VANCOUVER, Feb. 5, 2014 /CNW/ - Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) ("Monument" or the "Company") announced today that it has determined the most viable processing route for the sulfide material at its Selinsing and Buffalo Reef gold mines.
Since early 2011 Monument has been reviewing its options to treat its previously disclosed sulfide gold bearing reserves and resources at Selinsing and Buffalo Reef. That review has now been completed.
This work was necessary because the ongoing exploration programs at Selinsing Deeps and Buffalo Reef South, Central and North all continue to identify both oxide and sulfide mineralization extensions. Please refer to Monument exploration results released Tuesday February 4, 2014.
In addition to the bacterial oxidation treatment method, for which a full independent study was conducted by Lycopodium Minerals Pty Ltd. of Australia; roasting, pressure oxidation, halide-chloride leaching, and fine grinding were all carefully considered as possible treatment methods and tested by independent laboratories. The tests proved that some of these options could achieve satisfactory recoveries, including bacterial oxidation (in the high 80% and low 90% range); however, these process options to produce dorè bullion on site from sulphide material are capital prohibitive. All of these options present both technical and financial challenges. Bacterial oxidation, for instance, represented an investment approaching US$60,000,000 including running a new high voltage power line which from approvals to final hook up was scheduled to take up to 3 years. Accordingly, the Company set out to identify a more financially acceptable, less expensive capital and operating cost option.
In parallel with the efforts to identify viable commercial options, the Company, at its on-site research and development facilities, has continued work on producing a flotation sulphide gold concentrate. The objective was to produce a gold concentrate sufficiently high in gold grade to be acceptable to buyers in terms of contaminants and other quality issues. This is a continuation of the work carried out by Inspectorate in Vancouver as a pre-treatment for bio-oxidation and roasting. Potential buyers for such concentrate had also to be located regionally to minimize freight costs.
The efforts to float such a sulphide gold concentrate have been encouraging to date and a number of the samples were delivered to potential buyers in China and elsewhere for assessment. Initial verbal indications based on assays are that this concentrate would be acceptable to a number of prospective buyers in terms of gold content and contained contaminants and also from an environmental and regulatory point of view.
Reduced Capital Cost
In assessing the overall viability of the sulfide gold flotation approach, the Company also compared the capital cost of adding a flotation circuit to its existing process plant. The current plant has a 960,000 tonne per annum crushing, grinding, gravity and leaching circuit to which would be added new flotation, thickening and filtration equipment. The main items of this add-on equipment list such as the flotation cells are already on site and/or paid for. The Company has sourced and paid for a new filter press now in Malaysia, awaiting delivery to site.
The additional investment to the above flotation and filtration equipment would be the cost of its installation, and connection to the grinding circuit and tailings disposal lines for delivery to the tailings storage facility.
The capital cost of this plant adaption based on estimates of the flotation circuit taken from independent process engineers and turn-key contractors is approximately US$6,000,000. (A flotation plant was included in the Lycopodium study for bio-oxidation). The capital cost estimate includes engineering, civil works, concrete foundations and construction management as well as equipment purchase. Management believes that the sulfide gold floatation approach represents the most attractive option evaluated that would produce an economic concentrate for gold production off-site.
The information in this news release has been reviewed and approved by John Fox, P.Eng. Independent Consulting Metallurgical Engineer, a qualified person under National Instrument 43-101, who has agreed to the content of this news release and its publication.
The Company is now working on refining the costs of producing the concentrate, researching various packaging, handling and shipping alternatives, negotiating with a number of smelters in the South East Asia region and around the world.
Monument Mining Limited (TSX-V:MMY, FSE:D7Q1) is an established Canadian gold producer that owns and operates the Selinsing Gold Mine in Malaysia, with production cash costs among the lowest in the world. Its experienced management team is committed to growth and is advancing several exploration and development projects in Malaysia, including the 100% owned, development stage, Mengapur Polymetallic Project. The Company employs 330 people in Malaysia 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 910- 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."
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 information, 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:
Nick Kohlmann, MMY Toronto T: +1-647-478-3594 [email protected]
Richard Cushing, MMY Vancouver T: +1-604-638-1661 x102 [email protected]
Wolfgang Seybold, Axino AG-Europe T: +49 711-2535-92 40 [email protected]