MEDIA
RELEASE
15 January
2008
RIVERINA READY TO ROLL – PROJECT UPDATE
Monarch
Gold Mining Company (ASX / DIFX:MON) is pleased to announce further positive
drilling results at its high grade Riverina deposit. With approvals received
this month, the project is nearing production.
Monarch
Managing Director Matthew Gill said
recent drilling has confirmed the high grade resource at Riverina, and highlighted
the potential for extensions outside of the current pit plan.
“Riverina
is really shaping up, and these further positive drilling results auger well
for the Company as it moves to ramp up activity at the project and capitalise
on the strong gold prices,” Mr Gill said.
Riverina
currently has an indicated and inferred resource of 1.64 million tonnes @ 3.8g/t Au for 200,000 ounces. Monarch has committed $11 million
this financial year for its exploration programme to increase resources and
extend mine life across its Goldfields tenements.
Promising intersections
from drilling within the optimised pit area at Riverina include:
- RMRC067; 4m @ 7.09g/t Au from
36m.
- RMRC068; 8m @ 5.68g/t Au from
24m.
Highlights outside the pit
area at Riverina include:
- RMRC051; 6m @ 3.75g/t Au from 36m
and 5m @ 65.8g/t Au from 72m
(original 4m composite sample assayed at 63.1g/t), east of the main
Riverina Pit, and immediately south of the Reggies South optimised pit.
- RMRC018; 7m @ 5.0g/t Au from 15m.
- RMRC079; 11m @ 5.32g/t Au from
75m.
These
last two intersections are north of the current Riverina pit area and will
potentially help add strike length to the main Riverina Pit.
Mr Gill said
Monarch had brought forward planned mining at Riverina, and was due to commence
mining within the first quarter of 2008. The Company has a revised mining plan
in place which will deliver a steady but substantial ramp up in production over
the next 12 months.
“Monarch
is unhedged and in production, with the largest Australian-controlled
landholding in the Kalgoorlie
region,” Mr Gill said.
“We
are steadily increasing production at Davyhurst, and as we do, our per-unit
costs will reduce which is further good news for shareholders,” Mr
Kiernan said.
Monarch
now has the necessary mining and environmental approvals in place to commence
operations at Riverina, with its Mining Proposal approved by the Department of
Industry and Resources this week.
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
five 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, 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 1.5m 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 commenced 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’s
premier gold operations (750,000oz historic production)
Mt
Magnet – gold resource of 2.7m ounces, ground package of 330 tenements
covering approximately 1,100 square kilometres and a 2.7mtpa capacity gold
processing facility.
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.
Riverina Drilling Intercepts
Monarch Gold Mining Company
Projects
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