Mount Ida Gold Mine

Mount Ida
Location
Mount Ida Gold Mine
Location in Australia
Location Menzies
State Western Australia
Country Australia
Coordinates 29°09′S 120°46′E / 29.150°S 120.767°E / -29.150; 120.767Coordinates: 29°09′S 120°46′E / 29.150°S 120.767°E / -29.150; 120.767
Production
Production 1,646 [1]
Financial year 2007-08
History
Opened 2007
Closed 2008
Owner
Company Swan Gold Mining
Website Swan Gold website
Year of acquisition 2010

The Mount Ida Gold Mine is a gold mine located 86 km north-west of Menzies, Western Australia.[2]

The mine was recently acquired by Swan Gold Mining Limited, having formerly been owned by Monarch Gold Mining Company Ltd, and went on care and maintenance when Monarch went into administration in June 2008.[3] A second mine owned by Monarch, the Davyhurst Gold Mine, was also shut down, while the company's third mine, the Hill 50 Gold Mine, never entered production under Monarch's ownership.

History

Historically, Mount Ida produced over 290,000 ounces of gold from four underground mines, while the nearby Timoni Gold Mine produced 265,298 ounces until it was shut in 1965. All mining ceased in 1988.[4]

The deposit was owned by Hamill Resources,[4] which changed its name to International Gold Fields Limited in July 2003.[5]

International Goldfields commenced mining activities at Mount Ida, dewatering and refurbishing the Timoni shaft and the upper levels of the old mine workings,[6] but mining at Mount Ida was suspended again in February 2005.[7]

After the purchase of the Cape Lambart Iron Ore project in October 2005, the company was renamed Cape Lambart Iron Ore Limited in November 2005.[8] Cape Lambart spun off its gold assets, forming a new International Gold Fields Limited in April 2006.[9]

In August 2006, International Gold Fields announced that it was planning to reopen the mine,[7] but instead sold it in February 2007, when it was purchased by Monarch for A$4 million. Monarch announced a resource of 110,000 ounces of gold at the mine, at an average grade of 24 g/t, making Mount Ida a very high grade mine. Monarch's plan was to transport ore from Mount Ida to its Davyhurst processing facility.[10]

Monarch recommenced mining at Davyhurst in June and at Mount Ida in July 2007,[11] announcing its first gold pour the following month.[12]

Mining at Mount Ida was carried out underground, methods consisting of a small scale rail mounted hand held development and stoping. The mine is accessed via the refurbished Timoni shaft.[13]

The Davyhurst mine was placed in care and maintenance once more on 14 June 2008 because of continued underperformance while the Mount Ida operation remained in production.[14] Michael Kiernan was appointed as managing director of Monarch and resigned as chairman of Territory Resources, the main creditor of Monarch, on 24 June 2008.[15]

Monarch appointed Pitcher Partners as voluntary administrators on 10 July 2008, all mining operations at Mount Ida thereby being put on hold.

In June 2009, Stirling Resources Limited, under managing director Michael Kiernan, announced to inject funds into Monarch Gold.[3] Stirling announced, it would cover all of Monarch's debt, A$55 million and intended to return both the Mount Ida and the Davyhurst Gold Mine into operation, the later within three month of the take over. Mount Ida is scheduled to produce 48,000 ounces of gold per annum at A$450 an ounce, while Davyhurst would produce 65,000 ounces at A$850. Stirling would rename Monarch to Swan Gold Mining Limited.[16] The proposal was accepted by Monarch's creditors on 1 July 2009.

Stirling experienced considerable delays in their fund raising and had to request for extensions on the dead line for the recapitalisation of Monarch, first to the 31 December 2009 and then to the 31 January 2010.[17] The new owners, Swan Gold Mining, announced plans to reopen Davyhurst in May 2010 and Mt Ida in October of the same year.[18]

Production

Production of the mine:

Quarter Production Grade Cost per ounce
Third Quarter 2007 [11] 80 ounces 8.0 g/t
Fourth Quarter 2007 338 ounces 8.0 g/t
First Quarter 2008 1,228 ounces 13.2 g/t
Second Quarter 2008

See also

Sources

References

  1. ↑ Figures for July 2007 to March 2008
  2. ↑ MINEDEX website - Mt Ida - Timoni search result accessed: 17 January 2010
  3. 1 2 MONARCH GOLD MINING COMPANY LIMITED (MON) delisted.com.au, accessed: 15 January 2010
  4. 1 2 The Australian Mines Handbook: 2003-2004 Edition, page: 112, accessed: 17 January 2010
  5. ↑ HAMILL RESOURCES LIMITED (HML) delisted.com.au, accessed: 18 January 2010
  6. ↑ Fourth Quarter Activities Report ASX announcement, published 30 July 2004, accessed: 18 January 2010
  7. 1 2 To Recommence Mining Operations a Mt Ida Gold Mine ASX announcement, published 24 August 2006, accessed: 18 January 2010
  8. ↑ INTERNATIONAL GOLDFIELDS LIMITED (IGL) delisted.com.au, accessed: 18 January 2010
  9. ↑ CFE ann: Gold Spin off Completed ASX announcement, published 24 April 2006, accessed: 18 January 2010
  10. ↑ Acquires rights to rich Mt Ida Gold Mine ASX announcement, published 26 February 2007, accessed: 17 January 2010
  11. 1 2 Quarterly Activities Report and Cashflow Report ASX announcement, published: 31 January 2008, accessed: 17 January 2010
  12. ↑ Monarch 2007 annual report ASX announcement, published 15 October 2007, accessed: 15 January 2010
  13. ↑ Mt Ida Gold Project Swan Gold website, accessed: 18 January 2010
  14. ↑ Davyhurst and Mt Ida Operations Update ASX announcement, published 16 June 2008, accessed: 15 January 2010
  15. ↑ Michael Kiernan vows to save gold miner Monarch perthnow.com.au, published 24 June 2008, accessed: 15 January 2010
  16. ↑ SRE: Offer to Recap Monarch to take it out of administration ASX announcement, published 23 June 2009, accessed: 15 January 2010
  17. ↑ Deed Administrator`s Update to Shareholders ASX announcement, published 23 December 2009, accessed: 15 January 2010
  18. ↑ Swan to commence mining in May Swan Gold ASX announcement, published: 25 March 2010, accessed: 25 April 2010
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