Monument Releases Drill Results, Selinsing Developments and Director's Resignation
Release #1 - 2009
Buffalo Reef Latest Drill Results
Vancouver, B.C. Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) (“Monument” or the “Company”) is pleased to make the following announcement of new drilling results from its exploration program on the Buffalo Reef Project, located in the District of Kuala Lipis, in the northwest Pahang State of Peninsular Malaysia. The gold deposit on Buffalo Reef Project is part of the presently known 4.2km continuous and contiguous ductile & brittle north trending shear hosted gold mineralization zone.
The reverse circulation drilling at buffalo reef continues to produce positive results. Since the last news release, a total of 64 RC holes were drilled at the Central and Northern Zone. In addition a total of 40 holes were drilled at the Central zone at 40m x 40m grid spacing over a strike length of 700m. The objective of the drilling program at the Central Zone was to obtain a better understanding of the poorly defined scattered gold mineralisation previously identify by Avocet Mining Ltd. The recent drilling at the Central zone appears to have intersected complex mineralisation of gold bearing quartz veins or stringers that pinch and swell and are structurally controlled. Significant drilling interceptions from the Central Zone are listed below.
Table 1: Significant drilling interceptions at the Central Zone of Buffalo Reef
At the Northern zone, 37 RC holes were drilled at 20m x 20m spacing toward magnetic west. The closed space drilling pattern was designed to upgrade the resource category for a compliant reserve and resource statement and at the same time to immediately establish the oxide resource that would be suitable for the current plant configuration designed and being constructed at Selinsing. Drilling appears to intercept the upper portion of the main east dipping veins that control the gold. The latest results are very encouraging in that they compliment the previous gold intercepts. Significant drilling interceptions from the Northern Zone are displayed in table 2.
The width, geological nature and gold tenor warrant deeper drilling as the depth potential is largely untested. Deeper diamond drilling holes have been planned, based on trying to confirm any extension of the mineralisation at depth. Snowden have designed a program and submitted a proposal to Damar exploration team to undertake 3200m of diamond drilling programs at three discreet zones in the South, Central and North Zones at Buffalo Reef. This program has been designed to test for the down dip extension of the previously identified gold mineralized structure. The proposed drill holes are typically between 80-100m apart and reach depths of between 150 and 260m.
Table 2: Significant drilling interceptions at the Northern Zone of Buffalo Reef
The Company will now study all of the results to date and in conjunction with the proposed diamond program designed by Snowden to test the potential extension of these results at depth, continue work toward being able to commission an upgraded compliant resource statement for the Buffalo Reef Project. Any new drilling program however will be delayed until the Selinsing Gold Project is completed and in production.
Michael Andrew AusIMM, of Snowden Mining Industry Consultants Pty Ltd, a qualified person under National Instrument 43-101, is overseeing the drilling program and quality assurance and quality control (“QAQC”) programs on behalf of Monument Mining Limited and has reviewed the contents of this news release.
Selinsing Project update
The Company announced on 23 December 2008 that it was re-engineering its Selinsing Project in order to fast track the construction of the gravity separation section of the plant in order to bring forward cash flow from the project. This was a result of lenders failing to fund the promised $10.0 million Line of credit.
The Company news release advised “The proposed Amended Construction Plan has no major deviation from the original construction plan; however it breaks the construction of the 1200 tpd Gold Treatment Plant into two stages: A gravity circuit and the carbon in leach (“CIL”) circuit. The gravity circuit, estimated to cost approximately $10.2 M, will be constructed and commissioned to full operation ahead of proceeding to complete and commission the CIL circuit. With current cash balance of $12.6 M the Company expects to complete the gravity circuit and use cash flow generated from the gravity circuit to fund the construction of the balance of the CIL circuit. The total cost for the entire 1200 tpd CIL treatment plant remains virtually intact.
The work to achieve the Amended Construction Plan is well advanced. The Company engaged Snowden International Mining Consultants Pty Ltd (“Snowden”) to assist in the process and amend the first phase of its mine plan to accommodate this approach. The early cash flow is designed to provide the funds required to complete the balance of the plant. The results of the Snowden Report detailing the revised mine plan and the impact on cash flow and the financial model will be announced when available. The Company does not expect any major delay in achieving production this year.
Resignation of Director
The company also announces the resignation of Mr. P. Soares from the Board of Directors, effective as at 15th January 2009. The Company wishes to express thanks to Mr. Soares for his contribution to the Company as a director. A consulting agreement has been entered into with Mr. Soares whereby the company will have access to his services on an as needs basis in the future.
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.