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MEDIA
RELEASE
4
SEPTEMBER 2007
MONARCH INTERSECTS HIGH GRADE GOLD
Monarch Gold Mining
Company (ASX/DIXF: MON), the largest independent landholder in the Kalgoorlie region, has intersected high grade gold ore at
its Mount Ida project, with the intersection
of the promising Baldock lode.
“The intersection
contains coarse free gold and is well mineralised. The ore width is double what
had been expected, with the ore exposed in the drive varying from a minimum of
1.4 metres up to a potential maximum of about 3.4 metres,” Monarch
Chairman Michael Kiernan said.
“With the
intersection of the Baldock lode at Mount Ida means we are now into the high
grade gold section and this will be treated at our Davyhurst mill later this
month” Mr Kiernan said.
Monarch’s recently
commenced an $11 million drilling programme for 2007/08 and has identified some
promising early results, which will drive long term value for shareholders.
“We have a
well-funded and aggressive exploration programme in regions where there are
identified targets to expand our resource base, and this approach is being
vindicated by promising results from the Davyhurst tenements,” he said.
At Davyhurst, exploration
drilling has intersected high grade mineralisation at the Walhalla North and
Iguana prospects, and has outlined a potential new gold discovery at the
Coronation prospect.
Davyhurst
highlights:
- At Walhalla North, high grade gold intersected
in RC drilling over 200m of strike and open at depth including 2m @ 58.3 g/t Au and 4m @ 20.5 g/t Au.
- High grade gold intercepts in infill RC drilling
at the Iguana prospect including 1m @
50.3 g/t Au and 3m @ 78.0 g/t Au.
- A new zone of mineralisation intersected in RAB
drilling over 700m of strike, including 13m
@ 2.0 g/t Au from 8 metres at the Coronation prospect, located
only 4km NW of the Davyhurst mill.
- At the Walhalla North prospect, approximately
1km north of the current Walhalla open pit mine and only 10km from the
Davyhurst mill, significant high grade gold mineralisation has been
intersected in a number of holes over 200m of strike and is open. Results
are tabulated.
The developments mark
another milestone of progression for Monarch, which in the past month has
poured its first gold, added the Riverina Gold Project to its Goldfield
tenement holdings, and appointed Matthew Gill as Managing Director.
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: 0417 944 616
Walhalla North
results
HOLE
ID
|
EAST
|
NORTH
|
FROM
|
WIDTH
|
GRADE
(g/t Au)
|
WARC174
|
273522
|
6663185
|
32
|
2
|
3.23
|
WARC175
|
273504
|
6663181
|
54
|
5
|
26.50
|
|
|
Including
|
55
|
2
|
58.25
|
WARC176
|
273489
|
6663154
|
29
|
3
|
3.63
|
|
|
|
86
|
4
|
20.53
(eoh)
|
|
|
Including
|
87
|
1
|
77.60
|
WARC177
|
273533
|
6663136
|
35
|
4
|
2.24
|
WARC178
|
273514
|
6663132
|
61
|
4
|
7.57
|
|
|
Including
|
59
|
1
|
27.10
|
|
|
|
|
|
|
WARC179
|
273519
|
6663008
|
36
|
2
|
12.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Iguana Results
Infill drilling to support the current resource model
has intersected high grade gold zones which are currently being interpreted
within the current model. Better results include:
- Hole IGRC 003, 2m @ 10.2 g/t Au from 42m and 1m @ 50.3 g/t Au
from 52m.
- Hole IGRC 004, 6m @ 48.5 g/t Au from 33m including 3m @ 78.0
g/t Au.
- Hole IGRC 008, 2m @ 14.1 g/t Au from 26m.
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.
Bellevue Gold Mine near Leinster, together with the Siberia Mining
Corporation Limited merger, 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 and Mt Ida projects with supporting infrastructure already in place.
First gold has been poured at the refurbished Davyhurst Mill. Monarch’s
production at Davyhurst has an average head grade of 5.3g/t Au.
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).
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
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 Gold Mining Company
Projects
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