Michael Kiernan may have signed on to Consolidated Minerals for another year but things are happening at his other interest, Monarch Resources, where today it was announced he'd assume the executive chairmanship as the company revealed it has made a signi
Michael Kiernan may have signed on to Consolidated Minerals for another year but things are happening at his other interest, Monarch Resources, where today it was announced he'd assume the executive chairmanship as the company revealed it has made a significant acquisition.
Monarch announced that it has reached an agreement with Croesus Mining to acquire the Davyhurst gold project, northwest of Kalgoorlie for $5 million.
The terms of the acquisition include a $100,000 deposit, a $2.45 million payment on completion of the agreement (subject to completion of due diligence) and a $2.45 million payment following transfer of the tenements to Monarch.
The Davyhurst project, which is located 120km north-west of Kalgoorlie, comprises an 841 square km tenement package and currently includes an 808,000 ounce gold resource inventory, a 1.2mtpa gold processing facility and associated infrastructure.
The Davyhurst project is located within the Davyhurst-Mt Ida greenstone belt, which hosts the Zuleika Shear and Ida Fault - structures which reportedly control in excess of 10 million ounces of gold endowment. Historically, the Davyhurst field has produced some 1.15 million ounces since 1897.
It was placed on care and maintenance by Croesus earlier this year.
Monarch's managing director John Davis said the Davyhurst acquisition represented an opportunity to secure control of a richly endowed gold field, established infrastructure and a very highly prospective regional tenement package.
"Different styles of mineralisation are evident over 60km of strike and 10km across strike in sub-parallel shears and structures within the project area," Mr Davis said. "Our view is that the focus of exploration historically has been on the extension of known historical workings and close to open pits, with limited attention on the extensive regional potential."
"We believe there is significant potential to delineate a substantial resource base, particularly at depth," he added. "This is supported by the major gold-bearing structures which transect the project area, covering some 60km of strike, and the surficial cover which masks the surface expression of mineralisation."
"With approximately 80 per cent of drill holes completed to date less than 50 metres in depth and with continuous mineralisation known at the Lights of Israel underground mine location, we believe there is significant potential for further new discoveries."
Monarch also announced that Michael Kiernan will assume the role of non-executive chairman at the company's upcoming annual general meeting, with the current chairman, Colin Smith, stepping down so as to focus and assist with the comprehensive exploration program proposed to be undertaken in the New Year.
The exploration and development of the Davyhurst project will become Monarch's principal focus, alongside continued exploration of its other assets, which include the Lake Johnston project, located 540km east of Perth adjacent to LionOre Mining International Emily Ann and Maggie Hays Nickel operations.
