VANCOUVER, Feb. 18, 2015 /CNW/ - Monument Mining
Limited (TSX-V: MMY and FSE: D7Q1) ("Monument" or the "Company") is
pleased to announce a mineral resource estimate for the
Alliance/New Alliance areas of the Murchison Gold Project in
Western Australia, which has been
prepared in accordance with the requirements of National Instrument
43-101 ("NI 43-101"). The Murchison Gold Project is 100%
owned by Monument Mining Limited through its wholly-owned
Australian subsidiary, Monument Murchison Pty Ltd., and consists of
the historical Burnakura and Gabanintha Projects. Figure 1
(Appendix 1) shows a Location Plan for the Project.
CEO, Robert Baldock, said: "An
Inferred and Indicated Mineral Resource Estimate for the
Alliance/New Alliance deposits has been received (21/1/2015) from
Independent Resource Consultants, Cube Consulting Pty Ltd, after
incorporating the results from the first 102 holes drilled.
Using a 1.0g/t Au grade cut-off, an Indicated Mineral Resource of
1.13 Million Tonnes @ 2.2g/t Au for 80,400 ounces and an Inferred
Mineral Resource of 5,000 tonnes @ 2.2g/t Au for 3,200 ounces has
been reported. This represents a 90% increase in the
Indicated gold ounces as compared to the historical estimate
inventory, as a result of improved confidence in the grade
continuity of the infill and extensional drilling completed by
Monument. The total contained gold ounces have increased by
15% as compared to the historical resource for the project.
This represents a very positive initial outcome toward the
preparation of a preliminary economic assessment in respect of the
Alliance/New Alliance deposits. The company is now
undertaking a continuing program of ongoing exploration over the
remainder of the historical resources that were acquired in
February, 2014."
Alliance/New Alliance Mineral Resource
Estimate
Table 1 below shows a breakdown of the updated Mineral Resource
estimate at a 0.5g/t cut-off:
Table1. Mineral Resource for Alliance and New Alliance at a
0.5g/t Au cut-off
Deposit
|
Indicated
|
Inferred
|
Density
(g/cm3)
|
Tonnes
(Mt)
|
Au
(g/t)
|
Contained
Au
(Koz)
|
Density
(g/cm3)
|
Tonnes
(Mt)
|
Au
(g/t)
|
Contained
Au
(Koz)
|
Alliance
New
Alliance
TOTAL
|
2.3
2.3
2.3
|
0.64
1.24
1.88
|
2.5
1.2
1.6
|
50.8
47.6
98.4
|
2.5
2.7
2.6
|
0.02
0.08
0.10
|
1.4
1.5
1.5
|
0.7
3.7
4.4
|
Table 2 below shows a breakdown of the updated Mineral Resource
estimate at a 1.0 g/t cut-off:
Table 2. Mineral Resource for Alliance and New Alliance
at a 1.0g/t Au cut-off
Deposit
|
Indicated
|
Inferred
|
Density
(g/cm3)
|
Tonnes
(Mt)
|
Au
(g/t)
|
Contained
Au
(Koz)
|
Density
(g/cm3)
|
Tonnes
(Mt)
|
Au
(g/t)
|
Contained
Au
(Koz)
|
Alliance
New
Alliance
TOTAL
|
2.3
2.3
2.3
|
0.49
0.65
1.14
|
3.0
1.6
2.2
|
47.4
33.0
80.4
|
2.7
2.7
2.7
|
0.01
0.04
0.05
|
3.0
2.1
2.2
|
0.5
2.7
3.2
|
The Company is working towards an economic understanding of the
revised resource model and estimate, with a view to a commercial
outcome; however, the Mineral Resource has not demonstrated
economic viability at this stage. All tonnage, grade and ounces
have been rounded to reflect the relative uncertainty and the
approximate quality of the estimate.
The full technical report, prepared in accordance with NI
43-101, will be filed on SEDAR and the Company's website within 45
days of the issuance of this news release.
