VANCOUVER, Sept. 4, 2014 /CNW/ - Monument Mining Limited
(TSX-V: MMY and FSE: D7Q1) ("Monument" or the
"Company") is pleased to announce that it has entered into a
heads of agreement (the "Heads of Agreement") with Gascoyne
Resources Limited ("GCY"), a company whose ordinary shares
are listed on the Australian Stock Exchange ("ASX"), for the
acquisition of 50% interests in three properties located near
Burnakurra, the Murchison region of Western Australia by way of joint venture
arrangements (collectively "Gascoyne JV Properties
Acquisition"); and concurrently it has arranged a "part and
parcel" private placement financing integral to the Gascoyne JV
Properties Acquisition to fund exploration and development of the
acquired properties. The Gascoyne JV Properties Acquisition and the
private placement are inter-dependent and shall be closed
concurrently (collectively the "Proposed Transaction").
Gascoyne JV Properties Acquisition
Pursuant to the Heads of Agreement, the Company has agreed to
acquire, free and clear of any encumbrances except for certain
royalty interests, a 50% interest in the Dalgaranga, Glenburgh and
Mt. Egerton properties ("Joint
Venture Properties") from GCY, subject to certain conditions,
through three separate joint venture agreements on each of the
three properties (see Appendix A: Murchison
Gold Field with Surrounding Tenements). The terms for the
three separate joint venture agreements to be entered into on
completion of the Gascoyne JV Properties Acquisition will allow the
Company to be the manager in respect of mine development and mining
operations on the Joint Venture Properties and GCY to be the
manager in respect of exploration of the Joint Venture
Properties.
The consideration for the 50% interests in the Dalgaranga,
Glenburgh and Mt. Egerton
properties is the issue of 100,000,000 Monument fully paid common
shares at a deemed issue price of C$0.25 per share. The Gascoyne JV
Properties Acquisition is subject to, among other things, execution
of formal documentation, satisfactory completion by each party of
due diligence, obtaining various consents and waivers from GCY's
current joint venture partners, the exercise of the option to
acquire the Mt. Egerton
properties, obtaining all regulatory approvals, including receipt
of TSX Venture Exchange ("TSXV") acceptance in the case of
the Company, receipt of ASX approval in the case of GCY and any
required approvals under Australian foreign investment
requirements, shareholders' approval where required and completion
of the concurrent "part and parcel" financing of C$25,000,000 as described herein.
Monument Private Placement
In conjunction with Gascoyne JV Properties Acquisition, the
Company is arranging a financing from a third party by way of
private placement (the "Monument Private Placement") of
100,000,000 shares of the Company at an issue price of C$0.25 per share for aggregate proceeds of
C$25,000,000, subject to the TSXV
acceptance and committee approval in the case of the placee.
The Monument Private Placement must be concurrently closed with the
Gascoyne JV Properties Acquisition and Gascoyne Private Placement;
the funds from the Private Placement shall be used for completion
of the Proposed Transaction, exploration programs and mine
development of the Joint Venture Properties.
Gascoyne Private Placement
In addition, in conjunction with the Gascoyne JV Properties
Acquisition, the Company has agreed to subscribe for an aggregate
of 20,000,000 GCY ordinary shares at A$0.25 per share for total of A$5,000,000 through a private placement (the
"Gascoyne Private Placement"), subject to the ASX
acceptance, GCY shareholder approval if required and TSXV
acceptance in the case of the Company. Of which 4,000,000 GCY
shares shall be subscribed for and issued within five business days
after the date of execution of the Heads of Agreement and the
remaining 16,000,000 GCY ordinary shares shall be subscribed and
issued upon the closing of the Proposed Transaction. Thereafter,
the Company will purchase another 8,620,690 GCY ordinary shares at
A$0.29 per share for A$2,500,000 within 12 months intending to bring
the Company total shareholding to 15.31% of the entire issued and
outstanding GCY ordinary shares. The funds generated by GCY from
the 16 million Gascoyne Private Placement are to be used to
implement exploration programs on the joint venture properties.
After reaching 15.31% of shareholding in CGY, Monument will be
granted further options, exercisable within twelve month period, to
acquire further GCY shares at A$0.29
per share, bringing its shareholding in GCY up to 19.61%.
