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Monument Mining Limited

mmy · TSX-V Basic Materials
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Industry Gold
Employees 201-500
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FY2013 Annual Report · Monument Mining Limited
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MONUMENT IS COMMITTED TO
INCREASING SHAREHOLDER VALUE

by sustainably growing into a diversified mid-tier Canadian gold and metals producer in a safe,  

profitable and socially responsible manner.

“We have one of the lowest cost gold mines in the world, a large polymetallic project in development  

and a prospective exploration portfolio for future growth. Our goal for the year ahead is cautious  

steady growth in line with the economic envelope within which we operate”.

Robert Baldock, President and CEO

CAUTIOUS     STEADY GROWTH

TABLE OF CONTENTS

1  2013 Highlights

7  Capital Structure & Market Performance

2  President’s Message to Shareholders

8  Selinsing Area Operations 

4  Corporate Overview

12  Mengapur Polymetallic Project

5  Financial Performance

15  Corporate Social Responsibility

6  Operating Highlights

16  Corporate Information

All dollar amounts in US$ except where noted.

GROWTH 
MONUMENT MINING LIMITED  2013   AN NUAL REPO RT

2013 HIGHLIGHTS

FINANCIAL

•  Gross Revenue from gold sales of $91.3 million, of which $80.3 million directly attributed to fiscal 2013 production 

•  Profit margin generated from gold production of $57.5 million 

•  Net income attributable to shareholders of US$32.8 million or $0.14 earnings per share (basic) 

•  Cash balance of US$41.9 million on June 30, 2013

•  Eliminated debt by retiring outstanding convertible loans

•  Raised CAN$22.3 million from a brokered private placement

CAUTIOUS     STEADY GROWTH

Selinsing Gold Mine

PRODUCTION

•  Increased Gold Production by 19% to a record 52,982 ounces at a cash cost of $400 per ounce

•  Started mining Buffalo Reef South oxide ore

•  Updated Selinsing-Buffalo Reef NI 43-101 Technical Report as of August 31, 2012 providing an increased  

reserve estimate 

DEVELOPMENT / EXPLORATION

•  Acquired remaining 30% of Mengapur resulting in 100% ownership of the Project 

•  Commenced exploration on FELDA lands adjacent to the Selinsing and Buffalo Reef properties 

•  Drilled 374 holes totalling 36,917 metres at Selinsing area properties

•  Drilled 147 holes totalling 33,458 metres at Mengapur

2013 HIGHLIGHTS     1

GROWTH 
 
 
 
 
 
MON UMEN T MINING LIMITED   2013   ANNUA L REPO RT

PRESIDENT’S MESSAGE

Fiscal 2013 was another fast paced year building toward our goal of becoming a mid-tier gold and base 
metals producer. Over the course of the fiscal year we have maintained sustainable gold production, 
and have continued to expand and further develop our property portfolio. 

At  our  Selinsing  and  Buffalo  Reef  properties,  as  a  result  of  expansion  of  the  Selinsing  Gold  plant  
capacity to 1,000,000 tonne per year from 400,000 tonne per year and commencement of mining at 
the Buffalo Reef South pit, we closed fiscal 2013 with strong gold production, having produced 52,982 
ounces of gold, an increase of 19% from the previous year. Revenues were US$91.3 million which was an increase of 48 per cent 
over the previous year, of which $80.3 million attributed to fiscal 2013 production. Cash costs continue to be among the lowest in 
the industry at US$400 per ounce for fiscal 2013. Operating cash flow from production is being reinvested in continued drilling and 
exploration programs, land acquisitions for near plant exploration future potential mining and plant upgrades.

During  fiscal  2013  exploration  drilling  progressed  aggressively  at  Selinsing  and  Buffalo  Reef  properties  with  374  holes  totaling 
36,917 metres drilled. A large number of samples are yet to be assayed. In May 2013 we published an updated “NI 43-101 Technical 
Report, Selinsing Gold Mine and Buffalo Reef Project Expansion (August 2012)” (The “August 2012 NI 41-101 Technical Report”) 
which extends the life of the mine.

A  further  metallurgical  study  was  performed  during  fiscal  2013  in  order  to  process  refractory  sulfide  materials.  The  Phase  IV  
expansion was recommended in the August 2012 NI 43-101 Technical Report and includes the addition of a bio-leach circuit into 
the  existing  Carbon  in  Leach  (“CIL”)  plant  which  has  a  capital  cost  of  approximately  $45.8  million  and  provides  a  net  present 
value (“NPV”) of $10.7 million and a 21% rate of return. We continue to search for alternatives with lower capital costs in order to  
maximize returns.

During fiscal 2013 we acquired the remaining 30% of the Mengapur Project to give us a 100% ownership. Our development of the 
Mengapur Project in fiscal 2013 was focused on site establishment and resource drilling. We have completed a number of onsite 
infrastructure projects at Mengapur, including improved and expanded employee accommodation, research & development (R&D) 
and assay laboratories, and a new expanded core shed. We have also drilled 33,458 metres in 147 drill holes up to the end of 
June 2013 at Mengapur and Star Destiny properties. We are very pleased with assay results received to date and are pursuing an 
updated NI 43-101 compliant resource report, which is targeted for completion in early 2014. This resource report will include a 
Preliminary Economic Assessment (“PEA”) which will help confirm the economic viability of the project and assist further in guiding 
the planning and development of the Mengapur project.  

