2016 ANNUAL REPORT
BUILDING ON
BUILDING ON
FOUNDATION
OUR
2016
Monument is an established Canadian gold producer with a track record of operating
results driven by a dedicated responsible team. With gold portfolios spanning Malaysia and
Western Australia, our focused business strategy is production growth through investing in our
project pipeline and by timely acquisitions.
Table of Contents
01 2016 Highlights
08 Capital Structure & Market Performance
19 Mengapur Polymetallic Portfolio
02 2017 Growth Strategy
09 Operating Highlights
20 Corporate Social Responsibility
03 President’s Message to Shareholders
10 Financial Performance
22 Corporate Information
05 Our People
11 Selinsing Gold Portfolio
07 Corporate Overview
15 Murchison Gold Portfolio
2016 HIGHLIGHTS
FINANCIAL
• 23,150oz of gold sold for gross revenue of $23.60 million (includes a gold forward sale of 5,000 oz for $2.59 million)
(2015: 36,500oz for $44.84 million)
• Profit margin of $5.53 million (2015: $15.89 million)
• Cash balance of US$20.91 million (2015: $29.35 million)
• Total Assets of $259.05 million (2015: $262.51 million)
PRODUCTION
• Gold recovery decreased by 48% to 18,889 ounces*
• Ore processed increased by 4% to 0.99 million tonnes*
• Cash cost per ounce increased by 3% to US$606 per ounce
• Processing recovery rate of gold decreased by 18% to 67.4%
• Average ore head grade decreased by 39% to 0.88g/t Au
* Unless stated otherwise, all tonnages are reported as metric tonnes and contained gold is reported as Troy ounces, where 1 oz = 31.1035g
DEVELOPMENT/EXPLORATION
• Prefeasibility study wrapped up to final stages at Selinsing in Malaysia
• Intec trial testwork progressed positively and is under Independent review
• Early stage production plan Completed at Murchison with long lead items in delivery
• Property investigation conducted in DRC and on-going elsewhere
01 2016 HIGHLIGHTS
2016
BUILDING ON OUR FOUNDATION
2017 GROWTH STRATEGY
• Continue to invest in gold focused portfolios and continue diversifying the country risk and single production site risk
• Build up Selinsing Sulphide Project by improvement of economic solution and life of mine through technology optimization and
exploration focus
• Place Burnakura Gold Project into early stage production in parallel with pursuing deep drilling programs pursuing sustainable operation
• Seek potential opportunities for larger resources in other countries
2017 GROWTH STRATEGY 02
2016
Buffalo Reef
KUALA LUMPUR
“We are …. building on our foundation….. by
extending the life of mine at our Selinsing Gold Mine
in Malaysia through R&D work and exploration; and
by targeting expanded gold production with the
production decision at our Burnakura project located
in the Murchison Mineral Field in Western Australia.”
- Robert Baldock, President and CEO
03 PRESIDENT’S MESSAGE TO SHAREHOLDERS
President’s Message to Shareholders
In fiscal 2016, the Company continued to pursue its business focus of
building up strong gold assets and cash position by seeking high quality
gold projects, increasing gold inventory at the existing Selinsing gold
portfolio and Murchison gold portfolio, and developing multiple cash flow
generating operations in different jurisdictions and countries. We have
maintained a clean balance sheet while internally funding our business and
operation development during the year. We have recently hired some highly
experienced operation managers, mining engineers and metallurgists to
join our team in preparation for extending operations.
Our Malaysia production generated $5.53 million gross profits at
the Selinsing Gold Mine and continued to supply surplus cash from its
oxide production in fiscal 2016 to support, along with cash on hand, our
development. The Company focused on building up the Selinsing sulphide
gold production project. We have spent $1.19 million on the research and
development of sulphide treatment alternatives including Intec technology,
acid leaching and others; and spent $3.03 million on exploration and
a prefeasibility study including geological, metallurgical and mining
optimization studies.
As a result, we have made an announcement subsequent to the year-end
that our gold reserves and resources at Selinsing has been upgraded in
replacing all gold depleted in previous years under NI43-101 standards.
This allows our life of mine at Selinsing Gold Mine to be increased for
another six years with the most conservative approach being bioleach
treatment technology. The economics are expected to be optimized by
the potential use of Intec technology and other alternatives, and with large
sulphide exploration potential.
Our Australia operation has prioritized the Burnakura Gold Project
targeting the commencement of early stage gold production based on
an internal economic study and the “Proposal for Front End Engineering
Design” for the planned heap leach/CIL production with associated CAPEX
and OPEX from Como Engineers Pty Ltd. During fiscal 2016, $3.80 million
was spent on exploration and a scoping study over North of Alliance,
Federal City, and Tuckanarra, in addition to Alliance and New Alliance that
was completed in the previous year. The offsite engineering designing,
refurbishment and procurement work was executed to upgrade the crushing
plant which has reduced construction time from six to three months.