GCY has also granted the Company top up rights, for a period of
three years from execution of the Heads of Agreement, allowing
Monument to maintain its shareholding position in GCY up to 15.31%;
and to maintain its shareholding position in GCY up to 19.61%.
It is expected that a nominee of each of GCY and the placee
under the Monument Private Placement will be appointed to the board
of directors of the Company; and a nominee of the Company will be
appointed to the board of directors of GCY. The Gascoyne JV
Properties Acquisition, the Gascoyne Private Placement and the
Monument Private Placement have been negotiated on an arm's length
basis with the Company and each of GCY, the placee and the Company
is at arm's length with each other. Upon completion of the
Gascoyne JV Acquisition and the Monument Private Placement, it is
expected that each of GCY and the placee will hold approximately
19.6% of the then issued shares in the enlarged capital of the
Company.
The parties have agreed to complete the Gascoyne JV Acquisition
and the Monument Private Placement 10 business days after
satisfaction of all conditions or such other date as agreed.
The Gascoyne JV Acquisition and the Monument Private Placement are
expected to be completed by no later than November 20,
2014.
The Gascoyne Mineral Properties
The Gascoyne mineral properties include the Glenburgh,
Dalgaranga and Mt. Egerton
projects and each contains historical resources as described below.
The Company believes that the quality of the data supporting the
resources meets industry standards as they have been reported in
line with JORC guidelines, and resource confidence categories and
the reliability of the estimate are consistent with these
standards.
Glenburgh
The Glenburgh Gold Project is located 341 kilometres by
partially sealed road from Meekatharra and 391 kilometres from the
Burnakura mill and has a historical JORC Indicated and Inferred
resource of 21.3 million tonnes at 1.5 g/t Au for approximately 1.0
Million ounces of gold from several deposits.
The historical measured resource of 2.9 Mt @ 2.0 g/t Au for
180.5 kOz and historical indicated resource of 4.6 Mt @ 1.6 g/t Au
for 232 kOz and a historical inferred resource of 13.9 Mt @ 1.3 for
591 kOz as per the 2012 JORC guidelines exist at a suite of
deposits at Glenburgh as determined by BM Geological Services in
the report Gascoyne Gold Deposits: Glenburgh, Dalgaranga and Mt.
Egerton Resource Inventory (August
2014). The Glenburgh historical resources are reported at a
0.5 g/t Au cutoff. The Company believes that the quality of the
data supporting the resources meets industry standards. The
historical resources have been reported in line with JORC
guidelines, and resource confidence categories and the reliability
of the estimate are consistent with this standard. Monument
considers this historical resource estimate to be relevant to its
ongoing review of the Gascoyne JV Properties Acquisition. However,
readers are cautioned that a qualified person (within the meaning
of National Instrument 43-101) has not done sufficient work to
classify the historical estimate as current mineral resources or
mineral reserves. The Company is not treating the historical
estimate as current mineral resources or mineral reserves.
Table 1. Glenburgh historical resource inventory (0.5 g/tAu
cutoff) and the historical classification as per JORC 2012
(note-totals may differ due to rounding)
|
|
|
|
Glenburgh
Deposits
|
Measured
|
Indicated
|
Inferred
|
Tonnes
(t)
|
Grade
(g/t)
|
Gold(Oz)
|
Tonnes
(t)
|
Grade
(g/t)
|
Gold(Oz)
|
Tonnes
(t)
|
Grade
(g/t)
|
Gold
(Oz)
|
Icon
|
1.7
|
1.5
|
82,500
|
1.7
|
1.4
|
77,000
|
4.1
|
1.3
|
168,000
|
Apollo
|
0.9
|
2.4
|
67,400
|
0.3
|
1.3
|
14,000
|
1.5
|
1.4
|
67,000
|
Tuxedo
|
|
|
|
0.7
|
1.2
|
29,000
|
1.2
|
1.0
|
37,000
|
Mustang
|
|
|
|
0.2
|
1.3
|
7,000
|
1.0
|
1.1
|
35,000
|
Shelby
|
|
|
|
0.2
|
1.4
|
10,000
|
0.6
|
1.1
|
21,000
|
Hurricane
|
|
|
|
0.1
|
1.6
|
3,000
|
0.5
|
1.1
|
16,000
|
Zone 102
|
|
|
|
0.9
|
1.9
|
56,000
|
1.2
|
1.3
|
50,000
|
Zone 126
|
0.2
|
4.0
|
30,500
|
0.4
|
2.9
|
35,000
|
1.4
|
2.2
|
101,000
|
Ne3
|
|
|
|
|
|
|
0.2
|
1.5
|
11,000
|
Torino
|
|
|
|
|
|
|
1.6
|
1.3
|
64,000
|
SW Area
|
|
|
|
|
|
|
0.6
|
1.0
|
20,000
|
Grand
Total
|
2.9
|
2.0
|
180,500
|
4.6
|
1.6
|
232,000
|
13.9
|
1.3
|
591,000
|
|
|
|
|
|
|
|
|
|
|
Exploration results obtained recently at the Glenburgh Gold
Project demonstrate the significant potential for further discovery
of gold mineralisation at this underexplored tenure. The recent
discovery of the Chevelle prospect by GCY has yielded a promising
result of 4m @ 8.4 g/t Au from 44 metres (true width = 2.6m) in
Aircore hole GLAC 521. Chevelle lies 6 kilometres to the north east
of the known Glenburgh deposits. Mineralisation is typical of the
Glenburgh style hosted in quartz-feldspar-biotite-garnet gneiss.
