VANCOUVER, July 28,
2014 /CNW/ - Monument Mining Limited (TSX-V: MMY and FSE:
D7Q1) "Monument" or the "Company" provides an update on its
Selinsing Phase IV development to treat its transition and sulphide
material and the most recent developments in respect of previously
disclosed litigation concerning a purported joint venture interest
in the Selinsing project.
Selinsing R&D - Phase IV Sulphide
Biological Oxidation Treatment Programs
Independent metallurgical testing conducted by
Inspectorate Exploration and Mining Services in Canada was performed on refractory sulphide
ore samples from the Selinsing Deeps and Buffalo Reef
projects. The test work encompassed a variety of methods
including pressure oxidation, ultrafine grinding, roasting and acid
leaching techniques.
The best recoveries for sulphide ore were
achieved in the mid to upper 80% range with a biological oxidation
approach through a combined flotation and tank bioleach treatment
approach. The processing facilities would require a capital
investment of approximately US$50.0
million, according to an engineering study carried out by
Lycopodium of Australia, and an
additional estimated cost of US$10.0
million for a new power line being built with an estimated
completion time of 2 to 3 years.
A follow-up engineering study performed by
Tetratech in Canada shows that
some savings could be realized by incorporating a modified
design. Management is continuing its research and
development work in evaluating less capital intensive
alternatives.
One such option currently forwarded for testing
is biological heap leaching. The biological heap leach
approach is aimed to use acid produced from sulphide minerals in
the ore to stimulate the natural occurrence of soil microbes in
dissolving sulphides contained in the ore materials. Once the
sulphides are dissolved in the leach pads, the oxidized sulphide
ore would be further leached in the same pads or in the existing
comminution and CIL circuit. This would be then followed by
smelting into dore bars for shipping to a refinery as is performed
at present for oxide ore.
The biological heap leach method has the
advantage of low capital investment. A sulphide concentration plant
and alterations to crush ore feed would not be required under this
method. Potentially crushed ore from the present
crushing circuit can be directly treated though permanent heap
leach pads. These permanent re-usable heap leach pads can be
built and operated in-house by the present staffing at Selinsing
with low capital expenditure that require multiple cells, suitably
lined liquor ponds and a network of reticulation piping, pumps and
metal recovery systems. While recoveries of gold product can be
lower than bioleach treatment plant, potential heap leach issues
such as heap blinding and slumping can be minimized by methods such
as whole ore stacking, de-sliming, eliminating agglomeration and
other approaches currently being considered.
There is an adequate area of suitable land to
construct heap leach cells and ponds on site and a plentiful supply
of limestone at Selinsing is available for neutralizing the
solutions prior to discharge to the tailing containment
facility.
The present research and development programs on
various alternate oxidation processes will continue to completion
in parallel with these heap leach trials before a final commercial
decision is made. Once a viable method is identified as
satisfactory and is signed off by a qualified person, the Company
expects to complete and publish an updated technical report
prepared in accordance with National Instrument 43-101.
In the meantime, the Company will continue to
feed the Selinsing gold plant with the low grade oxide stockpile
and the stockpiled materials discharged from the mill in the early
stage of the production, totalling approximately 3,000,000 tonnes
while the leach trials on sulphide ore are
conducted.
The information in this section has been
compiled, reviewed and approved by Michael
John Kitney who is a member of the Australasian Institute of
Mining & Metallurgy. Michael
Kitney is a qualified Metallurgist retained by Monument
Mining Limited and is a Qualified Person as defined by JORC
guidelines and NI43-101. He has been working in Australia for Monument as an independent
consultant.
Selinsing Litigation Update – Selinsing
Mine Sdn Bhd (the "Plaintiff") VS Selinsing Gold Mine Manager Sdn
Bhd, Able Return Sdn Bhd and Monument Mining Limited ("SMSB VS
Monument") in a Claim for 5% JV interest in Selinsing
A full trial of the matter has been fixed at the
Shah Alam High Court, Malaysia in
October 2014 after the Court of
Appeal set aside with cost in July
2013 a summary judgment which was granted by Shah Alam High
Court in March 2013 in favour of the
Plaintiff against Monument, including a conditional stay of the
summary judgment for Monument to pay cash of approximately
US$10 million into a bank account
jointly operated by both parties solicitors.
