Ms. Cathy Zhai reports

MONUMENT HEADS TOWARD COMMERCIAL PRODUCTION AT SELINSING GOLD MINE

Monument Mining Ltd. has provided an update on the progress at the Selinsing sulphide project. The ramp-up of the flotation plant has made great headway, with the mill feed rate of 113 dry tonnes per hour achieved, being 95 per cent of the design capacity of 119 dry tonnes per hour. The plant construction and mine development consumed a total of $18-million, in line with the budget.

Cathy Zhai, president and chief executive officer, commented: "We are very pleased with the flotation plant ramp-up progress as we head towards full commercial production. We have commenced sulphide production in January, 2023, and continue testing and adjusting to improve plant performance through the action plan. Despite several incidental plant shutdowns during March to May, the plant is expected to reach its near or full production level by June, 2023, within the planned ramp-up period of three to six months. To date, the flotation plant has produced approximately 3,450 dry metric tonnes (DMT) of concentrate with an average gold grade of 36.2 g/t [grams per tonne], containing 4,015 troy ounces of gold. Several export permits have been recently granted by the relevant authority and concentrate shipments are currently in progress."

Flotation plant production ramp-up

The ramp-up of the flotation plant continued, with the mill feed rate of 113 dry tonnes per hour achieved, being 95 per cent of the design capacity of 119 dry tonnes per hour. During this ramp-up process, bottlenecks have been identified and the team has been working to correct them in order to ramp-up to commercial production. The ramp-up period is expected to be completed in June, 2023.

Certain design deficiencies have been detected and revision of designs have been received to improve performance efficiencies, including design of a new rougher flotation tailings hopper and associated pipework, structural and civil drawings, and specifications for the new concentrate thickener overflow pumps. Pump suction and delivery lines will be upgraded as well as the power supply to the bigger motors required. None of the above work has material impact on the company's current flotation plant operations.

The flotation plant experienced major shutdowns from early March to the first week of May. The Metso-Outotec concentrate thickener rake drive gearbox was broken, replaced by a new gear box assembled in Australia, airfreighted to Malaysia and installed. The concentrate thickener was then recommissioned, and all concentrates were recovered to the circuit. Further loss of production occurred in April until May, as the filter press cloths started failing prematurely due to manufacturing defects. The supplier has accepted the defects and will supply two new sets of higher-permeability filter cloths. In the meantime, replacement filter press cloths were sourced and delivered from local suppliers. Management is focused on reviewing all critical parts and in advancing the procurement plan.

Construction of the new concentrate shed continued, with the concrete floor poured and the erection of structural steelwork commencing. The shed is expected to be completed by mid-June and will hold enough capacity for over 4,500 tonnes of concentrate, or one month's production.

Construction of the 100-tonne capacity weighbridge was completed, and the unit was calibrated and certified by the Metrology Corp. of Malaysia.

Manufacture of the one-tonne bulk bagging system has been completed in the United Kingdom and is ready to be shipped to Malaysia.

Mining

Mining of the first stages of Buffalo Reef pits BRC2 and BRC3 continued, transition sulphide ore was delivered to the ROM (run of mine) pad and oxide ore to stockpiles elsewhere. The stockpile of around one month of process plant feed of 80,000 tonnes was maintained, with mining production over the next six months expected to boost this to at least three months, or 240,000 tonnes of ore. The arrival of the new mining fleet will help enhance the mining rates.

Unexpected heavy rain in February, 2023, slowed down the mining rates, and explosives delivery shortages were experienced from supplier Austin Powders due to its implementation of a stricter explosive trucking policy. The explosive supply situation will be helped by the opening of a new storage facility at Bentong, which is much closer than the current supply from Kuala Lumpur. In addition, a new depot for raw materials, including ammonium nitrate, is being constructed at the Selinsing mine site. These developments will ensure the availability of explosives in the future by providing alternatives. Construction of this facility is continuing and scheduled for initial use in June, 2023.

Government permits

Recently, several export permits and transportation permits have been granted to Selinsing which enable Selinsing to initiate the shipment for its first sales.

Around the Hari Raya holiday on April 21, the new operational mining scheme (OMS) expired on April 16, 2023, and was renewed on April 20, 2023. The annual and monthly blasting permits expired along with the OMS and there was insufficient time for the requisite approvals for these permits before the Hari Raya holiday period. The two blasting permits were issued on May 11, 2023, when mining activities resumed.

Concentrate sales preparation

Offtake agreements or business confirmation letters for offtake of Selinsing gold concentrate have been signed with several concentrate buyers under competitive commercial terms. Several buyers have received export permits and the shipments are under way. The first 2,000 DMT of gold concentrate production is now available for sale and the royalties for this concentrate have been paid to the parastatal Pahang Mining Corp.

Risks

The company closely monitors uncontrollable risk factors with building and operation the flotation plant, including: change of market conditions; change of gold prices; operation risks, including critical parts shortages which may cause a longer-than-expected ramp-up period; and changes in regulatory restrictions in relation to arsenic level contained in gold concentrate.

About Monument Mining Ltd.

Monument Mining is an established Canadian gold producer that 100 per cent owns and operates the Selinsing gold mine in Malaysia and the Murchison gold project in the Murchison area of Western Australia. It has a 20-per-cent interest in the Tuckanarra gold project jointly owned with Odyssey Gold Ltd. in the same region. The company employs approximately 200 people in both regions and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighbouring communities.

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