Fiscal 2013 was both fruitful and challenging. It ended with market volatility, reduced metals prices and soft capital markets in  
the mining sector. During fiscal 2013 we raised CAD$22.3 million from a brokered private placement to develop our Mengapur  
Polymetallic  project  in  stages  with  a  strategy  towards  fast  tracking  initial  production  to  generate  cash  flow  from  potential  
downstream products. We have also de-risked the Company by maintaining a strong balance sheet with an early retirement of  
the  convertible  debt.  By  the  end  of  fiscal  2013,  we  had  only  a  forward  gold  sale  of  5,000  ounces  on  our  balance  sheet,  offset  
by 5,000 ounces gold already escrowed in our metal account. As a result of our efforts we ended fiscal 2013 with net assets of 
$242.6 million and 14 cents earnings per share (basic).

2    L ETT ER  TO S HAR EHO LDER S

MONUMENT MINING LIMITED  2013   ANNUAL REPO RT

TO SHAREHOLDERS

We thank our supportive Board of Directors and our entire team for this past year’s efforts as we continue to build our team of  

experienced technical people and engage with the community through our CSR programs.

Looking forward to fiscal 2014, we will continue to pursue our primary business objectives to increase shareholders’ value by building 

up a mineral property pipeline through acquisitions, exploration, development and production while mitigating associated business 

risks. Our longer-term goal is to become a sustainable dividend paying, mid-tier gold, base metals and industrial mineral producer. 

At  Selinsing,  Buffalo  Reef  and  FELDA  land  area,  we  look  forward  to  improvement  of  our  operation  excellence  to  achieve  

sustainable  gold  production.  We  will  complete  assay  work  for  backlogged  samples  at  Selinsing  and  Buffalo  Reef.  Based  on  

geological structure study and interpretation of those assay results we will implement further drilling programs to increase gold 

inventory. We will continue our research and development work to find better alternatives of metallurgical treatment on sulfide ore 

materials at lower capital costs.   

At the Mengapur Project, we will undertake further research and development activities to explore the development of a number 

of marketable potential downstream commodity products, and develop and prove a viable flow sheet circuit for recovery of these 

products.  The  initial  R&D  work  will  focus  on  the  production  of  market  grade  magnetite  from  fresh  rock  that  underlies  the  free  

digging  soils  to  generate  cash  flow.  We  will  also  complete  a  National  Instrument  (NI)  43-101  compliant  Preliminary  Economic  

Assessment (“PEA”). 

As the mining industry is undergoing a significant cyclical downturn and in the opinion of many, including Monument management, 
the volatility and reduced metals prices will be the new “normal” – at least for a reasonable period into the future. We would like 

to turn around this difficult period as an acquisition opportunity to enhance our mineral property pipelines, targeting both low cost 

advanced projects and highly prospective properties in districts with rich historical production. As a collective and experienced team 

we will meet the challenges ahead. These volatile times create challenges, but they also produce opportunities that we stand ready 

to pursue, if it is appropriate, with caution and discipline. Thank you from all of us in Canada and Malaysia for your support this year 

and we look forward to making further progress in 2014.

Sincerely,

ROBERT F. BALDOCK 

President and CEO

LETTER TO SHAREHOLDERS     3  

PENINSULAR
MALAYSIA
GOLD BELTS

FROM YEAP, 1993

MON UMEN T MINING LIMITED  2013   A NNU AL  REPO RT

CORPORATE OVERVIEW

Monument Mining Limited  

(TSX-V:MMY, FSE:D7Q1) is an  

established Canadian gold producer  

that owns and operates the Selinsing  

Gold Mine in Malaysia, with production  

cash costs among the lowest in the world.   

Its experienced management team is  

committed to growth and is advancing several  

exploration and development projects in  

Malaysia including the development stage,  

Mengapur Polymetallic Project.  

Monument’s primary business objective is to  

advance its mineral projects from exploration and  

development to production and to increase its gold  

and other mineral assets through acquisition of  

prospective land or gold and other mineral projects  

at an advanced development stage. The Company’s  

longer-term goal is to be a sustainable, dividend paying,  

mid-tier gold, base metals and industrial mineral producer.

The Company employs 336 people in Malaysia and is  

committed to the highest standards of environmental  

management, social responsibility, and health and safety for its 

employees and neighboring communities. Monument’s Head  

Office is located in Vancouver, BC, Canada. It operates through 

its subsidiaries in Pahang State, Malaysia. 

As of June 30, 2013, the Company controlled producing  

and exploration properties covering 39,460 acres. Monument  

has a large pipeline of quality projects ranging from operating 

mines to grass roots exploration for future potential.

Interest 

Acres 

Status

Property 

Selinsing 

Buffalo Reef (BR) 

100% 

100% 

776 

444 

Operating

Operating

EXPLORATION

ADVANCED

DEVELOPMENT

PRODUCTION

SELINSING

BR OXIDE

GOLD

BR SULPHIDE

FELDA 

100% 

3,920 

Dev/Exploration

Famehub 

100% 

32,000 

Exploration

SELINSING DEEP

FAMEHUB

Mengapur (CASB) 

100% 

457 

Development

Mengapur (SDSB) 

100% 

1,853 

Development

POLYMETALLIC
(Fe, Cu, S,
Au, Ag, Mo)

MENGAPUR

4    C OR PO RAT E OV E RVIE W

MONUMENT MINING LIMITED  2013   AN NUAL REPORT

FINANCIAL PERFORMANCE

During  the  fiscal  year  ended  June  30,  2013,  Monument  

Mining  sold  57,905  ounces  of  gold  at  an  average  price 

of  $1,576  per  ounce  for  $91.3  million  in  gross  revenue,  of 

which $80.3 million related to 2013 production. This is a 48%  

increase  in  gross  revenue  over  fiscal  2012  reflecting  higher 

volume of gold sold partly offset by a lower average realized 

gold price. 

Net  income  attributable  to  common  shareholders  for  fiscal 

2013 was $32.8 million or $0.14 per share (basic) compared 

to  $59.6  million  or  $0.33  per  share  (basic)  for  fiscal  2012. 

