Vancouver, B.C. Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) (“Monument” or the “Company”) is pleased to announce progress of the Burnakura Gold Project at Murchison in Western Australia. Along with completion of a recent NI43-101 Mineral Resource update, further work has been carried out under the Preliminary Economic Assessment Study (“PEA”), which includes underground mining opportunities.
President and CEO Cathy Zhai comments, “After updating the mineral resource estimation at Burnakura Gold Project under the NI43-101 Technical Report in July 2018, we have completed an initial economic assessment under the PEA study with an increase of mill capacity to 500ktpa from 260ktpa. Based on those assessments, we have re-strategized development of the Burnakura Gold Project. The planned gold production is postponed until completion of the PEA to include underground mining opportunities that would potentially allow for a better return to shareholders.”
Ms. Zhai further commented: “Our past successful drill programs have produced significant results with positive geological implications and provided us much more understanding of the control structure. It is now critical to engage a disciplined, effective and efficient exploration strategy to test our understanding of the regional geological targets for new discoveries while adding gold inventory to the existing defined deposits. The strategy will provide an economic scale of the project potential and allow us to hopefully move towards to placing Burnakura into production with a lower risk profile.”
Updated Resources and PEA Study
At Burnakura, in July 2018, SRK Consulting (Australasia) Pty Ltd (“SRK”) completed the “NI 43-101 Technical Report: Updated Mineral Resources, Burnakura Gold Project, Western Australia.” A total of 293koz Indicated Gold Mineral Resources at 2.3 g/t Au for 4,043kt and 88koz of Inferred Gold Mineral Resources at 1.8 g/t Au for 1,551kt was reported and has tripled from the previous reported resource estimates in 2015.
The PEA program is designed to identify the economic potential in a large scale at Burnakura, Tuckanarra and Gabanintha (together the “Murchison Gold Projects”) including open pits and underground mining opportunities. The NOA 7/8 resource estimates form a significant part of the Indicated Resources at Burnakura, resulting in an initial internal economic assessment being carried out in June and completed in October on the underground mining potential with a corresponding increase in the existing mill capacity to 500ktpa from 260ktpa, based on which staged mining alternatives have been evaluated as a part of the PEA study. The metallurgical drill samples were assayed, a further diagnostic leaching testwork has also been carried out on NOA7/8 core samples.
The ongoing PEA study is preliminary in nature, including inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.
Regional and Local Exploration
The recent deep drilling program at Burnakura has positive geological implications, showing mineralization is continuous at depth at ANA and extended approximately 130m down plunge at NOA7/8. A geological structural study was completed with updates reflecting new geological information to interpret regional geology. Regional and localized drill targets have been identified and ranked with priority at Burnakura and entire Murchison Gold Project.
The Company is in review of geological information, exploration milestones and strategy, preparing to commence the exploration programs in the New Year to test the geological interpretation through deep drilling programs for plausible underground extension and /or repetition targets at ANA, NOA 1 and NOA 2, and NOA 7/8 areas, and a new regional target at NOA 9.
Structural Geology Study
Several highly prospective exploration targets based on structural mapping have been developed by International Geoscience Structural Geology expert, Dr Warwick Crowe, presented in the Figure below:
Among those targets, NOA 9 (see figure below) was identified through regional aeromagnetic interpretation. NOA 9 is located in an area of alluvial cover at the extreme north end of the Burnakura project area. A prospective NNW trending structure has been mapped which is known to control the mineralization. The target is under transported cover.
Although conceptual in nature, it is recommended that this target be tested as high-priority because it has the potential opportunity to rapidly and materially transform the economics of the Murchison Project. It should be possible to test this with a few lines of aircore drilling (or if required by ground conditions, RC drilling).
The scientific and technical information in this press release has been prepared by Mark Lynch-Staunton, MCSM, MAIG, M.Sc Mining Geology; and supervised and approved by Roger Stangler, MEng, MAusIMM, MAIG, a Qualified Person as defined by NI43-101, both retained by Monument Mining Limited.
Monument Mining Limited (TSX-V: MMY, FSE: D7Q1) is an established Canadian gold producer that owns and operates the Selinsing Gold Mine in Malaysia. Its experienced management team is committed to growth and is advancing several exploration and development projects including the Mengapur Copper-Iron Project, in Pahang State of Malaysia, and the Murchison Gold Projects comprising Burnakura, Gabanintha and Tuckanarra in the Murchison area of Western Australia. The Company employs approximately 195 people in both regions and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighboring communities.
Cathy Zhai, President and CEO
Monument Mining Limited
Suite 1580 -1100 Melville Street
Vancouver, BC V6E 4A6
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This news release includes statements containing forward-looking information about Monument, its business and future plans (“forward-looking statements”). Forward-looking statements are statements that involve expectations, plans, objectives or future events that are not historical facts and include the Company’s plans with respect to its mineral projects and the timing and results of proposed programs and events referred to in this news release. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. The forward-looking statements in this news release are subject to various risks, uncertainties and other factors that could cause actual results or achievements to differ materially from those expressed or implied by the forward-looking statements. These risks and certain other factors include, without limitation: risks related to general business, economic, competitive, geopolitical and social uncertainties; uncertainties regarding the results of current exploration activities; uncertainties in the progress and timing of development activities; foreign operations risks; other risks inherent in the mining industry and other risks described in the management discussion and analysis of the Company and the technical reports on the Company’s projects, all of which are available under the profile of the Company on SEDAR at www.sedar.com. Material factors and assumptions used to develop forward-looking statements in this news release include: expectations regarding the estimated cash cost per ounce of gold production and the estimated cash flows which may be generated from the operations, general economic factors and other factors that may be beyond the control of Monument; assumptions and expectations regarding the results of exploration on the Company’s projects; assumptions regarding the future price of gold of other minerals; the timing and amount of estimated future production; the expected timing and results of development and exploration activities; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; exchange rates; and all of the factors and assumptions described in the management discussion and analysis of the Company and the technical reports on the Company’s projects, all of which are available under the profile of the Company on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.