Monument Provides Progress Update for Burnakura Gold Project, Malaysia
TSX VENTURE: MMY
Monument Mining Limited (TSX.V: MMY) ("Monument" or the "Company") is pleased to announce that it has primarily completed its early stage production implementation plan at the Burnakura Gold Project and moved to a final technical critical flaw review and optimization stage based upon an independent third party's recommendations, targeting completion by the end of December, 2016. The pre-commercial production construction and mine development period is anticipated to be shortened up to three months from six months period due to completion of the offsite work on long lead items in November, 2016 according to the implementation plan. The Burnakura Gold Project is progressed to bring forward cash flow to de-risk its continuing business development in Western Australia.
Progress of Mine Plan and Internal Economic Study
Since the update on the Burnakura Gold Mine development announced in February 2016, the Company has completed the exploration program on North of Alliance ("NOA") 4, 6 and 7/8, and the results have been included in its mine plan in addition to Alliance and New Alliance ("ANA") and Federal City. With the revised mine optimization, high grade ore will be processed through the CIL plant first, low grade ore will be stockpiled and processed through heap leach facilities, planned to be constructed during the second year of the gold commercial production.
The internal economic study including the geological models, mine plans, engineering works and economic analysis has been sent to independent consultants for due diligence review; and additional metallurgical test work and detailed mine delivery schedules for certain deposits are scheduled to complete by December 2016 to mitigate the construction and operation risks, and lift a level of confidence to achieve targeted economic viability. The internal economic assessment shows that the life of mine for early stage production could potentially be extended.
The Company's production decision is not based on a feasibility study of mineral reserves demonstrating economic and technical viability under NI 43-101 standards. Therefore, there is increased uncertainty with economic and technical risks of failure associated with this project, including but not limited to the risk that mineral quantities and grades might be lower than expected, and construction or ongoing mining and milling operations are more difficult or more expensive than expected; production and economic variables may vary considerably, due to the absence of detailed economic and technical analysis prepared in accordance with NI 43-101. There is no guarantee that production will begin as anticipated or at all or that that the production will be able to generate positive cash flow as anticipated in order to return the Company's capital investment.
Progress of Mine Development
The off-site engineering design, refurbishment and procurement work has been completed on long lead items including a three stage crushing circuit of the new primary secondary and tertiary crushers ready for installation at the site in early fiscal 2017, subject to completion of funding arrangements. A site inspection has been completed with Como Engineers and a detailed proposal for the crushing circuit together with a CIL feed plan and a CIL recommissioning plan has been proposed, and a construction schedule has been developed for implementation. This has reduced construction time from six to three months, during which the pre-stripping and mining are planned to stockpile ore for the CIL mill feed.
The stockpile areas have been surveyed and will be established near to the plant for ease of placing material through the heap leach equipment and stacking in due course. All capital heap leach equipment is on site, owned and available for installation when heap leach operations are scheduled to commence.
Other critical movements include completion of a power strategy assessment and building the site power model, waste dump review for submission of mining proposal. Pit dewatering has been assessed for early stage production, access road, ROM pad and crusher feed ramp construction, sorting of store area ready for operational start up have also been completed during the quarter. Plant control laboratory expansion and upgrade and associated works have been completed as well as camp accommodation and kitchen are prepared in readiness for FEED engineers and mining contractors to arrive on site, anticipated to be in January 2017.
The workforce planning has been submitted to management for review and included to the action plan. The key personnel have been located and the key operation management are now on board. The Amended Environmental Protection License for Crushing, Heap Leach and Dewatering was received subsequent to the quarter. In addition all mine planning work for submission of the Mining Proposal was completed.
Deep Drilling Program
Following the encouraging drill results at NOA7-8 (SEDAR filed July 11, 2016) the Company announced that it intends to undertake a deep drilling program to a depth of 500 meters in two stages, first to 250 meters and subject to results, the second stage would be to 500 meters. The program has been reschedule following commencement of early stage mining production.
Monument Mining Limited (TSX VENTURE:MMY)(FRANKFURT:D7Q1) is an established Canadian gold producer that owns and operates the Selinsing Gold Mine in Malaysia. Its experienced management team is committed to growth and is advancing several exploration and development projects including the Mengapur Polymetallic Project, in Pahang State of Malaysia, and the Murchison Gold Projects comprising Burnakura, Gabanintha and Tuckanarra in the Murchison area of Western Australia. The Company employs approximately 240 people in both regions and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighboring communities.
Source: Monument Mining