Monarch Gold Mining Company is fast tracking the development of its high grade Kalgoorlie gold projects and ramping up production at its Davyhurst mill over the next four months, the company announced today.
Monarch Gold Mining Company is fast tracking the development of its high grade Kalgoorlie gold projects and ramping up production at its Davyhurst mill over the next four months, the company announced today.
The full text of a Monarch announcement is pasted below
Monarch Gold Mining Company (ASX / DIFX: MON) is fast tracking the development of its high grade Kalgoorlie gold projects and ramping up production at its Davyhurst mill over the next four months.
The Company is currently budgeted to produce approximately 6,500 ounces per month at Davyhurst, and with new ore coming on stream is set to move to 10,000oz per month by January 2008.
Monarch Chairman Michael Kiernan said as production increased, the Company was also improving production efficiency, driving down unit costs and capitalising on an improving gold market.
"With the increasing gold price Monarch is fast tracking development at its high grade Mount Ida project. We are opening another four faces and ore is expected to flow from these early in the New Year, increasing production by a target of some 20%," Mr Kiernan said.
The Mount Ida project has a resource of 143,000t at 24.0 g/t containing 110,650oz of gold.
"Monarch's cash costs are currently USD$490 per oz and are expected to reduce by 10 to 15% over the next 12 months as production efficiency is maximised."
To drive longer term production, Monarch has also commenced a substantial exploration program at its recently acquired Riverina project, which currently has indicated and inferred gold resources of 1.64 million tonnes at 3.8 g/t Au for 200,000oz.
"Monarch has committed $2.5 million for exploration at Riverina until June 2008 as we believe the area is highly prospective," Mr Kiernan said.
"This is part of our strategic exploration and expansion program which is focussed on meeting our production targets and advancing Monarch towards becoming a 500,000 ounce per annum producer by end of 2009."
The Riverina Gold Project is contiguous to Monarch's Davyhurst project and 40km from the mill. It covers 135km2 of granted mining leases, prospecting licenses and exploration licenses.
To capitalise on these opportunities, Monarch also announced it has raised $11.7 million through a share placement of 45,000,000 fully paid shares at a price of 26 cents each, to institutional and sophisticated investors.
Mr Kiernan said the Company was in a strong position to capitalise on improvements in the gold market, and to deliver value for shareholders in the coming year.
"We are in production, own two state-of-the-art processing plants and are backed by the largest Australian controlled land position in the Kalgoorlie region and the company remains debt free and unhedged," Mr Kiernan said.