0.4

0.3

0.2

0.1

0

The decrease in comparison to 2012 was caused by one-off 

-0.1

other  losses,  including  the  early  retirement  of  convertible 

notes, buyout of the gold inducement options in connection 

with  the  convertible  notes,  impairment  losses  and  a  legal  

settlement. 

Cash  provided  from  operating  activities  was  $54.8  million  

compared  to  $43.3  million  for  the  previous  year.  The  

difference was mainly due to higher production in 2013 and 

the  timing  of  gold  sales.  The  increase  of  working  capital  

excluding  derivative  liabilities,  to  $62.4  million,  was  mainly 

attributable to cash proceeds generated from operations and 

the private placements completed during the year.

REVENUE (US$ M)

100

90

80

70

60

50

40

30

20

10

0

2010

2011

2012

2013

Gross Revenue for Fiscal 2013 increased  
by 48% to US$91.3 million, of which  
$80.3 million related to 2013 production

EARNINGS/SHARE (US$)

2010

2011

2012

2013

Fiscal 2013 Earnings/Share is $0.14

NET INCOME (US$ M)

80

60

40

20

0

-20

55

50

40

30

20

10

0

-10

2010

2011

2012

2013

Fiscal 2013 Net Income is $32.8 million

OPERATING CASH FLOW (US$ M)

2010

2011

2012

2013

Cash from Operating Activities for Fiscal 
2013 increased by 27% to $54.8 million

FINANCIAL PERFORMANCE     5  

MON UMEN T MINING LIMITED   2013   ANNUA L REPO RT

OPERATING HIGHLIGHTS 

(expressed in US$) 

                  Fiscal 2012                                                      Fiscal 2013

Q1 
$ 

Q2 
$ 

Q3 
$ 

Q4 
$ 

Q1 
$ 

Q2 
$ 

Q3 
$ 

Q4 
$

Revenues (000’s) 

14,430 

21,084 

12,394 

13,801 

20,805 

19,640 

20,325 

30,506

Average realized gold price  

(per ounce) 

1,724 

1,652 

1,698 

1,624 

1,658 

1,730 

1,626 

1,419

Average London spot gold price  

(per ounce) 

1,702 

1,688 

1,691 

1,609 

1,652 

1,723 

1,632 

1,414

Net earnings before other income  

attributable to common  
shareholders (000’s) 

Earnings per share before  
  other income: 
–  Basic 
–  Diluted  

Net earnings after other income  

and tax Attributable to  
common shareholders (000’s) 

Earnings Per Share: 
–  Basic 
–  Diluted  

9,925 

14,780 

8,431 

7,394 

13,229 

 10,268 

9,951 

14,937

0.06  
0.05  

0.08  
0.07  

0.04  
0.04  

0.04 
0.04 

0.06 
0.06 

0.05 
0.05 

0.04 
0.04 

0.05 
0.05

11,176 

26,709 

8,116 

13,560 

10,834 

12,457 

  (5,513) 

15,060

0.06  
0.05  

0.15  
0.11  

0.04  
0.04  

0.08 
0.07 

0.05 
0.05 

0.06 
0.06 

(0.02) 
(0.02) 

0.05 
0.05

Selected Financial Information (expressed in thousands of US$)

BALANCE SHEET 

Current assets 

Other assets 

Total assets 

Current liabilities 

Other liabilities  

Non-controlling interests 

Equity attributable to shareholders  

Total liabilities and shareholders’ equity 

June 30, 
2013 

$  74,356 

168,197 

242,553 

11,990 

10,969 

– 

219,594 

242,553 

June 30,  
2012 

$  50,180  

  161,769   

  211,949  

    19,053  

22,389  

June 30,  

2011

$  68,327

56,416

124,743

4,919

38,808

    24,186  

                  –   

  146,321  

  211,949  

    81,016

124,743

Working capital excluding derivative liabilities 

$  62,366 

$  31,131 

$  63,407

6    O PE R AT ING H IGH LIGHTS

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
MONUMENT MINING LIMITED  2013   ANNUAL REPO RT

CAPITAL STRUCTURE &
 MARKET PERFORMANCE

During fiscal 2013 three transactions increased the number of 

outstanding and fully diluted shares: 

•  In  the  first  quarter  of  fiscal  2013  Monument  received  

  CAD$12.5  million  from  the  exercise  of  24,122,500  stock  

Shares Outstanding 

  purchase warrants at CAD$0.50 per share. 

•  In  the  third  quarter  of  fiscal  2013  the  Company  closed  a  

  brokered  private  placement  in  two  tranches  and  issued  

  44,500,000 common shares at CAD$0.50 per share for gross  

  proceeds of CAD$22.3 million, and issued 3,115,000 agent  

  options. 

Warrants 

Options 

Agent Options 

Fully Diluted 

•  In February 2013 the Company issued 20,000,000 common  

Share Price 

shares at an issue price of CAD $0.40 per common share and  

  20,000,000 common share purchase warrants exercisable at  

  CAD$0.50 per common share to fully convert the CAD$8.0  

  million  convertible  notes,  thus  eliminating  debt  and  de- 

52 Week High/Low 

Market Capitalization 

risking the Company. 