However, the Plaintiff recently filed another
application to the Shah Alam High Court for an interim injunctive
relief, including, among other things, restraining and preventing
Monument's wholly-owned subsidiary, Selinsing Gold Mine Manager Sdn
Bhd from disposing of and/or transferring the Plaintiff's purported
5% share of the profits obtained from the Selinsing Mine to
Monument's wholly-owned subsidiary, Able Return Sdn Bhd,
Monument or other third parties pursuant to the purported joint
venture agreement claimed by the Plaintiff, and ordering that
US$9.4 M be deposited within 30 days
into a joint account to be maintained by legal counsel of the
respective parties to the lawsuit, pending the hearing and
determination from the coming full trial. The injunctive relief was
granted by the Shah Alam High Court.
Monument has not yet received the written court
order and accordingly the grounds upon which the injunctive relief
was granted are not known and unclear to the Company at this time.
Monument filed an appeal to the Court of Appeal in Putrajaya on
July 23 2014 and also filed an
application with the Shah Alam High Court on July 25 2014 for a stay of the injunction order.
The Company maintains its view, based on legal advice and the
facts of the matter that the claim by the Plaintiff is without
merit.
Shah Alam High
Court has also granted among others an injunction order
restraining SMSB from interfering and disrupting the management of
the business operation on MC 1/113 and MC 1/124 and from
corresponding with any third parties on the subject matter.
Background: On October, 10, 2012, the
Plaintiff, Selinsing Mine Sdn Bhd, a company wholly owned by Kesit
Pty Ltd, an Australian private limited company owned and controlled
by Peter Steven Kestel and his wife
filed a Writ and Statement of Claim against Monument and its
wholly-owned subsidiaries, Selinsing Gold Mine Manager Sdn Bhd and
Able Return Sdn Bhd. The Plaintiff in the suit claimed, among other
things, a 5% "Joint Venture interest" in the profit of the gold
production from one of tenements of Monument's Selinsing Gold
Mine. The Plaintiff was the previous sub-lease holder and
operator that sold the Selinsing Gold Mine to Monument and its
subsidiaries free and clear of any encumbrances. The transaction
was closed on June 25, 2007 and the
Plaintiff has been paid in full. The claim against Monument and its
subsidiaries was not made until 2012 in relation to the Plaintiff's
purported "Joint Venture interest". Monument denies that the
Plaintiff has any joint venture interest in the Selinsing Gold Mine
and intends to continue to vigorously defend this claim.
About Monument
Monument Mining Limited (TSX-V: MMY, FSE: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 in
Malaysia and Australia, including the development stage,
Mengapur Polymetallic Project in Malaysia and the Murchison Project in
Western Australia. The Company
employs approximately 300 people and is committed to the highest
standards of environmental management, social responsibility, and
health and safety for its employees and neighboring
communities.
Robert F. Baldock,
President and CEO
Monument Mining Limited
Suite 1580, 1100 Melville Street
Vancouver B.C. Canada V6E 4A6
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release."
Forward-Looking Statement
This news release includes statements
containing forward-looking information about Monument, its business
and future plans ("forward-looking statements"). Forward-looking
statements are statements that involve expectations, plans,
objectives or future events that are not historical facts and
include the Company's plans with respect to its mineral projects
and the timing and results of proposed programs and events referred
to in this news release. Generally, forward-looking
information can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". The forward-looking
statements in this news release are subject to various risks,
uncertainties and other factors that could cause actual results or
achievements to differ materially from those expressed or implied
by the forward-looking statements. These risks and certain
other factors include, without limitation: risks related to general
business, economic, competitive, geopolitical and social
uncertainties; uncertainties regarding the results of current
exploration activities; uncertainties in the progress and timing of
development activities; foreign operations risks; other risks
inherent in the mining industry and other risks described in the
management discussion and analysis of the Company and the technical
reports on the Company's projects, all of which are available under
the profile of the Company on SEDAR at www.sedar.com.
Material factors and assumptions used to develop forward-looking
statements in this news release include: expectations
regarding the estimated cash cost per ounce of gold production and
the estimated cash flows which may be generated from the
operations, general economic factors and other factors that may be
beyond the control of Monument; assumptions and expectations
regarding the results of exploration on the Company's projects;
assumptions regarding the future price of gold of other minerals;
the timing and amount of estimated future production; the expected
timing and results of development and exploration activities; costs
of future activities; capital and operating expenditures; success
of exploration activities; mining or processing issues; exchange
rates; and all of the factors and assumptions described in the
management discussion and analysis of the Company and the technical
reports on the Company's projects, all of which are 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 statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements 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
statements. The Company does not undertake to update any
forward-looking statements, except in accordance with applicable
securities laws.
SOURCE Monument Mining Limited