Monument Agrees to
Acquire a 70% interest in the Mengapur Polymetalic Project in Malaysia
Vancouver, B.C. Monument Mining Limited (TSX-V: MMY and FSE: D7Q1)
�Monument� or the �Company�today announces that
the Company, through its wholly owned subsidiary Monument Mengapur Sdn. Bhd. (formerly
�Orifer Asia Sdn.
Bhd.�) in Malaysia, has entered into a binding Memorandum of Understanding
(the �MOU�) with Malaco Mining Sdn. Bhd (�Malaco�) and Malaco�s wholly
owned subsidiary Cermat Aman
Sdn. Bhd.(�CASB�), both incorporated in Malaysia,
to acquire the Mengapur Polymetalic
Project (the �Mengapur Project� or the �Project�)
located in Pahang State, Malaysia. The acquisition remains subject to
due diligence, updating of historical resource and reserve estimates,
signing of a Definitive Sale and Purchase Agreement, financing, board and
regulatory approvals and other conditions. Upon completion of the
acquisition, Monument would hold a 70% pre-financing interest in the
Project.
The Mengapur Project is located in Central
Malaysia in the State of Pahang and was first discovered by a drilling
program carried out by the Geological Survey of Malaysia. The Mengapur Project is located approximately 130
kilometers from Monument�s wholly owned Selinsing
Gold Mine near Sri Java, 12 kilometers from a highway and 75 kilometers
from the Malaysian port of Kuantan.Historical
economic and resource estimates on the Mengapur
Project were completed and published as a �Definitive Feasibility Study�
(the �Study�) in October 1990 by Normet
Engineering Pty Ltd with James Askew Associates completing the ore reserve
and resource estimates, both of Perth Western Australia.
The Study contains 10 volumes of comprehensive supporting documents which
resulted from a 10 year, 58,000 meter diamond drilling program costing
approximately US$40 million. The exploration program was carried out by the
Malaysian Mining Corporation (�MMC�), a Malaysian government owned
corporation. The resource and reserve estimates reported in the Study are historic
and are considered to provide an indication of the potential of the project
based on historic assumptions used to modify the resource to a reserve,
therefore should not be considered as Mineral Resources and Mineral
Reserves as defined in the CIM guidelines.
The Study reported the historic estimates in the following tables at an
equivalent Cu grade cut-off (EQV Cu) of 0.34% based on historic price and
recovery assumptions, but it did not state whether the historic reserve
estimate is inclusive or exclusive of the historic resource estimate:
Mengapur Project Historic estimates as at October
1990:
|
Tonnes
(Million t)
|
EQV
Cu (%)
|
S
(%)
|
Cu
(%)
|
Au
(g/t)
|
Ag
(g/t)
|
Sulphide
|
Proven
|
26.467
|
0.803
|
9.20
|
0.31
|
0.25
|
2.46
|
Probable
|
38.324
|
0.691
|
8.23
|
0.24
|
0.19
|
2.68
|
Total
|
64,800
|
0.737
|
8.67
|
0.27
|
0.21
|
2.59
|
|
|
|
|
|
|
|
|
Tonnes
(Million t)
|
EQV
Cu (%)
|
S
(%)
|
Cu
(%)
|
Au
(g/t)
|
Ag
(g/t)
|
Oxide
|
Measured
|
4.866
|
0.419
|
0.00
|
0.47
|
0.05
|
27.82
|
Indicated
|
16.406
|
0.557
|
0.00
|
0.64
|
0.12
|
26.45
|
Sub-total
|
21.272
|
0.525
|
0.00
|
0.60
|
0.10
|
26.76
|
Sulphide
|
Measured
|
63.438
|
0.661
|
7.622
|
0.25
|
0.18
|
3.30
|
Indicated
|
130,699
|
0.579
|
7.040
|
0.19
|
0.13
|
3.85
|
Sub-total
|
203.137
|
0.605
|
7.222
|
0.21
|
0.15
|
3.68
|
TOTAL
|
224.409
|
0.597
|
6.54
|
0.25
|
0.46
|
8.86
|
|
|
|
|
|
|
|
|
|
|
Equivalent Cu % is based on the following assumptions:
Recoveries for Cu, Au , Ag, and S of 76.6 %, 47 %, 48% and 82 %
respectively and commodity prices in US$/kg of 1.37 Cu, 4,107 Au, 65 Ag and
0.09 Sand a combined mining and process cost of US$ 4.45/ tonne.
The Study stated in its resource section: �As this report forms part of a
bankable document, the United States Securities and Exchange Commission
(SEC) definitions and guidance on ore reserves and resources are
used.� The Company considers the Study to be relevant as it will be
further reviewed and upgraded as part of the due diligence program as noted
below; however, it is an historic document completed prior to the
introduction of National Instrument 43-101 ("NI 43-101")
standards and should not be relied upon. Monument is not treating the
historical estimate as current mineral resources or mineral reserves as
those terms are defined in NI 43-101. A qualified person has not done
sufficient work to classify the historical estimates as current mineral
resources or mineral reserves under NI 43-101.
The Study proposed construction of a process facility, roaster and
supporting infrastructure and other supplemental processing facilities
(together the �Plant Facilities�). According to the Study, the Plant
Facilities were expected provide capacity for treatment of 2,500,000 tons
per year for a mine life of 23 years. Other activities including further
acquisitions and area exploration could further increase this mine life as
the resource was found to be open in all directions. In addition, the Plant
Facilities could also produce other by-products such as 600,000 tons of
sulfuric acid or downstream products as indicated by the Study such as
fertilizer for the Malaysian and other palm oil industry participants in
neighboring South East Asian countries. Any economic data from the
historic feasibility study is included in this news release only for
background information. This data must be considered out of date and
is not intended to suggest any current economic viability.
The consideration for acquiring the Mengapur
Project will be comprised of a cash payment of US$50,000,000 and the
issuance of a share parcel equivalent to a 30% interest in Monument Mengapur Sdn. Bhd. In
parallel with the acquisition, the Company has signed a Mandate with Deutche Bank Global Mining Finance of London UK (�the
Bank�) to assist in the funding of the acquisition and subsequent build out
of the project and study the possibility of additional stock exchange
listings in appropriate jurisdictions. The acquisition of the Mengapur Project will be an arm's length transaction.
In conjunction with the intended acquisition, the Company has approached
Snowden Mining Industry Consultants Pty Ltd (�Snowden�) to undertake a
critical review and update of the Study. Snowden will also produce an
updated �Summary Report� within a three months period with updated metal
prices and present cost information as a part of the due diligence process.
As a part of this updated study, Snowden will review the resource and
reserve estimates contained in the Study. The Bank has recently
visited the Project as a part of their due diligence process and has agreed
that Snowden can act for both the Company and the Bank to produce the
updated Summary Report as a part of the Bank's due diligence process.
The acquisition is expected to complement the present gold production,
exploration and other activities of the Company in Peninsular
Malaysia. Monument presently has over 180 staff and workforce
employed operating its Selinsing gold producing
and exploration assets in Malaysia and plans to expand this workforce in
the future to facilitate growth of the company.
President and CEO Robert Baldock stated � �This
is an open pit mining project and our Selinsing
track record and in-country knowledge leads us to believe we have a good
understanding of local operating conditions, cost structures, and Federal,
State and local government requirements and social obligations. If the
Company proceeds with the Project, it would bring substantial benefits to
the Malaysian community as a whole through payment of government royalties
and long term employment for potentially over 500 people once it is
operating, plus significant ongoing purchase of goods, contract services
and other community services requirements.
�Together with the upgrade to over 1,000,000 tons per year treatment rate
and increasing gold production presently being undertaken at the Selinsing Gold Mine, its large and increasing
exploration initiative, large land position and resulting product pipeline
being developed, the Company will have a significant presence in Malaysia,
producing precious and base metals as well as the potential for sale of
other by products. This will diversify the Company against fluctuating
metal prices over the long term while maintaining an increasing gold
production profile and create a more robust long-term focused multi-listed
producer�.