Our business development in fiscal 2016 continued to investigate high
quality, near production stage undervalued gold projects, in order to turn
them around into a cash generation center and to fund further downstream
development. The Company invested in site visits and due diligence studies
at potential targets in the Democratic Republic of Congo, a country rich in
gold resources, and elsewhere for new opportunities.
(cont. pg 4)
2016
Looking forward, fiscal 2017 will be a year for the Company to focus on
Building on our Foundations:
Build on our Selinsing Gold rich sulphide project
The prefeasibility study that has been announced and will soon be Sedar
filed has demonstrated Selinsing Gold as a sulphide gold rich project.
Its upside potential relies on two factors: improvement of recoveries and
costs, and the discovery of more gold mineralisation. In fiscal 2017, the
R&D work on sulphide ore recovery has moved to its critical stage: (1) to
finalize the Intec pilot run results and consolidate its input and output with
other processing circuits in testing overall metallurgical performance; (2) to
complete follow up testwork, based on which results from different process
alternatives will be compared, and a best scenario will be selected for Phase
IV construction with optimized operating performance and economics, and
reduced technical and operational risk.
Further exploration drilling programs have been planned to increase the
sulphide gold inventory at the Selinsing and Buffalo Reef areas that have
not been previously drilled. An updated NI43-101 Technical Report will then
be released to reflect the new economic picture.
Build on our Burnakura Gold Project
The Burnakura Gold Project has historical underground resources. Structural analysis of the Burnakura mineral field has identified that all major gold
resources within the Burnakura shear zone are associated with and controlled by late stage trans-tensional structures that stretched for several kilometres
and have not been tested, which are prospective for further discoveries. A deep drilling program has been planned for fiscal 2017 to further confirm
historical resources and explore underground mining opportunities. It will then lead to a complete preliminary economic assessment study.
Build on our People
Monument is built on its people. Over the years of operation the team which includes: mining engineers, geologists, metallurgists, technicians, operators
and accounting professionals, has been built up around our core management with vision, experience, can-do attitude, and the courage to face challenges.
To conclude, the Company now starts a new fiscal year. We confidently move ahead with a refined business plan for growth and cautious expansion in
fiscal 2017, and look forward to building upon our accomplishments. Our goal is to grow the Company for the benefit of all stakeholders, while delivering
increased shareholder value. Thank you to our loyal shareholders from our team of employees in Canada, Malaysia and Australia for your continuing
support this year and we look forward to making strong progress in 2017.
Sincerely,
ROBERT F. BALDOCK President and CEO
PRESIDENT’S MESSAGE TO SHAREHOLDERS 04
05 OUR PEOPLE
OUR PEOPLE 06
2016
“Monument employs approximately 240 people in Canada, Malaysia and Western
Australia and is committed to the highest standards of environmental management,
social responsibility, and health and safety for its employees and local communities.”
CORPORATE OVERVIEW
PROPERTY PORTFOLIO
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, the Selinsing gold
portfolio comprising Selinsing, Buffalo Reef, Felda Land and Famehub
properties in Pahang State, Malaysia and the Murchison Gold Projects
comprising Burnakura, Gabanintha and Tuckanarra properties
in
Western Australia. It also owns the Mengapur Polymetallic Project,
in Pahang State, Malaysia. The Company controlled producing and
exploration properties covering 166,462 acres as of June 30, 2016.
Monument’s proven management team has demonstrated their
ability to quickly build profitable operations. The Company’s long-
term goal is to be a sustainable, dividend paying, mid-tier gold
and base metals producer through the acquisition of gold and other
base metal projects and advancing its mineral property portfolio
from exploration and development stages to production stage.
