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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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FY2015 Annual Report · Monument Mining Limited
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ANNUAL 2
REPORT

0
1
5

RESOURCEFUL PEOPLE

Monument’s

hardworking and dedicated team is led by responsible management with the 
experience to grow gold production through its project portfolio 
development and acquisition opportunities.

“People at Monument are our strength. Since inception the 
Company has been accumulating a highly trained mining work 
force culture at its operations in Malaysia and Australia.”

Robert Baldock, CEO and President

Table of Contents

01       2015 Highlights

02       2016 Growth Strategy

03       President’s Message to Shareholders

05       People Resources

07       Corporate Overview

08       Capital Structure & Market Performance

2015 HIGHLIGHTS

FINANCIAL

09      Operating Highlights

10      Financial Performance 

11      Gold Portfolio

19      Polymetallic Portfolio

20      Corporate Social Responsibility

22      Corporate Information

(cid:127)  Net profit of $11.38 million, or $0.04 earnings per share (basic) (2014: net loss $2.63 million, or ($0.01) per share)

(cid:127)  36,500oz of gold sold for gross revenue of $44.84 million (2014: 37,670oz for $48.58 million)

(cid:127)  Profit margin of $15.89 million in 2015 (2014: $16.28 million)

(cid:127)  Cash balance of US$29.35 million in 2015 (2014: $24.73 million)

(cid:127)  Total Assets of $262.51 million in 2015 (2014: $254.72 million) 

PRODUCTION

(cid:127)  Gold recovery increased by 12% to 36,567 ounces

(cid:127)  Cash cost per ounce decrease by 4% to US$587 per ounce

(cid:127)  Processing recovery rate of gold increased by 9% to 82.4%

(cid:127)  Average ore head grade increased by 11% to 1.45g/t Au

DEVELOPMENT/EXPLORATION

(cid:127)  Secured interim Intec Licence to exploit sulphide gold and copper recovery technology

(cid:127)  Closed the acquisition of a 100% Interest in the Tuckanarra Gold Project in Western Australia

(cid:127)  Completed a NI 43-101 Resource Estimate on Alliance/New Alliance deposits at Murchison Gold Project 
    confirming Gold Resources

(cid:127)  Added experienced mining professionals to the Monument team across all operations

1   2015 HIGHLIGHTS

Monument’s

hardworking and dedicated team is led by responsible management with the 

experience to grow gold production through its project portfolio 

development and acquisition opportunities.

“People at Monument are our strength. Since inception the 

Company has been accumulating a highly trained mining work 

force culture at its operations in Malaysia and Australia.”

Robert Baldock, CEO and President

09      Operating Highlights

10      Financial Performance 

11      Gold Portfolio

19      Polymetallic Portfolio

20      Corporate Social Responsibility

22      Corporate Information

Table of Contents

01       2015 Highlights

02       2016 Growth Strategy

03       President’s Message to Shareholders

05       People Resources

07       Corporate Overview

08       Capital Structure & Market Performance

2015 HIGHLIGHTS

FINANCIAL

(cid:127)  Profit margin of $15.89 million in 2015 (2014: $16.28 million)

(cid:127)  Cash balance of US$29.35 million in 2015 (2014: $24.73 million)

(cid:127)  Total Assets of $262.51 million in 2015 (2014: $254.72 million) 

PRODUCTION

(cid:127)  Gold recovery increased by 12% to 36,567 ounces

(cid:127)  Cash cost per ounce decrease by 4% to US$587 per ounce

(cid:127)  Processing recovery rate of gold increased by 9% to 82.4%

(cid:127)  Average ore head grade increased by 11% to 1.45g/t Au

(cid:127)  Net profit of $11.38 million, or $0.04 earnings per share (basic) (2014: net loss $2.63 million, or ($0.01) per share)

(cid:127)  36,500oz of gold sold for gross revenue of $44.84 million (2014: 37,670oz for $48.58 million)

DEVELOPMENT/EXPLORATION

(cid:127)  Secured interim Intec Licence to exploit sulphide gold and copper recovery technology

(cid:127)  Closed the acquisition of a 100% Interest in the Tuckanarra Gold Project in Western Australia

(cid:127)  Completed a NI 43-101 Resource Estimate on Alliance/New Alliance deposits at Murchison Gold Project 

    confirming Gold Resources

(cid:127)  Added experienced mining professionals to the Monument team across all operations

