The
entities were dormant at 30 June 2016.
71
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
NOTE 27 PARENT ENTITY
Financial statements and notes for Dacian Gold Limited, the legal parent entity are provided below;
Financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Shareholders equity
Issued capital
Share based payments reserve
Accumulated losses
Total equity
Financial performance
Loss for the year
Other comprehensive income/)loss)
Total comprehensive loss
Parent
30 June 2016
30 June 2015
$
$
9,738,548
8,914,183
5,042,928
8,562,283
18,652,731
13,605,211
3,378,228
2,015,236
5,393,464
1,455,897
1,914,600
3,370,497
53,515,696
29,204,822
1,321,449
774,886
(41,577,878)
(19,744,994)
13,259,267
10,234,714
(21,832,884)
(8,048,428)
-
-
(21,832,884)
(8,048,428)
The contingent liabilities and commitments of the parent entity are consistent with those disclosed in the financial report.
72
DIRECTORS’ DECLARATION
FOR THE YEAR ENDED 30 JUNE 2016
In the opinion of the Directors of Dacian Gold Limited (the ‘Company’):
a. The accompanying financial statements and notes of the Company and of the consolidated entity are in
accordance with the Corporations Act 2001, including:
i.
ii.
give a true and fair view of the Company’s and consolidated entity’s financial position as at 30 June
2016 and of its performance for the year then ended; and
comply with Australian Accounting Standards, the Corporations Regulations 2001, professional
reporting requirements and other mandatory requirements.
b. There are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
c. The financial statements and notes thereto are in accordance with International Financial Reporting Standards
issued by the International Accounting Standards Board.
This declaration has been made after receiving the declarations required to be made to the Directors in accordance
with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2016.
This declaration is signed in accordance with a resolution of the Board of Directors.
DATED at Perth this 1st day of September 2016.
Rohan Williams
Executive Chairman
73
INDEPENDENT AUDITOR’S REPORT
Independent Auditor’s Report
To the Members of Dacian Gold Limited
Level 1
10 Kings Park Road
West Perth WA 6005
Correspondence to:
PO Box 570
West Perth WA 6872
T +61 8 9480 2000
F +61 8 9322 7787
E info.wa@au.gt.com
W www.grantthornton.com.au
Report on the financial report
We have audited the accompanying financial report of Dacian Gold Limited (the
“Company”), which comprises the consolidated statement of financial position as at 30 June
2016, the consolidated statement of profit or loss and other comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for
the year then ended, notes comprising a summary of significant accounting policies and
other explanatory information and the directors’ declaration of the consolidated entity
comprising the Company and the entities it controlled at year’s end or from time to time
during the financial year.
Directors’ responsibility for the financial report
The Directors of the Company are responsible for the preparation of the financial report
that gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001. The Directors’ responsibility also includes such internal control as
the Directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or
error. The Directors also state, in the notes to the financial report, in accordance with
Accounting Standard AASB 101 Presentation of Financial Statements, the financial
statements comply with International Financial Reporting Standards.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We
conducted our audit in accordance with Australian Auditing Standards. Those standards
require us to comply with relevant ethical requirements relating to audit engagements and
plan and perform the audit to obtain reasonable assurance whether the financial report is
free from material misstatement.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm
is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and
are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current
scheme applies.
74
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the financial
report, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the
Company’s preparation of the financial report that gives a true and fair view in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Company’s internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Directors, as well as evaluating the
overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the
Corporations Act 2001.
Auditor’s opinion
In our opinion:
a
b
the financial report of Dacian Gold Limited is in accordance with the Corporations
Act 2001, including:
i
ii
giving a true and fair view of the consolidated entity’s financial position as at 30
June 2016 and of its performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations
Regulations 2001; and
the financial report also complies with International Financial Reporting Standards as
disclosed in the notes to the financial statements.
Report on the remuneration report
We have audited the remuneration report included in pages 33 to 38 of the directors’ report
for the year ended 30 June 2016. The Directors of the Company are responsible for the
preparation and presentation of the remuneration report in accordance with section 300A of
the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration
report, based on our audit conducted in accordance with Australian Auditing Standards.
75
INDEPENDENT AUDITOR’S REPORT
Auditor’s opinion on the remuneration report
In our opinion, the remuneration report of Dacian Gold Limited for the year ended 30 June
2016, complies with section 300A of the Corporations Act 2001.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
C A Becker
Partner - Audit & Assurance
Perth, 1 September 2016
76
ASX ADDITIONAL INFORMATION
Pursuant to the Listing Requirements of the Australian Securities Exchange, the shareholder information set out below
was applicable as at 24 August 2016.
A. DISTRIBUTION OF EQUITY SECURITIES
Analysis of numbers of shareholders by size of holding:
Distribution
Number of Shareholders
Securities Held
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
More than 100,000
TOTALS
517
480
171
319
81
1,568
There are 63 shareholders holding less than a marketable parcel of ordinary shares.