07 CORPORATE OVERVIEW
TUCKANARRA
WESTERN
AUSTRALIA
102,796
EXPLORATION
2016
CAPITAL STRUCTURE
& MARKET PERFORMANCE
Capital Structure as of June 30, 2016
Shares Outstanding:
322,718,030
Options:
13,493,666
Fully Diluted:
336,211,696
Share Price:
$0.125
52 Week High/Low:
$0.16/$0.08
Market Capitalization:
$40.3 M
QUARTERLY AVERAGE GOLD PRICE
z
o
/
$
S
U
1,350
1,300
1,250
1,200
1,150
1,100
1,050
Q1
FISCAL
2015
Q2
FISCAL
2015
Q3
FISCAL
2015
Q4
FISCAL
2015
Q1
FISCAL
2016
Q2
FISCAL
2016
Q3
FISCAL
2016
Q4
FISCAL
2016
LONDON FIX PM
MONUMENT REALIZED
FISCAL 2016 STOCK CLOSING PRICE (CDN)
FISCAL 2016 TRADING VOLUMES
0.16
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0.00
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
TSX CLOSE
FSE CLOSE
TSX VOLUME
FSE VOLUME
CAPITAL STRUCTURE & MARKET PERFORMANCE 08
2016
OPERATING HIGHLIGHTS
REVENUES (000’S)
AVERAGE GOLD PRICE
LONDON FIX PM (PER OUNCE)
MONUMENT REALIZED (PER OUNCE) (1)
NET EARNINGS (LOSS) BEFORE OTHER INCOME ATTRIBUTABLE
TO COMMON SHAREHOLDERS (000’S)
EARNINGS (LOSS) PER SHARE BEFORE OTHER INCOME:
Q1
$
FISCAL 2015
Q2
$
Q3
$
FISCAL 2016
Q4
$
Q1
$
Q2
$
Q3
$
Q4
$
8,179
13,830
12,459
10,370
8,329
5,681
4,457
5,128
1,282
1,298
1,201
1,213
1,218
1,221
1,192
1,206
1,124
1,147
1,106
1,114
1,183
1,158
1,260
1,221
1,201
3,128
3,665
3,667
1,569
644
371
(965)
- BASIC
- DILUTED
0.00
0.00
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.00
0.00
0.00
0.00
(0.00)
(0.00)
NET EARNINGS (LOSS) AFTER OTHER INCOME AND TAX
ATTRIBUTABLE TO COMMON SHAREHOLDERS (000’S)
EARNINGS (LOSS) PER SHARE:
1,525
3,058
3,622
3,178
116
(4,584)
2,500
288
- BASIC
- DILUTED
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.00
0.00
(0.01)
(0.01)
0.01
0.01
0.00
0.00
SELECTED ANNUAL INFORMATION
BALANCE SHEET (IN THOUSANDS OF US DOLLARS)
JUNE 30, 2016
JUNE 30, 2015
JUNE 30, 2014
CURRENT ASSETS
NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
NON-CURRENT LIABILITIES
EQUITY ATTRIBUTABLE TO SHAREHOLDERS
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
34,576
224,478
259,054
6,238
14,205
238,611
259,054
$
43,124
219,388
262,512
9,638
11,741
241,133
262,512
$
47,421
207,294
254,715
10,373
16,723
227,619
254,715
WORKING CAPITAL (INCLUDING RESTRICTED CASH)
28,338
33,486
37,048
INCOME STATEMENT (IN THOUSANDS OF US DOLLARS)
For the year ended
June 30, 2016
For the year ended
June 30, 2015
For the year ended
June 30, 2014
$
23,595
(18,065)
(3,911)
(607)
(2,692)
(1,680)
$(0.01)
$(0.01)
$
44,838
(28,945)
(4,232)
(536)
258
11,383
$0.04
$0.04
$
48,583
(32,302)
(9,400)
(8,731)
(781)
(2,631)
$(0.01)
$(0.01)
REVENUE
PRODUCTION COSTS
CORPORATE EXPENSES
LOSS FROM OTHER ITEMS
INCOME TAX RECOVERY/(EXPENSE)
NET INCOME/(LOSS)
EARNINGS/(LOSS) PER SHARE (BASIC)
EARNINGS/(LOSS) PER SHARE (DILUTED)
09 OPERATING HIGHLIGHTS
FINANCIAL PERFORMANCE
Monument continued low cost gold production at the Selinsing mine
while focusing on the Company’s objectives to further develop the
project portfolio mining assets. The Company maintained a clean
balance sheet and had total assets of $259.05 million at June 30, 2016.
During fiscal 2016, Monument achieved gross revenue of $23.60 million
from 23,250 ounces of gold sold, of which 18,150 ounces were from gold
production and 5,000 ounces were from a gold forward sale. For the year,
gold produced was sold at an average realized gold price of $1,157 per
ounce (London Fix PM: $1,168 per ounce) and gold settled on a forward
sale was sold at an average realized gold price of $519 per ounce.
Gold production generated a mining operating profit of $5.53 million
and corporate expenses were reduced by $0.32 million or 8% to $3.91
million. Net loss for the year was $1.68 million, or $0.01 per share (basic).
The Company’s cash and cash equivalents, including the restricted
cash balance as at June 30, 2016 was $20.91 million down from
$29.35 million held on June 30, 2015. During the year, exploration
and evaluation expenditures at Selinsing were $3.03 million and $3.80
million at Murchison, which was the main cause for the expected cash
flow reduction. While production has not been able to support the
development costs during the transition period from oxide ore to
sulphide ore at Selinsing, the development was necessary for our 2016
business development strategies and objective. Working capital was
$28.34 million at June 30, 2016, a decrease of $5.15 million compared to
$33.49 million at June 30, 2015.
EARNINGS/SHARE (USD)
EPS
2012
2013
2014
2015
2016
2016
REVENUE
REVENUE (USD MILLIONS)
2012
2013
2014
2015
2016
NET INCOME (USD MILLIONS)
NET INCOME
2012
2013
2014
2015
2016
100
90
80
70
60
50
40
30
20
10
-
70
60
50
40
30
20
10
-
-10
CASH FLOW (USD MILLIONS)
TOTAL ASSETS (USD THOUSANDS)
CASH FLOW
300,000
250,000
200,000
150,000
100,000
50,000
-
TOTAL ASSETS
2012
2013
2014
2015
2016
2012
2013
2014
2015
2016
FINANCIAL PERFORMANCE 10
$0.35
$0.30
$0.25
$0.20
$0.15
$0.10
$0.05
$0.00
-$0.05
60
50
40
30
20
10
-
2016
SELINSING
GOLD PORTFOLIO
“Monument’s dedicated team has steered the Selinsing
Gold Mine to its sixth year of gold production through
plant optimization, targeted exploration, and research and
development programs.”