This new discovery has extended the known strike length of
mineralisation at Glenburgh to over 18 kilometres (ASX: GCY
11/8/2014: New discovery extends Glenburgh gold system). In
addition to this new discovery, RC drilling has confirmed the up
dip extension of mineralisation at the Shelby deposit with an
interval of 11m @ 1.1 g/t Au from 45 metres (true width 8.4m) being
intersected. Monument is very enthused with the upside potential
for additional exploration success at Glenburgh.
Table 2. Hole collar coordinates and details for Chevelle
and Shelby Deposits
Hole
ID
|
Type
|
GDA
East
|
GDA
North
|
RL
|
Depth
|
Dip
|
Azimuth
|
Prospect
|
GLAC 521
|
RC
|
420,239
|
7,195,858
|
307
|
50
|
-60
|
155
|
Chevelle
|
VRC 883
|
RC
|
411,597
|
7,192,098
|
300
|
50
|
-60
|
155
|
Shelby
|
Dalgaranga
The Dalgaranga Gold Project is located in the Murchison gold
mining region approximately 70 kilometres North West of Mt. Magnet
covering approximately 180 square kilometers. The historical
indicated resource of 5.05 mt @ 1.7 g/t Au for 281.4 kOz and a
historical inferred resource of 8.3 mt @ 1.7 for 457.1 kOz as
detailed below as per the 2012 JORC guidelines exist at two
separate deposits at Dalgaranga as determined by BM Geological
Services in the report Gascoyne Gold Deposits: Glenburgh,
Dalgaranga and Egerton Resource Inventory (August 2014). The historical
resources have been reported in line with JORC guidelines, and
resource confidence categories and the reliability of the estimate
are consistent with these standards. The Gilbey's historical
estimate is reported at a 1.0 g/t Au cutoff grade and the Golden
Wings historical estimate is reported at a 2.0 g/t Au cutoff
grade. Monument considers this historical resource estimate
to be relevant to its ongoing review of the Gascoyne JV
Acquisition. However, readers are cautioned that a qualified
person (within the meaning of National Instrument 43-101) has not
done sufficient work to classify the historical estimate as current
mineral resources or mineral reserves. The Company is not treating
the historical estimate as current mineral resources or mineral
reserves.
Table 3. Dalgaranga historical resource inventory and the
historical classification as per JORC 2012
|
|
|
Dalgaranga
Deposits
|
Indicated
|
Inferred
|
Tonnes
(t)
|
Grade
(g/t)
|
Gold(Oz)
|
Tonnes
(t)
|
Grade
(g/t)
|
Gold
(Oz)
|
Gilbeys
|
4,731,000
|
1.60
|
240,000
|
8,167,000
|
1.70
|
445,000
|
Golden
Wings
|
320,300
|
4.00
|
41,400
|
127,900
|
3.00
|
12,100
|
Grand
Total
|
5,051,300
|
1.73
|
281,400
|
8,294,900
|
1.71
|
457,100
|
|
|
|
|
|
|
|
Mt. Egerton
The Mt. Egerton Gold Project is located 235 km North West of
Meekatharra. Following completion of the Gascoyne JV Properties
Acquisition, the JV parties intend to examine mining, upgrading and
hauling the mineralisation to the Burnakurra mill for processing.