Background on Alliance/New Alliance Deposit
The Alliance and New Alliance open pits lie approximately 2
kilometres to the south of the NOA line of open pit and underground
workings. Two tenements, M51/116 and M51/117, cover the Alliance
and New Alliance deposits, which have been mined intermittently
since the 1980's for shallow oxide gold mineralization to a 60-80
metre in vertical depth. Mineralization occurs within narrow,
moderate to steeply dipping shear zones that extend beneath the
current pit limits. Figure 2 (Appendix 2), shows a layout of the
Burnakura project and geology.
Gold mineralization at Alliance and New Alliance occurs over a
1,150 metre strike length. The mineralization exists within
several north to north-east trending, moderately east dipping
(~30°) quartz zones with an average true thickness varying from 2
metres to 5 metres.
The Alliance mineralization is hosted within narrow quartz veins
developed along the upper contact of a number of thin banded iron
formation units and are associated with shearing. Higher
grade gold mineralization occurs within quartz veins in dilational
sites that have developed along reactivated thrust faults.
Historical Estimates
Several historical estimates have been completed by various
consultancies between 2011 and 2013 within the Project area using
different methodologies to estimate the remaining resources beneath
and along strike from the mined pits. After it acquired the
project, Monument undertook drilling to confirm and extend the
resource, and has standardized and verified the data in a secure
relational database for mineral resource estimation.
Comparison of the Mineral Resource to the historical estimate,
as determined by BM Geological Services (Murchison Gold Project:
Burnakura and Gabanintha resource inventory (December 2013), at a 1.0 g/t Au
cut-off, shows the Monument drilling has resulted in a
significant increase in the Indicated gold ounces by 90%, based on
the closer spaced drilling confirming confidence in the grade
continuity. The total resource gold ounces have increased by
15% to 83,600 gold ounces when compared to the historical
estimate. Refer to the Company's news release of January 7, 2014 for further information regarding
this historical estimate, including comments on its relevance and
reliability.
QAQC and Resource Model
Monument has implemented external Quality Assurance and Quality
Control ("QAQC") processes to monitor the reproducibility of the
drilling assay data. This system has been implemented during the
resource drilling programs to monitor assay sample data for
contamination, accuracy and precision. All historical and
current drilling data have been validated and managed by Cube
Consulting Pty Ltd. ("Cube") in a secure relational 'Structured
Query Language' server database system to ensure data integrity and
security.
The sample collection and preparation, analytical techniques,
security and QAQC protocols implemented by Monument for the Project
are consistent with standard industry practice and are suitable for
the purpose of mineral resource estimation and the reporting of
exploration results to Canadian NI 43-101. Appendix 3 shows a
list of the Mineral Resource Estimation Notes from Cube.
Mineralization at Alliance/New Alliance has a strong geological
control with visual mineralization boundaries consisting of narrow
high grade quartz zones within lower grade altered BIF halos. To
effectively control the influence of the high grade gold values
within and adjacent to the quartz veins, the geological volume
modelling and estimation of the individual narrow quartz veins and
broader BIF units was completed separately.
The resource model completed by Cube has utilised the validated
Monument drilling database, comprising a total of 46,702 m of
RC and diamond core drilling in 767 holes covering the Alliance /
New Alliance deposits. The resource delineation and verification
drilling completed by Monument during 2014 comprises 16% of the
total mineralised drill intercepts used for the Mineral Resource
estimation. Drilling was generally orientated east-west, with
an average drill spacing of 10m by 10m at Alliance and 10m by 20m
at New Alliance.
Resource Methodology and Estimate
A three-dimensional geological interpretation was completed by
Cube to establish the underlying controls on gold mineralization
and to incorporate the structural interpretation based on
historical pit mapping.
Wireframe models of the quartz veins, BIF units and geological
structures were constructed using SurpacTM based on all
available drilling data as of 21st November 2014. Cube used 3 dimensional, spatially
referenced pit mapping data, surface geological mapping and close
space blast hole data to construct a robust geological framework
for determining the most likely directions and extents of the grade
continuity.