The Selinsing Gold Portfolio is located in Pahang State, Malaysia and includes the Selinsing Gold property, Buffalo Reef property, Felda Land, and
Famehub properties. The Buffalo Reef property lies along strike continuous to the north of the Selinsing Gold property. Felda Land and Famehub
properties are located east and north of Selinsing and Buffalo Reef properties. Together the properties cover 37,140 acres. The Selinsing and Buffalo
Reef properties are at a development and production stage while others are at an exploration and evaluation stage.
Subsequent to fiscal yearend 2016, the Company announced the commencement of mining preparation on Felda Block 7 at Selinsing upon
acknowledgement of the approval from the Pahang State authority to grant a Proprietary Mining Leases (“PML”) that have now been issued to the
underlying land owners (“Settlers”). The approval of the PML will allows the Company to continue to mine and feed oxide ore to the Selinsing mill,
and enables the Buffalo Reef open pit to be developed for further sulphide production.
11 SELINSING GOLD PORTFOLIO
2016
RESERVES AND RESOURCES
Subsequent to fiscal 2016, the Company has announced the updated resources and reserves at Selinsing and Buffalo Reef as seen in the following
Table 1 and Table 2, prepared by Snowden Mining Industry Consultants Pty Ltd in a NI43-101 Technical Report (Selinsing Gold Mine and Buffalo Reef
Project), which will be released within 45 days from the date of the news release at www.sedar.com.
The in-situ Mineral Resource estimate for the Selinsing deposit and the Buffalo Reef deposit is limited to a pit shell provided by Monument based
on a US$1,776/oz gold price. A pit optimization using a gold price of US$1,225/oz was also done by Snowden and Mineral Reserves were estimated
after the application of modifying factors from mining. This reserve pit shell was used by Snowden to define the likely limits of potential open-pit
mining. Stockpiles existing at June 30, 2016 are also estimated as Mineral Resources and Ore Reserves The tables below summarize the estimated
mineral reserves and mineral resources by area and ore type.
TABLE 1: SELINSING-BUFFALO REEF/FELDA RESOURCES AS OF JUNE 30, 2016 (SNOWDEN)
Category
OXIDE (above 0.3 g/t Au cut-
off)
TRANSITION (above 0.7 g/t
Au cut-off)
SULPHIDE (above 0.7 g/t Au
cut-off)
OXIDE + TRANSITION +
SULPHIDE
kTonnes
g/t
Au
(kOz)
kTonnes
g/t
Au
(kOz)
kTonnes
g/t
Au
(kOz)
kTonnes
g/t
Au
(kOz)
MINERAL RESOURCES, REPORTED INCLUSIVE OF RESERVES (BASED ON A US$1,776/OZ GOLD PRICE)
Measured*
2,171
0.52
Indicated
790
1.17
M+I
2,961
0.69
Inferred
380
1.03
36
30
66
13
-
-
950
1.66
950
353
1.66
1.46
-
51
51
17
165
1.45
8
2,336
0.59
44
5,830
1.93
361
7,570
1.81
441
5,995
1.91
369
9,906
1.52
485
3,640
2.13
249
4,373
1.98
279
*Measured Resource is en�rely stockpile material; Indicated and Inferred Resource comprises in situ material occurring in Selinsing and Buffalo Reef/Felda deposits
TABLE 2: SELINSING-BUFFALO REEF/FELDA RESERVES AS OF JUNE 30, 2016 (SNOWDEN)
Category
OXIDE (above approx. 0.3 g/t
Au cut-off)
TRANSITION (above approx.
0.7 g/t Au cut-off)
SULPHIDE (above approx. 0.7
g/t Au cut-off)
OXIDE + TRANSITION +
SULPHIDE
kTonnes
g/t
Au
(kOz)
kTonnes
g/t
Au
(kOz)
kTonnes
g/t
Au
(kOz)
kTonnes
g/t
Au
(kOz)
MINERAL RESERVES (BASED ON A US$1,255/OZ GOLD PRICE)
Proven*
2,171
0.52
Probable
565
1.31
P+P
2,736
0.68
36
24
60
-
-
698
1.80
698
1.80
-
40
40
165
1.45
8
2,335
0.59
44
2,619
2.03
171
3,882
1.88
235
2,784
2.00
179
6,217
1.40
279
*Proven Reserve is en�rely stockpile material; Probable Reserve comprises in situ material occurring in Selinsing and Buffalo Reef/Felda deposits
Currently the bioleach sulphide treatment process is identified in the upcoming NI 43-101 Technical Report as the most economic approach to
demonstrate viability of the Selinsing sulphide project. Other process flowsheets are also being investigated and pending economic outcomes, the
bioleach sulphide treatment process may be replaced by the Intec process. Subsequent to fiscal 2016, the Company has received the results of the
“Selinsing Phase IV PFS Capex and Opex Revision” from Lycopodium with a significant reduction in capital expenditure from the original cost that
is described in the existing 2013 NI43-101 Technical Report produced by Practical Mining and filed on SEDAR in May 2013 .
