MEDIA
RELEASE 14
May 2007
MONARCH GOLD EXPLORES LISTING ON DUBAI EXCHANGE
Dubai,
United Arab
Emirates – Monarch Gold Mining Company
Limited, an Australian gold company listed on the Australian Stock Exchange, is
exploring the possibility of listing on the Dubai International Financial
Exchange (DIFX).
Michael
Kiernan, Monarch’s
Executive Chairman, and a number of the company’s executives and advisors
are in talks with the DIFX and investment bankers in Dubai this week.
Global commodities prices
have soared in recent years; the increase in precious metals and oil prices has
been especially marked. Australia
is rich with natural resources, particularly in the mining sectors. Monarch
Gold was formed in 2002 by a group of experienced mining executives focused on
gold exploration in the relatively unexploited western region of Australia.
The company has grown to
become the largest Australian-owned landowner in the mineral rich area of the Kalgoorlie
Gold Fields located in Western
Australia. Monarch Gold currently has a resource base
totalling 2.4 million ounces and two state-of-the-art gold treatment plants.
The possible listing in Dubai is part of a larger
trend of foreign companies providing investment opportunities for regional
investors.
“Dubai
is known as the ‘City of Gold’
and Monarch is aiming to be a significant provider of gold-related investment
opportunity for investors in the region,” Mr Kiernan said.
“We are very
pleased with what we have seen in Dubai.
The DIFX offers clear legal and financial structures that parallel the
world’s most advanced exchanges, therefore listing here makes perfect
sense. We believe Monarch’s proposition will be attractive to investors
in the region, both individuals and institutions. Although commodities prices
are cyclical, our current extraction costs are below the market rate for gold,
and investing in gold is an appropriate way to store wealth. Over the next 12
months, Monarch expects to generate A$25 million in after tax profit from
mining gold in Australia.”
“Our goal is to
have approximately 15 per cent of Monarch’s shareholders to be based in
the UAE region.”
Monarch Gold is currently
implementing an aggressive expansion strategy in acquiring projects that have
promising gold production potential in Western
Australia.
Monarch remains firmly on
track with its production targets, with mining of gold expected to commence at
the Davyhurst project in May, followed by mining at Monarch’s Mt Ida
project in July 2007.
“We are focussed on
meeting our production target and taking Monarch from explorer to producer,
with a goal of becoming a 500,000 ounce per annum producer by end of
2009,” Mr Kiernan said.
“We are now on the
cusp of production at Davyhurst, with the mill to start-up in mid-July with head
grade of 5.3g/t Au, and the first gold to be poured in late July. At our
recently acquired Mt Ida asset, the first ore is expected to be mined in late
July.”
“We have a twelve
month production target of 125,000 ounces from these two projects.”
“An aggressive
exploration program is also underway that will add longer term value for
shareholders,” Mr Kiernan said.
For further
information, please contact:
Dubai:
Mohammed Aly Sergie
Gulf Hill & Knowlton
direct: +971 4 4055
617
mobile: +971 50 654
9217
mohammed.aly.sergie@hillandknowlton.com
Australia:
Michael
Kiernan Warrick Hazeldine
Executive Chairman
- Monarch Gold Purple
Communications
Tel: 08 9481 6422 Tel:
+61 (0)8 9485 1254 Mob:
+61 (0) 417 944 616
whazeldine@purplecom.com.au
Background
Monarch Gold Mining
Company was formed and listed on the ASX in 2002 by a group of experienced
Australian mining executives.
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.
Since November 2005,
Monarch has laid the foundations for its growth as a mid-tier Australian gold
production company. It acquired the Davyhurst Gold Project in November 2005,
and in 2006 reached agreement with Gindalbie Metals to acquire the Minjar gold
projects 500km north-east of Perth. Monarch also completed a merger with
Siberia Mining Corporation Limited in 2006, which provided access to Siberia
1.2 million ounce resource base, and the largest Australian-controlled ground
position in the Kalgoorlie
region. Monarch also has the ground package surrounding the historic Bellevue
Gold Mine near Leinster. In March 2007,
Monarch acquired the rich Mt Ida project, located within the 120 kilometres of
Monarch’s Davyhurst Mill, from International Goldfields Limited.
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 three areas - the Baldock, Whinnen and Meteor deposits, adjacent to the
historic Timoni underground gold mine which produced 265,000oz of gold. Monarch
will commence mining gold in July 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’
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’s
Project locations:
***
The new Spam Act commenced on 10 April 2004. This Act
is aimed at reducing the amount of unauthorised emails you receive. You
have been receiving e-mails containing information and news releases from us on
behalf of our clients because you are an important contact of Purple Communications, a boutique stakeholder
communications consultancy. If you do not wish to receive such
emails from Purple, please click
mailto: purple@purplecom.com.au
subject=UNSUBSCRIBE or reply to this email and put UNSUBSCRIBE in the subject
line and we will not email you again.
If
you do not reply, we will continue sending you relevant news and information
via email. However, all future emails will allow you to unsubscribe.
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