CAPITAL STRUCTURE

As of June 30, 2013

275,058,030

25,000,000

21,175,501

3,115,000

324,348,531

$0.31

$0.54/$0.28

$85.3 M

FISCAL 2013 STOCK CLOSING PRICE (CDN)

0.60

0.50

0.40

0.30

0.20

0.10

0.00

8,000,000

7,000,000

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

0

JUL 12

AUG 12

SEP 12

OCT 12

NOV 12

DEC 12

JAN 13

FEB 13

MAR 13

APR 13

MAY 13

JUN 13

TSX CLOSE

FSE CLOSE

FISCAL 2013 TRADING VOLUMES

JUL 12

AUG 12

SEP 12

OCT 12

NOV 12

DEC 12

JAN 13

FEB 13

MAR 13

APR 13

MAY 13

JUN 13

TSX VOLUME

FSE VOLUME

STRUCTURE & PERFORMAN CE     7

 
 
 
 
MON UMEN T MINING LIMITED   2013   ANNUA L REPO RT

SELINSING AREA OPERATIONS

Property Overview

Monument Mining acquired 100% of its primary Selinsing property located at Bukit Selinsing Koyan, approximately 65 kms north 
of  Raub  and  30  kms  west  of  Kuala  Lipis  in  2007.  Concurrently  it  acquired  the  contiguous  Buffalo  Reef  properties  to  the  north.  
The  Famehub  exploration  properties,  consisting  of  32,000  acres  in  nine  project  areas,  were  acquired  in  2010  and  are  located  
2 kms to 50 kms northeast of Selinsing. In April 2013 Monument obtained consent from the Federal Land Development Authority 
(FELDA) of Malaysia to explore and develop 14 blocks totaling 3,920 acres, located adjacent to the east and south of Selinsing and 

owned by settlers.

Geology

Gold mineralization at Selinsing and Buffalo Reef is controlled within a steeply east dipping, 200 m thick shear zone that parallels 
the  north-south  trending  Raub-Bentong  Suture  –  a  major  tectonic  feature  that  runs  through  Peninsular  Malaysia  and  hosts  the
Central Gold Belt of Malaysia. Four resource zones have been 
identified to date over a 4.2 km strike length. Mineralization occurs
in a series of auriferous quartz veins and stockworks of quartz  
veinlets and as finely disseminated gold within sheared  
calcareous epiclastic sedimentary rocks of Permian age.

SELINSING AREA TENEMENTS

MONUMENT TENEMENTS

FELDA LANDS

EXPLORATION & MINING RIGHTS

BUFFALO REEF ORE BODY

The mineralized orebody at Selinsing generally strikes  
3500 and dips 60-700 to the east. The high grade ore  
shoots within the main mineralization plunge to the  
south east and are normally associated with quartz  
stockwork and quartz carbonate veins within  
highly deformed sedimentary rock.

Gold mineralization at Buffalo Reef is also  
structurally controlled and occurs within  
moderately to steeply east-dipping veins  
and fracture zones, which range in thickness  
from 1 m up to 15 m in thickness, although  
local flexures in the veins can host  

mineralization up to 25 m in thickness. 

Resource

In May, 2013 Monument announced an  
updated resource estimate in its August 2012  
NI 43-101 Technical Report for its Selinsing  
and Buffalo Reef properties. Estimated at  
August 31, 2012, the proven and probable  
reserves are 222.9 kilo-ounces (koz) of gold  
from 4,890 kilo-tonnes (kt) of material at  
a grade of 1.4 grams of gold per tonne  
(g/t). These reserves are within a newly  
estimated measured and indicated  
resource of 289.4 koz of gold from  
6,307 kt of material at a grade of 1.4 g/t. 

8    SE LINS IN G ARE A O PE RAT ION S

EXPLORATION ACCESS

POWER LINES

ROAD / TRACK

MEDANG
RIDGE TREND

BUFFALO REEF
NORTH

BLOCK 10

BLOCK 1

TAILINGS
STORAGE

BLOCK 7

BUFFALO
REEF
SOUTH

ADMIN

MC 7/2011
DRY DUMP
AREA

PROCESS
PLANT

SELINSING
MINE

NORTH

BLOCK 11

RUBBER
HILL

BLOCK
5

SELINSING
PIT

BLOCK 9

CENTRE

BLOCK 2

BLOCK 14

BLOCK 12

SOUTH

0

250

500 Metres

N

420000

421000

422000

424000

0
0
0
3
7
4

0
0
0
2
7
4

0
0
0
1
7
4

0
0
0
0
7
4

0
0
0
9
6
4

MONUMENT MINING LIMITED  2013   ANNUAL REPO RT

SELINSING AREA OPERATIONS

The  inferred  resource  at  Selinsing  and  Buffalo  Reef  is  an  

additional 48.0 koz of gold from 1,070 kt of material at a grade 

of  1.4  g/t.  (“Selinsing  Gold  Mine  and  Buffalo  Reef  Project  

Expansion”, Mark Odell, P.E., Practical Mining LLC, May 2013).

The  updated  mineral  resource  estimate  incorporates  a  new 

property-wide geological model which includes a total of 28 new 

KEY PERFORMANCE INDICATORS
Since

For Periods Ended June 30, 2013  

Fiscal 2013 

October 2009

Ore Mined (tonnes) 

882,159 

2,787,279

Ore Processed (tonnes) 

938,498 

1,927,297

surface diamond drilling results completed by Monument since 

Avg head grade (g/t) 

2.07 

SELINSING AREA TENEMENTS

processing rate.  

the  last  resource  estimate  was  completed  in  2007.  Drill  hole  

assays  received  as  of  June  8,  2012  were  used  in  this  resource 

and reserve update along with the August 31, 2012 mine face 

positions as surveyed by Monument staff.  The updated reserve 

estimate  allows  the  operations  to  continue  until  the  end  of 

2017 at the current mining rate and 1,000,000 tonne per annum  

Calculated Gold Content (oz) 

54,368 

Gold Poured (ounces) 

Gold Production (ounces) 

Gold Sold (ounces) 

Revenue (US$ 000s) 

Total Cash Cost $/oz 

54,434 

52,982 

57,905 

91,277 

400* 

3.03

161,990

158,379

155,798

149,074

225,929

318* 

FISCAL 2013 ACCOMPLISHMENTS 

Mining

During  fiscal  2013,  882,159  tonnes  of  ore  were  mined  at  the  

Selinsing  operation.  This  is  a  76%  increase  compared  to  

fiscal 2012. The large increase in ore mined is due to increased 

equipment  availability,  drier  weather  in  Q4  fiscal  2013  and  

substantial contributions of oxide ore from the Buffalo Reef pit. 

