VANCOUVER, Nov. 18, 2011 /CNW/ - Monument Mining Limited (TSX-V: MMY and
FSE: D7Q1) ("Monument" or the "Company") is pleased to announce that it has completed its technical due
diligence on the Mengapur Project. A National Instrument 43-101 ("NI 43-101") compliant Technical Report on the Mengapur Polymetallic Cu-S-Au-Ag
Project (the "Mengapur Project") is expected to be filed under www.sedar.com in late November 2011. The Mengapur Project is located in the Pahang
State, Malaysia, 16 km from the town of Sri Jaya and a major highway,
approximately 75 kilometers from the Malaysian port of Kuantan, and 130
kilometers from Monument's wholly owned Selinsing Gold Mine. The
Company announced previously that it has signed a binding memorandum of
understanding with the owner of the Mengapur Project in acquiring 70%
of the Mengapur Project, subject to due diligence, the board approval
and all other regulatory approval.
In October 2011, the Company engaged Snowden Mining Industry Consultants
("Snowden") to prepare a NI 43-101 compliant technical report to be entitled "NI
43-101 Technical Report, Monument Mining Ltd., Mengapur Property,
Pahang State, Malaysia" and to be dated November 2011 (the "Snowden Report"). In preparing the Snowden Report, Snowden has reviewed the 10-volume
study completed in 1990 by Normet Engineering Pty. Ltd., Australia,
(the "Historical Study") and the Company has received the results of such review. The
information in the Historical Study was a result of 10 years of work at
an estimated cost of approximately US$40 million that included over
58,000 m of diamond drilling. The exploration program was conducted in
the 1980's and was carried out by Malaysian Mining Corporation, a
Malaysian government owned corporation.
The Historical Study states a historical resource at the Mengapur
Project for both oxide and sulfide material at 224.409 million tonnes
averaging 6.54% sulfur, 0.25% Cu, 0.16 g/t Au, and 8.86 g/t Ag, or
0.597pct Cu equivalent at a 0.336pct Cu cutoff grade (see Table 1
below). The historical proven and probable sulfide reserve located
within the Lerchs Grossman optimized pit (SP6 Design pit) in just Zone
A at a 0.336pct EQV Cu cutoff grade contains a total of 64.8 million
tonnes averaging 8.63pct sulfur, 0.27pct Cu, 0.21 g/t Au, and 2.59 g/t
Ag at an approximate 1.5 waste/ore strip ratio (see Table 2 below).
Both the resource and reserve calculations were conducted by James
Askew and Associates out of Perth, Australia as part of the Historical
Study. The Historical Study does not clearly state whether the
reported reserve is included in the resource estimate, nor does it
discuss details of how indicated resources and probable reserves were
classified for the Mengapur deposit. The Historical Study identifies
that a proved or measured category required a minimum of 13 samples to
inform the block, but did not specify a maximum search distance or
number of drill holes used to support the classification. The James
Askew Associates resource report used 50m east-west by 40m north-south
by 10m vertical blocks, subcelled to 25m east-west by 20m north-south
by 10m vertical blocks with estimations done by individual rock type
using inverse distance squared methodology and no clearly identified
metal grade capping strategy.
The historical resource and reserve estimates reported in the Historical
Study are considered relevant because they provide an indication of the
mineral potential of the Mengapur Project. The historical resource and
reserve estimates reported in the Historical Study use categories other
than those set out in NI 43-101 and therefore should not be considered
as Mineral Resources and Mineral Reserves as defined in the CIM
guidelines. A qualified person (as defined under NI 43-101) ("Qualified Person") has not done sufficient work to classify the historical estimates
contained in this news release as current Mineral Resources or Mineral
Reserves and Monument is not treating the historical estimates as
current Mineral Resources or Mineral Reserves. Accordingly, the
historical resource and reserve estimates reported in the Historical
Study should not be relied upon. In order to bring the historical
Mengapur resources and reserves in the Historical Study up to current
CIM Guidelines and thereby compliant with NI 43-101, the following
items need to be addressed: the use of more current mining costs, the
use of three-year trailing average metal prices as of November 2011,
the confirmation of metal recoveries for the oxide and sulfide ores
using more modern and available reagents, the confirmation of the
classification of the mineral resources and reserves at the property,
and the conducting of additional drilling and assaying (including
twinned holes of previous drilling to confirm the historical drilling
work that includes currently acceptable quality assurance and quality
control programs, certified independent assay laboratories, and
appropriate geological supervision by a Qualified Person).