SELINSING GOLD PORTFOLIO 12
SELINSING GOLD MINE
2016
Gold production is carried out through the 1,000,000 tonnes per annum
(TPA) gold processing plant at the Selinsing Gold Mine which is accessible
by all of its Selinsing area owned properties. The tailings storage facility
was upgraded in 2012 to accommodate 10 years of production. Total
life of mine production through June 30, 2016 was 246,406 ounces, ore
processed was 4,892,504 tonnes, gross revenues were $342.9 million,
and net profit was $128.7 million. The mine is now moving to a sulphide
zone and the life of mine for sulphide production will be based on the
estimate reserves in the new NI43-101, which is an estimated six years.
Fiscal 2016 gold production continued to process super low grade ore
in transition towards treating sulphide ore. Gold production for fiscal
2016 was 18,155 ounces, a 50% decrease compared to 36,473 ounces
in the previous year, primarily due to delay of mining on the Felda Land
and a decrease in the average head grade to 0.88g/t from 1.45g/t in the
previous fiscal year. Ore processed increased by 4% to 992,070 tonnes
from 954,165 tonnes. Ore mined increased to 423,010 tonnes in fiscal
2016 compared to 421,845 tonnes for the previous fiscal year. Process
recovery rate decreased to 67.4% compared to 82.4% in fiscal 2015
mainly due to super low grade mill feed.
KEY PERFORMANCE INDICATORS
FOR PERIODS ENDED JUNE 30,2016
ORE MINED (TONNES)
ORE PROCESSED (TONNES)
AVERAGE HEAD GRADE (G/T)
PROCESSING RECOVERY RATE (%)
GOLD POURED (RECOVERED) (OUNCES)
GOLD PRODUCTION (OUNCES)
GOLD SOLD (OUNCES)
REVENUE (USD$ 000S)
TOTAL CASH COST $/OZ
FISCAL 2016
OCTOBER 2009
TO JUNE 30, 2016
423,010
992,070
0.88
67.40%
18,192
18,155
23,150
23,596
606
4,126,276
4,892,504
1.93
82.50%
247,106
246,406
246,393
342,946
429
SELINSING COST OF PRODUCTION
(OUNCES OF GOLD)
SELINSING GOLD PRODUCTION
(US$ PER OUNCE)
700
600
500
400
300
200
100
0
-100
FISCAL 2013
FISCAL 2015
FISCAL 2014
FISCAL 2016
13 SELINSING GOLD PORTFOLIO
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
GOLD PRODUCTION (OUNCES)
1
Q
-
3
1
0
2
2
Q
-
3
1
0
2
3
Q
-
3
1
0
2
4
Q
-
3
1
0
2
1
Q
-
4
1
0
2
2
Q
-
4
1
0
2
3
Q
-
4
1
0
2
4
Q
-
4
1
0
2
1
Q
-
5
1
0
2
2
Q
-
5
1
0
2
3
Q
-
5
1
0
2
4
Q
-
5
1
0
2
1
Q
-
6
1
0
2
2
Q
-
6
1
0
2
3
Q
-
6
1
0
2
4
Q
-
6
1
0
2
GOLD PRODUCTION (OUNCES)
RESEARCH & DEVELOPMENT
At the Selinsing Gold Mine, a plant expansion is required in order to
process refractory sulphide materials. The Company acquired an interim
Intec License for the right to exploit Intec’s sulphide and gold dilution
recovery technology using its Selinsing gold processing plant. An Intec
pilot plant was constructed and commissioned in the first quarter of
fiscal 2016 to demonstrate that bench scale batch testwork results can
be duplicated in a continuous flow process and that the process can
be successfully scaled-up. Two trial runs were conducted through fiscal
2016.
Further testwork is ongoing, and subsequent to fiscal 2016, an
independent metallurgical testwork program at a bench scale level was
designed by Orway and is being carried out independently by Orway
and the Company in parallel following the same protocols. This will
provide an independent confirmation of the recoveries of gold from
sulphide resources that is planned to be mined from Buffalo Reef using
the Intec Process technology. Subject to the results, this may lead to a
further pilot plant run.
In fiscal 2017, the R&D work on sulphide ore recovery has moved to its
critical stage: (1) to finalize the Intec pilot run results and consolidate
its input and output with other processing circuits in testing overall
metallurgical performance; (2) to complete follow up testwork, based on
which results from different process alternatives will be compared, and
a best scenario will be selected for Phase IV construction with optimized
operating performance and economics, and reduced technical and
operational risk.
