Monument's 2011 Third Quarter Results

Gross Revenue of $15 M from 10,704 Oz Gold Sales at Cash Cost $238/Oz

VANCOUVER, May 30, 2011 /CNW/ - Monument Mining Limited (TSXV: MMY) and (FSE: D7Q1) ("Monument" or the "Company") today announces its third quarter financial results for the period ended March 31, 2011. All amounts are in United States dollars unless otherwise indicated (refer to www.sedar.com for Q3 full financial results).

Third Quarter Highlights include:

  • Gross revenue of $15 million generated from gold sales of 10,704 ounces at an average price of $1,404 per ounce;

  • Gold production of 11,904 ounces produced at average cash cost of $238 per ounce;

  • A positive net working capital of $52.1 million resulted from gold sales and the close of the $13.4 million financing (CAD13 million);

  • The Phase III plant extension preliminary design work was continued at the Selinsing Gold Project targeting  to double  production capacity from 40,000 ounces to 75,000 to 80,000 ounces; and

  • Snowden Perth Pty was engaged to prepare NI43-101 technical report converting historical estimates to CIM compliant resources. The report was completed and filed under Sedar on May 27, 2011 with 20% increase in gold content.

  • Exploration programs with a planned $4 million over the next 12 months commenced at the Selinsing and Buffalo Reef properties. Total of 517 meters of diamond drilling from four drill holes was completed bringing total drill meters to 1,606 from eight drill holes through the targeted zone at the Selinsing property. 

President and CEO Robert Baldock stated "Production result continued as satisfactory in line with our business plan this quarter and is expected to exceed the targeted 40,000 ounces of gold in its first year of commercial production. The management focuses on resource increase by way of improving its drilling programs and seeking new targets in the South East region."

Production Statistics

    Jun. 30, 2010   Three months,
Sep.30, 2010
  Three months,
Dec. 31, 2010
  Three months,
Mar. 31, 2011
  Nine months,
Mar. 31, 2011
Mining                    
Ore mined (tonnes)   662,330   203,150   159,681   140,736   503,567
Waste moved (tonnes)   2,326,502   615,937   649,584   741,109   2,006,630
Ore stockpiled (tonnes)   387,545   499,589   570,719   623,130   623,130
Process                    
Crushed ore (tonnes)   274,786   91,106   88,552   88,325   267,983
Ore processed (tonnes)   272,120   89,834   87,845   87,780   265,459
Average mill feed grade (g/t)   3.08   4.08   4.41   4.18   4.22
Processing recovery rate   58.7%   90.0%   93.7%   93.7%   92.5%
Ball mill availability (%)   89.2%   94.6%   96.1%   97.1%   95.9%

                     
    Jun. 30, 2010   Three months,
Sep.30, 2010
  Three months,
Dec. 31, 2010
  Three months,
Mar. 31, 2011
  Nine months,
Mar. 31, 2011
Gold produced (oz)   13,793   9,050   11,348   11,904   32,302
Gold sold (oz)   13,793   8,650   10,148   10,704   29,502
Revenue (in 000's) (1)   16,316   10,863   14,119   15,031   40,013
                     
Cash cost (US$/oz)   -                    
Mining   64   50   52   52   53
Processing   90   90   123   117   114
Royalties   62   62   69   64   67
Operations   0   0   2   5   3
Total cash cost (US$/oz)   216   202   246   238   237

(1)      Prior to achieving commercial production in September 2010, gold sales and related production costs were capitalized against the Selinsing Gold Property and construction of the gold treatment plant.

 Financial Results and Discussion

For the three months ended March 31, 2011, the Company had gold sales of $15,031,105, produced 11,904 ounces of gold and sold 10,704 ounces of gold at an average realized price of $1,404 from its Selinsing Gold Mine. The operation generated an income of $10,421,017, net of operating and corporate expenses, or $0.05 per share. This result was mainly increased by other gains due to changes in fair value on derivative liabilities of $1,974,553 estimated using Black-Scholes financial model and fair value on a gold forward contract of $1,513,188, offset by foreign exchange loss of $256,917 and accretion expense of $294,904 that resulted in a net income of $13,389,710, or $0.07 per share, compared to a net loss of ($714,040), or ($0.00) per share, reported for the corresponding period in fiscal 2010.

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 of an additional 32,000 acres of prospective exploration land. The Company now holds a large exploration land package, in the main continuous and contiguous or nearby its gold producing property.

In conjuction with extensive exploration programs at Selinsing, Buffalo Reef and the Famehub properties, the Selinsing Gold Mine is scheduled to produce approximately 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. The gold treatment plant has a current capacity of 400,000 tpa with a proposed capacity expansion to 1,000,000 tpa through the addition of an additional milling circuit to the existing plant in the future.

Please visit our website at www.monumentmining.com for more information.

Robert F. Baldock, President and CEO
Monument Mining Limited
Suite 490- 688 West Hastings Street
Vancouver B.C. Canada V6B 1P1

"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 contains forward-looking statements about Monument Mining Limited ("Monument"), its business and future plans. Forward-looking statements are statements that are not historical facts and include the timing of the proposed programs and events.  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 different materially from those expressed or implied by the forward-looking statements. These risks and certain other factors include, without limitation, 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. statements regarding the future price of gold; the estimation of mineral resources; conclusions of economic evaluation (including scoping studies); the realization of mineral resource estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. 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". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: 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.

SOURCE Monument Mining Limited

For further information:

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

 

Profil de l'entreprise

Monument Mining Limited

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.