Monument Mining Limited (TSX-V: MMY) (FSE: D7Q1) announced its first quarter of fiscal 2022 production and financial results for the three months ended September 30, 2021. All amounts are expressed in United States dollars (“US$”) unless otherwise indicated (refer to www.sedar.com for full financial results).
President and CEO Cathy Zhai commented, “2022 fiscal year is full of challenge and would be rewarding for Monument when the Company stays focused on execution of the corporate strategies. During the quarter, the Selinsing flotation plant construction was kicked off with engineering design near completion, long lead items procured, and the earthworks at site reached 90% completion. The Phase 1 drilling at Murchison was completed by overcoming the shortage of drill rigs. Peranggih continued to provide additional mill feed that helped to sustain the cash flow. The Delays in gold production is anticipated to be caught up after the monsoon season in the third quarter.”
First Quarter Highlights:
First Quarter Production and Financial Highlights
|Three months ended September 30,|
|Ore mined (t*)||74,972||81,576|
|Ore processed (t)||156,611||166,432|
|Average mill feed grade (g/t*)||0.54||0.98|
|Processing recovery rate (%)||65.0||%||63.6||%|
|Gold recovery (oz)||1,777||3,343|
|Gold production (1) (oz)||1,043||3,504|
|Gold sold (oz)||1,423||3,100|
|Financial (expressed in thousands of US$)||$||$|
|Gross margin from mining operations||348||3,059|
|Income (loss) before other items||(755||)||1,943|
|Net income (loss)||(1,267||)||138|
|Cash flows provided from operations||23||747|
|Earnings (loss) per share – basic and diluted (US$/share)||(0.00||)||0.00|
|*grams/tonne (“g/t”); tonnes (“t”)|
|Three months ended September 30,|
|Average realized gold price per ounce sold(2)||1,829||1,909|
|Cash cost per ounce (3)|
|Operations, net of silver recovery||20||5|
|Total cash cost per ounce||1,430||923|
|All-in sustaining costs per ounce (4)|
|By-product silver recovery||1||1|
|Accretion of asset retirement obligation||22||11|
|Exploration and evaluation expenditures||11||10|
|Sustaining capital expenditures||551||92|
|Total all-in sustaining costs per ounce||2,052||1,055|
|(1)||Defined as good delivery gold bullion according to London Bullion Market Association (“LBMA”), net of gold doŕe in transit and refinery adjustment.|
|(2)||Monument realized 1,829US$/oz for the three months ended September 30, 2021 which excludes gold prepaid delivered of 723oz for comparison purposes.|
|(3)||Total cash cost per ounce includes production costs such as mining, processing, tailing facility maintenance and camp administration, royalties and operating costs such as storage, temporary mine production closure, community development cost and property fees, net of by-product credits. Cash cost excludes amortization, depletion, accretion expenses, idle production costs, capital costs, exploration costs and corporate administration costs. Readers should refer to section 15 “Non-GAAP Performance Measures”.|
|(4)||All-in sustaining cost per ounce includes total cash costs and adds sustaining capital expenditures, corporate administrative expenses for the Selinsing Gold Mine including share-based compensation, exploration and evaluation costs, and accretion of asset retirement obligations. Certain other cash expenditures, including tax payments and acquisition costs, are not included. Readers should refer to section 15 “Non-GAAP Performance Measures”.|
Q1 2022 Production Analysis
Q1 2022 Financial Analysis
Selinsing Gold Mine
At Selinsing the engineering, procurement, construction and project management progress has reached 31% completion for the flotation plant construction and mine development. 80% of the flotation design work was completed during the first quarter. Civil and structural drawings were completed subsequent to the quarter, and mechanical and piping drawings will be issued for construction by November 2021. All major contracts for long lead items were awarded to suppliers and 90% of the major equipment has been procured at the end of the quarter. Procurement for construction contractors are short listed and tender documents have been distributed.
Flotation construction includes earthworks, civil engineering, structural engineering, mechanical and electrical installation and other associated plant upgrades. Earthworks were initiated in April 2021 and are 90% completed to date. Civil foundation work is scheduled to start in January 2022 and expected to be completed by the end of April 2022.
The flotation pilot plant has been assembled and is successfully running at SGMM research and development laboratory. The pilot plant features a ball mill and classifier, rougher/scavenger flotation cells and three stages of cleaner flotation to replicate the flowsheet of the full-scale flotation plant. The pilot plant will be used for operator training, reagent trials, and for the preparation of concentrate samples for potential customers.
The Tailing Storage Facility is under expansion to accommodate the new mine life. The construction to raise the current TSF to 540m RL continued during the quarter and is expected to be completed by March 1, 2022
Murchison Gold Project
Murchison Project development is put on hold. The existing processing plant is under care and maintenance and in good condition. It is ready for start-up production with installation of the refurbished plant.
At Peranggih the reverse circulation drilling campaign covering areas of Peranggih Central and South for 3,317m over 68 RC holes was initiated last fiscal year and was completed during the first quarter of fiscal 2022. It was done in two phases: Phase 1 was 34 drill holes for 1,697m and Phase 2 was 34 holes for 1,620m. All assay results for the 3,901 samples were received for analysis up to date, including assay results for 1,681 samples during the quarter ended September 30, 2021. The RC drilling is down 70m deep with space of 20m by 20m following steeply dipping high-grade mineralized structure. Overall, 70% of the designed holes hit gold mineralization above an oxide cut-off (>0.35 g/t Au Au) at relatively shallow depth, 50m below the surface. The results defined wider lower grade mineralization over an 830m long by 60m wide zone.
Fiscal year 2022 started with regional exploration at Murchison Gold Project. A 2-year exploration program and associated periodical rolling budget has been implemented to potentially add significant amount of additional resources to the current resource base. The aim is to establish Murchison as the company’s cornerstone gold project should the Murchison Project be potentially developed into a gold producing mine.
The Phase 1 drill program commenced on July 4th 2021 and was completed on August 21st 2021 at Burnakura. A total of 3,465m for 46 RC holes was finished for the Munro Bore Extension as well as the FLC2 and FLC3 prospects and a total of 10,484m for 349 aircore holes was completed with a focus on high quality structural targets including the Junction exploration target. A combined total of over 6,000 RC and AC samples were sent to ALS Geochemistry, Perth for analysis, of which 91% have been received up to November 2021, subsequent to the first quarter. The results will be announced as soon as the data is fully received and has been interpreted.
Monument Mining Limited 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 also advancing the Murchison Gold Projects comprising Burnakura, Gabanintha and Tuckanarra JV (20% interest) in the Murchison area of Western Australia. The Company employs approximately 200 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.
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We acknowledge the [financial] support of the Government of Canada.