Jan 4 2017
Monument Mining Limited (TSX VENTURE:MMY)(FRANKFURT:D7Q1) "Monument" or the "Company" is pleased to announce the operational readiness work progress at the Burnakura Gold Project in Western Australia. The Burnakura Gold Project has progressed to early stage gold production to bring forward cash flow to de-risk its operations.
President and CEO Robert Baldock commented, "The arrival of the crushing circuit at the Burnakura Mine site along with all the off-site work being completed has reduced construction time by several months according to our implementation plan, this will allow us to ramp up our targeted gold production quicker than expected."
Mine Plan Optimization
With the mine optimization, high grade ore will be processed through the CIL plant first, low grade ore will be stockpiled and processed through heap leach facilities, planned to be constructed during the second year of the gold commercial production. In April/May 2016 the final design footprint of the Heap Leach facility was finalized.
The internal economic study including the geological models, mine plans, engineering works and economic analysis has been sent to independent consultants for due diligence review; and additional metallurgical test work and detailed mine delivery schedules for certain deposits are scheduled to complete early 2017 to mitigate the construction and operation risks, and lift a level of confidence to achieve targeted economic viability. The internal economic assessment shows that the life of mine for early stage production could potentially be extended.
Construction
The operational readiness work for early stage production of the CIL plant circuit commenced in April 2016, with the off-site work being awarded to Como Engineers Pty Ltd ("Como Engineers") to complete. This off-site engineering design, refurbishment and procurement work has been completed on long lead items including the purchase of a new TRIO CT2436 jaw crusher to replace the existing crusher on site, new and refurbished feed /discharge conveyors together with supporting steel works, self-cleaning magnet, triple deck screen and refurbished secondary Symons 51 cone crusher and a fully integrated MCC for plant control. All equipment was completed and ready for mobilization to the Burnakura mine site.
The first delivery to the Burnakura mine site from Como Engineers transported in mid-December 2016. This crushing circuit was unloaded at Burnakura and ready for assembly and installation at the mine site, in early 2017, subject to completion of funding arrangements. The Heap Leach plant equipment including stackers and agglomerator are now stored adjacent to the proposed heap pad.
The scoping work to complete early recommissioning of the CIL plant was completed in August 2016 ready for planned fabrication in 2017. A site inspection was completed with Como Engineers and a detailed proposal for primary secondary and tertiary crushing circuit, together with CIL feed plan and CIL recommissioning plan was proposed and a construction schedule was developed for implementation. Off-site work has reduced construction time by several months.
Site Development
Pre-stripping and mining are planned to stockpile ore for the CIL mill feed. The stockpile areas have been surveyed and will be established near the plant for ease of placing material through the heap leach equipment and stacking in due course. Other mine development activities include completion of a power strategy assessment and building the site power model. Pit dewatering has been assessed for early stage production.
Since August 2016, ongoing pre-construction site development activities have taken place at the Burnakura mine site including, preparing the light vehicle and processing workshop ready for construction activities in the New Year. Recommissioning of site communications and re-establishing the administration and technical service area was completed in September. Preparing the store area for cataloguing and receipt of first fill inventory for the project was completed in October, 2016. Preparing the Gensets for mobilizing off site together with preparing the 3KVa Transformer for repair were completed in the same period.
The existing laboratory was cleaned out ready for refurbishment to its new position in November, 2016. Construction of access road, ROM pad and crusher feed ramp, sorting of store area ready for operational start up have also been completed. The core farm was reorganized. Plant control laboratory expansion and upgrade and associated works have been completed as well as camp accommodation and kitchen are prepared in readiness for FEED engineers and mining contractors to arrive on site, anticipated to be in January 2017.
Permitting
In October 2016 the Project received approval from the Department Environmental Regulation for operation of the proposed 500,000 tonne per annum Heap Leach facility. A Mining Proposal was submitted in December 2016 and it is anticipated that the Mine Closure Plan will be submitted in January 2017, this will complete all DER licensing requirements for operational readiness. The Amended Environmental Protection License for Crushing, Heap Leach and Dewatering was received.
Workforce Preparation
The workforce planning and action plan has been submitted to management for review. The key operation management personnel are now on board including general manager, project manager and chief managing geologist, among other additions.
The Company's production decision is not based on a feasibility study of mineral reserves demonstrating economic and technical viability under NI 43-101 standards. Therefore, there is increased uncertainty with economic and technical risks of failure associated with this project, including but not limited to the risk that mineral quantities and grades might be lower than expected, and construction or ongoing mining and milling operations are more difficult or more expensive than expected; production and economic variables may vary considerably, due to the absence of detailed economic and technical analysis prepared in accordance with NI 43-101. There is no guarantee that production will begin as anticipated or at all or that that the production will be able to generate positive cash flow as anticipated in order to return the Company's capital investment.