Best Intercepts of 3m @ 6.09g/t Au from surface in infill drilling, and 5m @ 3.48g/t from exploration drilling
VANCOUVER, Nov. 18, 2014 /CNW/ - Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) ("Monument" or the "Company") is pleased to announce the second round of drilling results from the resource drilling programme at the Murchison Gold Project in Western Australia, through its wholly owned Australia subsidiary Monument Murchison Pty Ltd. The Murchison Gold Project is 100% owned by Monument Mining Limited and consists of the historical Burnakura and Gabanintha projects. Figure 1 (Appendix 1) shows a Location Plan for the Project.
President and CEO Robert Baldock said: "Monument is a fast growing gold producing Company and has added the Murchison Gold Project in February 2014 into its gold property pipeline. Since acquisition it has drilled 13,400 metres in confirmation, infill and step out drilling. It has also progressively carried out a suite of technical studies targeting completion in June 2015, including metallurgical test work, mining engineering, process plant modifications and environmental studies aimed at putting the Project into production once economic viability has been demonstrated ."
Highlights of the Drill Results
To date, a total of 102 RC holes have been completed in the first drilling programme at Alliance and New Alliance. A total of 64 RC holes have been previously reported, with assay results for the remaining 38 holes now available. Table 1 in Appendix 2 shows a breakdown of fire assay results completed by SGS Australia for intervals of mineralisation greater than 0.5g/t Au. Figure 2 shows the distribution of drill holes containing mineralised assay results greater than 0.5g/t Au (Appendix 3).
The majority of drilling to date has been angled from 60° - 75o inclination towards grid west, or as vertical holes. This drilling has confirmed the Alliance/New Alliance mineralisation is hosted within several north to northeast trending, moderately east dipping (~30°) narrow quartz veined zones with an average true thickness varying from 2 metres to 5 metres. * Drillhole orientation was designed to target perpendicular to mineralisation for true thickness, except where vertical holes were drilled – See Table 1. True thickness of mineralisation will be calculated once a resource model is compiled. The drillhole intercepts reported in this statement represent the actual sample intervals obtained from drilling.
According to Lisa Wells, Exploration Manager, these results further confirm favourable mineralization targets at Alliance and New Alliance from this new round of results. A total of 34 out of the 38 RC drillholes returned favourable mineralization greater than 0.5g/t Au. Of particular note, extensional drilling from this round produced an intercept of 2m @ 5.3g/t Au from 57 to 59 m from hole 14MRC072, while exploration drilling produced an intersection of 5m @ 3.48g/t Au from 70 to 75 m in hole 14MRC096. A proposed twinned hole shifted and re-angled, intersected [email protected] 17.7g/t Au from 42 to 43m where the historical hole produced 7.94g/t Au from the same interval. All of these results are very encouraging, especially the results from the extensional and exploration drilling.
Results from the diamond drilling programme of 6 PQ holes drilled at Alliance and New Alliance are now available and detailed in Table 3. At Alliance the best result was confirmed in hole 14MDD004 with 2m @ 14.08g/t Au from 36 to 38m. At New Alliance, 14MDD001 intersected 7.58g/t Au from 52 to 53 m and 10.6g/t Au from 63 to 64 m. This core material is currently being used for metallurgical testwork however these results will contribute to the resource information. Table 2 in Appendix 3 shows a breakdown of fire assay results greater than 0.5g/t Au. Appendix 4 shows the location information for all 102 drillholes from the first RC programme at Alliance/New Alliance.
A programme of RC drilling has recently been completed at Federal City. A total of 63 RC holes for 4,058 m was completed on the 31st of October and samples sent to SGS laboratories. Results for this round of drilling will be reported once results have been received.
Background And Progress On The Exploration Program
The drilling programme was initiated in May 2014 at the Alliance and New Alliance open pit deposits at the Burnakura Project. Figure 3 shows the geological map for the Burnakura Tenement area (Appendix 5). The drilling program has been designed to validate the historical resource, increase the grade and geological continuity of the mineralisation through infill drilling and to test for resource extensions and define further exploration targets. This work will contribute to the current suite of technical studies for the project, which has been designed to provide the basis for a commercial outcome within an eighteen month time frame from acquisition. This news release should be read in conjunction with previous news releases dating from May 26, 2014.
