Monument Announces Gold Production Decision at Selinsing
Vancouver, B.C. Monument Mining Limited (TSX-V:MMY and FSE:D7Q1) (“Monument” or the “Company”) is pleased to announce that with receipt of government approval to construct the gold treatment plant, the Board of Directors has resolved to place its 100% Selinsing Gold Project (“Selinsing”) into production. Concurrently, the Board has approved a CDN$17.0 Million construction and development budget with targeted commencement of production in Q2/Q3 calendar 2009 and full production in Q4 calendar 2009.
Selinsing is located in the central gold belt of Pahang State, Malaysia.It presently contains 231,000 indicated & 388,000 inferred resource ounces of gold as filed in 43-101 reports on December 27, 2007.Since acquiring the Selinsing project in June 2007 the Company has undertaken project development work that has enabled it to fast track the construction process.
This production decision follows the recent announcement on 22 July 2008 that the Company had closed a $28.1 million private placement plus a $10.0 million convertible debenture credit facility for a combined gross total of $38.1 Million. These funds are for construction of the project, expansion of its exploration programs, retirement of all debt and to cover general and general administrative expenses.
The Company has now received provisional approval from the Mines Department of Pahang State to proceed with construction of a new full scale 1200 tonne per day capacity CIL mineral processing and treatment facility (“Treatment Facility”) at Selinsing.
The operation carried on by the previous owner until June 2007 was based on a small scale heap leach facility, which was shut down by Monument upon acquisition to minimize the construction delays and obstruction of the new facility. The new Treatment Facility has been engineered to easily accommodate expansion through the addition of a second ball mill recently acquired (see news release 19 August, 2008) and an extension of the CIL leaching circuit. The crushing circuit, Run of Mine ore pad (“ROM”) and ore storage areas have been similarly designed for additional capacity to be installed.
Issuance of the operating permit requires completion of the construction of the new CIL Treatment Facility and stage 1 of the new 3,000,000 cubic meter Tailings Storage Facility (“TSF”).
Project Management and Construction
The project will be managed by Selinsing Gold Mine Manager Sdn Bhd (the “(Project Manager”). The construction of the Treatment Facility will be managed by Kevin Wright ACSM, General Manager and Mining and Mineral Processing Engineer for the Project Manager (the “Construction Manager”). Mr. Wright has considerable international experience with a background of 33 years in designing, constructing and operating mining operations and treatment facilities as well as designing and operating both open pit and underground gold mining operations. His experience has included management of mines, plant design engineering, reliability maintenance planning, permitting, quality control and the business of running safe profitable mines and mineral processing plants in Central and South America, the Caribbean, Asia, Russia, the former Soviet Union, Scandinavia, Eastern Europe and North America. Mr. Wright has recently been relocated to reside and work on site at Selinsing. His background is further detailed in a 25th August 2008 news release.
The Construction Manager will manage the plant construction process and all contractors on the site, including construction of additional haulage and access roads. The Project Construction Manager will also manage the building of all new buildings associated with the project which will include the site hydro power sub-station, the motor control centre building, the expanded new plant control assay laboratory, mine grade control assay laboratory, and the Company equipment plant and repair workshop.
The existing workshop will be converted for mine site earthmoving and mining contractor use. An expanded staff accommodation unit, a new 24/7 cafeteria for use by staff, operators and contractors, and mine executives and mine managers site accommodation will also be built.
Prior to making this production decision, the Company conducted an internal review of the project that included a diamond drilling program to obtain further metallurgical samples for check test work of ore hardness, abrasion and other metallurgical test work to ensure optimal plant design. This review also determined that the Company expected the annual production of gold over the first 4-year life of the project to average 40,000 ounces per annum at an estimated cash cost of US$341 per ounce . The Board has approved a budgeted capital cost for completion of the construction of the Treatment Facility, certain new infrastructure and mine development up to a total of CDN$17.0 M.
Construction of the 1200 tpd Treatment Facility will commence immediately with the letting of contracts for the site civil works including concrete footings for the CIL leaching circuit, ball mill and other equipment, detailed design, supply and installation of the crushing circuit, earth works for the construction of the TSF and associated works, supply of a Hydro electricity connection to the site substation by Tenaga National Bhd., the Malaysian National power utility (“TNB”), and the laying of an underground coaxial cable for a new enlarged capacity communication and high speed internet access connection to and around the site.
The Company is presently working with Snowden International Mining Consultants Pty Ltd (“Snowden”) on mine plan optimization. Predevelopment mining is expected to commence in Q2/3 calendar 2009. This is consistent with the construction schedule and will provide sufficient time for feed material to be delivered to the ROM pad for plant commissioning by Q3 calendar 2009. The Company will be using contract mining for mining and development of the open pit.
The majority of parts, materials, equipment and machinery for the construction of the Selinsing Gold Project are manufactured and purchased locally in Malaysia in Malaysian Ringgit (“RM”). In addition, some specialist equipment will be sourced and paid for in Australian dollars. Both of these types of purchases will expose the Company to foreign currency risk. The Company has taken steps to offset and limit the effect of this exposure.
For further information contact:
Monument Mining Limited
Richard Cushing, Investor Relations
710 - 666 Burrard Street
Vancouver, B.C., V6C 3P6
Tel. +1 (604) 638 1661
Fax +1 (604) 638 1663
Investor & Media Relations
Tel. +49 (711) 253592-30
Fax +49 (711) 253592-33