The drillhole data used for the Mineral Resource estimate
included Diamond, Reverse Circulation and Aircore drillholes.
Historical grade control drilling data ('Blast Holes') from open
pit mining was not used for the resource estimation. Figure 4
(Appendix 4) shows a layout of Alliance and New Alliance with
historical and current drilling. Figure 5 (Appendix 5) shows
a cross section of Alliance and Figure 6 (Appendix 6) shows a cross
section of New Alliance.
The Alliance/New Alliance mineralised domains are considered by
Cube Consulting to be of sufficient grade, geological continuity
and drill density to support the classification criteria of
Indicated and Inferred Mineral Resource as required for NI 43-101
compliance. Cube considered a range of criteria when
addressing the suitability of the classification boundaries
including: Confidence in geological, grade and volume
continuity; drill data density, spacing and quality; estimation
methodology; Kriging quality; and reliability of supplied depletion
surfaces.
Qualified Person Statement
The scientific and technical information in this press release
has been compiled by Lisa Wells
(B.Sc App Science, MAusIMM), and reviewed and approved by
Darryl Mapleson (BSc (Hons),
FAusIMM) who is a Geologist retained by Monument Mining Limited and
a Competent Person as defined by JORC guidelines and a Qualified
Person for NI43-101. He has been working in Australia for Monument as an independent
consultant.
Scientific or technical information in this news release that
relates to the preparation of the Company's Mineral Resource
estimate is based on information compiled or approved by
Adrian Shepherd. Adrian Shepherd is an employee of Cube
Consulting Pty Ltd and is considered to be independent of Monument
Mining Ltd. Adrian Shepherd is
a chartered professional member in good standing of the
Australasian Institute of Mining and Metallurgy and has sufficient
experience which is relevant to the commodity, style of
mineralisation under consideration and activity which he is
undertaking to qualify as a Qualified Person under National
Instrument 43-101. Adrian
Shepherd consents to the inclusion in this report of the
information, in the form and context in which it appears.
About Monument
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
Polymetallic 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 over
300 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.
Robert F. Baldock, President and
CEO
Monument Mining Limited
Suite 1580 -1100 Melville Street
Vancouver, BC V6E 4A6
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release."
Forward-Looking Statements
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 statements 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". Forward-looking statements in this news release include,
without limitation, statements related to proposed exploration and
development programs, grade and tonnage of material and resource
estimates. 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; all of the
uncertainties inherent in resource estimates; uncertainties
regarding the results of current exploration activities;
uncertainties in the progress and timing of development activities,
including uncertainties with respect to the preparation and
completion of a preliminary economic assessment with respect to the
Alliance / New Alliance deposits; 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: , 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 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.
APPENDIX 1: Figure 1 –
Murchison Gold Project
APPENDIX 2: Figure 2 – Burnakura
Location Plan and Geology
APPENDIX 3: Mineral Resource Estimation
Notes
1.
|
The Mineral Resource
estimate was undertaken by Cube Consulting Pty Ltd ("Cube"),
a minerals industry consultancy based in Perth, Western Australia,
which is independent of Monument Mining Limited.
|
|
|
2.
|
The 2 deposits areas
that are the subject of this Mineral Resource are located entirely
on the Murchison Gold Project and the validated Mineral Resource
drilling database for the estimated areas contained 32 diamond core
("DC") drillholes (2,650m), and 735 reverse-circulation
("RC") drillholes (44,052m).
|
|
|
3.
|
The Mineral Resource
estimate used only diamond core and RC drilling data, with no
historical grade control drilling data included.
|
|
|
4.
|
A total of 6 PQ
diamond core holes (408.6m) and 103 RC holes (9,379m) were
completed by MGO between 24/05/2014 and 9/09/2014.
|
|
|
5.
