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October 25,2007
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NEWS
RELEASE
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Release #8-2007
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Monument Q1 Project Development Update
Vancouver, B.C. Monument Mining Limited (TSX-V:MMY and FSE:D7Q1) ("Monument" or the "Company")
is pleased to announce that it has commenced preliminary work on the
development of its Selinsing Gold Mine project, following the recent
closing of its major transaction, project acquisition and closing of a
$10,000,000 private placement on June 25, 2007.
Monument acquired both the Selinsing Gold Mine project (the
"Selinsing project") and the Damar Buffalo Reef
("Damar") exploration project through its 100% owned Malaysian
subsidiary Polar Potential Sdn Bhd ("Polar"). Polar has
incorporated 100% owned Selinsing Gold Mine Manager Sdn Bhd (the
"Manager") to act as the project manager. The Manager has
engaged Mike Kitney, an experienced mining professional and member of the
Australian Institute of Mining and Metallurgy ("AusIMM") as
adviser to the manager and John Barton, AusIMM, a senior mining engineer,
as the project engineer, both of whom are experienced in project
development of this type, to assist in overseeing the development and
subsequent management and operation of the Selinsing Gold Mine project on
behalf of the Manager.
Progress Toward Feasibility And A Production
Decision.
The Selinsing Gold Mine project has had a historic pre-feasibility
study completed by independent Dover Consultants Pty Ltd of Perth Western
Australia. This positive study recommended taking the project
forward to the next stage at a gold price of US$280 per
ounce. Since then the Company commissioned a three part
NI-43-101 Preliminary Assessment by Snowden International Mining
Consultants Pty Ltd ("Snowden") which was completed during 2006
and 2007 and filed on SEDAR 5th March 2007. This
three-phase study was in part, designed to undertake an RC confirmation
drilling program to confirm the resource estimate, establish a
commercially viable treatment circuit, undertake preliminary pit design
and estimate operating and capital costs. The Study and the
confirmation drilling program and other work undertaken and reported in
the study confirmed the viability of the project.
Selinsing has now commenced a program of detailed design work,
survey and permit upgrade/application where appropriate and is calling
for selective registrations of interest to supply equipment and services
in order to firm up the capital cost and estimated completion time for
construction of the Selinsing Gold Mine project. The Company has
commenced closing down the presently fully permitted gold tailings
treatment operation and is preparing the site for development of the open
pit mine and construction of a new 400,000 tonnes per annum carbon-in-leach
("CIL") treatment plant and support facilities. The
already secured ball mill is presently being moved to the site.
The Company has $3,100,000 of working capital as at the end of Q1
and will fund these preliminary development costs, as well as its
announced exploration program from its working capital. This
work is in order to be confident of the total current development and
construction cost of the project.
Location, Site Survey, Clearing and Access.
The project is located close to existing sealed road approximately
2 hours drive from Kuala Lumpur, the capital of Malaysia. It has
established infrastructure such as communications, power, water and
internal roads as well as a number of service buildings including plant
workshop, store, drill core shed, geological preparation laboratory,
assay laboratory, administration block, staff canteen and accommodation
unit.
The Manager has completed a new site survey of the proposed
treatment plant construction site. Following this work, Selinsing
has commenced clearing, ready to be able to initiate construction when
that is appropriate. Completion of the site civil works is still
dependent on detailed crushing circuit layout design, additional survey
levels and other work presently being bid.
Gold Treatment Plant Facility.
Selinsing has commenced design, construct activities and intends
to commission and manage operation of a 400,000 tonne per year CIL
treatment plant. To implement this process the Manager has retained
a number of industry experienced technical consultants.
Selinsing has engaged Metallurgical Design, a specialist
metallurgical and process engineering firm to provide the process design
package during Q3 2007 with certain parts of the package already having
been supplied. Zulkainan Zulkifli of Precision Drafting and
Technical Services ("Precision") has been retained to provide a
proposal to complete the Front End Engineering Design ("FEED")
for the project. Precision is the in-house engineering consultant for all
stages of constructing and commissioning a major process plant upgrade at
the nearby Penjom gold mine. The Penjom gold mine is owned by Avocet
Mining PLC of London, UK which in turn holds a 19.4% interest in
Monument. The requirement is for this proposal to be completed by Q4
2007. A substantial amount of this work has commenced in order that
Precision will meet the above timelines.
Precision will provide engineering design services for the project
including process design, plant design, equipment selection and overall
layout. The detailed design and engineering will include the
disciplines of civil, structural, mechanical, piping and all electrical
engineering. This will include all detailed engineering drawing
packages sufficient to award construction contracts and commence
construction. The plant will be designed to Malaysian Engineering
Standards consistent with the requirements of the earthquake and
hurricane ratings for the region. Precision will also provide
project management of all engineering activities required for the process
plant and infrastructure including detailed plant design and layouts.
Tailings Storage Facility. ("TSF")
Selinsing has retained Knight Piěsold Pty Ltd of Perth,
Western Australia (the "TSF Engineer"), an experienced
specialist in TSF design, construction supervision and commissioning in
the Selinsing project area and globally. The TSF Engineer is the
TSF Engineer of choice at nearby Penjom gold mine over a number of
years. The firm was retained by Selinsing to undertake the required
design studies to replace the existing licensed tailings storage facility
and to produce an inception report. The TSF Engineer completed the
inception report on 28th September and the recommendations and
site preparation and testing included and recommended in the report is
now being undertaken.
The tailings containment facility site is located almost
immediately adjacent to the proposed open pit and new plant site. It will
be constructed using overburden and waste "borrow" material
removed from inside the tailings dam to increase dam capacity. The
facility is being carefully designed to minimize land disturbance and to
simplify operation and allow for effective closure. The target for
completion of the concept design ready for formal permit/upgrade filing
is by end of Q4 2007.
Mike Kitney, AusIMM is the Qualified Person ("QP") named
in this news release and has read the release and has consented to his
name being included in the release.
On September 12, 2007 the Company announced commencement of its
exploration program on the Damar Buffalo Reef exploration project. This
exploration project work will be ongoing and undertaken in parallel with
the development of the Selinsing Gold Mine project. As Buffalo Reef
exploration is to be carried out to the north of the Selinsing Gold Mine
project and the subsequent development program, there will be no conflict
or interference with the development program by exploration activities.
Robert
F. Baldock, President and CEO
Monument Mining Limited
Park Place, Suite 500, 666 Burrard Street
Vancouver B.C. Canada V6C 3P6
The TSX
Venture Exchange has in no way passed upon the merits of the proposed
transaction
and has neither approved nor disapproved the contents of this news
release.
Investor Relations - Canada