Mr Kiernan said Monarch was continuing its steady and solid...

Mr Kiernan said Monarch was continuing its steady and solid increase in production at the Davyhurst project and as the company was unhedged it was able to capitalise on the current market strength in gold.

The company also has no bank debt.

Monarch recently agreed to acquire the Mt Magnet Gold Project which included the historic Hill 50 gold mine.

"The highly prospective Mt Magnet Gold Project is a major strategic acquisition for Monarch and its shareholders, adding established gold resources, a quality gold processing plant and one of the largest tenement packages in the region," he said.

When Davyhurst is in full production (125,000 oz pa) together with Hill 50 (150,000 oz pa - 2nd half 2009) the company will have a combined production of 275,000 oz pa with a healthy profit margin.