MONARCH GOLD TRANSITIONING QUICKLY TO BECOME ONE OF AUSTRALIA’S SIGNIFICANT GOLD PRODUCERS
Monarch Gold Mining Company Limited is a gold focused development company that holds the largest Australian controlled tenement in the Kalgoorlie region of Western Australia.
The company currently has a resource base of 2.4 million ounces, with a supreme focus on the company projects of Davyhurst and Mt Ida. These projects are undergoing significant developments including Davyhurst pouring its first gold in August. Monarch has five projects located in Western Australia including Davyhurst, Mt Ida, Riverina, Minjar and Bellevue which all contain resources ranging from 120,000 ounces to 2 million ounces.
Monarch Gold Mining Company announced in early August its first gold pour at its Davyhurst Mill in the Goldfields where it now expects to produce 5,000 ounces per month for the next quarter. The company, Monarch’s chairman Michael Kiernan informed the Australian Investor, is also predicting ore from the Mt Ida project to come on stream in November with an increase in production to 9,000 – 10,000 ounces per month.
“The first pouring was very significant for Monarch as it was a transition from explorer to developer to producer. The pouring now means for Monarch that our Davyhurst project is de-risked from a commencement point-of-view; we are generating cash flow and are making real profits for shareholders. This is also true for our Mt Ida project which recently reached an oil body.” Mr. Kiernan said.
“Monarch is about to commence mining for high grade gold while having financial resources with money in the bank. Monarch is currently producing 110,000 ounces at 24 grams which is excellent. This puts us in a positive position for the future and on target with our strategy.” He added.
Michael Kiernan stated to the Australian Investor that the company intends to have an annual production rate of 500,000 ounces by 2009 and be one of Australia’s significant gold production and exploration companies.
Monarch, a company with a market capital of $115 million, recently announced a commitment of $11 million for drilling programs during the 2008 financial year, with the intention of finding new gold mineralisations while also maintaining a focus on oil bodies. This commitment follows extremely promising results from drilling over the past three months, and will focus on the company’s Davyhurst, Mt Ida, Bellevue and Minjar projects, along with a new exploration work at the recently acquired Riverina Project.
“Monarch has nearly 2.35 million ounces in resources and we believe that significant high grade gold is at depth within our projects. Many of our projects have never been subjected to extensive drilling, so future prospects are very encouraging.” Mr. Kiernan explained.
“Monarch also recently acquired the Riverina Project that produces maybe 2000 ounces at 4 grams, which also represents another avenue of Monarchs transition from explorer to developer to producer. Monarch will also be consolidator of projects North of Kalgoolie that sees Monarch well on the way to becoming one of the largest goldfields producer in Kalgoolie within two years.” Mr. Kiernan said.
“The company’s Minjar project also caters towards this primary focus as it holds significant potential for base metal discoveries, including nickel and volcanogenic massive sulphide. Monarch will re-commission the Minjar gold processing facility at an initial production rate of approximately 50,000 oz per annum with several targets identified already.”
Michael Kiernan has over 30 years experience in transport and mining and while being Chairman for Monarch, he also holds the same position at Territory Resources Ltd, India Resources Ltd, Mineral Resources Ltd, Precious Metals Australia Ltd and Peel Exploration Ltd and Director of Matilda Minerals Ltd. Mr. Kiernan is also founding Managing Director of the diversified minerals producer Consolidated Minerals. Mr. Kiernan describes his and monarch’s approach to the industry as simple - “in the resources sector, it is essential to remain focused on the main issues and the company’s primary agenda. The key is to not be distracted.”
