Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) ("Monument" or
the "Company") is pleased to announce its corporate strategy
following consultation with the Company’s board, management and
advisors.
Newly appointed chairman of the Company, Graham
Dickson, stated: “I am honored to be the successor to Robert
Baldock as chairman of the board. Mr. Baldock has created a strong
legacy for Monument and its shareholders and the board has always
been aligned with his philosophy that shareholders’ value be
realized through growth in the Company’s asset value. I will
diligently progress this culture, stand by our stakeholders, and
continue to strengthen the Company’s gold resource base, which is
the best way to increase shareholders’ return.”
Strategy Highlights
- To establish the
Murchison Gold Project as a cornerstone gold development
project;
- To place the
Selinsing Sulphide Project into production by implementing a two
stage approach;
- To build the
production profile of the Company through additional targeted
acquisitions in the gold sector.
The board has reviewed and accepted the
corporate development strategies proposed by management. In the
past two years, the Company has increased its resources and
reserves, updated the economic valuation of each of its
wholly-owned projects, and streamlined the gold portfolio by
spinning out the Mengapur base metal project. Given the current
market appetite for gold and gold assets, especially in stable
jurisdictions, upon closing the Mengapur transaction, proceeds will
be used to advance our gold portfolio in Western Australia and
Malaysia, and to support further corporate development.
CEO and President Cathy Zhai commented: “Our
overall strategy is to build incremental gold resources and
reserves through exploration, expansion and disciplined
acquisitions, and to locate resources as well as build up market
awareness in order for the market to reflect the Company’s value
thus transforming the Company’s upside potential to benefit our
shareholders.”
With cash and cash equivalents on hand and
additional upon closing of the Mengapur transaction, the Company is
ready to implement and fund its preferred development strategy.
Alternative sources of capital remain an option and are
progressing, especially for the development of the Selinsing
sulphide project.
DISCUSSION OF STRATEGIES
Murchison Gold Project
- The Company will seek to develop
the Murchison gold project into a cornerstone asset through an
aggressive two-year exploration program to delineate additional
ounces, alongside concluding a preliminary economic assessment of
the restart of the existing plant to build out an early-stage
production story.
The Murchison project represents a significant
opportunity for the Company to generate near term cash flows from
the restart of gold production using the existing well maintained
260k tpa mill. Further extension drilling and step out exploration
programs have the potential to delineate additional resources,
which could justify expanding the current mill capacity up to 750k
tpa for production of 25,000oz to 50,000oz per annum depending on
exploration success in areas which have historically been
underexplored.
The Company’s strategy is to focus on an
aggressive exploration plan to increase the existing 380koz NI
43-101 compliant Measured, Indicated and Inferred Resources over
the next two years on a combined quality, and quantity basis as
feed to the already permitted plant and infrastructure at
Burnakura. The potential for treating third party ore is also being
considered.
Selinsing Gold Mine
- The Company plans to develop the
Selinsing Sulphide Project into production through a two stage
de-risking process, in order to reduce the initial upfront
investment required. Step 1 proposes the construction of a
flotation plant producing gold concentrates for sale to a third
party, with cash generated from these sales to be used as
construction funding for the planned stage 2 BIOX plant.
Selinsing has been the flagship project for
Monument over the last decade, with low operating costs, a
dedicated operations team and resources to underpin an additional
six-year life of mine. The completion of the plant upgrade and
startup of production for the new life of mine will provide
significant future cash flows which can be used to fund the second
stage of development as well as further exploration to increase the
current resource base and support growth in other areas of the
business.
Selinsing is invaluable to de-risked cash
resources to support Monument’s corporate development and
operations. Cash would be generated at Selinsing from (1) Gold
production cash flow from Selinsing Gold Mine, (2) Development of a
niche market through bio-leaching process with third party sulphide
concentrates, and (3) Potential underground mining.
The Company will examine the justification of
the above stated opportunity to open a niche market to procure
third parties’ sulphide gold concentrates as a rationale for
financing the Biox® plant that will provide sustainable cash
resources to the Company.
Further Acquisitions
- The Company will seek to augment
current and future production via a suitable acquisition strategy
that can either supplement future production from the Murchison
project and its possible expansion, or enhance overall gold
production via a large-scale standalone project.
Our mission statement from the very beginning
has been to become a mid-tier gold producer. By achieving better
quality and larger reserves and resources, a potential acquisition
would fundamentally change the Company’s production profile and its
position in the mining industry. Any acquisition would need to show
significant potential to add value to the current resource base and
future cash flows.
IMPLEMENTATION AND
MILESTONES
Management will devote its best effort to
upgrade and establish a first class asset base to increase the
Company’s value. Further the Company will allocate resources to
build up market awareness and transparency so that the Company’s
long term share value fully reflects the underlying real value of
the portfolio and improve overall shareholders’ long-term
interests, through sustainable long-term production.
Milestones and Timelines
-
Selinsing Flotation Production: two stage construction with
flotation completed within 15 months for an estimated $20M,
utilizing debt financing and/or funding partners where appropriate
to preserve cash position for second stage Biox® plant. This
includes completion of flotation plant optimization and
engineering, procurement, construction and securing off-take
agreements.
-
Murchison Exploration: Murchison two-year exploration program
estimated to cost A$10M to delineate new resources to increase the
current ounces, increase the mine life and improve the cash flows
of the project. The program is expected to start subject to closing
the Mengapur Transaction in April 2021.
- Murchison
Production: Usage of the current plant to generate cash flow
through processing existing gold mineralized materials or third
party ores subject to (1) completion of SRK review and their
recommended follow up works, and (2) obtaining road access
licenses.
- Acquisition target generation:
Continuing internal and external appraisal of potential
acquisitions already underway.
Monument will regularly keep the market updated on its
progress.
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 205 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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