MEDIA
RELEASE
08 April
2008
MONARCH
SELLS MINJAR GOLD PROJECT
Monarch Gold Mining Company (ASX /DIFX:MON)
is pleased to advise it has agreed to terms for the sale of its Minjar project,
located 500km north of Perth and south-west of Mount Magnet.
The successful bidder for the project was Aard Metals and Energy
Limited, with the agreement involving a cash and equity arrangement worth $11
million.
In
December 2007, Monarch engaged Prime Corporate Finance to market the Minjar
Gold Project. Final bids for the sale were submitted by 14 March 2008, with the
finalisation of the sale agreement to be completed by 11 April 2008.
Monarch
Chairman Michael Kiernan said the Minjar assets were no longer a core part of
the Company’s strategic direction, with Monarch focussing its efforts in
the region on its recently acquired Mount
Magnet.
The
Minjar package includes gold resources of more than 400,000oz within a 1,722 sq
km tenement package and a 600,000tpa gold processing facility.
Mr
Kiernan said there had been a high level of interest in the Minjar asset, with
31 parties expressing interest in the project.
Aard
Metals is an unlisted exploration public company scheduled to list on the ASX
in mid 2008. It will take possession of the Minjar assets in June 2008.
The
offer includes:
·
$1m cash upon signing as a
non-refundable deposit,
·
$4m cash by 30 June 2008,
·
$2.5m cash by 31 December 2008 and
·
$3.5m of equity by 31 December 2008.
Aard
has the option to nominate another approved entity to make the acquisition. The
management team behind Aard have many years mining, exploration and project
development experience, including at Kambalda, Norseman, Kalgoorlie, Southern Cross and successful
project acquisitions, like Central Norseman Gold Corporation from Croesus Mining
NL. Aard has developed a strategy to rapidly consolidate smaller gold mining
operations which are now becoming viable. Minjar represents the cornerstone for
Aard's vision.
For
further information, please contact:
Michael
Kiernan
Warrick Hazeldine
Chairman
- Monarch
Gold
Purple Communications
Tel:
+61 (0)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 4.6
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 four potential production centres in Western Australia:
Davyhurst
- gold resources of over 1.5 million ounces 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.
Riverina
Project - indicated and inferred gold resources totalling 1.64
million tonnes @ 3.8 g/t Au for 200,000oz.
Mt
Ida - resources are stated as 143,000t at 24.0 g/t
containing 110,650oz of gold within four areas - the Baldock, Whinnen, Meteor
and Timoni deposits. Monarch commenced mining gold in July 2007.
Bellevue
- gold resources of 120,000oz associated with the
historic Bellevue Gold Mine, one of WA’s premier gold operations
(750,000oz historic production)
Mt
Magnet – gold resource of 2.7 million ounces, 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