600

400

200

0

SELINSING COST OF PRODUCTION

OPS

ROYALTY

PROCESS

MINING

Mining  began  on  the  Buffalo  Reef  South  Zone  in  November 

2010

2011

2012

2013

2012 and since then ore has been mined from both the Buffalo 

Reef South pit and from the main Selinsing pit.

Selinsing Processing Plant

Mill construction began in October 2008 and Selinsing gold pro-

cessing  plant  began  full,  commercial  operation  in  September 

2010.  In  fiscal  2013  the  gravity  and  carbon  in  leach  treatment 

The Average Total Cash Cost*  
for Fiscal 2013 was $400 per ounce
*  Total cash cost 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 develop- 
  ment cost and property fees, net of by-product credits. Cash cost excludes  
  amortization, depletion, accretion expenses, capital costs, exploration costs  
  and corporate administration costs. 

SELINSING GOLD PRODUCTION

plant at Selinsing increased its mill

capacity to one million tonnes  

per annum (“tpa”) from original 

400,000 tps as a result of  

completion of the Phase III 

expansion in August, 2012. In 

addition, the tailings facility has 

been upgraded to accommodate 

10 years production from the one 

million tpa gold treatment plant. 

15,000

10,000

5,000

0

Q2 Q3
2010

Q4

Q1 Q2 Q3 Q4
2011

Q1 Q2 Q3 Q4
2012

Q1 Q2 Q3 Q4
2013

SELINSING AREA OPERATIO NS     9

 
 
 
MON UMEN T MINING LIMITED  2013   A NNU AL  REPO RT

SELINSING AREA OPERATIONS

For the fiscal year ended June 30, 2013, 938,498 tonnes of ore were processed, a 157% increase due to the increase in mill capacity 

as a result of the 2012 plant expansion. The average mill feed grade was 2.07 g/t gold and recovery was 87.0% for a calculated gold 

content of 54,368 ounces. 54,439 ounces of gold were poured and 52,982 ounces were produced (Defined as good delivery gold 

bullion according to London Bullion Market Association (“LBMA”), net of gold Dore in transit and refinery adjustment). 

Phase IV Expansion

The  Phase  IV  plant  expansion  will  be  needed  to  process  refractory  sulfide  materials  from  deeper  in  the  Selinsing  and  Buffalo  

Reef  deposits.  Considerable  laboratory  scale  test  work  has  been  completed  in  fiscal  2013  that  indicates  metallurgical  

recoveries  of  gold  in  the  90%  range  from  sulfide  ores  by  using  a  flotation/  bio-oxidation  (“Bi-ox”)  process.  The  Phase  IV  

expansion as recommended in the August  2012 NI 43-101 Technical Report includes adding a flotation circuit and a regrind mill 

circuit, bi-ox tanks, and converting some existing CIL leach tanks to neutralization tanks within the existing plant. The full scale pilot 

plant is also recommended to be designed to prove scale-up and allow the conversion to a full size bi-ox plant utilizing the pilot 

plant equipment. The recommended Phase IV has a capital cost of approximately $45.8 million and provides a net present value 

(“NPV”) of $10.7 million and a 21% rate of return.  Subsequent to fiscal 2013, work continues with in-house laboratory research and 

development to reduce the CAPEX of the Phase IV project. 

                                                        OXIDE                                            SULFIDE                                    OXIDE + SULFIDE 
Category 

g/t   Au (kOz) 

g/t  Au (kOz) 

kTonnes 

kTonnes 

kTonnes 

g/t  Au (kOz)

Reserves (based on a US$1550/oz gold price) 
 Proven 

2,360 

0.7 

Probable 

P+P 

496 

2,857 

1.7 

0.9 

54.6 

26.7 

81.3 

266 

1,768 

2,034 

Resources including Reserves (based on a US$1700/oz gold price) 
 Measured 

2,361 

54.6 

0.7 

322 

Indicated 

M+I 

Inferred 

588 

2,949 

268 

1.6 

0.9 

1.2 

29.5 

84.1 

10 

3,036 

3,358 

801 

Selinsing-Buffalo Reef Reserve/Resource as of August 31, 2012 (Practical Mining, May 23, 2013)

10    S ELIN S ING ARE A OP E RAT IO NS

2.5 

2.1 

2.2 

2.1 

1.9 

1.9 

1.5 

21.4 

120.2 

141.7 

21.7 

183.6 

205.3 

38.0 

2,626 

2,264 

4,890 

2,682 

3,624 

6,307 

1,070 

0.9 

2.0 

1.4 

0.9 

1.8 

1.4 

1.4 

76.0

146.9

222.9

76.3

213.0

289.4

48.0

 
 
MONUMENT MINING LIMITED  2013   AN NUAL REPORT

SELINSING AREA OPERATIONS

Exploration

During fiscal 2013 a total of 374 holes totalling 36,917 metres  

of drilling was completed at the Selinsing area properties:

•  141 holes totalling 18,742 metres at Selinsing 

•  217 holes totalling 16,721 metres at Buffalo Reef, and

•  16 holes totalling 1,455 metres at FELDA

Drilling was completed north, south and beneath the Selinsing pit 

and on Buffalo Reef resource areas and focused on defining mineral-
ization at depth below the existing pits, within gap zones in between 
the known resources that contain little drill hole information, and to 
convert inferred materials to indicated and/or measured materials.    