EXPLORATION
The fiscal 2016 exploration focus was to complete a prefeasibility study
and demonstrate economics of the Selinsing Sulphide Gold Project to
support production sustainability with an extended mine life.
Resource and exploration drilling totalled 48 DD holes for 7,189m and
41 RC holes for 4,157m. Significant intercepts assay results at Buffalo
Reef Central and Felda Land announced in April 2016 have confirmed
the existing oxide and sulphide mineralized zones modeled and also
intersected a number of down-dip quartz stibnite high grade intervals,
beyond the currently defined shallower, quartz-ankerite mineralization.
The Resource models for Selinsing and Buffalo Reef have been
completed based on nearly 102,000 gold assays (including historical and
Monument data), based on which, pit optimization have been done that
forms the base for the feasibility study. There are still over 6,000 meters
of drilling results that have not been included in the current study to
date. The further metallurgical testwork has continued subsequent to
the fiscal year end, the results will be taken into account to update the
current resources and to construct a geometallurgical model.
2016
SELINSING GOLD PORTFOLIO 14
2016
MURCHISON
GOLD PORTFOLIO
“Our 100% owned Murchison Gold Portfolio established the foundation to build
a second gold production line. Scoping study was completed in fiscal 2016 in
supporting an early stage production decision. Deep drilling sets forward for further
underground potential.”
15 MURCHISON GOLD PORTFOLIO
2016
MURCHISON GOLD PORTFOLIO
The Murchison Gold Portfolio consists of the Burnakura, Gabanintha and Tuckanarra properties which are all located in the Murchison Mineral Field
in Western Australia. The properties together cover 127,012 acres.
The Burnakura and Gabanintha tenements hold historical resources under Joint Ore Reporting Committee (JORC) standards consisting 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,
(BM Geological Services: “Murchison Gold Project: Burnakura and Gabanintha resource inventory December 2013)”. At the Burnakura Mine site
there is a fully operational CIL gold processing plant, newly developed 118 man mine camp with all amenities, and all necessary infrastructure such
at equipped assay lab, workshops and office.
Tuckanarra contains a historical indicated resource of 1.04 mt @ 1.65 g/t Au for 55.2 kOz and a historical inferred resource of 0.92 mt @ 1.51 g/t Au
for 44.6 kOz within eleven separate prospects, (Ravensgate in its November 2012 “Independent Resource Model Report” according to the JORC
guidelines 2004).
RESOURCES
Monument’s initial exploration programs at Burnakura resulted in the January 2015 update of the Alliance and New Alliance (“ANA”) estimates
converted historical indicated and inferred estimates to indicated and inferred categories. 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. (“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, dated April
2, 2015 and amended August 7, 2015). The Mineral Resource Estimate shows the total estimated gold ounces have been increased at ANA when
compared to the historical inventory estimate.
MURCHISON GOLD PORTFOLIO 16
EXPLORATION
2016
The fiscal 2016 exploration programs at Murchison were designed to validate the historical resource, study geological continuity of the mineralization
at the Burnakura area, increase gold inventory, and deliver a Preliminary Economic Assessment Study to explore a long term economic scale for the
Burnakura Gold Mine production. In the short term, it is to validate the economic viability of early stage production. Exploration in fiscal 2016 at the
Murchison Gold Project was at North of Alliance (“NOA”), Tuckanarra and oxide targets in Burnakura. Drilling comprised of a total of 226 RC holes
for 23,225m and a total 7 DD holes for 629m.
Assay results were received from confirmation and infill drilling over Tuckanarra and NOA deposits where the majority of historical resources were
reported. The extension and exploration drilling were also carried out on the NOA deposits and completed subsequent to the fiscal year in July
2016. The study and resource modeling update based on the new drilling information shows positive indications for the increase of mineralized
volume and gold grade/ounces for a good part of NOA 7_8, in particular coming from the significant intercepts observed. It has also enhanced
the strong potential for the continuity of deep mineralization in the central and north portions of NOA 7_8 deposit. In August 2016, subsequent
to the fiscal year end, a deep drilling program at the NOA 7_8 deposit was announced aiming to test the underground potential to 500m. This
infill and extensional drilling will be used to update a resource statement that may potentially increase the life of mine at Burnakura for longer
term production. In addition to the direct extension of known mineralization under current mined pits, there is potential for new discoveries in the
Burnakura project area, since the area is relatively under explored.
“Monument has prioritized the commencement of
gold processing at the Burnakura Gold Mine, first by
recommissioning the current CIL plant, followed by
constructing a new Heap Leach facility with the cash
generated from the CIL production.”
BURNAKURA LOCATION PLAN & GEOLOGY
17 MURCHISON GOLD PORTFOLIO
2016
MURCHISON GOLD PORTFOLIO 18
DEVELOPMENT
At Burnakura, the focus is to develop a second gold production
site to diversify single cash flow generation risk by prioritizing the
commencement of gold processing at the Burnakura Gold Mine.
