MEDIA
RELEASE
15 April
2008
HIGH GRADE EXPANSION AT MOUNT IDA
Monarch Gold Mining Company (ASX /DIFX:MON) is pleased to provide the
following update on its Mt Ida underground gold mining project north of
Kalgoorlie.
Production ramp up at the high grade Mount Ida
operation is mostly complete, and the mine is expected to deliver 4,000 tonnes
of ore in April at a delivered grade of 14g/t Au.
Monarch Chairman Michael Kiernan said Mt Ida was now ramping up on
schedule and poised to hit its straps.
“Planned production at Mount Ida
is expected to reach a steady state of 4,000 ounces per month by July, at an
average grade of 19.42 g/t and will be a key contributor to Monarch’s 60,000
ounce target by the first half of FY 2008/09,” Mr Kiernan said.
Monarch is developing 12 headings on ore which will allow for the
expansion of stoping operations and increase in mine output in coming months.
Stoping is expected to commence this month as the Company has received approval
from the Department of Consumer and Employment Protection for its Mt Ida
Project Management Plan, which was required prior to the commencement of
stoping.
Refurbishment of the Timoni Shaft to access and develop Level 8 is also
well advanced, with Monarch purchasing two new underground loco’s for the
development.
The mining camp has been expanded to meet the growing workforce, with
ensuited accommodation for more than 60 staff, and upgraded facilities
including new kitchen, mess and mine site ablution block.
Monarch has also commenced mining operations on a fly-in / fly-out
basis, with charter flights directly to site which significantly minimises crew
change over time, resulting in costs savings and improved productivity.
The Mt Ida Project includes 111,000 ounces of resources within four
areas - the Baldock, Whinnen, Meteor and Timoni deposits.
Monarch has recently undertaken an initial small drilling program to the
south of the Baldock lode, down plunge, which has confirmed the continuation of
the high grade mineralised system for at least a further 100 metres. Intercepts
include 3.67m @ 14.9 g/t Au in hole IDD002 and 1.07m @ 14.80 g/t
Au in hole IDD001.
The Company also believes there is potential for further significant
discoveries within the Timoni mining centre, which contains at least four sub
parallel lode systems, including the historical Timoni mine. The mine produced
265,000 ounces at 16.3 g/t Au and past drilling within the mining centre is
quite limited.
For further information, please
contact:
Michael
Kiernan
Warrick
Hazeldine
Chairman - Monarch
Gold
Purple
Communications
Tel: +61 8 9481
6422
Tel: +61
(0)8 9485 1254
Mob: +61 (0)417 944
616
Background
The Company has a resource base of more
than five million ounces, two state-of-the-art gold treatment plants (Davyhurst
and Mt Magnet), 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 and an expanded footprint in the Mount Magnet
region.
Monarch remains firmly on track with its production
targets, with mining commenced at the Davyhurst and Mt Ida projects.
Growth Strategy
Monarch’s growth strategy is focused on two major potential
production centres in Western
Australia:
Davyhurst Gold Project –
Davyhurst Project gold resources of over 1.5 million ounces (comprising
Measured – 0.26MT @ 3.1 g/t Au, Indicated – 12.38MT @ 2.3 g/t Au,
Inferred – 6.89MT @ 2.4 g/t Au within a 2,000 sq km tenement package and
1.2mtpa gold processing facility (+1.2Moz historic production). First bullion
was poured in August 2007. Davyhurst Gold Project incorporates the Riverina
Project – 200,000 ozs (comprising Indicated – 1.46MT @ 3.5 g/t
Au, Inferred – 0.18MT @ 5.6 g/t Au) and also the Mt Ida Project
– 111,000 ozs (comprising Measured – 55,000T @ 32.8 g/t Au,
Indicated – 6,000T @ 33.8 g/t Au, Inferred – 83,000T @ 17.5 g/t Au
within four areas - the Baldock, Whinnen, Meteor and Timoni
deposits. Monarch commenced mining gold in July 2007.
Mt Magnet Gold Project – gold
resource of 2.7 million ounces (comprising Measured – 2.35MT @ 2.4 g/t
Au, Indicated – 16.12MT @ 3.5 g/t Au, Inferred – 9.00MT @ 3.0 g/t
Au), a ground package of 330 tenements covering approximately 1,100 square
kilometres and a 2.7mtpa capacity gold processing facility (+10 million ounces
of current resources and past 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.
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
