Mt Magnet!!!!!!!!!!!!!The Mt Magnet Gold Operations are located...

Mt Magnet!!!!!!!!!!!!!


The Mt Magnet Gold Operations are located 600km north east of Perth, Western Australia and include the Hill 50, Great Fingal and Star Mines which have all produced in excess of 1 million ounces each.



The province is one of the largest and most prospective advanced exploration packages in Australia, located in a region with a world class history of major projects and is complemented with significant operational infrastructure allowing for fast track development.



The project comprises a resource inventory of 26Mt @ 3.2g/t for 2.7 million ounces of gold, tenements covering approximately 1,100km2 and a 2.7Mtpa CIP treatment plant.



The area has good infrastructure with access via a main highway from Perth or via a sealed airstrip at Mount Magnet. Electricity is generated from gas power from the Dampier to Bunbury pipeline.



Gold was first discovered in the region in 1888 and over 13 million ounces of gold have been produced since that time from surface and underground sources in the Murchison Province. This endowment is similar to a number of major mining areas in the eastern goldfields, including St Ives, Wiluna, Leonora and the Agnew Lawlers district.


Unlike the eastern goldfields, the Murhison Province is significantly underexplored and vast areas under cover remain for exploration with the potential for plus 1 million ounce discoveries.



Current Operations



Monarch has commenced a strategic review of the Mt Magnet exploration projects and resource base, and has completed a programme and budget for 2008. The budget programme, based on expenditure of approximately $10 million per annum, including 88,000 metres of drilling with the aim to provide a resource/reserve base to enable re-commencement of operations within 2 years.



Four priority projects were identified during an exploration review held at Mt Magnet in January 2008, these being:



- Galaxy Pit (potential +200,000oz open pit resource)

- Saturn including the Hill 50 surrounds - Mars, Reno etc (potential +250,000oz resource)

- Great Fingall underground (potential +250,000oz resource) and Great Fingall open pit (potential 50,000oz resource)

- Big Bell (potential 1Moz underground and open pit resource)



Other potential "core" areas for near mine exploration and resource development include



- Star Mt Magnet (500,000oz underground resource)

- Black Swan South (Cuddingwarra) (+300,000oz open pit resource)

- Western Queen South (44,000oz open pit resource)



A preliminary review of the principal (largest) resources has been carried out on site with input from Harmony Geologists. While considerable resource evaluation and estimation has been carried out by Harmony, many of the key resource models require validation and updating prior to further optimisation and mine planning. In the case of the proposed Galaxy Superpit, new resource models are required for the Mars, Saturn West and Vegas deposits and it will be necessary to produce an amalgamated block model to test the feasibility of large open pit development in the Hill 50 area. It is likely that further exploration targets will be generated as part of this resource evaluation work.



Extensive airborne and ground geophysical data exists for the Mt Magnet project. These data including source grids, located data and processed imagery have been collated and sent to a Perth Consultancy. The aim of this work is to provide an audit of previous data and processing and identify methods to better constrain geological interpretation, 3D modeling and target generation.



It is anticipated that detailed magnetic, gravity and radiometric data will provide the means to better characterize the key stratigraphic packages, delineate structural controls and provide sub-surface information using 3D inversion data.

Riverina!!!!!!!!!!!!

The Riverina Gold Project covers some 135 sq kms of granted tenements and is located immediately to the north and contiguous with the Davyhurst project.



The project covers some 24kms of the continuation north from Davyhurst of the Mt Ida greenstone belt and is widely mineralised. Mineralisation is located in sub-parallel mesothermal anastomosing veins which are amenable to open cut and underground mining.


The Riverina project contains indicated and inferred gold resources totalling 1.64 million tonnes @ 3.8g/t Au for 200,00ozs, in near surface deposits amenable to open pit mining and hauling to Davyhurst, only 40kms to the south. Recent optimisation studies support open pit mining to 75 metres depth and with a potential pit to 145 metres, subject to futher drilling to confirm continuity of mineralisation at depth. There is also potential to further develop high grade underground resources.



Monarch proposes an extensive exploration drilling programme of some 15,000 metres of RC drilling to upgrade the current resource base, extend the open pit resources and target new discoveries within the project area.


RAB drilling will focus on areas of geochemical gold anomalism and structural complexity, where limited previous exploration has been carried out.



Current Operations



RC resource definition drilling continued at Riverina during the quarter. Drilling focused on the area between the North and South shafts and also to test a further 800 metres strike extent of mineralisation to the north of the optimised pit, where previous drilling was not of a density adequate for resource definition. The drilling tested numerous historically mined mineralised lodes, some of which do not have a surface expression.



A re-interpretation and updated resource calculation was completed and based on results received which resulted in an increase in 52,467 ounces in the Riverina Mine area resource to a total of 205,000 ounces (indicated - 952,000T @ 2.40g/t Au (73,300 ozs) and inferred - 1,650,000T @ 2.48g/t Au (131,500 ozs).



The optimised main pit covers 670 metres strike extent and covers the Riverina Main Lode, Riverina Central Lodes and the southern portion of Reggies Lode.


Potential exists along strike to the north of the Riverina pit associated with shallow historic workings and also below the proposed pit to test depth extents and underground potential.


At the Reggies prospect an optimised pit extends over 380m in strike, with the northern extent of the pit defined by the most northern line of RC drilling, with potential to extend this resource to the north with further drilling.



At the Silver Tongue prospect potential exists for lodes to be defined with underground potential.



Drilling to date has defined shoots with good down plunge continuity and includes intercepts such as 6m @ 7.88g/t Au, 4m @ 9.13g/t Au, 3m @ 24.03g/t Au, 4m @ 19.79g/t Au and 7m @ 7.79g/t Au.