MON 0.00% 29.5¢ monarch gold mining company limited

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    Monarch Gold Mining Company’s (ASX/DIFX:MON) Davyhurst Gold Project is expecting to be cash
    positive in April 2008, following completion of a revised mine plan to deliver steady increases in
    In addition, the Directors of Monarch are pleased to confirm shares from last week’s $10 million (20
    million shares at 50 cents per share) placement have been settled today. The funds raised from
    institutional and sophisticated investors will be used to bring forward the commencement of mining at the
    Missouri, Sand King and Riverina prospects.
    Monarch Chairman Michael Kiernan said the Company had re-optimised its mine plan, following
    confirmatory drilling at its Goldfields-based projects.
    He said Monarch was forecasting a projected production target of 60,000 ounces for the first half of
    “The revised mine plans are based on optimisations carried out by Monarch staff to steadily increase
    production, and at the same time reduce unit costs,” he said.
    “This production plan projects estimated cash costs will reduce to just below A$700 per ounce by
    December 2008 and combined with a strong gold price will generate value for our shareholders,” he said.
    Mr Kiernan said the Company forecasts were for the gold price to remain above AUD$1,000 per ounce,
    which provided sound economics for the Davyhurst operation.
    “The Company is carrying no bank debt and remains in an unhedged gold position and based on the
    revised mine plan expects to be become cash positive at Davyhurst during April,” Mr Kiernan said.
    “With increasing production from higher grade deposits, we remain committed to a target of 125,000
    ounces per annum at Davyhurst,” Mr Kiernan said
    The company’s high grade Mt Ida asset is projected to reach full ramp up capacity of 4,000 ounces per
    month during July 2008.
    For further information, please contact:
    Michael Kiernan Warrick Hazeldine
    Chairman - Monarch Gold Purple Communications
    Tel: +61 (0)8 9481 6422 Tel: +61 (0)8 9485 1254
    Mob: 0417 944 616
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