The operations plan in the Historical Study recommended a 23-year mine
life (operating 348 days per year) and using a 8,500 tdp Cu processing
plant operation. Under this plan, the pyrrhotite concentrate was going
to be roasted to produce 590,000 tpa of sulfuric acid which would be
converted to 203,000 tpa of P2O5 in the form of phosphoric acid. This is based on a mining rate of
753,424 tonnes per day (2.75 million tonnes per year) to produce some
30,500 tonnes of Cu concentrate and about 620,000 tonnes of pyrrhotite
concentrate per year over the 23 mine life. The Historical Study
envisioned total employment at the mine at 489 workers.
Table 1. Mengapur Project Historical Sulfide Reserve estimate as of
October 1990 using a 0.336% Equivalent Cu cutoff grade.
|
|
Tonnes
(Million t)
|
EQV Cu
(%)
|
S
(%)
|
Cu
(%)
|
Au
(g/t)
|
Ag
(g/t)
|
Sulfide
|
Proven
|
26.467
|
0.803
|
9.20
|
0.31
|
0.25
|
2.46
|
|
Probable
|
38.324
|
0.691
|
8.23
|
0.24
|
0.19
|
2.68
|
TOTAL |
| 64.800 | 0.737 | 8.63 | 0.27 | 0.21 | 2.59 |
Notes: Equivalent Cu is based on the following assumptions: Recoveries
for Cu, Ag, Au ,and S of 76.6%, 47%, 48%, and 82%, respectively; and
commodity prices in US$/kg equal to 1.37 Cu, 4,107 Au; 65 Ag; 0.09 S
and a combined mining and processing cost of US$4.496/tonne. The
historical reserve is based on the A, B, and C Zones. The disclosure of
historical reserves is not meant to imply that there is any current
economic viability. This would require completion of at least a
preliminary feasibility study.
|
Table 2. Mengapur Project Historical Resource estimate as of October
1990 using a 0.336% Equivalent Cu cutoff grade.
|
|
Tonnes
(Million t)
|
EQV Cu
(%)
|
S
(%)
|
Cu
(%)
|
Au
(g/t)
|
Ag
(g/t)
|
Oxide
|
Measured
|
4.866
|
0.419
|
0
|
0.47
|
0.05
|
27.82
|
|
Indicated
|
16.406
|
0.557
|
0
|
0.64
|
0.12
|
26.45
|
Subtotal
|
21.272
|
0.525
|
0
|
0.60
|
0.10
|
26.70
|
|
|
|
|
|
|
|
|
Sulfide
|
Measured
|
63.438
|
0.661
|
7.622
|
0.25
|
0.18
|
3.30
|
|
Indicated
|
139.699
|
0.579
|
7.040
|
0.19
|
0.13
|
3.85
|
Subtotal
|
203.137
|
0.605
|
7.222
|
0.21
|
0.15
|
3.68
|
|
|
|
|
|
|
|
|
TOTAL |
| 224.409 | 0.597 | 6.54 | 0.25 | 0.16 | 8.86 |
Notes: The same recoveries and commodity prices stated for the reserves
in Table 1 were used for the resources.
|
The decision to further the acquisition of the Mengapur Project is based
on a positive result of due diligence work conducted over the last
three months by representatives of a Technical Team comprised of an
independent Qualified Person and non-independent mining professionals
working directly for the Company. Included in the due diligence study
was a review of the land, environmental risks, the historical drill
hole data consisting of 198 diamond drill holes totaling over 58,000 m
conducted from 1983 to 1988, and a critical review of the historical
resources and reserves and mining plan included in the Historical
Study. In addition, five diamond drill holes totaling 1,161 meters
have been completed to date in the A Zone historical reserve area to
help verify the previous work. Initial drilling results and assays
confirm the existence of the historically defined polymetallic
mineralization based on two twinned and three infill drill holes.
Drilling is in progress at the project under the supervision of Todd
Johnson, P.E. and an on-site geological staff with 3 diamond drills to
help with ongoing metallurgy studies.
An existing copper processing plant is at the site that has a capacity
of 500,000 tpa in its current configuration. The Company is looking at
the feasibility of constructing a new Cu processing plant and a new
roaster at the Mengapur project site.
