West Perth-based Monarch Gold Mining Company Ltd has signed a deal with Riverina Resources Pty Ltd and Barra Resources Ltd for the acquisition of the Riverina Gold project in a deal worth over $4 million.
Monarch will issue 15 million shares and five million options to acquire the land, which the company says will bolster its resource base.
West Perth-based Barra and Riverina will retain nickel exploration rights over the 135 sqkm tenement, which is situated north of Kalgoorlie.
The full text of a company announcement is pasted below
Monarch Gold Mining Company (ASX / DIFX: MON) today announced it had extended its land holding in the Kalgoorlie region, with the acquisition of the Riverina Gold project.
Monarch has acquired the highly prospective tenements from Riverina Resources Pty Limited and Barra Resources Limited, under a deal that will involve 15 million ordinary Monarch shares, and five million options.
The Riverina Gold Project is contiguous to Monarch's Davyhurst project and 40km from the processing plant. It covers 135 square km of granted mining leases, prospecting licenses and exploration licenses and contains Indicated and Inferred gold resources totalling 1.64 million tonnes @ 3.8g/t Au for 200,000 ounces. The near surface resource deposits are amendable to open pit mining and hauling to Davyhurst.
Monarch Chairman Michael Kiernan said the addition of the Riverina Project bolstered the Monarch resource base.
"Recent optimisation studies conducted support open pit mining with strong positive cash flow opportunities, with potential to further develop high grade underground resources," Mr Kiernan said.
"The tenements lie immediately to the north of Monarch's refurbished Davyhurst mill within easy hauling distance, and present an immediate increase in potential throughput."
"Riverina is a natural strategic and logistical fit within Monarch, and keeps us well on track to achieve the goal of becoming a 500,000 ounce per annum by December 2009."
"The acquisition further cements our position as having the largest independently owned land position in the WA Goldfields," Mr Kiernan said.
Riverina Resources Pty Limited and Barra Resources Limited will retain rights for nickel exploration on the tenements.