Core logging, sample processing and assay analysis are in progress  
on  these  completed  drill  holes.  None  of  these  drill  results  were  
included  in  the  August  31,  2012  NI  43-101  Technical  Report. 
Many  of  these  drill  hole  assays  will  be  incorporated  into  the  next 
resource  update.  Exploration  and  drilling  will  continue  at  the  
Selinsing area properties in fiscal 2014 after completion of assaying 

and interpretation of backlogged drill samples. 

FELDA Lands 

On  April  2,  2013  Monument  obtained  a  consent  letter  from  the  
Federal  Land  Development  Authority  (FELDA)  of  Malaysia  to  
explore  14  blocks  totaling  3,920  acres  owned  by  local  settlers 
(“FELDA lands”).  These FELDA lands are generally located east and 
south of the existing resources and Monument tenements and will 
allow  additional  exploration,  infill  drilling  and  development  of  the 
Buffalo  Reef  Central,  Buffalo  Reef  South,  and  Selinsing  resources. 
The exploration over the FELDA lands allows Monument a chance 
to  grow  the  resources  at  the  site  utilizing  the  existing  facilities  to 
sustain the mining and processing operations well  into the future. 
Exploration  drilling  began  on  the  FELDA  lands  during  the  fourth 

quarter of fiscal 2013.  

Grassroots/Future Exploration 

In addition to potential for extensions of Selinsing and Buffalo Reef 
mineralization  to  the  east  and  south  on  FELDA  lands  significant  
exploration  potential  exists  further  east  along  Medang  Ridge,  a 
zone parallel to the Selinsing-Buffalo Reef zone.   Exploration in the 
early 1990s identified 3 surface zones of gold mineralization which 
will be explored by Monument at some future date.  

On the Famehub properties approximately $40 million of explora-
tion data was acquired with the properties resulting in rapid target  
determination.  These  targets  which  include  Selinsing-like  shear  
zone targets and intrusive contact targets will also be explored at a 
future date.

FAMEHUB

Temau Gajah
14.05 km2

500000 mN

PROPERTY
LOCATIONS

Harimau
6.25 km2

Satak Serau
36.00 km2

Tekai
20.50 km2

Leboh
12.25 km2

Meraga
12.00 km2

Tui Headwater
5.75 km2

Daling
2.50 km2

475000 mN

Rubber Hill
3.75 km2

Selinsing &
Buffalo Reef
Gold Mine

Major Roads

Rail Line

0

5

10 Kilometres

E
m
0
0
0
5
2
4

E
m
0
0
0
0
5
4

Kuala Lipis

520 L

500 L

480 L

460 L

440 L

420 L

400 L

380 L

550 L

500 L

450 L

400 L

350 L

300 L

250 L

TITLE OF DIAGRAM

500 E

600 E

700 E

Buffalo Reef South Section 3380N (above)
and Selinsing 1960N Section (below)
outlining the 0.05 ppm grade shells

600 E

700 E

800 E

900 E

1000 E

SELINSING AREA OPERAT ION S     11

 
 
MON UMEN T MINING LIMITED   2013   ANNUA L REPO RT

MENGAPUR POLYMETALLIC PROJECT

Property Overview  

Mengapur is located in Pahang State, Central Malaysia, approximately 130 kms southeast of Monument’s wholly owned Selinsing 

Gold Mine and 75 kms northwest of the Malaysian port city of Kuantan. It was historically owned by Malaysian Mining Corpora-

tion which defined the historical polymetallic resources in a full bankable feasibility study.  The title of Mengapur was subsequently 

divided and distributed to different owners. Monument acquired 70% of Mengapur from those owners in fiscal 2012, and acquired 

the remaining 30% interest in fiscal 2013.

Geology

Mengapur  contains  a  large  polymetallic  skarn  deposit  with  significant  copper,  sulphur,  iron,  gold  and  silver  mineralization  

hosted in pyroxene and garnet skarn surrounding the Bukit Botak intrusive complex.  Oxide and supergene zones overly the main 

sulfide zone.

7500

7000

6500

6000

5500

A

C ZONE

BUKIT
BOTAK A ZONE

B ZONE

A’

N

0

500 m

64

65

GARNET + PYROXENE SKARN

ADAMELITE INTRUSIVE ROCK

CARBONACEOUS LIMESTONE

SHALE AND SLATE

FAULT

A

A’

CROSS-SECTION A-A’

A ZONE

RESOURCE/RESERVE ZONE

65

STRIKE AND DIP OF BEDDING

41500

42000

42500

43000

43500

12    MEN GAPUR POLYME TA LLIC  P R O J EC T

 
MONUMENT MINING LIMITED  2013   ANNUAL REPO RT

MENGAPUR POLYMETALLIC PROJECT

Historical Resource

Project Development Plan 

The deposit was first discovered with anomalous stream sediment  
samples  in  1979.  A  historic  resource  estimate  based  on  58,000  
metres of diamond drilling was published as a “Definitive Feasi-
bility Study” (the “Historical Study”) in October 1990 by Normet  
Engineering Pty Ltd with James Askew Associates completing the  
ore  reserve  and  resource  estimates,  both  of  Perth,  Western  
Australia.  This  Historical  Study  is  not  NI  43-101  compliant  and 
should  not  be  solely  depended  on.  It  is  relevant  as  it  provides 
an indication of the mineral potential of the project. The Histori-
cal Study outlined 224.409 million tonnes averaging 6.54% sulfur, 
0.25%  copper,  0.16  g/t  gold,  and  8.86  g/t  silver.  This  historical  
estimate  is  summarized  in  the  “NI  43-101  Technical  Report,  
Mengapur  Project  (Amended)  (January  2012)”  prepared  by 
Snowden Mining Industry Consultants. 