RESOURCEFUL PEOPLE

2016 GROWTH
STRATEGY

(cid:127)  Continue developing gold focused portfolio diversifying the country risk and single production site risk 

(cid:127)  Deliver sustainable  gold production through the optimization of plant  performance, exploration 

    programs, development programs, and acquisitions

(cid:127)  Exploit Intec Technology at the Selinsing site for potential economic solution of gold sulphides recovery

(cid:127)  Fast track resource definition, economic assessment  studies, and the development of the  Murchison 

    Gold Project into a gold production site 

2016 GROWTH STRATEGY   2   

TOTAL ASSETS
(IN THOUSANDS OF US$)

$242,553

$254,715

$262,512

$211,949

$300,000

$250,000

$200,000

$150,000

$100,000

$50,000

$0

2012

2013

2014

2015

PROPERTY PORTFOLIO
(ALL 100% INTEREST)

TUCKANARRA

WESTERN
AUSTRALIA

102,796 

EXPLORATION

Z
O
/
$
S
U

1,800
1,750

1,700

1,650

1,600

1,550

1,500

1,450

1,400

1,350

1,300

1,250

1,200

1,150

Q1
Fiscal
2013

Q2
Fiscal
2013

Q3
Fiscal
2013

Q4
Fiscal
2013

Q1
Fiscal
2014

Q2
Fiscal
2014

Q3
Fiscal
2014

Q4
Fiscal
2014

Q1
Fiscal
2015

Q2
Fiscal
2015

Q3
Fiscal
2015

Q4
Fiscal
2015

LONDON FIX PM

MONUMENT REALIZED

3   PRESIDENT’S MESSAGE TO SHAREHOLDERS

PRESIDENT’S MESSAGE
TO SHAREHOLDERS
AND A TRIBUTE TO OUR PEOPLE

Fiscal  2015  has  demonstrated  performance  excellence  in 
operations despite the continuation of steep declines and 
significant swings of commodity prices in gold, iron, copper 
and  other  base  metals  in  the  natural  resource  sector  as 
instability of international economies has become a “new 
reality”.

In  Malaysia,  our  operations  have  successfully  generated 
positive cash flow at Selinsing Gold Mine, which brought 
the  Company  a  net  profit  of  $11.38  million,  or  earnings 
of  $0.04  per  share  as  a  result  of  the  improvement  in 
production efficiency.

Technology  is  a  way  to  compete  in  a  marketplace  with 
scarce  gold,  other  metal  resources  and  incremental  
rising costs against reduced commodity prices. Our 2015 
research  and  development  initiatives  have  delivered  an 
interim  license  in  Intec  Technology.  Upon  the  success  of 
scale-up test work programs, Intec may potentially provide 
an economic solution to treat sulphide materials through 
Monument’s  Selinsing  Gold  Plant  and  for  other  gold 
projects. The laboratory metallurgical bench work program 
in fiscal 2015 has concluded with a positive decision to build 
a  pilot  plant  at  the  Selinsing  R&D  laboratories.  The  pilot 
plant  has  been  constructed  subsequent  to  the  year-end 
for commissioning. The pilot plant test work with technical 
report on results and costs estimates are expected to be 
complete by 31 December 2015.  

In Western Australia, our business strategies have delivered 
an increased  land position with the Tuckanarra Project in 
Murchison region; where our continued exploration at the 
Burnakura  Project  has  also  resulted  a  NI43-101  Technical 
Report  on  the  Alliance  and  New  Alliance  Gold  Deposits, 
confirmed  related  historical  gold  resources  and  defining 
further  new  targets  for  fiscal  2016  drilling  and  economic 
study  programs.  Subsequent  to  year-end,  heap  leach 
design,  gold  operation  optimization  and  development 
work have also commenced targeting gold production in 
Q4 2016 at the Burnakura Project.  

Our  corporate  development  in  fiscal  2015  was  focused 
on  increasing  gold  resources  through  mineral  property 
acquisition with cautionary due diligence, enhancement of 

 
 
 
 
our workforce capabilities by integrated skill matrix and multiple projects 
management  under  a  controlled  corporate  environment.  As  a  part  of  a 
survival strategy ahead of the market downturn, we have eliminated all debt 
several  years  ago  and  are  using  innovation  to  look  for  long-term  growth 
opportunities to build a pipeline of projects. Overall, Monument  has been 
diligently  working  on  acquiring  appropriate  high  quality  undervalued 
gold  resources  and  diversifying  cash  flow  generation  from  multiple 
producing  mines  in  multiple  jurisdictions  and  countries.  It  is  key  for 
Monument to strive for continued success going forward towards becoming 
a mid-tier dividend paying gold and base metals producer.