Various technical studies are currently in progress at the Alliance and New Alliance prospects which include:
Resource confirmation and study
To date the historical estimates have been under review by independent consultants Cube Consulting ("Cube"). The complete historical resource drilling digital database has now been checked and validated by Cube for consistency. The data is now being held in a secure SQL database server. Cube has also reviewed the QAQC procedures and quality control data for the first 32 RC holes and considers at this stage that the veracity of the data is appropriate for the purposes of mineral resource estimation. The QAQC analysis for the remainder of the holes is in progress.
All data from the first programme of 102 holes at Alliance and New Alliance has now been input into the database and has been prepared for the upcoming initial mineral resource estimation. Cube will shortly commence studies on the geological model of Alliance and New Alliance and once this is completed they will commence work on the mineral resource estimation. The geological model will complement the estimation model and be used for potential mine planning purposes.
Fugro Geospatial has recently completed an aerial survey over the Burnakura and Gabanintha mining leases. The data from this work, which includes aerial photography and detailed contours, has now been received and will assist with resource and mine planning studies.
Metallurgical test work
Metallurgical testwork on PQ core samples from 6 holes at Alliance and New Alliance is currently underway. The work is testing the material for use with the existing CIL/CIP plant as well as potential for heap leach recovery. Complete results for this are pending and due in the first quarter of 2015.
A site inspection has recently been carried out by Kappes Cassiday Australia to assess the potential heap leach site and previous proposal for establishing a heap leach facility. In addition, Como Engineers conducted a field inspection to inspect the existing 1Mt facility heap leach equipment stored at site, purchased by the previous owners of Burnakura from the Indee Plant. The aim of the work is to see what would be entailed to reconstruct the equipment and increase it to the proposed 2Mt capacity, formerly postulated by the previous holders of the project.
A plant recommissioning inspection by Orway Mineral Consultants will commence in November with both process and electrical engineers to inspect and test the plant for safety purposes and readiness for recommissioning while the plant remains under Care and Maintenance.
Environmental permitting by Independent Consultants, Animal Plant Mineral, has been ongoing with further Programme of Works applications recently submitted for additional drilling activities.
APM has also recently carried out a flora/fauna spring survey at Alliance, New Alliance and Federal City in anticipation of its necessity should amendments to the current approved permits for mining be required. This work has also formed part of the Programme of Work applications for further drilling programmes at Alliance, New Alliance and Federal City.
Site maintenance and development
Since the acquisition of the asset, Monument has ensured that the plant and fixed assets are being kept in good care and maintenance order with a view to future commissioning. Site operations are fully functional for the needs of exploration with supply chain logistics firmly in place. All safety policies and procedures have been implemented at the Monument site operations, as required by the Department of Mines and Petroleum.
With the recent completion of drilling at Federal City, and in light of positive assay results received from the Alliance/New Alliance first programme of drilling, a further programme up to 5000m has been planned at Alliance/New Alliance to further test the extensional and exploration targets from the previous campaign, as well as additional exploration targets generated from recent geological investigations. The work is also aimed at providing any necessary infill drilling required for confirmation of the resource.
Exploration programmes targeting further mineralisation potential are currently in the planning stages given the promising results obtained from exploration drilling in this first programme, as well as target generation at the other projects.
The scientific and technical information in this press release has been compiled and reviewed by Darryl Mapleson (BSc (Hons), FAusIMM) who is a Competent Person as defined by JORC guidelines and a Qualified Person for NI43-101 retained by Monument Mining Limited. He has been working in Australia for Monument as an independent consultant.
The above stated development outlook is to the effect that a preliminary economic assessment has not been completed and there is no certainty the proposed operation will be economically viable.
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 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 over 300 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.
Robert F. Baldock, President and CEO
Monument Mining Limited
Suite 1580 -1100 Melville Street
Vancouver, BC V6E 4A6
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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
For further information: visit the company web site at www.monumentmining.com or contact: Richard Cushing, MMY Vancouver, T: +1-604-638-1661 x102, [email protected]; Wolfgang Seybold, Axino GmbH, T: +49 711-2535-92 40, [email protected]