Monument 
is  undertaking  a  phased  development  plan  to  
advance  the  Mengapur  project,  following  the  same  successful  
approach  it  used  to  bring  its  Selinsing  gold  mine  into  low-cost  
production.  The  Mengapur  mine  is  envisioned  to  be  developed  
as  a  large  multi-commodity  open  pit  mine.  R&D  programs  under 
-way  will  explore  the  development  of  a  number  of  marketable  
potential  commodity  products  subsequent  to  the  targeted  
recovery  of  magnetite  and  copper  concentrate,  and  develop  and  
prove  a  viable  flow  sheet  circuit  for  recovery  of  these  products.  
Opportunities  exist  to  produce  down-stream,  value  added,  
Malaysian  made  products  from  a  roaster  operation,  including  
copper  metal,  calcine  material  for  the  cement  and  plaster  
industries, electrical power generation for project power supply and 
sulfuric acid for sale or as an input component to produce fertilizer.     

GEOLOGY CROSS-SECTION A-A’ SHOWING THE SP6 DESIGN PIT

A  NORTHWEST

SOUTHEAST  A’

0.10% COPPER
GRADE SHELL

C ZONE

BUKIT
BOTAK

SOIL

400

200

A ZONE

0.10% COPPER
GRADE SHELL

SOIL

S
E
R
T
E
M
N

I

I

N
O
T
A
V
E
L
E

0

LIMESTONE

-200

S

H

A

L

E

S

K

A

R

N

INTRUSIVE

LIMESTONE

SKARN

200

600

1,000

1,400

DISTANCE IN METRES

MENGAPUR POLYMETALLIC PROJECT      13  

 
 
MON UMEN T MINING LIMITED   2013   ANNUA L REPO RT

MENGAPUR POLYMETALLIC PROJECT

Fiscal 2013 Accomplishments

In fiscal 2013, the Mengapur Project work included camp development, setup of an SGS on site laboratory, initial refurbishment 
of  the  existing  1,000  tpd  copper  flotation  plant  and  exploration  work  to  define  resource  in  a  NI43-101  Preliminary  Economic  
Assessment Technical Report.

Construction  of  additional  housing  accommodations,  including  seven  separate  houses,  was  initiated  in  late  March  by  a  local  
contractor and is expected to be completed in early 2014. The camp will house 104 people when completed. Additional power 
generating sets have been acquired and are being installed at the project to help support the ongoing project work. Diesel storage 
at the site is being upgraded as is the septic system.

An on-site assay laboratory was built to help support the ongoing exploration work. An agreement between the Company and SGS 
Malaysia, an accredited lab that meets the requirements of MS ISO/IEC 17025, was finalized in January 2013. Under the agreement, 
SGS will manage and operate the on-site assay lab that will have capacity to process 2,000 samples per month. The assay lab is 
being constructed in 3 stages. The first stage, sample preparation (crushing and grinding) was completed in June 2013. The second 
stage will include fire assay, Leco sulfur, and AAS analysis. The third stage will include full use of the ICP equipment. 

Refurbishment of the existing Mengapur processing plant to process 1,000 tonnes of sulfide ore per day started in March 2013 and 
was intended to produce a copper concentrate and a magnetite product to generate quick cash flow. The refurbishment is pending  
further  metallurgical  test  work  being  conducted  in  the  fiscal  2014  R&D  program.  This  R&D  program  is  initially  focused  on  the  
production of market grade magnetite from fresh rock that underlies the free digging soils to generate cash flow. It will also pursue 
metallurgical testing for other potential downstream commodity products and source data to help optimize the process flowsheet 
and validate the designs for the future processing facilities. 

Exploration and NI 43 101 Confirmation Drilling

During fiscal 2013 Monument drilled 33,458 metres in 147 holes at the Mengapur project. Most of the “Priority 1” drill holes were 
designed at a 60 to 80m drill hole spacing necessary for possible inclusion in the upcoming NI 43-101 report, and were completed 
by April 2013. The completed drill holes tested most of the sulfide mineralized zone included in the historical resource and the 
overlying oxide and transitional (enrichment) zones. Two condemnation drill holes totaling 356 metres were also completed in the 
area of the proposed Phase 2 plant.

The  Mengapur  drilling  program  was  completed  to  support  an  updated  NI  43-101  Preliminary  Economic  Assessment  
compliant  resource  report,  targeted  for  completion  in  early  2014.  The  drilling  was  also  carried  out  to  assist  with  the  design  of  
the  sulfide  mining  plan  and  for  collection  of  representative  samples  for  metallurgical  testing  that  will  be  utilized  to  assess  the  
requirements of the proposed processing facilities.

14    MEN GAPUR POLYME TA LLIC  P R O J EC T

 
 
MONUMENT MINING LIMITED  2013   ANNUAL REPO RT

CORPORATE & SOCIAL RESPONSIBILITY

Monument Mining is committed to the highest standards of environmental management, social responsibility, and health and safety 

for its employees and neighboring communities.

People

As of June 30, 2013, the Company employed 336 people at its Malaysian operations, an increase of 31% over last year. Of those, 

329 are Malaysian. Most are hired locally and live in the surrounding communities with their families. 

Health & Safety

The Company places a strong emphasis on safety procedures and training. The objective is a perfect health and safety workplace 

for Monument people. During the year there were no fatal injuries with only minor work related accidents. The mine enforces a 

comprehensive safety program and continues to improve procedures for accident prevention.  

Environment

While pursuing the company’s growth, Monument develops and operates all of its projects in an environmentally responsible and 

sustainable manner, ensuring a safe and healthy environment. It strives to disrupt as little of the area it works in as possible. 