Looking  forward,  in  fiscal  2016  we  will  continue  to  operate  in  this 
challenging  economic  climate  for  sustainable  gold  production,  being 
prepared to adjust our development programs accordingly, albeit with 
possible lower margins due to lower gold grade at the Selinsing Gold 
Mine and with volatile gold prices. These risk factors can be mitigated 
however, by an increase in gold inventory and recovery rates from gold 
sulphide discovery through the fiscal 2016 exploration programs, Intec 
Pilot Plant test work and mine optimization. The commercial objective of 
these programs is to extend the life of Selinsing’s gold production and 
optimize  sulphide  gold  recoveries.    As  a  result,  a  NI  43-101  technical 
report at Selinsing is expected in Q3 of 2016.

In  fiscal  2016,  the  risk  of  single  site  gold  production  is  targeted  to  be  further  reduced  by    potential  gold  production  at 
Burnakura Project. Development on the ground includes re-engineering of the crushing circuit, aimed to crush a wide range 
of ore materials extracted from various open pit and underground mines to feed both heap leaching and mill facilities, and 
engineering design and construction of the heap leach facility. Low-grade oxide ore will be processed through the heap leach 
process, targeted to generate cash by June, 2016; while high-grade oxide ore will be stockpiled and processed subsequently 
through the CIL plant. The economics of the CIL plant production is yet to be demonstrated and requires further economic 
studies and exploration success, including  confirmation, infill and exploration drilling in relation to the historical resources 
acquired with the project in 2014, which may take up to a further 2-3 years.

The  risk  of  having  a  single  commodity  product  can  be  possibly  mitigated  by  our  copper  potential  at  the  Mengapur 
Polymetallic Project in Malaysia and the Gabanintha Project in the Murchison region, WA where copper was produced in the 
past.  The Company intends to exploit Intec Technology to recover copper from sulphides and try to produce near to LME 
grade copper metal on site targeting lower costs than shipping concentrates. Malaysia as a country imports approximately 
$1.78 billion USD in refined copper annually to supply its copper pipe, tube, wire and other copper product manufacturing 
sectors. Those two projects represent longer term potential to the Company.

In conjunction with closing fiscal 2015 and moving forward to fiscal 2016, my special thanks is extended to our excellent 
people who are determined to face challenges with a can-do attitude and innovation to deliver on the corporate objectives.   
Monument is unique in that it has an excellent asset base in its human resources, most of whom have been with us since the 
early days of the Company and are supportive and creative in many ways. We will continue working hand in hand for a new 
chapter of success in fiscal 2016 with pride.

Sincerely,

ROBERT F. BALDOCK President and CEO

PRESIDENT’S MESSAGE TO SHAREHOLDERS   4

   
 
5   PEOPLE RESOURCES

PEOPLE RESOURCES   6

CORPORATE OVERVIEW

Monument  Mining  Limited  (TSX-V:MMY,  FSE:D7Q1)  is  an  established  Canadian  gold  producer 
and mining asset developer that owns and operates the Selinsing gold mine in Malaysia, a gold 
portfolio of the Selinsing, Buffalo Reef and Famehub projects in Pahang State, Malaysia and the 
Murchison Gold Projects comprising Burnakura, Gabanintha and Tuckanarra in Western Australia. It 
also owns the Mengapur Polymetallic Project, at Pahang State in Malaysia. The Company controlled 
producing and exploration properties covering 166,462 acres as of June 30, 2015.  

The Company’s longer-term goal is to be a sustainable, dividend paying, mid-tier gold and base 
metals  producer  through  acquisition  of  gold  and  other  base  metals  projects  and  advancing  its 
mineral portfolio from exploration and development stages to production stage. 

Monument’s  management  team  has  proven  their  ability  to  quickly  build  profitable  operations. 
The  Company  has  approximately  260  employees  and  is  committed  to  the  highest  standards 
of  environmental  management,  social  responsibility,  and  health  and  safety  for  its  people  and 
neighboring communities. 

7   CORPORATE OVERVIEW

CAPITAL STRUCTURE & MARKET PERFORMANCE

During fiscal 2015, the Company issued a total of 24 million 
fully  paid  common  shares  at  a  deemed  issue  price  of 
CAD$0.25 per share in acquisitions comprised of 10 million 
shares for Tuckanarra Gold Project as part of consideration, 
and  14  million  for  an  Interim  License  to  exploit  the  Intec 
technology, being placed in escrow with release based on 
achievement of certain milestones.