264,097
1,281,015
1,365,068
10,253,230
120,442,844
133,606,254
B. SUBSTANTIAL SHAREHOLDERS
An extract of the Company’s Register of Substantial Shareholders (who hold 5% or more of the issued capital) is set
out below:
Shareholder Name
Number of Shares
% of Shares
BANK OF NOVA SCOTIA
COMMONWEALTH BANK OF AUSTRALIA
10,850,000
8,011,497
8.18%
6.00%
77
ASX ADDITIONAL INFORMATION
C. TWENTY LARGEST SHAREHOLDERS
Shareholder Name
Number of
Shares
% of Shares
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
J P MORGAN NOMINEES AUSTRALIA LIMITED
TODTONA PTY LTD
VITESSE PTY LTD
POLLY PTY LTD
SGJ INVESTMENTS PTY LTD
SANPOINT PTY LTD
DALRAN PTY LTD
REDLAND PLAINS PTY LTD
KINGARTH PTY LTD
ARIKI INVESTMENTS PTY LIMITED
REDASO PTY LTD
NATIONAL NOMINEES LIMITED
ROGO INVESTMENTS PTY LIMITED
CAUTIOUS PTY LTD
BNP PARIBAS NOMS PTY LTD
SANDHURST TRUSTEES LTD
MR KENNETH JOSEPH HALL
KINGARTH PTY LTD
TOTALS
D. VOTING RIGHTS
23,478,841
11,660,960
11,235,035
5,381,819
5,100,000
5,031,819
5,031,819
4,800,000
4,666,608
4,163,298
4,100,000
3,909,727
3,067,473
2,965,245
2,575,000
2,351,819
1,389,964
1,255,170
1,227,273
1,130,682
17.57
8.73
8.41
4.03
3.82
3.77
3.77
3.59
3.49
3.12
3.07
2.93
2.30
2.22
1.93
1.76
1.04
0.94
0.92
0.85
104,522,552
78.23
In accordance with the Company’s Constitution, voting rights in respect of ordinary shares are on a show of hands
whereby each member present in person or by proxy shall have one vote and upon a poll, each share will have one
vote.
E. RESTRICTED SECURITIES
The Company has no restricted securities.
78
TENEMENT SCHEDULE
AS AT 24TH AUGUST 2016
Tenement
Type
Tenement
Status
Location
Ownership
E
E
E
E
E
E
E
E
E
E
G
G
G
G
G
G
L
L
L
L
L
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
39/1950
39/1951
39/1952
39/1967
38/2951
39/1310
39/1713
39/1714
39/1715
39/1787
39/0001
39/0002
39/0003
39/0004
39/0005
39/0006
39/0010
39/0057
39/0244
39/0245
39/0246
38/0395
38/0396
38/0548
38/0595
38/0848
39/0018
39/0036
39/0208
39/0228
39/0236
39/0240
39/0248
39/0250
39/0261
39/0264
39/0272
39/0273
39/0282
39/0287
Application
Application
Application
Application
Granted
Granted
Granted
Application
Application
Application
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Application
Application
Application
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Lake Carey WA
Lake Carey WA
Lake Carey WA
Lake Carey WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
79
TENEMENT SCHEDULE
AS AT 24TH AUGUST 2016
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Application
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Location
Ownership
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Tenement
Type
Tenement
39/0291
39/0295
39/0304
39/0305
39/0306
39/0333
39/0380
39/0390
39/0391
39/0392
39/0393
39/0394
39/0395
39/0403
39/0441
39/0442
39/0443
39/0444
39/0497
39/0501
39/0502
39/0503
39/0504
39/0513
39/0745
39/0746
39/0747
39/0799
39/0937
39/0938
39/0993
39/1107
38/4093
38/4094
38/4095
39/4800
39/4801
39/4807
39/4808
39/4810
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
P
P
P
P
P
P
P
P
80
Tenement
Type
Tenement
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
39/4811
39/4812
39/4813
39/4814
39/4815
39/5358
39/5359
39/5360
39/5361
39/5362
39/5363
39/5364
39/5365
39/5366
39/5367
39/5368
39/5369
39/5370
39/5371
39/5372
39/5374
39/5375
39/5377
39/5378
39/5379
39/5380
39/5381
39/5382
39/5383
39/5384
39/5385
39/5386
39/5387
39/5388
39/5389
39/5390
39/5391
39/5392
39/5393
39/5394
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Location
Ownership
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
81
TENEMENT SCHEDULE
AS AT 24TH AUGUST 2016
Tenement
Type
Tenement
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
39/5425
39/5426
39/5427
39/5461
39/5469
39/5475
39/5476
39/5477
39/5478
39/5479
39/5490
39/5491
39/5492
39/5493
39/5494
39/5498
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Application
Location
Ownership
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Mt Morgans WA
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
Dacian Gold Ltd (100%)
82
www.daciangold .com. au