The production strategy is to develop and optimize open cut mine
operations through Alliance/New Alliance, extended to North of Alliance
and Federal City. Low grade ore will be stockpiled and subsequently
processed through heap leach facilities, and high grade ore will be
processed first through the CIL plant.
During the year, the Company reviewed a “Proposal for Front End
Engineering Design” for the planned Burnakura heap
leach/CIL
production with capital expenditures and operating expenditures
prepared by Como Engineers Pty Ltd (“Como Engineers”); and
concluded its initial internal economic study of the project. Based on
these studies, the Company has made the decision to put the Burnakura
Project into early stage production. As a result, the first purchase order
for offsite design work was placed to commence the crushing and
screening plant upgrade.
The Company continues to improve open pit mine optimization, and
move forward to develop a full implementation mine development
plan, including project management and scheduling, site preparation
and development, environmental and safety compliance. Subsequent
to fiscal 2016, communications and IT network upgrades have been
completed. Warehousing software procedures are complete and
procurement of first fill spares is underway. Administration, HSE and
Security, workforce planning are in progress to support production.
The site accommodation and catering are fully functional to start
construction work. Refurbishing, constructing and commissioning, will
take approximately six months.
MURCHISON GOLD PORTFOLIO
2016
MENGAPUR
POLYMETALLIC PORTFOLIO
MENGAPUR POLYMETALLIC PROJECT
The Mengapur Polymetallic Project 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. The Mengapur Polymetallic Project is a long term project in the Company’s pipeline, with a Company
vision to be developed as a large multi-commodity open pit mine.
RESOURCES
The Mengapur Polymetallic deposit contains a historical Copper (Cu), Sulfur (S), Gold (Au). Silver (Ag) oxide and sulphide resource from a 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. 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
Monument completed 64,000m of exploration work at Mengapur since it was acquired to verify the historic resources. A Preliminary Economic
Assessment study (“PEA”) was placed on hold in fiscal 2015 and is pending renewal approval of the exploration license at Star Destiny, a part of
the Mengapur Project. Due to the decline in copper and iron ore prices, the pilot plant development and early stage production were placed on
hold since 2015. The Company intends to exploit Intec Technology in copper sulphides to assess economic viability of copper metal production at
Mengapur, after successful Intec testwork on gold sulphides at the Selinsing Gold Plant.
19 MENGAPUR POLYMETALLIC PORTFOLIO
2016
CORPORATE
SOCIAL RESPONSIBILITY
We continue to improve operational efficiency in order to reduce input
such as water, energy and disruption as well as reducing output for
waste material and potential acid rock drainage. Mixing and producing
material with acid buffering material such as combining sulphide waste
with limestone or calcite resulted in surface water neutralization at site.
Sustainable development remains key to Monument’s pursuit for growth
Environmental monitoring and controls are in place to measure the
in the industry while emphasizing the balance between improving
effectiveness of the operation. The monitoring program includes
economic efficiency, protecting the environment and engaging its
physical sampling and analysis of emission, water, noise, dust and
many stakeholders and the community. This allows us to sustain a social
vibration. Independent environmental auditing was conducted three
license to operate and ensure our operations continue to generate
times within the year and the overall results were satisfactory.
profits, employment and economic growth.
HEALTH & SAFETY
Progressive
rehabilitation
remains
important
to
restoring
the
environmental function that minimizes the negative impact of the land
disturbance to the environment. The programs involve re-vegetation,
Protecting the health and safety of employees, contractors and
slope and drainage maintenance, and a comprehensive erosion control
communities is our culture in all our operations. Our site has been
plan to minimize impact to the environment and ensure sustainability.
operated with clear accountability for safety and health management
and performance. Our aim is to sustain the high safety standard in
COMMUNITY SUPPORT PROGRAMS
our workplace, guided by an occupational safety and health policy
and regulatory frameworks. Policies and measures were established
to effectively plan for and manage health and safety to prevent the
occurrences of all incidents. Our employees and contractors are engaged
in the appropriate training to identify hazards, safe work practices, and
their responsibility to the personal safety of their co-workers as well as
their own.
ENVIRONMENT
The importance of a healthy environment to future generations is a
pillar of sustainable development for our projects. Our environmental
programs aim to minimize any environmental impact, guided by a
regulatory framework, environmental impact study, and environmental
management plan that applies to all aspects of the operations.
Our CSR programs aim to develop the community in a sustainable way
without creating a culture of dependency. To date, our project has been
well received by the community. This has been achieved through an all
inclusive approach and continuous engagement with community leaders
and from public consultation programs that are conducted from time
to time. This has allowed our operations to sustain a stable working
environment for a long period.
At the Selinsing Gold Mine operation, the project site is located nearby a
traditional Malay village, Kg. Kuala Medang and a new Felda settlement
area created by the Malaysian federal government. Long before the
mine was in operation, the community has made their livelihood from
palm oil, a rubber plantation, logging and other agricultural activities, as
well as working as a government servants such as teachers, nurses, etc.
