THE initial focus of Monument Mining in 2014 at Mengapur Polymetallic Project will be production of market grade magnetite from fresh rock that underlies the free digging soils to generate cash flow. It will also place early focus on research and development, market research of other downstream potential commodity products, and completion of a NI 43-101-compliant Preliminary Economic Assessment (PEA).
In the financial year ending June 30, 2013, Monument completed a drill program at Mengapur for 50,045 metres. This drill data has been combined with the 58,000 metres drilled by former owner Malaysia Mining Corp, into a new project database.
While Monument plans initiatives it expects will optimize and advance the process flow sheet for Mengapur, the company will continue its efforts to provide a resource estimate through mine modelling and other related work based on 2013 exploration results.
The PEA is expected to be completed by March 31. While completion of this complex report has taken longer than initially estimated, it will be a major achievement and provide a significant update to the historic feasibility study completed by the former owners.
Monument has completed a number of on-site infrastructure projects, including improved and expanded employee accommodation, R&D and assay laboratories, and a new expanded core shed to assist in achieving these objectives.
Specifically, Monument will undertake R&D activities related to development of a number of marketable commodity products subsequent to the targeted recovery of magnetite that the company believes can be separated for production to London Metals Exchange grade, particularly copper separated from other metals mined. These products generally will allow production of further magnetite, as well as sulphuric acid, molybdenum and different types of fertilizer.
“Mengapur continues to represent the most significant opportunity for a long-term mining asset for our company. Our short-term focus will be on mining and producing magnetite and related R&D initiatives we believe have potential to produce marketable commodities that will contribute stable cash flows as we work to advance the project as a whole,” says Monument’s president and CEO Robert F Baldock.
“In 2014 we expect to file an updated resource estimate and PEA for Mengapur and our long-term goal to become a sustainable dividend paying, mid-tier gold and base metals producer remains the same.”
Monument’s gold production for the September quarter was 10,515 ounces, a decrease of 4% compared to the same period of fiscal 2013. This slight decrease is a result of decreased gold poured, net of gold dorè in transit and refinery adjustment. Ore mined for the quarter was 150,185 tonnes, a 48% increase on the same fiscal 2013 period. This is due to additional ore mined from the Buffalo Reef South Pit.