Monument Mining Limited (TSX-V: MMY) (FSE: D7Q1) announced its production and financial results for the second quarter of fiscal 2022 and the six months ended December 31, 2021. All amounts are expressed in United States dollars unless otherwise indicated (refer to www.sedar.com for full financial results).
President and CEO Cathy Zhai commented, “I am glad that the second quarter progressed the Selinsing Flotation Plant Project to 37% completion and awarded all major equipment suppliers and construction contractors successfully. Purchase orders for major long lead items of equipment were issued, and fabrication of the flotation cell went well, and the civil work has completed the earth work. We stay on schedule anticipating the dry commissioning completion by June 2022. At the Murchison Gold Project, the Phase 1 drill program assays were highly encouraging and highlighted a new high-grade mineralization at the Junction Target in an area where there is significant room to extend mineralization with further drill programs. The Murchison Phase 2 drilling program commenced targeting down dip and down plunge of known high grade deposits aimed at testing the potential expansion of the underground resource.”
Second Quarter Highlights:
Second Quarter and Six Months Production and Financial Highlights
|Three months ended
|Six months ended
|Ore mined (t)||85,209||112,073||160,181||193,649|
|Ore processed (t)||1,770,975||963,863||3,713,309||2,022,019|
|Average mill feed grade (g/t)||129,000||152,836||285,611||319,268|
|Processing recovery rate (%)||0.56||0.89||0.55||0.94|
|Gold recovery (oz)||63||%||58||%||64||%||61||%|
|Gold production (1) (oz)||1,683||2,963||2,726||6,467|
|Gold sold (oz)||2,873||3,754||4,296||6,854|
|Three months ended
|Six months ended
|Financial (expressed in thousands of US$)||$||$||$||$|
|Gross margin from mining operations||(153||)||2,694||195||5,753|
|Income before other items||(2,124||)||1,159||(2,879||)||3,102|
|Cash flows (used in) provided by operations||(4,023||)||796||(4,000||)||1,543|
|Loss per share – basic and diluted (US$/share)||(0.01||)||(0.00||)||(0.01||)||(0.00||)|
|Average realized gold price per ounce sold (2)||1,828||1,889||1,823||1,899|
|Cash cost per ounce sold:|
|Operations, net of silver recovery||21||14||20||10|
|Total cash cost per ounce sold||1,810||1,103||1,683||1,021|
|By-product silver recovery||0||1||0||1|
|Accretion of asset retirement obligation||13||9||16||10|
|Exploration and evaluation expenditures||47||19||35||16|
|Sustaining capital expenditures||267||323||361||219|
|Total all-in sustaining costs per ounce sold||2,146||1,501||2,114||1,300|
(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 US$1,828/oz for the three months ended December 31, 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” of Q2 MD&A.
(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” of Q2 MD&A.
Q2 FY2022 Production Analysis
Q2 FY2022 Financial Analysis
Selinsing Gold Mine
The Sulphide project development comprises the Stage 1 Flotation plant project and Stage 2 BIOX® leaching plant. The flotation plant construction includes project management, project validation, flotation design and engineering, procurement, construction and commissioning. Mine development included upgrading of tailing storage facilities, pit push backs, and river diversion. The flotation plant is expected to be completed by June 2022 with an estimated cost of up to $20 million. As of December 31, 2021, 37% of overall project has been completed.
During Q2 FY2022 Mincore Pty Ltd. completed the detailed engineering design of the flotation plant. Equipment specifications and data sheets were completed, and material take-offs and bills of material were issued for concrete, structural steel, piping, valves and electric cables instrumentation. All civil and structural, mechanical and piping drawings were issued for construction. Purchase orders for major long lead items of equipment were sent to the selected manufacturers. During the quarter the construction contract has been awarded to Seong Henng Engineering Works Sdn Bhd, an experienced Malaysian contractor which carried out the Selinsing Oxide Plant construction over 10 years ago.
During Q2 FY2022, R&D work produced the sample of flotation concentrate for pressure filtration testwork by the filter press supplier McLanahan. It is also achieved a key milestone that the pilot plant was successfully commissioned into operation, comprised ball mill and classifier, rougher / scavenger flotation cells and three stages of cleaner flotation. Samples of flotation concentrate was produced and a sample of this was sent to McLanahan for filter press testwork. Antimony leaching tests was carried out to support gold concentrates marketing effort.
The Tail Storage Facility expansion progressed 91.9% as of December 31, 2021, reached the 537m RL, which provides adequate capacity till May 2023.
Murchison Gold Project
No mine development was planned during the second quarter of fiscal year 2022, with the focus on exploration at Murchison. Murchison Project development is put on hold. The processing plant and other facilities are under care and maintenance and in good condition. Site accommodations and catering are fully functional to host administrative, exploration and mining activities.
Peranggih is currently the focus for identifying additional mineable material to extend production from the oxide plant at Selinsing. In the Phase 1 and 2 Reverse Circulation drilling programs at Peranggih approximately 70% of holes have hit gold mineralization above an oxide cut-off (>0.35g/t Au) at less than 50m below the surface, defining a mineralized zone 830m long and 60m wide. Exploration in the second quarter of FY2022 comprised of 396 channel samples, which tested extensions to known mineralization at Peranggih, where follow-up RC drilling is planned in Q3 FY2022, and a new prospect at Mentique, where further mapping and sampling are to be undertaken.
At the Murchison Gold Project, the Phase 1 RC and Air Core (“AC”) drill program completion was announced and comprised 3,465m in 46 RC holes and 10,484m in 349 AC holes, which were designed to test new targets away from known resources. All assays from the Phase 1 drilling were received in January 2022, subsequent to the end of the second quarter, and significant intercepts include 5m at 1.53 g/t Au from 31m (21BNRC037), 2m at 0.81 g/t Au from 111m and 3m at 1.91 g/t Au from 119m (21BNRC038) and 2m at 1.56 g/t Au from 60m and 2m at 3.70g/t Au from 106m (21BNRC039) at Munro Bore, 8m at 0.97g/t Au from 5m (21BNRC008) and 7m at 0.82g/t Au from 18m (21BNRC026) at FLC2, and 3m at 10.2g/t Au from 22m (21BNAC213) at the newly discovered Junction Target.
A Phase 2 RC and diamond drilling (DD) program commenced in November 2021, and a total of 2,918m in 12 RC holes were completed during the second quarter of FY2022, testing for extensions to known mineralization and resources at the NOA1, NOA2, NOA78 and Alliance target areas. 1,406 RC samples from the Phase 2 drilling were dispatched to ALS Geochemistry in Perth during the quarter. DD drilling was rearranged and postponed to March 2022 due to availability of the drill rigs. The Phase 2 drilling program is expected to be completed by the end of March 2022.
Monument Mining Limited is an established Canadian gold producer that 100% owns and operates the Selinsing Gold Mine in Malaysia and the Murchison Gold Project in the Murchison area of Western Australia. It has 20% interest in Tuckanarra Gold Project jointly owned with Odyssey Gold Ltd in the same region. 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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