Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) (“Monument” or
the “Company”) provides an update on its wholly owned Selinsing
Gold Mine in Pahang State, Malaysia.
CEO and President Cathy Zhai said: “Selinsing is
our primary gold producing project. We continue to work hard on
several financing alternatives to upgrade the Selinsing Gold
processing plant that will treat sulphide ore, bringing the new
life of mine into production. In the meantime, our operations team
is also focused on sustainability of gold production to bridge the
gap during the conversion, enhancement of the sulphide project
design, and carrying out gold concentrate test work to top up the
current and future production profile.”
Ms. Zhai continued with a brief on the corporate
development: “I would like to take this opportunity to draw our
shareholders’ attention to a bigger picture that may help them
understand the background of reported development activities at
Selinsing. Monument's first stage of corporate development has
delivered two portfolios of projects including gold and base metal
from a single near production project - Selinsing Gold Mine
acquired 10 years ago. The second stage of corporate development is
focused on the gold portfolio, include Selinsing Gold Sulphide
Project development and Murchison Gold Project. Both gold projects
have cash generation capacities subject to initial funding and blue
sky potential. This gold portfolio is our foundation and part of
our future. Our base metal portfolio - Mengapur Copper and Iron
Project has also provided us opportunities and we work on our
strategy alternatives on it as well.”
Ms. Zhai commented further: “We believe in
vision and persistence that will lead us to achieve our corporate
objectives, and we have made good progress in which we have not
only been evaluating the available opportunities, but also creating
new opportunities that we believe are in the best interests of our
shareholders. We will make an announcement when any opportunity
becomes material.”
Gold Production
The Selinsing gold mine has been in commercial
gold production since 2010, and has produced 312,916 oz of gold,
generating over $423 million in gold revenues and $268 million net
cash since startup up to March 31, 2020; 15,048oz of gold were
produced in the latest nine month period in fiscal 2020, increased
by 2,862oz or 24% compared to 12,186oz for the same period of
fiscal 2019. The current production strategy is to achieve
sustainability of production with positive cash flow to bridge the
gap to start up the new life of mine; it has been achieved by
supplying leachable sulphide ore to the current oxide plant. The
mining was carried out on Selinsing Pit 5/6 and Block 7 for
remaining oxide but mainly transitional leachable sulphide ore and
a cutback at Selinsing Pit 4 and Block 7 to gain access to
additional oxide material. In Q4, mining activities were conducted
at Selinsing Pit IV south west cutback, Pit V/VI, Buffalo Reef
Block 7 and Buffalo Reef North.
Selinsing gold production was temporarily put on
hold for approximately eight weeks by the Movement Control Order
issued by the Malaysian government as a preventative measure
against the Covid-19 pandemic. Production has resumed gradually
through remaining fiscal year 2020 since mid-May. The workforce had
gone through a long medical screening process; the milling started
using the secondary mill first; and mining did not resume until
June 12th due to the delayed issuance of the blasting permit which
badly affected production. Mining of free dig oxide ore was
initiated at Buffalo Reef North to help make up the
shortfall.
Construction to raise the tailing storage
facility (“TSF”) was completed in September 2019 to an elevation of
533.3 mRL to increase TSF capacity for fiscal 2020 production. TSF
construction activities to 535.5m RL resumed in mid-May 2020 to
meet 2021 production requirements. TSF construction work is
continuing and is expected to be completed by early September
2020.
Sulphide Gold Project
Optimization
At the Selinsing Gold Mine a positive
Feasibility Study (FS) was completed by Snowden in January 2019
which includes the Selinsing deposit, and the adjacent Felda Block
7 and Buffalo Reef deposits. The FS establishes the economic
viability of the project for a six year life of mine through the
extension of the existing oxide plant by adding a flotation and
BIOX® plant to process refractory sulphide ore materials. The
Company continues to focus on obtaining financing alternatives for
the extension, which is expected to place the Selinsing Sulphide
Project into production within 18 months from the commencement of
construction.
In May 2020, the preparation of the next five
years’ operation projection was undertaken to deliver a production
schedule based on the Resources and Reserves reconciliation. Its
aim is to maximize the economic return at an operation level
according to the FS and changes in gold price level. Under which,
the leachable sulphide materials will be continued to feed into the
current oxide treatment plant, while non-leachable sulphides will
be fed into the sulphide treatment plant once converted. The
operating plan is to facilitate the timing of financing.
The engagement of a single major equipment
supplier was under consideration, with options for process
guarantees, increased automation and control expected to improve
recovery and reduce operating costs.
The consideration includes, but is not limited
to, reduction of the completion time for long lead items such as
stainless steel for BIOX® based applications, the provision of HV
power supply, BIOX® agitators, flotation cells and thickeners; the
refinement of sulphide gold project plan to reach maximum feasible
return; improvements to the layout to make better use of the local
topography, to shrink the overall plant footprint and to reduce the
capital cost by reducing structural steel requirements and
shortening the length of pipe and cable racks.