This type of high grade resource appears to be ideal for the
Burnakurra mill which would treat JV mineralisation on an agreed
toll milling basis with the aim of providing early cash flow to the
JV participants.
The historical measured resource of 32,100 tonnes at 9.5 g/t Au
for 9,801 Oz, the indicated resource of 46,400 tonnes @ 5.3 g/t Au
for 7,841 Oz and a historical inferred resource of 37,800 tonnes @
5.1 g/t Au for 6,169 Oz as detailed below as per the 2004 JORC
guidelines exist at the Hibernian deposit at Mt Egerton as
determined by BM Geological Services in the report Gasgoyne Gold
Deposits: Glenburgh, Dalgaranga and Egerton Resource Inventory
(August 2014). The historical
resource has been reported at 2.0 g/t Au cutoff and in line with
JORC guidelines, and resource confidence categories and the
reliability of the estimate are consistent with these
standards. Monument considers this historical resource
estimate to be relevant to its ongoing review of the Gascoyne JV
Properties Acquisition. However, readers are cautioned that a
qualified person (within the meaning of National Instrument 43-101)
has not done sufficient work to classify the historical estimate as
current mineral resources or mineral reserves. The Company is not
treating the historical estimate as current mineral resources or
mineral reserves.
Table 4. Mt Egerton historical resource inventory (2.0 g/t
Au cutoff) and the historical classification as per JORC 2004
|
|
Mt Egerton
Deposits
|
Hibernian
|
|
Tonnes
(t)
|
Grade
(g/t)
|
Gold
(Oz)
|
Measured
|
32,100
|
9.5
|
9,801
|
Indicated
|
46,400
|
5.3
|
7,841
|
Inferred
|
37,800
|
5.1
|
6,169
|
|
|
|
|
In addition to the high grade historical resources at Mt.
Egerton, Monument is encouraged by
the recent exploration success at this underexplored camp. RC
drilling at the Gaffney's Find prospect intersected narrow, high
grade quartz limonite veins hosted in greywacke sediments and
shales at shallow depths, which remain open at depth and along
strike (ASX: GCY 1/8/2014: Gold grades over 70 g/t Au confirmed at
the Egerton gold project).
Significant results from drilling at Gaffney's Find include:
- MERC018: 8m @ 11.4 g/t Au from 31m (true width=4m),
including 4m @ 21.2 g/t Au (true width=2m)
- MERC014: 4m @ 9.0 g/t Au from 44m (true width=2m),
including 1m @ 31.6 g/t Au (true width=0.5m)
- MERC012: 2m @ 13.7 g/t Au from 9m (true
width=0.5m).
Two wide spaced shallow lines of 50m deep RC holes were
completed on a spacing of approximately 250m at the Mako prospect,
which targeted an extensive historical soil anomaly. The gold
mineralisation is associated with quartz-pyrite veins hosted in
dolerite and greywackes. Monument is encouraged as limited drilling
has been completed over the extensive soil anomaly present at Mako.
The geological setting of the Mako prospect is analogous to the
high grade Hibernian deposit. Significant results from drilling at
the Mako prospect include:
- MEAC005: 7m @ 2.1 g/t Au from 40m (true width =
3.5m)
Table 5. Hole collar coordinates and details for Gaffneys
Find and Mako RC holes
|
|
|
|
|
|
|
|
|
Hole
ID
|
Type
|
GDA
East
|
GDA
North
|
RL
|
Depth
|
Dip
|
Azimuth
|
Prospect
|
MERC012
|
RC
|
563,844
|
7,241,061
|
400
|
50
|
-60
|
300
|
Gaffney's
Find
|
MERC014
|
RC
|
563,887
|
7,241,038
|
400
|
50
|
-60
|
300
|
Gaffney's
Find
|
MERC018
|
RC
|
563,866
|
7,241,100
|
400
|
50
|
-60
|
300
|
Gaffney's
Find
|
MEAC005
|
RC
|
578,723
|
7,242,368
|
400
|
50
|
-60
|
140
|
Mako
|
|
|
|
|
|
|
|
|
|
Monument intends to verify the historical estimates as current
mineral resources under National Instrument 43-101 together with
the exploration drilling results contained herein and prepare a
technical report in accordance with the requirements of National
Instrument 43-101 in relation to all the above properties which
will include review of QA/AC procedures, database review, and
certain confirmation drilling in combination with infill and
extensional drilling in the future.
