Gold Production of 5,063 Ounces with Cash Cost
of $468/Oz
VANCOUVER, Nov. 30, 2015 /CNW/ - Monument Mining Limited
(TSX-V: MMY and FSE: D7Q1) "Monument" or the "Company" today
announced its first quarter financial results for the three months
ended September 30, 2015. All amounts
are in thousands of United States
dollars unless otherwise indicated (refer to www.sedar.com for full
financial results).
President and CEO Robert Baldock
commented on first quarter fiscal 2016 financial results: "Monument
continues to maintain its low cash cost gold production at the
Selinsing gold mine. Cash flow from Selinsing production has been
invested in the acquisition, exploration and development of the
expanding project portfolio. The business strategy continues to be
the strategic acquisition of mineral resources to take advantage of
under-valued mineral properties to development a diversified
project portfolio with a clear focus on gold. Despite the decline
in commodity prices, Monument believes that acquiring high quality
undervalued resources and developing cash flow from multiple
production sites and jurisdictions is the key for the Company's
growth and success."
First Quarter Highlights:
- Gold production of 5,063 ounces ("oz") (Q1 fiscal 2015:
9,745oz);
- Cash cost per ounce decreased by 33% to US$468/oz (Q1 fiscal 2015: US$699/oz);
- Gross Revenue from gold sales of $8.33
million on 10,000oz sold (Q1 fiscal 2015: $8.18 million on 6,300oz sold);
- Profit margin generated from gold production of $2.33 million (Q1 fiscal 2015: $2.10 million);
- Ore mined increased by 42% to 0.11 million tonnes (Q1 fiscal
2015: 0.07 million tonnes);
- Ore processed decreased by 8% to 0.23 million tonnes (Q1 fiscal
2015: 0.25 million tonnes);
- Commenced heap leaching production initiatives and engineering
work at Burnakura;
- Completed construction and commenced commissioning the Intec
Pilot Plant at Selinsing;
- Continued exploration programs in Malaysia and Western
Australia focused on increasing gold inventory;
- Settled gold forward sale contract.
First Quarter Production and Financial Highlights
|
|
|
Three months ended
September 30
|
|
2015
|
2014
|
Production
|
|
|
Ore mined
(tonnes)
|
105,327
|
74,384
|
Ore processed
(tonnes)
|
232,118
|
253,514
|
Gold
production(1) (ounces)
|
5,063
|
9,745
|
Gold sold
(ounces)
|
10,000
|
6,300
|
|
|
|
Financial
|
$'000
|
$'000
|
Revenue
|
8,329
|
8,179
|
Net income before
other items
|
1,569
|
1,201
|
Net and comprehensive
income
|
116
|
1,525
|
Cash flow (used)/from
operations
|
(734)
|
1,387
|
Working capital
including restricted cash
|
39,307
|
39,778
|
|
|
|
EPS before other
items – basic
|
$0.00
|
$0.01
|
EPS –
basic
|
$0.00
|
$0.01
|
|
|
|
Other
|
$/oz
|
$/oz
|
Average realized gold
price per ounce sold(2)
|
1,147
|
1,298
|
Cash cost per
ounce(3)
|
|
|
|
Mining
|
90
|
267
|
|
Processing
|
346
|
368
|
|
Royalties
|
31
|
63
|
|
Operations, net of
silver recovery
|
1
|
1
|
Total cash cost per
ounce
|
468
|
699
|
(1)
|
Defined as good
delivery gold bullion according to London Bullion Market
Association ("LBMA"), net of gold doŕe in transit and refinery
adjustment.
|
(2)
|
Monument
realized US$/oz for the three months ended September 30, 2015
excludes gold forward sales.
|
(3)
|
Total cash cost
includes production costs such as mining, processing, tailing
facility maintenance and camp administration, royalties, and
operating costs such as storage, temporary mine production closure,
community development cost and property fees, net of by-product
credits. Cash cost excludes amortization, depletion, accretion
expenses, capital costs, exploration costs and corporate
administration costs.