R&D Work
Bioleach Batch Amenability Tests (BAT) was
carried out to investigate the response of Buffalo Reef and
Selinsing flotation concentrate to the adapted locally sourced
bacteria inoculum. Training of the laboratory technicians continued
in the site bioleaching laboratory to monitor the condition,
adjusting the parameters and checking the progress of the BAT
tests. BAT tests carried out on Buffalo Reef flotation concentrates
achieved sulphide oxidations between 97 - 99% and gold leachability
of 94% on the bioleach residues. Sulphide oxidation of 97% was
reported from a BAT test on a composite flotation concentrate of
Buffalo Reef, Felda Block 7 and Selinsing ore; gold leachability
was 91%. The test results supported the previous BIOX® test work
conducted for the feasibility study.
In order to feed leachable sulphide materials to
the current oxide treatment plant, Sulphide Leachability Testwork
is being performed including 2019 metallurgical drilling at the
Selinsing and Buffalo Reef pits for investigating the leachability
of transitional sulphide ore through the current CIL circuit by
adding lead nitrate and blending with super low-grade ore (Au at
0.35-0.50 g/t grade range).
The majority of samples showed good leachability
with a gold recovery above 70% at Selinsing Pit 5. Testwork was
also conducted on a sample of stockpiled Selinsing Pit 4 sulphide
ore, previously rejected due to low leachability using direct CIL
bottle rolled test. The sample was tested using gravity separation
and followed by a CIL bottle roll test. Gravity concentration using
a Knelson concentrator gave a recovery of 39% and CIL test work on
the gravity tailings recovered a further 38% for an overall 77%
recovery; adding lead nitrate to the leach improved the CIL
recovery to 47% and overall recovery to 85%. Transitional sulphide
ore from Buffalo Reef pits however, did not respond well to gravity
separation followed by CIL test even after the addition of lead
nitrate.
Testwork has been carried out on third party
gold concentrate materials. The intent is to open up the upside for
gold production at Selinsing Gold Mine through both oxide and
sulphide plants. Certain high grade concentrate samples were tested
in the laboratory by conventional gravity and CIL methods. Gravity
recovery was 47% and CIL recovered a further 29% for a total
recovery of 76%. Batch trial processing is intended to be performed
for 100 tonnes of concentrates fed through the Selinsing processing
plant. Other samples are also under review.
Peranggih Trial Mining
At Peranggih, a new oxide exploration target 14
km north of the Selinsing Gold Mine, trial mining was carried out
from February 22 to March 3, 2020, under which the bulk sample was
extracted from the higher mineralized area (please refer to
Monument’s News Release on April 20, 2020). The bulk sample
material was fed into the existing Selinsing oxide gold processing
plant to confirm the average grade of the close-spaced drilled
area, to quantify the presence of coarse gold and to test the
metallurgical performance at plant scale. The trial mining
generated a positive cash flow (News Release, April 20, 2020).
After the successful trial mining program at Peranggih, the
Operational Mining Scheme report (“OMS”) was amended to include
Peranggih mining activities, and upon approval by the Department of
Mineral and Geosciences the mining activities at Peranggih will be
permitted under the Mineral Development Act 2004 and State Mineral
Enactment 2001.
Additional grade control drilling was carried
out near-surface ore delineation at Peranggih. The initial 5,002m
stage 1 drilling commenced in June 2020 and was completed on July
6th 2020 to define the extensions of the known mineralization along
strike to the Northeast and Southwest of the Peranggih trial mining
area. 2,493 drilling samples at 2m internals and 135 QAQC samples
were assayed, the results have shown a total mineralized material
of 72,111 tons at 0.88 g/t with 2,040 oz contained gold from the
surface of Peranggih central and southern zone down to 10m deep.
The gold mineralization is associated with quartz breccia and tuff
breccia material in a north west trending structures. The
mineralization is still open down dip and along strike.
There is currently no NI 43-101 mineral resource
estimate established anywhere on the Peranggih Gold Prospect. There
is no certification as to the accuracy of the results and readers
should use caution in their use and interpretation. The mineralized
materials will be extracted to feed into the mill when the grade
control results are confirmed as satisfactory.
The grade control activities are expected to
continue during the next quarter and beyond.
The scientific and technical information in this
press release has been prepared by Azman Taib, B.Eng. (Mineral
Resource), Metallurgist at Selinsing Gold Mine and by Adrian
Woolford, B.Sc., (Hons), Chief Geologist of Monument Mining
Limited; reviewed and approved by Michael John Kitney, MAICD, MSc.,
MAusIMM, and Roger Stangler, MEng, FAusIMM, MAIG, both Qualified
Persons as defined by NI 43-101, retained by Golder Associates Pty
Ltd.
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 Copper and 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 202 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 CEOMonument Mining
LimitedSuite 1580 -1100 Melville StreetVancouver, BC V6E 4A6
FOR FURTHER INFORMATION visit the company web
site at www.monumentmining.com or contact:
Richard Cushing, MMY Vancouver
T:
+1-604-638-1661 x102
rcushing@monumentmining.com
"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.
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