Monument Mining Reports Positive Cash Flow For Third Quarter
VANCOUVER, BC - Monument Mining Limited President and CEO Cathy Zhai reported, “Regardless of the suspension of production at Selinsing Gold Mine caused by the Movement Control Order issued by Malaysia government against Covid-19 pandemics, the third quarter has generated positive cash flow, contributed mainly to high gold price and improved recoveries. Subsequently, the mining ban has been lifted on April 30th and production has been moved gradually towards full capacity. Working capital is sufficient to support operations and procurement has been manageable with global dynamic changes in supply chains. Management is firmly moving forward with the Sulphide Project financing with actively engaged interesting parties. We stay focused on our corporate development strategies to take upside opportunities for future sustainable production, including entering into the sulphide gold concentrates market using our planned sulphide Biox® treatment plant.”
Third Quarter Highlights: 7,323oz of gold sold for $11.62 million (Q3 2019: 3,732oz of gold sold for $4.59 million); Average realized gold price per ounce (“oz”) of 1,602/oz (Q3 2019: $1,295/oz); Gross margin of $5.08 million (Q3 2019: $1.79 million); 5,369oz of gold produced (Q3 2019: 4,225oz) with cash cost of $892/oz (Q3 2019: $751/oz); All-in sustaining cost per ounce (“AISC”) of $1,070/oz (Q3 2019: $1,108/oz); Peranggih trial mining program completed with encouraging average gold recoveries; The first phase of drilling completed at Murchison followed by the second phase starting subsequently to the end of the third quarter; & Two weeks production suspension of Selinsing Gold Mine due to Covid-19 Pandemics.
At the Selinsing Gold Mine, Peranggih trial mining was carried out from February 22 to March 3, 2020, under which the bulk sample was extracted from the higher mineralized area. The bulk sample material was fed into the existing Selinsing oxide gold processing plant to confirm the average grade of the close-spaced drilled area, to quantify the presence of coarse gold and to test the metallurgical performance at plant scale. 13,047 tonnes of material was processed at a reconciled head grade of 1.17g/t with actual recovery of 89.8% as compared to average assayed grade gold of 1.22g/t with recovery of 90.2%.
The trial mining generated a positive cash flow and was reported under the Statements of Comprehensive Income. A new grade control program is currently in the planning stage to define the extensions of the known mineralization along strike to the Northeast and Southwest of the Peranggih trial mining area. Mining activities continued at Peranggih for the remaining mining blocks that were excluded during the trial period, to continue supplying materials to the processing plant. After the trial mining was completed, the mining activities continued at Peranggih for the remaining mining blocks that were excluded during the trial period, to continue supplying ore to the processing plant. The trial mining results should not be used as indicator for future Peranggih operations. There are no resources being defined at the Peranggih.
During the third quarter, the discovery of the Mentique Prospect, 1km west of the Peranggih Gold Prospect was announced. A soil sampling campaign that was conducted in the Peranggih area between December 2018 and March 2019 had delineated 1.8km by 0.8km gold soil anomaly located 1 km west of the Peranggih deposit on a parallel north west- south east trending structure, with a peak value of 103ppb. This discovery has been named the Mentique Prospect. Infill soil sampling, trenching, and geological mapping are planned to be carried at Mentique to assist in creating a drill target and to determine the nature of mineralization in this area.
During the third quarter, the exploration focus was at the Burnakura and Gabanintha areas to test near mine down-plunge targets where there are high quality near mine targets that have good potential to be mined underground. Mineralization down dip from the historically mined Alliance, New Alliance and Yagahong open pits were drill tested. In addition, the NOA 9 regional target was tested with Air-Core Drilling (AC), as part of Monument’s regional strategy.
Drilling Program Phase 1: The drill program commenced on February 26, 2020 and the first phase of this drill program was completed on March 12, 2020. A total of 4 holes for 839m of Reverse Circulation (“RC”) were drilled at Burnakura and 6 holes for 1,265m was drilled at Gabanintha. In addition, 23 holes for 603m of AC were drilled at the NOA 9 regional target. Geological structures and mineralization were generally intersected where expected for the RC drilling. A total of 611 samples from Burnakura and 975 samples from Gabanintha including QAQC samples were analyzed. Assay results for the first phase of the drill program were received at the beginning of April and will be released once the second phase drill sample testing is completed.
Drilling Program Phase 2: The second phase of drilling will include 2 holes at Alliance, several holes at NOA, and a follow up drill hole at Yagahong which will be complanalyzedeted in Q4.