Monument Confirms Amended Plan for Gold Production from Phase I Gravity Plant Funded by Cash on Hand (Amendment)
Release #2 - 2009
Vancouver, B.C. Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) (“Monument” or the “Company”) announces that it has completed its amended construction plan. Under this plan, mining is scheduled to commence in May 2009 and production of gold from the Phase I gravity plant commences in August 2009. The projected cost of Phase I is $10.0 Million less $2.40 Million spent to 31 December 2008 on the project leaving a balance to completion of Phase I of $7.6 Million which the Company has available from $11.4 Million cash on hand as at the date of this release.
Phase II of construction is the completion of the CIL circuit and remainder of the plant costing an estimated $7.00 Million and is scheduled to be completed in parallel with the operation of Phase I allowing the second phase of commissioning to occur in December 2009. The Company has estimated that planned gold sales proceeds from the operation of the Phase I gravity section of the plant will enable completion of the full construction program and resultant full production capability with no debt and cash on hand. Total estimated cost of the completed plant is $17.0 Million.
On 31 October 2008 the Company announced (Release # 15-2008) that with receipt of government approval to construct the gold treatment plant, the Board of Directors had resolved to place its 100% Selinsing Gold Project (“Selinsing”) into production. Concurrently, the Board approved a CDN$17.0 million construction and development program with targeted commencement of production in Q2/Q3 calendar 2009 and full production in Q4 calendar 2009.
This production decision followed the 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 were for construction and development of the entire project, expansion of its exploration programs, retirement of all debt and to pay general administrative expenses.
The Company announced on 23 December 2008, that failure of Lenders to supply the $10.0 million credit facility now required re-engineering of the Selinsing project into two phases to be able to achieve the commercial objectives and place the project into production. The company engaged its advisers and consultants to review managements plans, which included Snowden Mining Industry Consultants Pty Ltd (“Snowden”) and Metallurgical Design.
Snowden Mining Industry Consultants Pty Ltd (“Snowden”) were engaged to re-design the starter pit to be able to access higher than average grade gravity recoverable gold bearing material contained in outcropping quartz vein structures. It is anticipated the material brought forward under this mine plan will fund the completion of the plant which is planned to be completed by December 2009.
Frank Blanchfield MAusIMM, of Snowden Mining Industry Consultants Pty Ltd, whom is a qualified person under National Instrument 43-101 and responsible for the mine design and schedule of the Technical report entitled “Preliminary Assessment Selinsing Gold Project, Malaysia NI-43-101 Technical Report Project No. 5174 - Selinsing Resource Reserve Estimate November 2007”, is overseeing the open-pit re-design and production of the mining technical information and mine production scheduling, related to the open-pit mining on behalf of Monument Mining Limited and has reviewed the contents of this news release in relation to these items.
Mike Kitney MAusIMM, of Metallurgical Design, whom is a qualified person under National Instrument 43-101 and responsible for the metallurgical recovery and process operating cost of the Technical report entitled “Preliminary Assessment Selinsing Gold Project, Malaysia NI-43-101 Technical Report Project No. 5174 - Selinsing Resource Reserve Estimate November 2007”, is overseeing the gold process plant re-design and process flow and operating cost of the metallurgical technical information and gold recovery, related to the metallurgical aspects on behalf of Monument Mining Limited and has reviewed the contents of this news release in relation to these items.
Monument is targeting indicated resources totalling 205,000 ounces and inferred resources totalling 332,000 ounces of gold as reported by Snowden Mining Industry Consultants Pty Ltd (“Snowden”) in the Technical Report entitled “Preliminary Assessment Selinsing Gold Project, Malaysia NI-43-101 Technical Report Project No. 5174 - Selinsing Resource Reserve Estimate November 2007”. The report has a Mineral Resource classification scheme consistent with CIM guidelines (CIM 2004). The estimates have been categorized as Indicated and Inferred mineral resources and have been reported above a grade cut-off that is appropriate for a potentially bulk mineable deposit. At a cut-off grade of 0.75 g/t Au the currently defined Selinsing Indicated Mineral Resource is 3.63 million tonnes grading 1.76 Au for a total of 205,000 ounces of Au. At the same Au block cut-off grade, the currently defined Inferred Mineral Resource is 7.7 million tonnes grading 1.34 g/t Au for a total of 332,000 ounces of Au as filed on SEDAR. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Construction and development progress are on track and the Company is confident that it can meet the cost and timing estimates announced without debt, capital infusion or shareholder dilution.
Monument Mining Limited is an emerging Gold Producer exploring in the Malaysian Gold Belt in Pahang State, Malaysia. The Company is fast tracking gold production at its 100% owned Selinsing Gold Mine Project targeting production in Q3-2009 and is unhedged. Monument is strategically exploring gold resources at 100% owned Damar Buffalo Reef Prospect and expanding it land holdings.
Robert F. Baldock, President and CEO
Monument Mining Limited
Park Place, Suite 710, 666 Burrard Street
Vancouver B.C. Canada V6C 3P6
For further information contact:
Richard Cushing, Investor Relations
Wolfgang Seybold, President and CEO, Axino.AG
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.
Not for distribution to U.S. news wire services or dissemination in the United States. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the information contained herein. Certain disclosures in this release, including management’s assessment of the Company’s plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to the Company’s operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such.
This press release contains forward-looking statements about Monument Mining Limited (“Monument”), its business and future plans, including the contemplated phase I and phase II development plans resulting in the commencement of mining and gold production, and in respect of the dates and amounts projected for these two phases resulting in the plant construction, gold production, gold sales and costs of the Selinsing Project. Forward-looking statements are statements that are not historical facts and include the timing of the proposed programs and events. The forward-looking statements in this press release are subject to various risks, uncertainties and other factors that could cause actual results or achievements to different materially from those expressed or implied by the forward-looking statements. These risks and certain other factors include, without limitation, uncertainty to the actual cost of the gravity circuit and the estimated cash flows which may be generated from the gravity circuit, the risk that the Selinsing Project will not be completed successfully or in a timely manner, general economic factors and other factors that may be beyond the control of Monument. Forward-looking statements are based upon the beliefs, opinions and expectations of the management of Monument at the time they are made and Monument does not assume any obligation to update its forward-looking statements if those beliefs, opinions, expectations or circumstances should change.