CAPITAL STRUCTURE AS OF JUNE 30, 2015

Shares Outstanding:   

324,218,030

Warrants:    

Options: 

Fully Diluted: 

Share Price: 

52 Week High/Low: 

Market Capitalization: 

25,000,000

18,415,501

367,633,531

$0.11

$0.24/$0.09

$35.7 M   

FISCAL 2015 STOCK CLOSING PRICE (CDN)

FISCAL 2015 TRADING VOLUMES

0.25

0.20

0.15

0.10

0.05

0.00

7,000,000

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

0

TSX CLOSE 

FSE CLOSE

TSX CLOSE 

FSE CLOSE

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CAPITAL STRUCTURE & MARKET PERFORMANCE   8   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9   OPERATING HIGHLIGHTS

FINANCIAL PERFORMANCE

With continued uncertainty and volatility in the 
commodities  sector  this  year,  the  Company 
has continued steady low cost gold production 
at  the  Selinsing  mine,  further  increased  and 
advanced its project portfolio with a stronger 
balance  sheet.  The  Company’s  total  assets 
were  $262.51  million  at  June  30,  2015.

During  fiscal  2015,  Monument  generated 
revenue  of  $44.84  million  for  36,500oz  of 
gold sold at an average realized gold price of 
$1,228 per ounce (London Fix PM: $1,224 per 
ounce). Total income from mining operations remained positive in fiscal 2015 for $15.89 million. Higher 
gold production of 36,473 oz (2014: 35,983 oz) and lower cost of per ounces of gold produced at $587 
per  ounce  (2014:  $613/oz)  are  key  success  factors  of  fiscal  2015  operation  results,  despite  that  total 
gold sales being reduced in fiscal 2015 due to timing differences, at lower average realized gold price.  

The  net  income  attributable  to  common  shareholders  for  fiscal  2015  was  $11.38  million  or  $0.04  per 
share  (basic)  as  a  result  of  significantly  reduced  corporate  expenditure.  Cash  provided  from  operating 
activities was $23.68 million in fiscal 2015 compared to $16.50 million in fiscal 2014. Working capital was 
$39.72 million at June 30, 2015, an increase of $2.22 million compared to $37.05 million at June 30, 2014.

FINANCIAL PERFORMANCE   10

GOLD PORTFOLIO

SELINSING
AREA OPERATIONS

  “At the Selinsing Gold Mine we have the right people who 

are committed to excellence. The team is responsible for 

the successful operations and steady development which 

has created consistent cash flow for the project portfolio 

expansion.”

11   GOLD PORTFOLIO

SELINSING & BUFFALO REEF AREA PROPERTIES

irrevocable  exploration 

Monument acquired 100% of the Selinsing property and 
contiguous  Buffalo  Reef  properties  located  in  Pahang 
State,  Malaysia  in  2007.  Subsequently  it  also  acquired 
exclusive 
licenses  over  896 
acres  of  FELDA  land  in  adjacent  to  the  east  and  south 
of  Selinsing  from  settlers,  consented  by  the  Federal 
Land  Development  Authority  (FELDA).  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. Selinsing, Buffalo 
Reef  are  at  a  development  and  production  stage  while 
others are at an exploration and evaluation stage.

GOLD RESOURCES

An  updated  resource  estimate  for  the  Selinsing  and 
Buffalo  Reef  properties  were  provided  in  the  “National 
Instrument  43-101  Technical  Report  (“Selinsing  Gold 
Mine and Buffalo Reef Project Expansion”, Mark Odell, 
P.E.,  Practical  Mining  LLC,  May  2013)  with  the  effective 
date  of  August  31,  2012.    The  reported  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 
an 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. 
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.

The tables below summarize the calculated reserves and 
resources by area and ore type. 

GOLD PORTFOLIO   12

“At Selinsing, the mine operation continued to produce 
gold at low cash costs per ounce this year, which was 
due to a higher gold recovery rate and a strong US dollar 
compared to the local Malaysian Ringgit.”

SELINSING GOLD MINE

Commercial  gold  production,  commenced 
in 
September 2010, is carried out through the Selinsing 
gold processing plant at the Selinsing Gold Mine which 
is easily accessible by all of its owned properties. The 
Selinsing gold plant has capacity of 1,000,000 tonnes 
per  annum  (“tpa”)  since  June  2012,  increased  from 
an initial 400,000 tpa. The tailings storage facility was 
upgraded at the same time to accommodate 10 years 
of production. 

