VANCOUVER, Feb. 27, 2015 /CNW/ - Monument Mining
Limited (TSX-V: MMY and FSE: D7Q1) ("Monument" or the "Company")
announces that it will delay the start-up of producing iron and
copper metal at the Mengapur Polymetallic Project in Pahang State,
Malaysia until further notice due
to depressed and volatile commodity prices. The main plant at the
Mengapur site will be put on care and maintenance while some work
will continue at a reduced level.
Project Progress
The Company has been refurbishing and upgrading its 1,000 tpd
pilot plant at Mengapur and has made considerable progress in this
regard. The plant including the ball mills have been
overhauled and successfully run, all lines have either been cleaned
out or replaced and both mills are in satisfactory operational
condition to run as a pilot operation which is the first stage of
the project. A tailings storage dam for copper and iron process
tailings has been emptied, cleaned up, lined, and compacted with
impervious clay ready for use. A new pyrrhotite storage dam
has been constructed, lined and compacted ready to store this
material, a bi-product from producing saleable iron.
There has been no change in the situation regarding the issue of
the Star Destiny mining lease application and no communication from
the Pahang State Government as to the official situation
surrounding the matter has been received as previously advised to
the market. The company is waiting for news from the Pahang
State Government to enable it to make decisions on which way to
develop the main project. In the meantime no further work can
be undertaken on producing a new and compliant 43-101 or a
preliminary economic assessment ("PEA").
Background
When the Company acquired the project, saleable grade of Fe
62.5% iron was selling at prices far in excess of the price
today. At the time the price was in the range of US$140 per tonne or higher. Due to
the recent and sustained fall in iron prices globally last year the
Company changed course and commenced re-engineering its 1,000
tonnes per day pilot plant to be able to accommodate production of
both iron and copper. The purpose was forward planning based
on the main hard rock sulphide ore body containing both iron and
copper among other metals. The hard rock ore requires a more
complex flow sheet and recovery circuit than the iron contained in
free digging soils some of which is overburden waste.
However, following a number of adverse events including the
dramatic drop in the global iron ore price, the falling copper
price, the build-up of global inventories in these two metals and
general resource market price pressure together with price
volatility Monument has been working to try and off-set these
events. These events create great uncertainty, especially so
when extensive capital investment is required to build a large
mining project. The risk profile of the project increases
considerably under these conditions. These conditions include the
ability to raise project finance funds due to increased risk,
volatile and declining metal prices, in an environment of
increasing metal inventories. In addition, the Company
observes that the major suppliers of iron ore to China, the largest consumer in the world
market by far, have been investing large amounts of capital toward
increasing production capacity.
They offset reduced market selling price and return per unit of
production with increased production volume to maintain total gross
revenue. The large companies produce and ship many millions
of tonnes per year.
Going Forward
As a result of this interruption in the iron ore market,
Monument has been focusing on copper which whilst suffering
declines in market price, maintains a reasonable price and margin
for many producers, we believe including Monument. Furthermore,
demand is predicted to exceed supply by 2018. Therefore the Company
will maintain its SGS operated site analytical laboratory that
performs 2,000 assays per month. Site security, site
maintenance including maintaining all environmental obligations,
mining regulatory reporting and compliance, accommodation and
messing for key staff to enable them to operate site
maintenance functions and allow this important work to continue as
well as the laboratory continuing to turn out assays for the
Selinsing exploration program, the Selinsing process plant control
assays as well as provide assay and R&D support to both the
Selinsing and Mengapur Research and Development
laboratories.
In parallel with these developments, the Company will be looking
at the best way to introduce programs using Intec technology
recently acquired by way of a license for South East Asia to use the technology to
produce close to LME grade copper metal and a range of other base
metals from Mengapur material. The technology can potentially
produce a copper metal product on site without having to export a
copper concentrate. This has a considerable cost saving
advantage in producing copper metal including storage shipping and
handling, insurance and other soft costs (Including application for
a tax exemption opportunity).
As well as looking at the technology and its application
relating to copper, Monument will be investigating the local demand
for copper metal within Malaysia
in applications that manufacture copper pipes, wires and other
copper value added products. The Company believes this could
potentially improve the economics of the project considerably in
the present environment. (See updated PowerPoint presentation on
Company website)
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"), including statements with
respect to the termination of the proposed transaction between
Monument and Gascoyne. 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: risk related to such termination; 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: there are no further obligations of Monument in
respect of the proposed treansaction; 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 information,
except in accordance with applicable securities laws.
SOURCE Monument Mining Limited