02/03/2010 - 08:51

Kiernan wraps up Monarch recap

02/03/2010 - 08:51

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The Michael Kiernan-led Stirling Resources says it has finished the $15 million recapitalisation of collapsed Monarch Gold, which will be rebadged as Swan Gold Mining.

The Michael Kiernan-led Stirling Resources says it has finished the $15 million recapitalisation of collapsed Monarch Gold, which will be rebadged as Swan Gold Mining.

Administrators Pitcher Partners have retired from Monarch, which collapsed in July 2008 after it suspended operations at its Davyhurst processing plant due to continued underperformance.

Stirling said today it now owns a 37 per cent shareholding in Monarch while existing Monarch shareholders will retain their full number of shares.

It also said it has taken control of the Mt Ida and Carnegie gold assets, located in the Goldfields, and will move to restart operations immediately with the full production rate of 100,000 ounces each year to take 12 months.

Mr Kiernan said a significant amount of planning work had already been undertaken during the past six months in readiness for production.

"Mining consultants SRK have been reviewing the Carnegie open pit mining plans for the Riverina, Sandking and Missouri pits, and we have engaged Barcon Logistics for mining and general contracting activities," Mr Kiernan said.

"It is anticipated that first mining will commence at Carnegie in four to six weeks, with a targeted production of 60,000 ounces per year."

Mr Kiernan added that Stirling was in negotiations for toll treatment of up to 40,000 ounces per annum of ore at a third party mill.

The Mt Ida mine is scheduled to start operations in the June quarter.

An application will also be made shortly to re-list Monarch on the Australian Securities Exchange as Swan Gold Mining.

Shares in Stirling Resources were unchanged at 11.5 cents at 11:26 AEDT.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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