Tuesday, 18th December 2007 (1994 views)

The 12-month mine plan set out by Monarch Gold Mining Company has been remodeled in order to ensure monthly production targets can be reliably met, it has emerged.

The underperformance of the Walhalla pit has prompted the change, which will now see multiple pits provide ore to blend feedstock, with the intention of increasing head grade, the firm asserts.

Chairman of the company Mr Kiernan told the Sydney Morning Herald: "We have recast our Davyhurst mine plan following difficulties with the start-up pit at Walhalla and are focusing on new pits with more robust mineralisation to deliver a steady but substantial ramp up of production over the next 12 months."

He added that shareholders should feel optimistic about the increased production forecast since costs per ounce would be driven down, while the current strong gold market could result in good performance for the commodity as a physical product.

Last month, Monarch Gold Mining Company announced the acquisition of Hill 50 from Harmony Gold Mining, alongside Great Fingall, St George, Star and Big Bell.

 

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