VANCOUVER, Oct. 9, 2012 /CNW/ - Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) "Monument" or the "Company" is pleased to announce that the iron ore dispute and all its issues related to the Mengapur Polymetalic Cu-Au-Ag-S (Fe-Mo) Project ("Mengapur Project") have now been resolved by entering into a Harmonization Agreement on October 3, 2012 among Phoenix Lake Sdn. Bhd. ("PLSB'), ZCM Minerals Sdn. Bhd. ("ZCM"), Monument Mengapur Sdn. Bhd. ("MMSB") and its subsidiary Cermat Aman Sdn. Bhd. ("CASB") (collectively the "Parties"). The Company owns a 70% interest in MMSB which in turn owns 100% interest in CASB, the lease holder of the Mengapur Project, except for the free digging oxide iron ore material covering the skarn.
The iron ore dispute arose in relation to iron ore operations carried by PLSB and ZCM at the Designated Area of the Mengapur Project, where the top soils not only contain oxide iron ore that PLSB and ZCM are exclusively entitled to mine and to purchase, but also contain high copper and good molybdenum grades across certain parts of the Mengapur mining lease which belong to the Company. The Parties have been in discussion for several months in order to obtain a good understanding of each other's concerns, and have now come to an amicable resolution and agreed ways to work together in harmony to protect their respective interests at the Mengapur Project.
In the Harmonization Agreement, PLSB and ZCM recognize that MMSB is the Exclusive Operator for the Mengapur Project and the Owner of Other Metals in the top soils at the Designated Area and will cooperate with MMSB in order to protect and preserve Other Metals during its mining and removal of Raw Iron Ore Materials; where MMSB and CASB recognize that PLSB/ZCM have exclusive rights to excavate, load, transport and purchase the Raw Iron Ore Materials in the top soils from the Designated Area except Other Metals and will cooperate with PLSB and ZCM for their iron ore operations.
The parties agree to form a Technical Committee to define technical boundary and methods as to separate the Oxide Iron Ore Materials from Other Metals and resolve all related technical issues in good faith. The parties have set forth an arbitration mechanism to settle any future potential dispute related to the above technical issues so that both parties' operations are prevented from interruption in any potential future such dispute.
The harmonization Agreement contains terms such that both parties shall carry out their mining operations in compliance with all environmental and other requirements under the Malaysia mining laws and regulations.
The parties also agree to withdraw, upon signing the Harmonization Agreement, all existing legal suit(s) and/or injunction and/or other forms of restraining order (if any) filed pursuant to the PLSB Agreement and ZCM Agreements without any order as to costs and shall not have any further claim with respect to the subject matter of this Agreement.
The agreement does not affect in anyway the Company's interest and ownership in the major historic ore body contained within the skarn under the free-digging soils.
The Parties both have considerable long term investment and development objectives in the general area, and are planning to have a long term presence in the same region. The communities surrounding this project will receive numerous benefits over a long period of time in relation to Community Social Responsibility ("CSR") development work carried by the Parties and will cooperate and coordinate their efforts in this regard going forward.
The Company plans to proceed with its in-fill and exploration drilling programs, metallurgical test work programs and development planning and permitting, further details of which will be released in due course. In the meantime an application for renewal of the Operational Mining Scheme ("OMS") in relation to the Mengapur Project has been filed and is currently being processed by the Pahang Department of Mines and Sciences. Issuance and renewal of the OMS will allow the Company to progress its development at the Mengapur site in relation to its planned design, engineering, permitting, upgrade and review of the Environmental Impact Assessment ("EIA") in order to commence production of copper metal as Phase I of the Mengapur Project.
The Mengapur Polymetalic Cu-S-Au-Ag (Fe-Mo) skarn project is located 16 km north of Seri Jaya in the Pahang State, Central Malaysia. It contains a historical Cu-S-Au-Ag resource defined by previous investigators in the 1980's. The A Zone contains a historical skarn reserve (SP6 design pit) that is located at the southeastern contact zone with the Bukit Botak intrusion complex as presented in a 1990 historical feasibility study by Normet. A summary of the historical Mengapur Normet Feasibility report may be found in a January 2012 NI 43-101 report by Snowden Mining Industry Consultants which may be found on www.sedar.com on the Monument company profile or on the Monument website (www.monumentmining.com).
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 feasibility stage, polymetalic Mengapur project. The Company employs 260 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
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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
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