Dacian Gold Ltd (ASX: DCN)

With Gold continuing its uptrend streak boosted by the slip in US dollar while global equities find some stability, safe haven gold stocks have been under discussion. Up 2% from the recent one-month low level of $US1306.81 an ounce, gold seems to be bringing some respite for its investors. While not all gold stocks have surged again, one small-cap that has been moving with the market trend is Dacian Gold, which is also tracking well at group-level in terms of its target for 2018.
 
Confirmed Cameron Well Prospect is the third significant gold discovery: Dacian Gold stock initially rose 2.55% on February 14, 2018 before settling with a 2.2% rise after the company announced an excellent Reverse Circulation (RC) drilling results, confirming the Cameron Well Prospect being the third significant gold discovery at its 100% owned Mt Morgans Gold Project. The RC drilling has now intersected good widths and grades of shallow oxide mineralisation over an area of 1.5km by up to 1km. DCN has also commenced a 16,000m RC program targeting a maiden oxide Mineral Resource at Cameron Well. The group also revealed that at least four bedrock structures have been discovered below the extensive oxide gold mineralisation. The company had started collecting Feasibility Study data that will be used in assessing the potential for oxide Ore Reserves at Cameron Well. DCN targets to announce a maiden Ore Reserve by the middle of the year. On the other hand, DCN is now less than seven weeks away from first gold production at its 200,000ozpa, 100%?owned Mt Morgans Gold Project, located near Laverton in Western Australia.
 
As a result, DCN stock has risen 26.61% in three months as on February 13, 2018. Based on the foregoing and the price run-up, we give a “Hold” recommendation on the stock at the current price of $2.82
 

Cameron Well Anomaly (Source: Company Reports)

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