Monarch revamps Davyhurst mine plan

22 December 2007 | 04:34 Code : 16324 Geoscience events
Monarch Gold Mining Company has remodelled its next 12-month mine plan to...

  Monarch Gold Mining Company has remodelled its next 12-month mine plan to ensure the company meets its monthly production targets.The remodelling, required due to the underperformance of Monarch’s Walhalla Pit, will source ore from multiple pits in order to blend feedstock to increase head grade. Monarch Chairman Michael Kiernan said the company had recast its Davyhurst mine plan following difficulties with the start-up pit at Walhalla. “[We] are focusing on new pits with more robust mineralisation to deliver a steady but substantial ramp up of production over the next 12 months,” Mr Kiernan said. Monarch will initially source ore from the Missouri Pit (2.4g/t), the Riverina Pit (3.8g/t) and Mt Ida (24.0g/t) in order to achieve its annual target of 125,000 ounces from the Davyhurst Gold Project. “As we increase production our forecast costs per ounce reduce accordingly, which, combined with the strong gold market, represents good news for our shareholders,” Mr Kiernan said. Monarch has also bolstered its landholding with the recent acquisition of the Mount Magnet Gold Operations, which includes the historic Hill 50 mine. The asset package comprises a resource inventory of 2.7 million ounces of gold, tenements covering approximately 1,100sqkm and a 2.7mtpa capacity plant together with extensive infrastructure. Mr Kiernan said Monarch intended to put the Hill 50 mine on care-and-maintenance for some 18 months, while the company focussed on exploration activities.

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