During  fiscal  2015,  production  was  focused  on 
improving gold recoveries. Comparing to fiscal 2014, 
gold  recovery  increased  by  12%  to  36,567oz  from 
32,568oz; average ore head grade increased by 16% 
to 1.45g/t Au from 1.31g/t Au; process recovery rate 
increased by 9% to 82.4% from 75.9%; gold production 
increased to 36,473oz from 35,983oz. Ore processed 
however, decreased to 954,165 by 6% from 1,018,972 
tonnes,  primarily  due  to  down  time  at  the  plant 
caused  by  heavy  rain  during  the  monsoon  season 
and resultant power outages, offset by improvements 
made  through  optimization  of  plant  performance, 
mainly recovery rates.  

Operating  cash  flow  from  Selinsing  production  has 
been  invested  in  the  development  of  the  project 
portfolio, 
research  and  development 
programs,  exploration,  and  the  strategic  acquisition 
of  mineral  resources  according  to  the  Company’s 
long-term growth plans and objectives.

including 

700

600

500

400

300

200

100

0

-100

13   GOLD PORTFOLIO

SELINSING COST OF PRODUCTION
(US$ PER OUNCE)

MINING

PROCESSING

ROYALTIES

OPERATIONS,NET OF
SILVER RECOVERY

TOTAL CASH COST

FISCAL 2013

FISCAL 2014

FISCAL 2015

SELINSING GOLD PRODUCTION
(OUNCES OF GOLD)

RESEARCH & DEVELOPMENT

At the Selinsing Gold Mine a further plant expansion is required in order to process refractory sulphide materials. Options 
were recommended by Lycopodium Minerals Pty Ltd. of Australia, but the initial investment is high. In February 2015, the 
Company acquired an interim Intec License for the right to exploit Intec sulphide gold and copper recovery technology 
using its Selinsing gold processing plant as an alpha site. 

The completed Intec laboratory test work in fiscal 2015 successfully demonstrated the technical ability of Intec to recover 
gold from the sulphide material on a bench scale. The Pilot Plant was built subsequent to year end for commissioning. 
Test work will commence in October 2015 to further demonstrate scale-up capability, targeting completion by the end of 
December 2015. Upon final results, a demonstration plant trial testing and a commercial trial testing program may follow, 
targeting completion by the third quarter of fiscal 2017. 

Together with remaining oxide material, Monument is expecting to maintain sustainable gold production at the Selinsing 
Gold Mine through fiscal 2020 for a further 5 years of potential production. 

EXPLORATION

During fiscal 2015, exploration drill programs at Selinsing and Buffalo Reef area consisted of 83 drill holes totaling 8,848 
metres, focused on replacement of oxide ore and discovery of new gold deposits to extend the life-of-mine at Selinsing. 

The programs have confirmed extension and new gold mineralization zones, identified new drill targets, and collected 
sulphide ore core samples for Intec test work, and for geo-metallurgical test work to understand the non-refractory sulphide 
ore in transition zones, aimed to further improve the recovery of gold from sulphide materials. 

GOLD PORTFOLIO   14

GOLD PORTFOLIO

MURCHISON
GOLD PROJECT  

“Our experienced Australian exploration team at the 

Murchison Gold Project went from commencing exploration 

drilling to announcing a mineral resource estimate in less 

than 12 months in compliance with NI43-101 standards and 

continue rapid progress with fiscal 2016 development and 

exploration programs.”

MURCHISON TENEMENTS

HISTORICAL GOLD MINES

15   GOLD PORTFOLIO

MURCHISON GOLD PROJECTS

The Murchison Gold Project was acquired in February, 2014, consisting of the Burnakura and Gabanintha properties, 
both  located  in  the  Murchison  Mineral  Field,  Western  Australia,  a  highly  prospective  historical  gold  province.  The 
Project includes a number of mining and exploration tenements and lease applications covering approximately 98 
square km of land. 

The tenement package holds a historical resources under Joint Ore Reporting Committee (JORC) standards, a fully 
operational  gold  processing  plant,  a  newly  developed  camp  site  and  all  necessary  infrastructures.  The  historical 
resource consisted of 6.41 million tonnes at an average grade of 2.7 g/t containing 546,000oz Au within a number of 
previously operated open pits and an underground mine, which was determined by BM Geological Services in the 
report: “Murchison Gold Project: Burnakura and Gabanintha resource inventory (December 2013)”. 

