Dacian Gold has reached a major milestone at its Mt Morgans project in the northern Goldfields, with a bumper end to 2018 tipping it into commercial production.

The mine near Laverton produced 37,930 ounces of gold in the December quarter, an increase of 30 per cent from the previous three-month period, meeting Dacian’s end-of-year production rate target.

Dacian said it would progressively increase production levels through the rest of the financial year, with mining rates across the operation achieving feasibility study design levels during the quarter. 

Underground mining is now under way across all three declines at Westralia’s Beresford South, Beresford North and Allanson sites. Higher-grade ore at the Jupiter open pit is due to be mined later in the March quarter.

The 200,000ozpa operation is targeting all-in sustaining cost of US$(716) $1000/oz with an initial ore reserve of 1.4 million ounces.

Dacian executive chairman and chief executive Rohan Williams said it had been an “outstanding” quarter. 

“We are pleased to have achieved this important milestone, exactly when we said we would,” Mr Williams said.

“This ramp-up is in line with our stated objective of materially increasing quarterly production levels over the course of FY2019.”