at the time of this article still nothing was well-known from Riverina! thus still more would than 500000 ounces have to come together with Riverina?
Monarch Gold gears up for production
Monarch Resources Limited has taken further key steps towards the production phase at its Western Australian gold projects, with the proposed appointment of experienced mining executive Allan Quadrio as Managing Director to oversee its growth strategy.
Monarch’s Executive Chairman, Michael Kiernan, welcomed Allan Quadrio’s appointment, saying he added a significant depth of operational expertise to the company’s board and management as it moved into the development phase at its three operational centres in Western Australia.
“Allan will spearhead the operational development of the group as we move to commence gold production, initially at Minjar and Davyhurst,” Mr Kiernan said.
Monarch yesterday received shareholder approval to change its name to Monarch Gold Mining Company Limited, to reflect its growth vision to build a 500,000oz per year gold company.
The company also announced the completion of its acquisition of the 400,000oz Minjar Gold Project from Gindalbie Metals Limited for a staged total of $10 million.
Completion of the Minjar acquisition clears the way for an intensive program of drilling to commence, targeting numerous prospective areas with the potential to deliver additional reserves.
High-level optimisation scoping studies have also been completed on the current resources and are being compiled. It is expected that this will give an indication of the economic viability of early re-commissioning of the 600,000tpa Minjar gold plant.
Monarch’s objective is to establish a 3-year gold reserve inventory at Minjar, which would enable re-commissioning of the plant at an initial production rate of 50,000oz per year.
At Davyhurst, Monarch reported further high-grade drilling results from the Sunraysia Deposit (64,000oz resource), one of several key deposits where it is targeting extensions to existing resources.
Intercepts from recent drilling include 3m @ 10.4g/t gold, 3.1m @ 13.8g/t gold and 2m @ 9.7g/t gold. Final results have been received and a new resource estimation is currently being prepared, due for completion by the end of July.
Preliminary indications are that the 1.2mtpa Davyhurst gold processing plant can be re-furbished within a short period of time and at a relatively low capital cost, as part of Monarch’s objective to recommence the operation at an initial production rate of 100,000oz per year.
“With the recent excellent progress at Davyhurst and Minjar, Monarch Gold has made further important progress towards its objective of establishing a 500,000oz per year gold company,” Mr Kiernan said.
- 06 Jul 2006
MON Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