The Tuckanarra property was acquired as strategic asset in November 2014, consisting of two exploration licenses, six 
prospecting licenses, and a mining lease covering a total of 416 square kms, and containing approximately 100,000oz 
Au historical Indicated and Inferred Resources under JORC standards.

EXPLORATION

For fiscal 2015, a total of 163 RC drill holes for 14,343 m were completed at Alliance/New Alliance (“ANA”), concluded 
in  a  Mineral  Resource  Estimate  showing  an  increase  in  the  Indicated  gold  ounces  as  compared  to  the  historical 
estimate inventory. 

A total of 145 RC drill holes for 8,776 m were completed at the Federal City (“FC”) deposit, shown some impressive 
high grade intersections.  The resource definition study on Federal City has commenced prior to the end of the year. 

The  fiscal  2016  exploration  program  will  focus  on  increasing  mineral  gold  inventory  to  extend  the  economically 
recoverable life of mine in supporting sustainable production.  

GOLD PORTFOLIO   16

GOLD PORTFOLIO

MURCHISON
GOLD PROJECT  

 “The Murchison Gold Project is targeting completion of 

construction and start-up of the heap leach facilities by the 

end of June 2016.” 

BURNAKURA LOCATION PLAN & GEOLOGY

17   GOLD PORTFOLIO

ALLIANCE/NEW ALLIANCE MINERAL RESOURCE ESTIMATE

The  “NI  43-101  Technical  Report  on  the  Alliance  and  New  Alliance  Gold  Deposits  Burnakura,  Western 
Australia”, prepared in accordance with National Instrument 43-101 authored by Darryl Mapleson (MAIG, 
FAusIMM)  of  BM  Geological  Services,  the  primary  Qualified  Person  and  other  independent  Qualified 
Persons, is filed on SEDAR and the Monument website, dated April 2, 2015 and amended August 7, 2015. 
This report indicates that the total contained old ounces at ANA have been increased compared to the 
historical inventory estimate.

An  Indicated  Mineral  Resource  of  1.88mt@1.6g/t  Au  for  98,400oz  and  an  Inferred  Mineral  Resource  of 
0.1mt@1.5g/t Au for 4,400oz was reported at a 0.5g/t Au grade cut-off. This represents a very positive initial 
outcome  toward  the  preparation  of  a  Preliminary  Economic  Assessment  in  respect  of  the  Alliance/New 
Alliance deposits.

From this initial Mineral Resource Monument is working towards an economic understanding of the revised Resource 
model and estimate, with a view to a commercial outcome. The full technical report, prepared in accordance with NI 
43-101, is filed on SEDAR and the Monument website under Technical Reports titled: “NI 43-101 Technical Report on 
the Alliance and New Alliance Gold Deposits Burnakura, Western Australia.” (Amended) (August 7, 2015)

DEVELOPMENT

Metallurgical test work in fiscal 2015 was completed at the ANA deposit, supporting heap leach recovery 
for  low  grade  ore.  The  optimization  of  the  recovery  process  in  demonstration  of  economic  viability  of 
early commercial production through heap leach recovery of low grade were carried out in fiscal 2015 and 
continued in fiscal 2016. 

Subsequent  to  year  end,  the  Company  completed  on-site  crushing  trials  test  work,  initiated  crushing 
section re-engineering, and commenced the first phase of the heap leach construction at the Burnakura 
site targeting commissioning and start-up of the heap leach facilities before the end of June 2016. Once 
the early stage of heap leach commercial production commences, the mill start-up will then be addressed, 
subject to further success in exploration and economic studies. 

GOLD PORTFOLIO   18

POLYMETALLIC PORTFOLIO
MENGAPUR PROJECT

“The Mengapur mine is envisioned to be a long term mining 
asset developed as a large multi-commodity open pit mine.”

The Mengapur Polymetallic Project acquired in fiscal 2012 and 2013, is located in Pahang State, Malaysia, 
approximately 130 kms southeast of Selinsing Gold Mine and 75 kms northwest of the Malaysian port city 
of Kuantan. It was historically owned by Malaysian Mining Corporation who defined the historic polymetallic 
resources in a full bankable feasibility study.

