Monarch Gold Ltd has remodelled its 12 month mine plan for 2008 to ensure monthly gold production targets can be met.
Monarch said the remodelling was required due to the underperformance of the Walhalla Pit, and will source ore from multiple pits in order to blend feedstock to increase head grade.
"We have recast our Davyhurst mine plan following difficulties with the start-up pit at Walhalla, and are focussing on new pits with more robust mineralisation to deliver a steady but substantial ramp up of production over the next 12 months," chairman Mr Kiernan said.
Ore will initially be sourced from the Missouri Pit (2.4 g/t), the Riverina Pit (3.8 g/t) and Mt Ida (24.0 g/t) in order to achieve our annual target of 125,000 oz from the Davyhurst Gold Project, he said.
"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 is carrying no debt, owns state of the art processing plants and is backed by the largest Australian controlled land position in the Kalgoorlie region."
Monarch also has 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 2.7m ounces of gold, tenements covering approximately 1,100 square kilometres 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 it focussed on exploration activities.
Ultimately the Mt Magnet Gold Project should produce in the order of 150,000 oz per year.
