Low-Cost Gold Producer in Malaysia, Executing the Next Stage of Growth
Monument Mining Limited (TSXV: MMY; FSE: D7Q1) is an established Canadian gold producer that owns and operates the Selinsing Gold Mine in Malaysia, with production cash costs among the lowest in the world. Its experienced management team is committed to growth and is advancing several exploration and development projects in Malaysia, including the feasibility stage, Mengapur Polymetalic Project. The Company employs 260 people in Malaysia and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighbouring communities.
The Company's properties:
- Selinsing Gold Mine (100%) - production
- Buffalo Reef (100%) - on trend with Selinsing
- Famehub (100%) - exploration projects NE of Selinsing
- Mengapur Polymetalic Project (100%)
- Mersing Gold Project (Earning-in 49%) - grassroots exploration
Read Monument's Article in CHF Spotlight, Issue No. 73
Proven Mine Builders - The mine and processing facilities were constructed by management in less than two years
Producing Gold from its Selinsing Gold Mine:
- Commercial production of 44,438 oz/Au per year at first fiscal year ending June 2011-cash cost US$242/oz
- FY 2013 Q2 - 15,902 oz Au
- Phase III Plant Expansion in mid 2012-increased to 1M tonnes/year capacity
- Recovery rate range between 92 - 95% over both oxide and sulphide material
Established Platform for Future Growth
- Low cost gold production at its Selinsing Gold Mine project - US$317 oz/Au cash cost estimate for initial 5-year pit
- Mine has a 5-year tax holiday to September 2015 from Malaysian government
- $4.4M of over 18,000m in 116 drill holes completed to increase gold reserves (Includes 2 new drill rigs)
- Updated Selinsing NI 43-101 Resource Estimate expected early in 2013
- Famehub & Mersing Gold Projects - additional prospective acres for future development
- Mengapur Polymetalic Project - targeted to diversify the portfolio and add longer-term future operations
Malaysia - Low Cost Advantage
Independent since 1957, Malaysia has grown into a stable jurisdiction overseen by a British legal system. It is a vibrant, diversified economy based on manufacturing, oil, resources and palm oil. The cost of production for mining projects is significantly lower than in Canada. Salaries and subcontracting costs stand at 1/5 of their Canadian comparables. The Selinsing mine’s first pit cost of production estimate is US$317/oz Au.
Expansion of the processing plant to 1 million tonnes per year capacity was completed in June 2012. The tailings storage facility was also enlarged during fiscal 2012 to accommodate one million tonnes per year for a period of 10 years.
|Selinsing (NI 43-101)
|Indicated (cut-off 0.59 g/t Au)
|Inferred (cut-off 0.59 g/t Au)
|[QP-Michael Andrew-November 2007]
Damar Buffalo Reef Project
The Damar Buffalo Reef exploration project is located on highly prospective geology along trend north from Selinsing deposit. Drill program to date suggests a much larger gold camp which stretches from Selinsing in the south to the north for over a 4.2 km long shear zone.
|Damar Buffalo Reef (NI 43-101)
|Indicated (cut-off 0.5 g/t Au)
|Inferred (cut-off of 0.5 g/t Au)
|[QP-Michael Andrew-May 2011]
Mersing Gold Project
Mersing is located approximately 30 km northwest of Mersing Town in Jahore State, Malaysia. A Malaysian Geological Survey identified a widespread geochemical anomaly coincident with a northwest regional structural trend. Widespread quartz veining within the highly deformed metasediments, sulphide mineralization and free gold were observed within the trend. Signs of substantial alluvial mining are also present. A stream sediment sampling program was begun in July 2012. Based on results, trenching and drilling will follow.
Mengapur Polymetallic Project
Mengapur contains a large polymetalic skarn deposit with significant copper, sulphur, iron, gold and silver mineralization hosted in pyroxene and garnet skarn surrounding the Bukit Botak intrusive complex. The project is located in Pahang State, Central Malaysia, 16 km north of the town of Sri Jaya, and 75 kms northwest of the Malaysian port city of Kuantan.
A historic resource estimate based on 58,000 metres of diamond drilling was published in October 1990 by Normet Engineering Pty Ltd with James Askew Associates completing the ore reserve and resource estimates, both of Perth, Western Australia. It outlined 224.409 million tonnes averaging 6.54% sulfur, 0.25% copper, 0.16 g/t gold, and 8.86 g/t silver*. This historical study is summarized in a January 2012 NI 43-101 report by Snowden Mining Industry.
*Historic resource (Normet, 1990) is not NI 43-101 compliant and should not be solely depended on. This historic resource is relevant as it provides an indication of the mineral potential of the project.
Famehub consists of 9 exploration project areas located 2 to 50 km northeast of Selinsing. $40M of exploration data was acquired with the properties resulting in rapid target determination. These targets include Selinsing-like shear zone targets and intrusive contact targets. Exploration is ongoing.
Robert Baldock - President & CEO: 30 years of experiences of raising equity and mining project finance, directing mining project development and mill construction.
Cathy Zhai - CFO, Corporate Secretary & VP Corporate Finance: 16 years' experience with publicly listed companies at CFO’s capacity or equivalent in corporate finance, public reporting and business strategic planning.
Todd Dahman - COO: 25 years' experience in US and international mining industry spanning engineering, technical, maitenance, business improvement and mine operations
Kevin Wright - General Manager, Malaysia Operations: 33 years' experience in designing, building and managing safe, profitable mines.
Zaidi Harun - VP Buisiness Development: 18 years of exploration experiences, 11 years at Selinsing Gold project.
Todd W. Johnson - VP Exploration: 21 years' experience in precious and base metal resource industry and an additional four years of geotechnical engineering experience.
Charlie Northfield - General Manager, Selinsing Gold Mine: 30 years of broad experience throughout the mining industry in gold, metal sulphides and oxides in addition to industrial minerals and processing.