|
Drilling was
generally oriented on west-east lines, with MGO infill and
extensional drilling to 10m x 10m spacings at Alliance and 10m x
20m spacings at New Alliance. The original historical drilling
orientation for New Alliance was NW-SE on 20m oblique sections with
current drilling now completed on west-east azimuths to ensure the
mineralization is intersected perpendicular to the strike of the
mineralization.
|
|
|
6.
|
Collars for MGO
drillholes used in the mineral resource estimate were surveyed by
Real Time Kinematic ("RTK") satellite navigation using a
single reference base station by ABIMS Solutions. The differential
GPS system is considered to provide up to centimetre-level
accuracy.
|
|
|
7.
|
Downhole surveys have
been conducted by ABIM Solutions on all Diamond and RC holes
drilled by MGO using a north seeking gyroscope survey instrument on
5m downhole increments.
|
|
|
8.
|
Geological logging of
MGO drillholes includes: lithology, weathering, oxidation, texture,
alteration, veining style and percentages, mineralization minerals,
structural defects and groundwater conditions. All drillhole
logging data was compiled into a master drilling
database.
|
|
|
9.
|
MGO RC drilling was
logged and sampled over regular 1m intervals for the entire hole,
whilst DC holes were logged and sampled over varying intervals from
0.25m to 1.2m (average 0.96 metre sample length) according to
geological observations. In the case of DC drilling, samples
submitted for assay were half-core.
|
|
|
10.
|
MGO DC drilling and
RC drilling had good overall samples recoveries. Localised
zones of poor sample recovery caused by wet drilling conditions
were intersected and assessed for suitability for inclusion in the
Mineral Resource estimation.
|
|
|
11.
|
RC sample splitting
was completed during drilling under the supervision of MGO
personnel. In the case of wet RC drilling, the entire bulk
sample was submitted to SGS for drying, and splitting of the assay
sub-sample for analysis. MGO diamond core for the entire hole
was boxed and transported to ALS Ammtec laboratory for sawing and
sampling.
|
|
|
12.
|
Sampling and sample
submission was conducted by MGO in accordance with a quality
assurance/quality control program which includes the use of
certified reference materials for DC, and RC drilling and field
duplicates for RC drilling.
|
|
|
13.
|
All MGO drilling
samples were securely bagged and assigned sample identification
numbers prior to their transport to an accredited assay laboratory
in Perth (W.A.) operated by SGS Mineral Services to international
standards.
|
|
|
14.
|
Gold content is
determined by fire assay methods using a 50g charge, lead
collection and an atomic absorption spectroscopy finish.
Assay methods have a lower detection limit of 0.01 g/t
Au.
|
|
|
15.
|
Lithological and vein
density from drillhole logging was primarily used to develop
interpretations of the mineralised geological domains. 3D
spatially referenced pit and surface mapping were used extensively
to determine the directions of geological/grade continuity and
structural offsets. Gold assays were used as a secondary
determinant in the interpretations.
|
|
|
16.
|
Lithology,
mineralization, and weathering surfaces were interpreted in 3D by
Cube using GEOVIA SurpacTM software.
|
|
|
17.
|
Mineralised
interpretations generally honour a nominal 0.3 g/t Au lower
cut-off. The interpretation was not typically extended more
than 25 m past the last drillhole intercept both along strike and
down-dip. However, sectional interpretations were extended
further than 20 metre on some sections in some sparsely sampled
areas where the geological and grade continuity could be reasonably
assumed.
|
|
|
18.
|
Additional criteria
of a minimum 2 metre downhole interval length, and the minimisation
of internal dilution were considered during the interpretation of
the mineralised gold domains. However, internal dilution was
incorporated where required to preserve the overall continuity of
the mineralised domains.
|
|
|
19.
|
The mineralization
interpretation consists of 3 individual quartz vein domains, and 11
BIF domains, defined by lithological, weathering and spatial
characteristics.
|
|
|
20.
|
The vertical extent
of the interpreted mineral resource varies across the prospects
with a maximum vertical of approximately 120m.
|
|
|
21.
