MEDIA RELEASE
6 AUGUST 2007
MONARCH GOLD CONTINUES
EXPANSION
Monarch Gold Mining Company (ASX / DIFX: MON)
today announced it had extended its land holding in the Kalgoorlie region, with the acquisition of
the Riverina Gold project.
Monarch has acquired the highly prospective
tenements from Riverina Resources Pty Limited and Barra Resources Limited,
under a deal that will involve 15 million ordinary Monarch shares, and five
million options.
The Riverina Gold Project is contiguous to
Monarch’s Davyhurst project and 40km from the processing plant. It covers
135 square km of granted mining leases, prospecting licenses and exploration
licenses and contains Indicated and Inferred gold resources totalling 1.64
million tonnes @ 3.8g/t Au for 200,000 ounces. The near surface resource
deposits are amendable to open pit mining and hauling to Davyhurst.
Monarch Chairman Michael Kiernan said the
addition of the Riverina Project bolstered the Monarch resource base.
“Recent optimisation studies conducted
support open pit mining with strong positive cash flow opportunities, with
potential to further develop high grade underground resources,” Mr
Kiernan said.
“The tenements lie immediately to the
north of Monarch’s refurbished Davyhurst mill within easy hauling
distance, and present an immediate increase in potential throughput.”
“Riverina is a natural strategic and
logistical fit within Monarch, and keeps us well on track to achieve the goal
of becoming a 500,000 ounce per annum by December 2009.”
“The acquisition further cements our
position as having the largest independently owned land position in the WA
Goldfields,” Mr Kiernan said.
Riverina Resources Pty Limited and Barra
Resources Limited will retain rights for nickel exploration on the tenements.
For further information, please contact:
Michael Kiernan
Warrick
Hazeldine
Chairman - Monarch Gold
Purple Communications
Tel: 08 9481 6422
Tel: +61
(0)8 9485 1254
Mob: 0417 944 616
Background
The Company has a resource base of more than
2.4 million ounces, two state-of-the-art gold treatment plants, and has
dominant ground positions in the prolific gold mining region to the north-west
of Kalgoorlie.
Monarch now has the largest
Australian-controlled ground position in the Kalgoorlie region.
The company has laid the foundations for its
growth as a mid-tier Australian gold production company. Key assets include the
Davyhurst Gold project, the Minjar Gold project, the ground package surrounding
the historic Bellevue Gold Mine near Leinster, together with the Siberia Mining
Corporation Limited merger, which provided access to Siberia
1.2 million ounce resource base.
Monarch remains firmly on track with its
production targets, with mining commenced at the Davyhurst project and mining
of the first ore at Monarch’s Mt Ida project expected in mid August.
Refurbishment of the Davyhurst Mill is on schedule, with supporting
infrastructure already in place.
Monarch is on the cusp of production at
Davyhurst with the mill started-up in July, head grade of 5.3g/t Au and the
first gold to be poured in early August.
Growth Strategy
Monarch’s growth strategy is focused on
four potential production centres in Western
Australia:
Davyhurst - gold resources of
over 2m oz within a 2,000 sq km tenement package and 1.2mtpa gold processing
facility (+1.2Moz historic production)
Mt Ida - resources are
stated as 143,000t at 24.0 g/t containing 110,650 ounces of gold within four
areas - the Baldock, Whinnen, Meteor and Timoni deposits. Monarch will commence
mining gold in August 2007.
Minjar - gold resources of
over 400,000oz within a 1,722 sq km tenement package and 600,000tpa gold
processing facility (+120,000oz historic production)
Bellevue - gold resources of
120,000oz associated with the historic Bellevue Gold Mine, one of WA’s
premier gold operations (750,000oz historic production)
Monarch’s strategy has been to capture
opportunities for the consolidation of gold development assets which have not
in the past realised their full potential, either due to a lack of capital or
to limited exploration.
Monarch is focussed on gold production, with a
target to be producing 500,000oz per annum by December 2009.
For further information visit: www.monarchgold.com.au
So far as it relates to ore and mineralisation, this report is based on
information compiled by John Davis, who is a Member of the Australian Institute
of Mining and Metallurgy and the Australian Institute of Geoscientist. Mr Davis
has sufficient experience which is relevant to the style of the mineralisation
and type of deposit under consideration and to the activity which he is
undertaking, to quality as a Competent Persons as defined in the 2004 Edition
of the Australasian Code for Reporting for Exploration Results, Minerals
Resources and Ore Reserves. Mr Davis is a full time employee of the Company.
This report accurately reflects the information complied by Mr Davis. Mr Davis
has consented to the inclusion of this information in the form and context in
which is appears in this report.
Monarch Gold Mining
Company
Projects
***
Issued
by
Purple
Communications
Level
3, 28 Kings Park Road, WEST
PERTH WA 6005
Ph:
08 9485 1254 Fax: 08 6263 0455
purple@purplecom.com.au
