The Michael Kiernan-chaired gold explorer and developer Monarch Gold Mining Company Ltd has given the go-ahead to its Davyhurst Gold Project and announced plans to immediately refurbish the site.
The Michael Kiernan-chaired gold explorer and developer Monarch Gold Mining Company Ltd has given the go-ahead to its Davyhurst Gold Project and announced plans to immediately refurbish the site.
Monarch has contracted GR Engineering Services, formerly JR Engineering, to assist with the refurbishment of the 1.2 Mtpa processing plant, administration office and 120 person camp - all of which had been on care and maintenance before the company bought the site in November 2005.
The refurbishment is forecast to cost $5 million.
The company has also announced plans to exercise its purchase option to acquire the mining rights on the International Goldfields Ltd-owned Mt Ida gold mine.
Monarch will own 70 per cent of the project, in a joint venture with site operations manager Mark Edgar.
Mine planning at the site is expected to be finalised shortly, with plans to commence underground development of the Baldock deposit in April
The full text of a Monarch announcement is pasted below
MONARCH ANNOUNCES DAVYHURST GO AHEAD
Monarch Gold Mining Company Ltd today announced the go ahead for its Davyhurst Gold Project located some 120 km north west of Kalgoorlie. This significant milestone follows completion of mine plan optimisation.
Monarch will immediately commence the refurbishment of the Davyhurst Mill following the appointment of processing plant specialists, GR Engineering Services, headed by Joe Ricciardo (formerly of JR Engineering) who together with his staff have individually predominately more than 15 - 20 years industry experience in quality engineering design and construction services to the resources and processing industry.
The 1.2Mtpa Davyhurst Processing Plant, Administration Office and the 120 person Camp have been on care and maintenance for some 15 months and will only require a modest refurbishment budgeted to cost A$5 million in order to bring the Mill online for first gold production in July 2007.
Negotiations have also commenced for the appointment of a Mining Contractor ahead of preparation for mining in May.
Monarch also announced that following due diligence it has exercised its purchase option to acquire the mining rights for the high grade Mt Ida gold mine, located approximately 100km north of the Davyhurst Mill from International Goldfields Limited. The total estimated gold resource contained within the Baldock, Whinnen and Meteor lodes currently stands at 110,650 ounces at an average grade of 24.0 g/t Au.
Monarch has entered into a 70%:30% joint venture with the previous site operations management which will deliver Monarch shareholders a 70% interest in a near production gold mine.
Mine planning at Mt Ida will be finalised shortly with the target of recommencing underground development at the Baldock deposit in April utilising the existing contractor RUC Mining Contractors Australia. RUC are a subsidiary of the South African group Murray & Roberts - vertical shaft development and underground mining specialists.
Monarch Executive Chairman Michael Kiernan said "Achieving project go ahead status is a significant milestone for our shareholders".
"We are certainly on track to commence mining gold ore from Davyhurst in late June and Mt Ida late July with our initial gold pour planned for late July".
Mr Kiernan added the total target production for the next 12 months from Davyhurst and Mt Ida will be 125,000 ounces. Davyhurst will deliver 75,000 ounces of gold at an estimated cost of US $500 per ounce and Mt Ida will deliver 50,000 ounces of gold at an estimated cost of US $330 per ounce.
"With a gold price around US $650 per ounce the Davyhurst and Mt Ida mines will create a healthy profit for our shareholders", Mr Kiernan said.
The Mt Ida acquisition boosts Monarch's gold production target of building a 500,000oz per annum company by December 2009.