|
Production Results
Gold production, net of gold doré in transit and refinery
adjustment, was 5,063oz (defined as good delivery gold bullion
according to the London Bullion Market Association), a 48%
reduction compared to 9,745oz in the corresponding period last year
due to the continued processing of super low grade material blended
with low grade ore reclaimed from the old tailing ponds. This trend
is expected to continue until the commencement of mining oxide ore
at Felda Land. Plant throughput from the Selinsing gold processing
plant decreased by 8% to 232,118t for the quarter (Q1 fiscal 2015:
253,514t) due to power supply interruptions and the clay
consistency of the ore with periods of heavy rain that caused a
slowdown in the crushing circuit. Average ore head grade decreased
by 42% to 0.96g/t (Q1 fiscal 2015: 1.65g/t) compared to the
corresponding quarter last year. Gold recovery rate decreased by
51% for the quarter to 5,532oz (Q1 fiscal 2015: 11,324oz) and
process recovery rate decreased 9% to 77.0% (Q1 fiscal 2015: 84.4%)
compared to the corresponding period last year.
Financial Results and Discussion
Gold sales of 10,000oz generated $8.33
million for the quarter compared to 6,300oz generated
$8.18 million in the corresponding
period last year. During the quarter mining operations at Selinsing
generated a profit margin of $2.33
million (Q1 fiscal 2015: $2.10
million). Included in the profit margin is a net loss in the
amount of $0.23 million, the result
from a gold forward sale settlement. Gold sold for the quarter
before gold forward sales was 5,000oz (Q1 fiscal 2015: 6,300oz) for
profit margin of $2.56 million (Q1
fiscal 2015: $2.10 million) at a
realized average gold price of $1,147
per ounce (Q1 fiscal 2015: $1,298 per
ounce). The average London Fix PM gold price for the quarter was
$1,124 per ounce (Q1 fiscal 2015:
$1,282 per ounce).
Total production cost of $6.00
million in the first quarter was in line with $6.08 million from the corresponding period last
year. The cash cost per ounce of gold sold for the quarter
decreased by 33% to $468 per ounce,
compared to $699 per ounce was mainly
attributed to reclassification of super low material to ore from
waste, which in turn reduced cost per tonne mined, partially offset
by increase in processing cost due to lower average mill feed grade
and recovery rate. The production team at the Selinsing Mine has
continued improvements to boost productivity and the bottom line
during the quarter through reduction of mill down time and process
efficiency.
Net income for the quarter was $0.12
million, or $0.00 per share
(basic) a decrease from the corresponding period last year of
$1.53 million or $0.01 per share (basic). The decrease in earnings
quarter over quarter is mainly due to loss from other items of
$1.50 million. Cash used from
operating activities for the quarter was $0.73 million compared to cash provided
$1.39 million for the corresponding
period last year. Working capital as at September 30, 2015 was $39.31 million (September
30, 2014: $37.19 million).
Development
Intec Technology and Commercialization Test Work
Following completion of the Intec laboratory test work in fiscal
2015 at the Selinsing Gold Mine, which successfully demonstrated
the technical ability of Intec to recover gold from the sulphide
material on a bench scale, the pilot trial testing program was
initiated in the first quarter of fiscal 2016 with the completion
of the pilot plant construction and commencement of commissioning.
Subsequent to the first quarter, commissioning of the pilot plant
continued and was completed in preparation for the operations test
work. The aim of test work through the pilot plant is to operate
the proposed Intec Process unit on a continuous basis,
demonstrating the liberation of gold for subsequent extraction and
recovery through cyanidation and generate key data for the design
of subsequent project stages.