CORPORATE SOCIAL RESPONSIBILITY 20
2016
There are small businesses such as retailers, hardware shops and other
small business outlets operated at the nearby town of Koyan. The state
CAUTIONARY STATEMENT REGARDING FORWARD
LOOKING STATEMENTS
and federal government provide the basic infrastructures such as: water,
power, schools, health clinics, mosques, telecommunications, roads and
other infrastructure.
When we commenced site activity in 2009, the mining investment
benefited the local and state economy, it enhanced the community’s
earning power and standard of living. It created for the community
new wealth, employment, wages and benefits, taxes and royalties, local
procurement of good and services, and direct CSR contributions. The
economic value of the Company’s operating expenditures flows directly
to the local economy and community.
For the CSR programs, we provide funding for community assistance,
schooling and general education, community health initiatives, sports
and recreation programs, cultural and religious programs, and general
assistance in meeting the needs of the community to pursue their socio-
economic development plan.
We support education by contributing funds to early education of
kindergarten students, providing
internships and scholarships to
students of higher learning, tertiary education at the local university, and
student support for other activities beyond the classroom. More than 150
tertiary education students have conducted their internship program in
various courses at the site. We promote mining skills development in
Malaysia with the goal of increasing local employment at our operations.
Read in conjunction with Monument’s Fiscal 2016 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 statements or forward-looking
information under applicable Canadian securities laws (hereinafter collectively referred to as “forward-
looking statements”) about Monument, its business and future plans. Forward-looking statements are
statements regarding possible events, conditions or financial performance that are based on assumptions
about future economic conditions and courses of action and include expectations, plans, objectives or
future events that are not historical facts.
Statements concerning estimates of mineral resources and mineral reserves may also be deemed to
constitute forward-looking statements to the extent that they involve estimates of the mineralization that
will be encountered if a property is developed, and in the case of mineral reserves, such statements reflect
the conclusion based on certain assumptions that the mineral deposit can be economically exploited.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or performance (often, but not always, using
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”) are not statements of historical fact and
may be forward-looking statements.
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 advance 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; timing, costs and potential success of future activities on
the Company’s properties, including but not limited to development and operating costs in the event
that a production decision is made; potential success of exploration, development and environmental
protection and remediation activities; and all other plans for mining, development and exploration on the
Company’s properties 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 gold, base metal and other commodity price fluctuations; 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; 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 and the possibility that future
exploration, development or mining results will not be consistent with the Company’s expectations
and/or the results of initial feasibility, prefeasibility and feasibility studies, including those related to
the interpretation of drill results, and the geology, grade and continuity of mineral deposits; foreign
operations risks; risks related to the ability to obtain financing required to develop mining properties or
to complete significant technical, environmental or engineering studies; risks related to foreign exchange
fluctuations; risks related to environmental regulation and liability; risks associated with failure to maintain
community acceptance, agreements and permissions (generally referred to as “social license”); risks
related to the outcome of legal actions, including any ongoing legal litigation; other risks inherent in the
mining industry, including political and regulatory risks, and other risks and uncertainties related to the
Company’s prospects, properties and business strategy, including those described in the management
discussion and analysis of the Company and the technical reports on the Company’s projects, 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 will not change
in a materially adverse manner; the results of exploration on the Company’s projects will be as expected;
the future price of gold of other minerals will be sustained, or will improve; the expected timing and results
of development and exploration activities of the Company will not differ material from management’s
expectations; costs of future activities will be as expected; capital and operating expenditures will be as
expected; exploration, mining and processing activities will be viable operationally and economically and
proceed as expected; political matters in Malaysia and other jurisdictions in which the Company does
or may carry on business in the future will be stable; 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 .
CORPORATE INFORMATION
Officers & Management
Robert Baldock, CA (M), FCPA, FIMC
President and CEO
Cathy Zhai, B.Sc., CGA
CFO & Corporate Secretary
Director of Human Resources
Zaidi Harun, B.Sc.
Vice President, Business Development
Zaidi Harun
Kuala Lipis, Malaysia
Graham Dickson
Vancouver, British Columbia
Mark Gasson
Cape Town, Western Province, South Africa
Michael John Kitney
Perth, Australia
Rhett Brans
Western Australia, Australia
Ian Bignell, B.Sc., M.Sc., CEng. (UK), MIMMM
General Manager, Operations, Monument
Auditors
Kevin J. Wright, ACSM
General Manager, Operations, Malaysia
Neil Rauert, BE (Mining), MEngSc. ,FAusIMM(CP)
Senior Project Manager, Technical Support
Roger Stangler, B.Sc., MEng, MAusIMM, MAIG
Chief Managing Geologist
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
Grant Thornton 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
Registrar and Transfer Agent
Managing Director, AXINO GmbH
Computershare Trust Company of Canada
Vancouver, British Columbia
Directors
Robert Baldock
Kuala Lipis, Malaysia
Cathy Zhai
Vancouver, British Columbia
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
BUILDING ON
BUILDING ON
FOUNDATION
OUR