Galane Gold to resurrect historic Monarch Mine

Staff Writer | Tuesday July 10, 2012 00:00

 

Last week, Galane Gold executives told a resources conference that activities at Monarch would include studying the gold potential of a region beyond the 200 metre mark that previous mining reached before closure in 1998.

Prior to its closure, Monarch was the country's most successful gold mine, among the numerous mostly small-scale operations scattered in the north eastern gold belt. Galane Gold estimates that Monarch Mine, a landmark dating back to the 19th century, pumped out approximately 240,000 ounces of gold during its lifespan. Galane Gold CEO, Philip Condon said a prospecting licence has been applied for in respect of Monarch, with a programme of activities already laid out.

He said previous drilling showed that gold mineralisation extended below the 200 metres mined by previous producers, with potentially 250,000 ounces every 200 metres. 'The work will examine the potential below 200 metres where limited drilling by previous workers indicates that the reef continues,' Condon said.

'We are designing a deep drilling programme to test this potential. 'There is potential for 250,000 ounces for every 200 metre vertical depth tranche.' Besides the potential for extracting further gold at Monarch, Galane Gold also plans to 'mine' a 500,000 tonne fines dump, being gold-bearing residue from previous processing operations. Galane experts estimate the dump contains 1.4 grammes of gold per tonne, representing a lower cost per carat for extraction when compared to the costs of deepening Monarch Mine's operation.

Planned activities at Monarch Mine are part of a wider strategy by Galane Gold to tap into adjacent resources and build up supply to Mupane's processing and treatment works. The strategy includes activities at another historic operation, the Shashe Gold Mine, where Galane Gold executives say studies show the landmark underground mine has the potential for 200,000 ounces of gold for every 300 metres deep.

'We expect to extract a bulk sample from underground for metallurgical test work in late 2012,' said the Galane Gold CEO. Another high target is Jim's Luck, a gold-bearing mineral resource area located near Matsiloje where Galane Gold is hoping to uncover 500,000 ounces of gold through an open pit operation.

At Jim's Luck, Galane plans to spend US$1.52 million (P11.4 million) and close to one and a half years defining the resource before incorporating it into the four other mining lease areas currently contributing to Mupane's operations.

For 2012, Galane Gold will also progress exploration work on small potential resources that include Rainbow, Motopi, Tekwane Ni/Pt Project and the Tekwane Gold Project. Galane Gold has budgeted U$3.4 million  for the exploration of new gold-bearing resource areas this year, in order to add to the venture's limited lifespan.