The technical information concerning the Gascoyne Gold Projects
in this press release has been compiled, reviewed and approved by
Darryl Mapleson (BSc (Hons),
FAusIMM) who is retained by Monument Mining Limited as a Qualified
Person as defined by National Instrument 43-101, and a Competent
Person as defined by JORC guidelines. He has been working in
Australia for Monument as an
independent consultant.
President and CEO Robert Baldock
said: "This JV Acquisition with Gascoyne brings together a business
strategy that adds a potential gold inventory upside to the Company
and delivers a potential significant regional operational
development objective to build two more producing plants in
addition to the Burnakurra Mill in the Murchison area. It also
builds a strong partnership with a professional exploration team
who has an understanding of the geology in the Murchison and
Gascoyne areas and a proven success record in the discovery of gold
resources and develop them to JORC compliance standards at low
cost.
While Monument intends to continue its mining operational
excellence in Western Australia,
its JV partner would be focusing on replacement of depletion and
increasing total inventory of ounces of gold in the ground for both
JV participants. We are greatly impressed with what Gascoyne
has achieved and look forward to working with their professional
team in developing the operations to the benefit of shareholders in
both Companies.
The GCY JV Acquisition is also a part of Monument's safe
jurisdiction diversification strategy together with its Murchison
and Tuckanarra acquisitions, aimed to mitigate its single country
risk as well as a single source of cash flow risk, once these
projects can reach commercial production".
About Monument
Monument Mining Limited (TSX-V:MMY, FSE:D7Q1) 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 advancing several
exploration and development projects including the Mengapur
Polymetallic Project, in Pahang State of Malaysia, and the
Murchison Projects in Burnakura and Gabanintha, Western Australia. The Company employs over
300 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.
Robert F. Baldock,
President and CEO
Monument Mining Limited
Suite 1580 -1100 Melville Street
Vancouver, BC V6E 4A6
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release."
Forward-Looking Statements
This news release includes statements containing
forward-looking information about Monument, its business and future
plans ("forward-looking statements"), including statements with
respect to completion of the Monument Private Placement, the
Gascoyne Private Placement and the acquisition of the Gascoyne JV
Acquisition properties and planned work at the Gascoyne JV
Acquisition properties. The forward-looking statements in
this news release are subject to various risks, uncertainties and
other factors that could cause actual results or achievements to
differ materially from those expressed or implied by the
forward-looking statements. These risks and certain other
factors include, without limitation: risk related to
completion of the Monument Private Placement, the Gascoyne Private
Placement and the acquisition of the Gascoyne JV Acquisition
properties and planned work at the Gascoyne JV Acquisition
properties, including the risk that required approvals will not be
obtained, due diligence will not be satisfactorily completed or
that the transactions will otherwise not complete; risks related to
general business, economic, competitive, geopolitical and social
uncertainties; uncertainties regarding the results of current
exploration activities; uncertainties in the progress and timing of
development activities; foreign operations risks; other risks
inherent in the mining industry and other risks described in the
management discussion and analysis of the Company and the technical
reports on the Company's projects, all of which are available under
the profile of the Company on SEDAR at www.sedar.com.
Material factors and assumptions used to develop forward-looking
statements in this news release include: that required
approvals for the Monument Private Placement, the Gascoyne Private
Placement and the acquisition of the Gascoyne JV Acquisition
properties will be obtained, the Company's due diligence of the
Gascoyne JV Acquisition properties will be satisfactorily completed
and that the transactions will complete; expectations regarding the
estimated cash cost per ounce of gold production and the estimated
cash flows which may be generated from the operations, general
economic factors and other factors that may be beyond the control
of Monument; assumptions and expectations regarding the results of
exploration on the Company's projects; assumptions regarding the
future price of gold of other minerals; the timing and amount of
estimated future production; the expected timing and results of
development and exploration activities; costs of future activities;
capital and operating expenditures; success of exploration
activities; mining or processing issues; exchange rates; and all of
the factors and assumptions described in the management discussion
and analysis of the Company and the technical reports on the
Company's projects, all of which are available under the profile of
the Company on SEDAR at www.sedar.com. Although the Company
has attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. The Company
does not undertake to update any forward-looking information,
except in accordance with applicable securities laws.
SOURCE Monument Mining Limited