RESOURCES

The Mengapur Polymetallic deposit contains a historical Copper (Cu), Sulfur (S), Gold (Au). Silver (Ag) oxide 
and sulphide resource from a previous drilling campaign conducted in the 1980’s as reported in the “NI 
43-101 Technical Report, Mengapur Project (Amended) (Snowden, January 2012)”. The historical resource 
consisted of 224 million tonnes (mt) averaging 0.597% Cu equivalent (eqv) (6.54% S, 0.25% Cu, 0.16g/t Au, 
and 8.86g/t Ag) at a cut-off grade of 0.336% Cu eqv cut-off grade (Snowden, January 2012). A historical 
sulphide reserve consists of 64.8 mt averaging 0.737% Cu eqv (8.63% S, 0.27% Cu, 0.21g/t Au, and 2.59a/t 
Ag) at the same 0.336% Cu eqv cut-off grade (Snowden, 2012). 

DEVELOPMENT

At  Mengapur  64,000m  of  exploration  drilling  work  has  been  completed  verifying  the  historic  resources, 
since the acquisition in February 2012. The Preliminary Economic Assessment study (“PEA”) was placed on 
hold, subject to extension of the exploration license, and pending approval and issue of the mining leases 
at Star Destiny. Mine development includes building a camp, in-house laboratories and other infrastructure.

Considerable progress has been made in the 1,000 tpd pilot plant rehabilitation program in fiscal 2014 and 
early fiscal 2015, aimed to generate quick cash flow from iron and copper production in top soils, but was 
put on hold due to declining iron and copper prices. The Company intends to exploit Intec Technology in 
copper sulphides to assess economic viability of copper metal production. 

19   POLYMETALLIC PORTFOLIO

CORPORATE & SOCIAL  
RESPONSIBILITY   

Monument is committed to the highest standard of environmental management, social responsibility, and health and 
safety for its employees and neighboring communities. During fiscal 2015 the Company employed approximately 
260 people at its Malaysian and Australian operations. A majority of employees are hired from local communities in 
Malaysia while in Australia the mining team has been enhanced with many key experienced people.

HEALTH & SAFETY

Our  aim  is  to  sustain  a  high  health  and  safety  standard  in  our  workplace,  guided  by  an  occupational  safety  and 
health  policy  and  regulatory  framework.  Our  programs  promote  safety,  leadership  and  responsibility  among  all 
employees to improve procedures for accident prevention. We provide education and training to ensure employees 
are knowledgeable of potential work hazards, safe work policies, procedures and practices and their responsibility 
to the personal safety of their co-workers. During the year there were no fatal injuries with only minor work related 
accidents. 

ENVIRONMENT

The Company is devoted to sustainable development, the social and economic well-being of the local communities 
and an environmental consciousness across its operations. Our environmental program promotes best environmental 
practise at site operations aiming to minimize social and physical environmental impacts. This program is guided by a 
regulatory framework, environmental impact study, environmental management plan, and auditing and enforcement 
plan that apply to all aspects of operations.

Environmental monitoring and control procedures includes: physical sampling and analysis of emission discharges 
and other waste streams, a process control system that monitors and controls key operational parameters and visual 
observations of the activities. During the year ambient air and noise sampling were conducted including environmental 
sampling for water quality in local streams and all results were satisfactory. Progressive rehabilitation programs were 
undertaken involving revegetation, proper slope and drainage maintenance, and a comprehensive erosion control 
plan to minimize impact to the environment and ensure sustainability.

CORPORATE SOCIAL RESPONSIBILITY   20   

COMMUNITY SUPPORT PROGRAMS

FORWARD LOOKING STATEMENTS

Our community support programs (“CSR”) continue 
to promote positive social and environmental change. 
The mine site operations provide the local community 
with  employment,  wages  and  benefits,  taxes  and 
royalties,  local  procurement  of  good  and  services, 
and  direct  CSR  contributions.  Economic  value  from 
the Company’s operating expenditures flows directly 
to the local economy and community. 

Community engagement and outreach programs are 
important to identify critical issues in the community 
that need to be addressed.  A good relationship with 
the  community  has  been  built  up  over  the  years. 
We  support  education  by  contributing  funds  to 
early  education  of  kindergarten  students,  providing 
internships  and  scholarships  to  students  of  higher 
learning and tertiary education at the local university 
and  provide  students  support  for  other  activities 
beyond the classroom. 

skills 
The  Company  also  promotes  mining 
development in Malaysia with the goal of increasing 
local  employment  at  its  operations.  Other  CSR 
programs  provide  support  to  community  groups 
with  objectives  ranging  from  conservation  of  the 
environment,  youth  sports  recreation,  to  cultural 
and  religious  programs.  Our  support  programs  aim 
to benefit a wide range of stakeholders and make a 
lasting positive sustainable impact.