It applies the best environmental practice and ensures the highest commitment to environmental protection in managing natural  

resource  utilization  to  sustain  the  resource  base  and  prevent  degradation  of  the  environment.  It  adheres  to  established  

environmental monitoring and control procedures in compliance with the Environmental Impact Assessment (EIA) plan approved by 

the Malaysian Government Department on the Environment (DOE) and the Mining Scheme adopted by the Department of Minerals 

and Geosciences (JMG).  During the year ambient air and noise sampling was conducted as per schedule including environmental 

sampling for water quality in local streams and all results were satisfactory.

Community Support Programs

Monument  strives  to  support  and  work  with  the  local  communities  in  which  it  operates.  It  participates  in  community  events  

organized by various NGOs such as volunteer organizations, mosque council, Red Crescent and the native community.

CORPORATE & SOCIAL  RESPONSIBILITY     15

MON UMEN T MINING LIMITED  2013   A NNU AL  REPO RT

CORPORATE & SOCIAL RESPONSIBILITY

During  fiscal  2013,  the  company  advanced  the  newly  acquired  Mengapur  project  as  a  sustainable  mining  project  which  

substantially benefited economic development within the Eastern Coridor Economic Region (ECER) where the project is located. 

As of June 30, 2013 Monument had invested approximately USD 100 million in acquisition costs and for exploration, research 

and development expenditures. The benefits of the new project can be seen through direct and indirect employment of more 

than  150  people  involved  in  project  exploration  and  construction  of  new  staff  accomodation,  lab  and  core  cutting  facilities. 

Employment  is  expected  to  increase  substantially  to  over  1,000  people  during  the  major  plant  construction  phases  and  full  

operation of the proposed mine. The construction and operating expenditures, as well as various taxes and royalties paid by the 

company will provide major economic stimulus both locally and nationally.

Monument  established  a  new  business  and  community  office  at  the  local  Maran  Town  that  will  spearhead  the  community  

development programs that are planned to be implemented in the near future. It will allow the communities to provide and receive  

feedback for the Mengapur project developments. Working closely with the local and Pahang state governments, and other part-

ners, the planned sustainable projects and community programs will help to improve education, health and local living conditions.

At Selinsing, the mine operation continues to provide an economic catalyst, through extensive use of local suppliers, which enables 

the local communities to build  better lives. It continues to collaborate with local health clinics and youth organizations to conduct 

free medical screening and promote healthy living

Monument  funds  local  schools  for  additional  academic  and  co-curriculum  activities.  The  Company  is  becoming  more  involved  

in promoting skills development in Malaysia with the goal of increasing local employment at its operations. Monument provides 

funding through internship programs with various intitutions of higher learning in the country, thus preparing a skilled workforce 

for the future. In addition, promising local students are given scholarships to pursue coursework and degrees related to the  mining 

industry and are encouraged to pursue a career with Monument’s operations in the future. 

Read in conjunction with Monument Mining’s 2013 audited Financial Statements and Management Discussion & Analysis, available 

at www.sedar.ca and www.monumentmining.com. All dollar amounts in US$ except where noted.

16    COR P ORATE & SOC IA L R E SP ON SI BILIT Y

 
CORPORATE INFORMATION

OFFICERS & MANAGEMENT

DIRECTORS

CORPORATE HEADQUARTERS

Robert Baldock 
Sion, Switzerland

Cathy Zhai 
Vancouver, British Columbia  

George Brazier 
Vancouver, British Columbia 

Suite 910, 688 West Hastings Street 
Vancouver, BC, V6B 1P1  Canada

Telephone  604.638.1661   
Fax 
info@monumentmining.com

604.638.1663 

www.monumentmining.com 

INVESTOR RELATIONS

Graham Dickson 
Vancouver, British Columbia 

Vancouver

Robert Baldock,  
CA (M), FCPA, FIMC  
President & CEO

Cathy Zhai, B.Sc., CGA 
CFO & Corporate Secretary 
Vice President,  
Corporate Finance

Zaidi Harun, B.Sc. 
Vice President,  
Business Development

Kevin J. Wright, ACSM 
Project Manager,  
Mengapur Project

Chee Yau Tan, MCSM, M.Sc., MBA  
General Manager,  
Selinsing Gold Mine

Todd W. Johnson 
M.Sc Geo, M.Sc Geo Eng, P.E.  
Vice President, Exploration 

Zaidi Harun 
Kuala Lipis, Malaysia 

Jean-Edgar de Trentinian 
Geneva, Switzerland 

Gerald Ruth 
Toronto, Ontario

Frank Wright 
Vancouver, British Columbia 

STOCK LISTING

AUDITORS

TSX Venture Exchange  

Symbol: MMY 

Frankfurt Stock Exchange  

Symbol: D7Q1

REGISTRAR AND  
TRANSFER AGENT

Computershare Trust Company  
of Canada 
Vancouver, British Columbia

Grant Thornton LLP  
Vancouver, British Columbia

BANKERS

Bank of Montreal 
Vancouver, British Columbia

LEGAL COUNSEL 

DuMoulin Black LLP  
Vancouver, British Columbia

Richard Cushing B.A. (Econ.), CSC 
Investor Relations

Suite 910, 688 West Hastings Street 
Vancouver, BC, V6B 1P1  Canada

Telephone  604.638.1661   
Fax 
info@monumentmining.com

604.638.1663 

Toronto

Nickolas Kohlmann M. Sc. Geology 
Senior Manager, Investor Relations

Suite 500, 90 Adelaide Street West 
Toronto, ON, M5H 3V9 Canada 

Telephone  647.478.3594 
nkohlmann@monumentmining.com

Europe

Wolfgang Seybold 
Chairman, Axino, AG

Königstraße 26, 
70173 Stuttgart, Germany

Telephone  +49.711.25 35 92.40 
Fax 
+49.711.25 35 92.55 
wolfgang.seybold@axino.de 
www.axino.de