The pilot plant test work is anticipated to be complete in the
second quarter of fiscal 2016 and result in a continuous flow
process, to further demonstrate scale-up capability. Orway
Metallurgical Consultants Pty Ltd of Perth, Western
Australia was engaged as a Qualified Person to oversee and
observe the pilot plant operation and conduct a critical review on
technical and financial operating and capital expenditure results.
The economic analysis of the Intec process will be complete by
December 2015, and will be included
into an updated NI43-101 report targeted for end of Q3,
2016.
Burnakura Gold Project
The Burnakura Gold Project continues to progress aggressively,
following confirmation drilling success over Alliance/New Alliance
("ANA") deposits, open pit mine optimization, and metallurgical
test work for heap leach processing from fiscal 2015. During the
first quarter of fiscal 2016 progress included crushing plant
engineering design, tailing storage facilities study and
environmental studies. The project is advancing in parallel with
exploration to demonstrate the economics of early
production.
Como Engineers, a Perth based
engineering company, was engaged to assess and assist with the
first phase of heap leach production development including capital
and operating cost estimates, construction and commissioning a heap
leach plant and a heap leach pad. The Company's engineers have
being working with Como and are targeting commissioning and
start-up of the heap leach facilities at the Burnakura site before
the end June 2016.
During the quarter, several milestones were met towards
completing the Front End Engineering Design ("FEED") scope of work.
The work progress includes: the current mining schedule and
metallurgical/data review for ANA and Federal City ("FC") deposits,
modelling for the crusher specifications, the final crushing
circuit configuration, finalise heap leach pad and absorption tank
locations, equipment refurbishment pricing and pad fill material
identified.
In the second quarter of fiscal 2016, the FEED Final Report will
be completed and work will commence on the Detailed Engineering
Design ("DED"), refurbishment of the Heap Leach Plant and
procurement of long lead items. In addition, project development
will continue in the areas of: infrastructure, communications,
administration, governmental approvals and technical support.
Exploration
Malaysia
In Malaysia 2016 exploration
programs include resource definition drilling at Buffalo Reef
Central ("BRC") and Felda Lands, and
further exploration drilling at the area between Buffalo Reef North
and Central ("Buffalo Reef Gap") and the Bukit Ribu prospect,
located west of Buffalo Reef. The exploration programs are designed
to focus on replacement of gold inventory to sustain and extend
mine life. The geological and economic studies will be carried in
parallel and an updated NI43-101 technical report is anticipated to
complete in the third quarter of fiscal 2016.
During the quarter, a total of 18 diamond drill ("DD") holes
were drilled for 2,302 metres ("m"), consisting of 17 exploration
holes for 2,147m at Buffalo Reef Central and 1 exploration hole for
155m at FELDA Block 7 areas. A total of 2,437 of PQ-core samples
were submitted to SGS Mengapur for chemical assays. Regional
exploration also collected 724 trenching and channel samples in the
quarter from the Bukit Ribu ridge-cut prospect and the Buffalo Reef
Gap areas.
Western Australia
At the Murchison Gold Project 2016 exploration programs are
planned at East of ANA and South Banderol, comprised of 15,500m RC
drilling, 30,000m air core drilling and 700m diamond drilling.
These programs are designed to validate the historical resource,
study geological continuity of the mineralization at the Burnakura
area and increase gold inventory to extend life of mine, supporting
sustainable early stage of production at Burnakura.
In the first quarter, the Company selected drilling contractors
through a tender process, conducted drill hole rehabilitation work
and prepared drill pads to commence drilling. Subsequent to the
quarter, diamond drilling commenced at NOA. In addition,
sterilization drilling was carried out at the NOA waste dump area
to characterize materials for use as a potential base to the
proposed heap leach pad.
During the quarter, historical data and new drilling data for
Gabanintha and Burnakura was transitioned to an in-house database
and standard operating procedures and workflow were developed for
database management. The Company is compiling Tuckanarra historical
data to be uploaded and validated in the database.
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 B.C. Canada 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 Statement
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.
SOURCE Monument Mining Limited