MEDIA RELEASE
7 AUGUST 2007
MONARCH
LAUNCHES SIGNIFICANT EXPLORATION PROGRAM
Monarch Gold Mining Company
(ASX/DIXF: MON) has almost doubled its exploration programme on its Goldfields
tenements, committing more than $11 million for
drilling programmes during the 2008 financial year.
The major exploration program follows
extremely promising results from drilling over the past three months, and will
focus on the company’s Davyhurst, Mt Ida, Bellevue and Minjar projects, along with a
new exploration work at the recently acquired Riverina Project.
Monarch Executive Chairman Michael
Kiernan said the drilling would expand the company’s resource base and
create long term value for Monarch shareholders.
“We have reached the milestone
of the first gold pour at Davyhurst delivering on our commitment to
shareholders. Longer term, it’s imperative to continue to deliver
increased value through exploration success and maximise Monarch’s
dominant landholding in the Goldfields region,” Mr Kiernan said.
“We have in place a well funded
exploration program on regions where there are identified targets to extend our
resource base.”
Key targets will include:
• Regional
drilling at Davyhurst with 44,000m of RC and 60,000m of RAB drilling
•
Exploration at Riverina, with 15,000m of RC drilling to upgrade the current
resource base
• The high
grade shoots within the Timoni mining area, at Mt Ida, to upgrade and expand
these resources providing continuity of production to the Davyhurst mill
Mr Kiernan said the Company had been
highly encouraged by results from the 2007 drilling program, which had
identified potential targets for more detailed testing. He added Monarch had
also recently acquired a number of new projects, and had structured exploration
programmes to capitalise on previous testing at these tenements.
Monarch provides the following update
to shareholders on its exploration program:
Davyhurst
Drilling has focussed on the Round
Dam trend (4km from the Davyhurst mill). Results have been excellent, showing
extensions to gold resources at Federal Flag
(9m @ 3.47 g/t Au, 11m @ 2.28 g/t Au, 15m @ 2.21 g/t Au) and Walhalla ( 26m @
1.31 g/t Au, 5m @ 10.51 g/t Au, 3m @ 8.12 g/t Au), which may result
in enhancing pit designs and gold production.
The potential for new resource
discoveries at the Walhalla North prospect, (6m
@ 19.21 g/t Au, 5m @ 6.11 g/t Au) and Macedon to Mt Banjo prospects
(6m @ 2.85 g/t Au, 3m @ 27.86 g/t Au, 10m @
1.89 g/t Au) has been confirmed by recent drilling.
At the Sand King prospect infill
drilling was completed to confirm the resource model and support the optimised
pit. Testing has confirmed the mineralisation and provided better than average
grades. Better results include 8m @ 4.88 g/t
Au, 2m @ 7.39 g/t Au and 2m @ 8.38 g/t Au.
The Davyhurst exploration budget
consists of a commitment to an extensive drilling programme targeting a
combination of resource definition and regional drilling with a programme of
44,000m of RC drilling and 60,000m of RAB drilling.
Riverina Project
Recently acquired by Monarch from
Riverina Resources Pty Ltd, Riverina covers some 135 km2. It
contains Indicated and Inferred gold resources totalling 1.64 million tonnes @ 3.8 g/t Au for 200,000 oz.
Monarch will conduct an extensive exploration drilling programme of some 15,000
m of RC drilling to upgrade the current resource base, extend the open pit
resources and target new discoveries within the project area.
Mt
Ida Project
Monarch recently acquired the 500 sq
km tenement package including the historic Timoni Gold Mine, which produced
over 265,000 oz of gold.
Underground development is currently
in progress from the Timoni shaft to intersect the high grade Baldock shoot.
Exploration will focus on the high grade Baldock, Meteor and Whinnen shoots
within the Timoni mining area, with drilling planned to upgrade and expand
these resources to provide continuity of production to the Davyhurst mill.
Regional exploration is currently managed by JV partner, La Mancha Resources
Australia Pty Ltd.
Minjar
The Minjar project holds significant
potential for base metal discoveries, including nickel and volcanogenic massive
sulphide. Monarch’s aim is to re-commission the Minjar gold processing
facility at an initial production rate of approximately 50,000 oz per annum.
A recent review over the entire
project area has outlined a number of priority targets which will form the
basis of ongoing gold exploration, in parallel with drill targeting numerous
highly prospective prospects. Monarch’s objective is to confirm a minimum
three year gold reserve inventory.
Monarch has also commenced a review
of the base metal potential in the area with the aim of providing base metal
targets, to form part of the exploration programme. A number of magnet
signatures similar to Golden Grove (Gossan Hill) have been interpreted.
For further information, please contact:
John Davis Warrick
Hazeldine
Exploration Director - 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
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