Read  in  conjunction  with  Monument’s  Fiscal  2015 
Audited  Financial  Statements  and  Management 
Discussion & Analysis, avaliable at www.sedar.ca and 
www.monumentmining.com.  All  dollar  amounts  in 
US$ except where noted.

21   CORPORATE SOCIAL RESPONSIBILITY

This annual report includes statements containing forward-looking 
information  about  Monument,  its  business  and  future  plans 
(“forward-looking statements”). Forward-looking statements are 
statements that involve expectations, plans, objectives or future 
events  that  are  not  historical  facts.    Generally,  forward-looking 
statements  can  be  identified  by  the  use  of  forward-looking 
terminology  such  as  “plans”,  “expects”  or  “does  not  expect”, 
“is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, 
“intends”, “anticipates” or “does not anticipate”, or “believes”, or 
variations of such words and phrases or state that certain actions, 
events or results “may”, “could”, “would”, “might” or “will be 
taken”, “occur” or “be achieved”. Forward-looking statements in 
this annual report include, without limitation, statements related 
to:  the Company’s expectations regarding future gold production 
at the Selinsing Gold Mine; the ability of the Company to move 
exploration  and  development  properties 
into  commercial 
production;  the  results  of  testing  gold  and  copper  recovery 
technologies; completion of technical reports on the Company’s 
projects and the timing and results thereof; and all other plans for 
mining, development and exploration and the timing and results 
thereof.  The forward-looking statements in this annual report 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: 
risks  related  to  general  business,  economic,  competitive, 
geopolitical and social uncertainties; uncertainties in testing gold 
and copper recovery technologies that have not been proven in 
the field; all of the uncertainties inherent in economic studies and 
resource estimates; uncertainties regarding the results and timing 
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 annual report include:  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 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;  assumptions  regarding  political  matters  in 
Malaysia; risks related to ongoing litigation; 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 
statements, except in accordance with applicable securities laws.

CORPORATE INFORMATION

Officers & Management

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

Cathy Zhai, B.Sc., CGA
CFO & Corporate Secretary
Director of Human Resources

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

Kevin J. Wright, ACSM
General Manager, Operations, Malaysia

Roger Stangler, B.Sc., MEng, MAusIMM, MAIG

Chief Managing Geologist

Grant Schofield, DipEng (Mining) MAusIMM

Senior Project Manager, Technical Support

Chee Yau Tan, MCSM, M.Sc., MBA

General Manager, Selinsing Gold Mine

Corporate Headquarters

Suite 1580, 1100 Melville Street
Vancouver, British Columbia V6E 4A6 Canada
Tel. 604.638.1661  Fax. 604.638.1663
E-mail. info@monumentmining.com

Website. www.monumentmining.com

Stock Listing

TSX Venture Exchange, Symbol: MMY 

Frankfurt Stock Exchange, Symbol: D7Q1

Registrar and Transfer Agent

Computershare Trust Company of Canada

Vancouver, British Columbia

Directors

Robert Baldock
Kuala Lipis, Malaysia

Cathy Zhai
Vancouver, British Columbia

George Brazier
Vancouver, British Columbia

Graham Dickson
Vancouver, British Columbia

Zaidi Harun
Kuala Lipis, Malaysia

Gerald Ruth
Toronto, Ontario

Frank Wright
Vancouver, British Columbia

Auditors

BDO Canada LLP Vancouver, British Columbia

Bankers

Bank of Montreal
Vancouver, British Columbia

Legal Counsel

DuMoulin Black LLP
Vancouver, British Columbia

INVESTOR RELATION INFORMATION

Vancouver

Richard Cushing 
Investor Relations
Suite 1580, 1100 Melville Street
Vancouver, British Columbia
V6E 4A6 Canada
Tel. 604.638.1661  Fax. 604.638.1663

info@monumentmining.com
www.monumentming.com

Europe

Wolfgang Seybold
Managing Director, AXINO GmbH
Neckarstrasse 45
73728 Esslingen, Germany
Tel.  +49.711.82.09.7211
Fax. +49.711.82.09.7215
wolfgang.seybold@axino.com
www.axino.com

CORPORATE INFORMATION   22   

RESOURCEFUL PEOPLE