|
For the purposes of
density determination, a total of 243 samples were collected from
DC drilling across the prospects, with 49 samples (20% of total
samples) falling within the mineralised domains. Samples were
collected from oxide, transitional and fresh material, as well as
from all the representative lithologies. A mean density value
was derived and then assigned for each of the three weathering
types and representative lithologies in the mineral resource
estimate.
|
|
|
22.
|
Two metre downhole
composites were extracted from the assay database based on the
mineralised wireframes and form the basis for statistical analysis,
variography and grade interpolation.
|
|
|
23.
|
Gold composites were
analysed, statistically and spatially, on an individual domain
basis to determine appropriate grade top-cuts. The top-cuts
that were applied to selected domains were all above the
97th grade percentile. In general, the
mineralization domains represent distinct geological and
statistical populations and provide a robust basis for mineral
resource estimation.
|
|
|
24.
|
Variography was
completed by Cube to analyse the spatial continuity of the gold
composites within the major mineralised domains using ISATIS®
software. The resultant variogram models were used to
optimise search strategies (Kriging Neighbourhood Analysis) and
ultimately for interpolation of gold values into the block
model.
|
|
|
25.
|
Ordinary-kriging
methodology using GEOVIA SurpacTM software was used to
perform the interpolation of gold values. All block estimates
were based on interpolation into parent cells with dimensions of 5m
x 10m x5m (XYZ) for each individual mineralised domain. No
rotation on the block model was undertaken.
|
|
|
26.
|
Interpolation search
distances were based on the ranges derived from variography and
varied from 40m to 140m, with relative nugget effects ranging from
30% to 40% for gold.
|
|
|
27.
|
Using the optimised
search strategies a minor volume (<0.02%) of blocks within
Alliance did not meet interpolation criteria and remained
un-estimated, these blocks were visually identified as being on the
edges and at depth of mineralised domains. New Alliance
utilised a second pass search strategy (factor of 1.5) during
interpolation to minimise un-estimated blocks, whilst still
applying appropriate search parameters.
|
|
|
28.
|
Depletion of the
block model was undertaken using surfaces supplied by MGO which
adequately represent the mined pits. Depletion areas
were coded into the block model, with areas of backfill also
identified and given an appropriate density.
|
|
|
29.
|
Upon completion of
the block model, global mean comparisons of domain and composite
values were undertaken followed by swath plots comparing the
estimated gold values, composited raw (declustered) gold values,
number of composites and estimated tonnage for every 20 metre
cross-section on an individual domain basis. As well as
statistical and graphical validations the block model was also
visually validated on a sectional basis within GEOVIA
SurpacTM software. A check estimation was also
undertaken using a non-linear recoverable resource estimator, Local
Indicator Kriging (LIK), based on a 2.5m x 5m x 2.5m (XYZ) SMU
size. The check estimate served a dual purpose of testing the
both the domaining approach and interpolation methodology (Ordinary
Kriging) undertaken by Cube.
|
|
|
30.
|
The Mineral Resource
was classified as Indicated and Inferred according to CIM
Definition Standards and NI43-101 reporting criteria. Factors
considered when classifying the Mineral Resource included data
density, geological and grade continuity, drill spacing and drill
quality, application of an appropriate estimation methodology and
consideration of local estimation bias.
|
|
|
31.
|
The final ANA Mineral
Resource Estimate block model, included all estimated mineralised
domains. Blocks outside of the mineralised domains were
assigned appropriate waste parameters. The block model was
coded or assigned additional attributes including; prospect,
weathering, lithology, density, domain code, depletion and resource
classification.
|
|
|
Tonnage-grade curves
were generated for a range of reporting cut-off grades, material
types and by pit area (ie. Alliance and New Alliance).
|
APPENDIX 4: Figure 4 – Layout of
Alliance and New Alliance with Historical and Current
Drilling
APPENDIX 5: Figure 5 – Alliance Cross
Section 7007620mN
APPENDIX 6: Figure 6 – New Alliance
Cross Section 7008170mN
SOURCE Monument Mining Limited