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.