Fantastic announcement.MEDIA RELEASE 21 MARCH 2006 MONARCH...

Fantastic announcement.

MEDIA RELEASE 21 MARCH 2006 MONARCH RESOURCES ON THE MOVE Monarch Resources Limited (ASX: MRS) today announced a JORC compliant resource of 404,000 ounces for the Sand King deposit after completing a preliminary scoping study on the deposit. This is an increase in the quality of the resource with approximately 75% now classified as Indicated (300,000oz), which now forms the basis for conversion to Probable Reserves. Sand King is one of the larger deposits within Monarch’s newly consolidated Davyhurst/Siberia Gold Project in Western Australia. The Sand King study is part of a strategic review of a number of existing resources currently being carried out by Monarch in parallel with intensive exploration drilling programs designed to further increase the Company’s existing 2 million ounce resource inventory. A review and estimation of the Sand King gold resource by SRK Consulting Pty Ltd has resulted in an Indicated and Inferred Resource totalling 4.2 million tonnes at 2.98g/t gold for 404,000 ounces. Further drilling completed in late 2005 and not included in this resource estimate demonstrated the continuity of high-grade mineralisation at Sand King. These results included 6m @ 7.9g/t gold from 30m, 4m @ 5.9g/t from 68m and 6m @ 5.7g/t from 12m. Monarch’s Managing Director, John Davis, said the Sand King resource was open at depth and along strike, and the Company was confident that the inclusion of the recent drilling would further increase the global contained gold and higher grade components of the resource. “Our strategy is to review and re-optimise some of the larger deposits such as Sand King to assess the significant impact of the higher gold price on the existing resources and to identify key target areas for follow-up exploration drilling,” Davis said. A preliminary scoping study on the deposit has indicated that an initial open pit mining development restricted to a depth of 40m below the current pit floor would generate a net cash flow of some $18 million, based on a pit optimised resource of 633,000 tonnes at 3.54g/t gold at a gold price of A$750/ounce. “Sand King is the first such study to be completed, and the results have been positive, highlighting the significant positive impact on project economics of the improved gold price, considering that the original mining studies on this deposit and others were based on a gold price of A$500-550/ounce,” Davis commented. Davis said the recently announced first major exploration drilling program would be underway shortly, having been delayed by rain early in March. Drilling is proposed to commence at the Lady Bountiful prospect (existing resource of 88,000oz) followed by the Sunraysia prospect, where a preliminary resource of 64,000 ounces @ 4.9g/t gold has been outlined. The Sunraysia prospect has been outlined with broad-spaced drilling for over 600 metres of strike and remains open along strike for a further 400 metres and at depth. Early diamond drilling has defined high-grade, south-plunging shoots with visible gold observed within a quartz-carbonate-sulphide reef with intercepts including 3m @ 10.4g/t Au, 3.1m @ 13.8g/t Au (including 1.0m @ 32.8g/t Au) and 2m @ 9.7g/t Au. Exploration drilling will be targeting both the strike and down-plunge extensions, with the potential to add significantly to the resource. Monarch has recently appointed SRK Consulting Pty Ltd to carry out a structural review and interpretation of the combined Davyhurst/Siberia project area leading to outlining gold targets for further ongoing exploration. Monarch has allocated an initial exploration budget of $6 million per annum to the combined Siberia/Davyhurst project areas, with a view to generating within 12 months a minimum 3-year production base ahead of re-commissioning the centrally located, fully permitted Davyhurst gold plant which has treatment capacity of 1.3mtpa. -ENDS- Released by: On behalf of: Jan Hope/Nicholas Read Monarch Resources Limited Jan Hope & Partners Telephone: (+61-8) 9388-1474 John Davis – Managing Director Telephone: (+61-8) 9481-6422 Web: www.mrl.net.au
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So far as it relates to ore and mineralisation, this report is based on information compiled by Mr John Davis, who is a Member of the Australian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists Mr Davis has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Davis is a full time employee of the Company. This report accurately reflects the information compiled by Mr Davis. Mr Davis has consented to the inclusion of this information in the form and context in which it appears in this report.
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BACKGROUND INFORMATION Monarch Resources Ltd (ASX: MRS) is an Australian gold company which, through a combination of acquisition and corporate activity during 2005, has established a dominant position in the prolific gold belts to the north west of Kalgoorlie including a resource base in excess of 2 million ounces and a centrally located gold treatment facility. Monarch acquired the Davyhurst Gold Project for $5 million in November 2005, comprising an 808,000oz resource base, 841sq km tenement package and a 1.2mtpa gold processing facility. The Davyhurst Project is located within the Davyhurst-Mt Ida greenstone belt, which hosts the Zuleika Shear and Ida Fault – structures which reportedly control signifcant gold endowment. Historically, the Davyhurst field has produced some 1.15 million ounces since 1897. Subsequently, in early 2006, it completed a merger with Siberia Mining Corporation Limited, resulting in the strategic consolidation of the nearby Siberia and Ida Gold Camp deposits within the enlarged Monarch. Siberia’s assets included a 1.4 million ounce resource base, a 1,250sq km exploration portfolio representing the largest Australian-controlled ground position in the Kalgoorlie region, and several projects with near-term production potential. The 35km long Siberia Gold Belt is a geological contact that hosts the high-grade Siberia Gold Camp deposits (comprising resources in excess of 750,000oz at Missouri, Sand King, Invincible and Black Rabbit). Much of this gold belt is obscured by thin cover and remains untested. Monarch’s focus is to build a significant independent Australian gold exploration and production company with an annual production of 500,000 ounces by advancing these Northeastern Goldfields assets towards production as rapidly as possible, with the initial focus over the next 12 months on a comprehensive exploration program to build a minimum 3-year reserve position prior to re-commissioning the Davyhurst mill. In addition, Monarch will draw on its depth of technical, financial and corporate expertise to target additional growth opportunities in the current strong environment for gold companies. -ENDS- Released by: On behalf of: Jan Hope/Nicholas Read Monarch Resources Limited Jan Hope & Partners Telephone: (+61-8) 9388-1474 John Davis – Managing Director Telephone: (+61-8) 9481-6422 Web: www.mrl.net.au