Friday, August 30, 2013

Monarchy Resources, Inc. (MONK) Issues Update on Interests in Gold and Silver Operations in Mexico

Monarchy Resources, which is focused on strategic global investment in historically significant, primarily precious metals-related mining acreage, provided markets with an operational update today on the ongoing activities of their first portfolio company, New World Metals Corp. (in which Monarchy is a 45% shareholder), at the La Luna, Morelos, and Peneto mine sites in Mexico.

New World Metals is a full-spectrum mineral development, processing, and refining company doing gold and silver recovery at some of the best geology in Durango and Chihuahua with historical production and existing infrastructure. As current production out of the La Luna/Morelos mines is coming in around 55 tons/day (25 and 30 tons/day respectively) and another 15 to 20 tons/day is anticipated from Peneto, a closer look at the portfolio potential is in order.

The La Luna mine (some 74 acres) in Matamoros, Chihuahua, saw production stopped in the 1970′s with only the north zone mined down to level three and currently has some 3k tons of ore stockpiled for processing. With just over 300k tons of indicated resources on site (as well as over 413k tons inferred) and assays on the main mineral bodies averaging around 2.5 grams of gold, with 600 grams of silver per ton, recent drainage of the mine to the lower levels and deepening of the shaft by another 23 feet has bolstered confidence, with assays at this lower level coming back just shy of the overall site average (1.5 grams AU and 600 grams Ag per ton).

The newest site in the portfolio is the Peneto mine in Santa Barbara (Chihuahua), which has been in limited production since 1990 but which was only explored down to about the fourth level. The shaft has now been deepened by over 26 feet and with main mineral assays in the range of 11g/ton Au, with 170g/ton Ag, as well as 500 tons of ore stockpiled against the backdrop of 160k tons indicated resources (and an additional 138k tons inferred), the company is looking at initial production as high as 20 tons a day.

The newest site in the portfolio is the Peneto mine in Santa Barbara (Chihuahua), which has been in limited production since 1990 but which was only explored down to about the fourth level. The shaft has now been deepened by over 26 feet and with main mineral assays in the range of 11g/ton Au, with 170g/ton Ag, as well as 500 tons of ore stockpiled against the backdrop of 160k tons indicated resources (and an additional 138k tons inferred), the company is looking at initial production as high as 20 tons a day.

Monarchy has the management experience and New World Metals has the logistical capacity to make some real news out of these sites in Mexico. New World is already in the process of acquiring equal share percentage in a well-positioned processing plant, well on the road to a 360 tons/day target set for within the next two years.

To learn more about Monarchy Resources, visit www.MonarchyResources.com

To get a closer look at New World Metals, visit www.NWMetals.com

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