Background
The Project was previously owned by MMC, a Malaysian Government owned
company. MMC drilled 58,000 meters of core into the Project and over
a 10 year period spent approximately US$40.0 M in producing the economic
and resource assessment. Normet Engineering Pty
Ltd. Australia was engaged in the this assessment who in turn engaged James
Askew and Associates from Perth, Western Australia to complete the ore
reserves and resources section. The results were published in October 1990
named as �Definitive Feasibility Study� (the �Study�). The Study was
comprehensive, including sections on capital and operating cost estimates,
marketing, viability, economics and other important aspects of a bankable
document.
In and around 1992, the Malaysian Government decided to leave the mining
industry and become a diversified engineering group in the oil and gas and
general consulting, contracting area. The Project was subsequently
acquired by Malaco through its wholly owned
subsidiary CASB, the present vendor to Monument�s wholly owned Malaysian
subsidiary.
Monument�s CFO and VP, Corporate Finance Cathy Zhai
advised �Monument has been in discussions and studying this opportunity for
much of the last year and has been upgrading its administrative capacity to
be able to meet the internal and market requirements of a
multi-jurisdiction listed company. At the same time, the Company has been
increasing its technical depth both in-house and in terms of outside
consulting arrangements in order to undertake this large project.�
Michael Andrew, Geol, MAusIMM at Snowden, is the
qualified person who has, on behalf of the Company, reviewed the technical
information summarized in this news release.
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 recently acquired the Famehub properties comprising 32,000 acres of
prospective exploration land. These assets are an approximate 2 hour
drive from the Mengapur Project.
In conjuction with extensive exploration programs
at Selinsing, Buffalo Reef and the Famehub properties, the Selinsing
Gold Mine is on track to produce its scheduled 40,000 ounces of gold in its
first full year of commercial production at an estimated average operating
cash cost of approximately $317 per ounce with an initial five year mine
life in the first pit. The gold treatment plant has a current capacity of 400,000
tpa with a proposed capacity expansion through
the addition of an additional milling circuit to the existing plant.
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
For further information contact:
Monument Mining
Limited:
Richard Cushing, Investor Relations
T: + 1 604 638 1661 x 102
E: rcushing@monumentmining.com
CHF Investor
Relations:
Robin Cook, Senior Account Manager
T: + 1 416 868 1079 x 228
E: robin@chfir.com
Axino AG �
Europe:
Wolfgang Seybold, President and CEO
T: + 49 711 25 35 92 40
E: wolfgang.seybold@axino.de
"Neither TSX
Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX VentureExchange)
accepts responsibility for the adequacy or accuracy of this release."
Forward-Looking
Statement
This news release
contains forward-looking information about Monument Mining Limited
(�Monument�), its business and future plans. The use of words such as
"would", "estimate", "expect",
"may", "will", "project", "should",
"believe" and similar expressions are intended to identify
forward-looking information. Forward-looking information in
this news release includes statements with respect to the completion and
the timing of the Summary Report, the financing,, the results of due diligence
and the Summary Report, the entering into of a definitive agreement and the
closing of the proposed acquisition of the Project. The following are
some of the assumptions upon which forward-looking information is
based: that general business and economic conditions remain stable;
continuing demand for, and stable or improving prices of gold; receipt of
regulatory and government approvals in a timely manner; the availability of
financing; Monument's ability to procure equipment and operating supplies in
sufficient quantities and on a timely basis; Monument's ability to attract
and retain skilled personnel; the accuracy of the company's resources
estimates and the accuracy of the historical estimates in the Study; the
estimated cash cost per ounce of gold production and the estimated cash
flows which may be generated from the operations. Actual results
could differ materially from those anticipated in this forward-looking
information as a result of risks and uncertainties, including: volatility
in the price of gold; risk inherent in mineral exploration and development;
uncertainties associated with the estimating of mineral resources, and in
particular the historical estimates in the Study; competition for capital
and skilled personnel; geological technical and drilling problems; 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 annual information form of the Company, 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.