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MEDIA RELEASE
7 AUGUST 2007
MONARCH
POURS FIRST GOLD
Monarch Gold Mining Company (ASX /
DIFX: MON) has celebrated the first gold pour at its Davyhurst Mill in the
Goldfields.
The first pour is a significant
milestone for Monarch, which is targeting annual gold production of 500,000
ounces by the end of 2009.
Monarch is expecting to produce 5,000
ounces per month for the next quarter. In November, ore from the
company’s Mt Ida project is expected to come on stream, and increase
production to 9,000 – 10,000 ounces per month.
Monarch Chairman Michael Kiernan said
the first gold pour was a significant milestone for shareholders, and the
result of the hard work and dedication from the Monarch team.
“The team at GR Engineering,
which worked to refurbish the Davyhurst Mill, have successfully commissioned
the plant on time and on budget,” Mr Kiernan said.
“Moving into production is a
major step forward for Monarch and its shareholders and keeps us firmly on
track to meet our production targets and continue to create shareholder wealth
through capital growth and dividend distributions.”
For further information, please contact:
Michael Kiernan Warrick
Hazeldine
Chairman - 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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