Other opportunities for the project that are being examined include: an
oxide leach operation to extract Au, Ag, and potential Cu in the soils
that overlie the sulfide ore body; and Fe production (magnetite
concentration) from both the soils and the sulfide rock.
Todd Johnson, P.E., MAusIMM, M.Sc. Geological Engineering and M.Sc.
Geology, is the Qualified Person as defined under National Instrument
(NI) 43-101 who has reviewed and approved the technical information
summarized in this news release. Mr. Johnson is considered to be an
Independent Qualified Person of Monument. He has visited the property,
and as part of the Technical Team, he monitored and reviewed the
project data during the due diligence period, and worked closely with
Snowden in November 2011 on the Snowden Report. In late November 2011,
Monument expects to file on www.sedar.com the Snowden Report, which will describe the historical mineral
resources and reserves discussed herein and included in the Historical
Study.
About Monument Mining Limited
Canadian based Monument Mining Limited has two wholly-owned principal
properties: Selinsing Gold Mine Project ("Selinsing"); and Damar Buffalo Reef Prospect ("Buffalo Reef"); which are located in Pahang State in the Central Gold Belt District
of Malaysia. In addition, the Company acquired the Famehub properties
comprising 32,000 acres of prospective exploration land adjacent and
nearby the Selinsing and Buffalo Reef properties; and a 49% interest in
the Mersing Gold Project, approximately 300 km from the Selinsing gold
mine.
In conjunction with extensive exploration programs at Selinsing, Buffalo
Reef and the Famehub properties, the Company recently announced it
exceeded its 2011 financial gold production target of 40,000 ounces by
10%. The Selinsing Gold Mine is targeting to increase its annual
production rate to approximately 55,000 ounces of gold for the 2012
fiscal year.
The Company has also signed a binding MOU to acquire a 70% interest in
the Mengapur Polymetalic Project in Malaysia subject to due diligence,
financing and a variety of conditions including regulatory approval.
Please visit our website at www.monumentmining.com for more information.
Robert F. Baldock, President and CEO
Monument Mining Limited
Suite 910- 688 West Hastings Street
Vancouver B.C. Canada V6B 1P1
"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 contains forward-looking statements about Monument
Mining Limited ("Monument"), its business and future plans.
Forward-looking statements are statements that are not historical facts
and include the timing of the proposed programs and events. 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 different materially from those expressed or implied
by the forward-looking statements. These risks and certain other
factors include, without limitation, 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. Statements regarding the future
price of gold; the estimation of mineral resources; conclusions of
economic evaluation (including scoping studies); the realization of
mineral resource estimates; the timing and amount of estimated future
production, development and exploration; costs of future activities;
capital and operating expenditures; success of exploration activities;
mining or processing issues; currency exchange rates; government
regulation of mining operations; and environmental risks. 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". Forward-looking information is subject to
known and unknown risks, uncertainties and other factors that may cause
the actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or implied
by such forward-looking information, including but not limited to:
general business, economic, competitive, geopolitical and social
uncertainties; the actual results of current exploration activities;
foreign operations risks; other risks inherent in the mining industry
and other risks described in the Company's management's discussion and
analysis, which is 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 information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such information 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 information. The Company does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
<table border="0"> <tr> <td valign="top" align="left"> <b>Monument Mining Limited: </b><br/> <br/> </td> <td> <b>Richard Cushing, Investor Relations</b><br/> T: + 1 604 638 1661 x 102<br/> E: <a href="mailto:rcushing@monumentmining.com">rcushing@monumentmining.com</a> </td> </tr> <tr> <td valign="top" align="left"> </td> <td> </td> </tr> <tr> <td valign="top" align="left"> <b>CHF Investor Relations: </b><br/> <br/> </td> <td> <b>Robin Cook, Senior Account Manager</b><br/> T: + 1 416 868 1079 x 228<br/> E: <a href="mailto:robin@chfir.com">robin@chfir.com</a> </td> </tr> <tr> <td valign="top" align="left"> </td> <td> </td> </tr> <tr> <td valign="top" align="left"> <b>Axino AG - Europe: </b><br/> <br/> </td> <td> <b>Wolfgang Seybold, Chairman</b><br/> T: + 49 711 25 35 92 40<br/> E: <a href="mailto:wolfgang.seybold@axino.de">wolfgang.seybol</a><a href="mailto:wolfgang.seybold@axino.de">d@axino.de</a> </td> </tr> </table> <p> </p>