Monument Mining Limited
Annual Report 2019

Plain-text annual report

VALUE BUILT F O R G R O W T H 2019 2019 HIGHLIGHTS OPERATING AND DEVELOPMENT SELINSING GOLD MINE •         A NI43-101 Feasibility Study Technical Report completed, establishing economic viability for a six-year life of mine •         Development and Preparation Readiness work for the Sulphide Gold Plant Conversion •         Completed drilling program at Peranggih with Significant Intercepts to confirm mineralization continuity MURCHISON GOLD PROJECT •         Updated NI43-101 Mineral Resource Estimation with increases on both Indicated and Inferred Mineral Resources •         Completed an initial internal economic assessment under alternative production approaches •         Confirmed continuity of deep mineralization at ANA and NOA 7/8 for underground discovery potential •         Completed Burnakura Shallow Oxide Drilling with encouraging significant intercepts •         Collected additional historical data, completed 2D geological structural study, given new regional drill targets MENGAPUR COPPER AND IRON PROJECT •         Completed the NI43-101 Mineral Resource Estimation Technical Report for the Cu-Au Deposit PRODUCTION AND FINANCIAL PERFORMANCE •         Gold Production of 15,763 ounces (2018: 22,845 ounces); project to date of 297,868 ounces •         Cash cost of $713 per ounce (2018: $753 per ounce); project to date of $484 per ounce •         Gross Revenues of $20.99 million (2018: $19.25 million); project to date of $398.9 million •         Total Assets of $251.28 million (2018: $254.29 million) 01 2019 HIGHLIGHTS 2019 2020 OBJECTIVES SELINSING GOLD MINE •         Finance and place Sulphide Project into construction to convert the Selinsing Gold Processing Plant to Sulphide process from Oxide MURCHISON GOLD PROJECT •         Strategize regional exploration for new gold discovery MENGAPUR COPPER & IRON PROJECT •         Seek partnership in funding Mengapur copper development CORPORATE DEVELOPMENT FOR HIGH QUALITY GOLD PROPERTIES Table of Contents 01 2019 Highlights 02 2020 Objectives 03 Message from the Executive Chairman 04 Message from the President and CEO 05 Corporate Profile 07 Market Performance 08 Operating Highlights 09 Financial Highlights 11 Selinsing Gold Mine 15 Murchison Gold Project 19 Mengapur Copper & Iron Project 21 Social Responsibility 22 Corporate Information (All figures in this annual report are in United States dollars unless otherwise noted) 2020 OBJECTIVES 02 2019 Message from the Executive Chairman 03 MESSAGE FROM THE EXECUTIVE CHAIRMAN The mining space in fiscal 2019 continued to be challenging for junior companies, even though gold price surged to the $1,500 level which helped gold producers lift profitability from production. Our growth perspective was focused on unblocking value built into our balance sheet from our existing projects: Selinsing Sulphide Gold Project, Murchison Gold Project and Mengapur Copper/Iron Project. It is very clear to us that the Company’s future relies on new gold from cornerstone project(s) through exploration, development and acquisitions. For more than 10 years, Monument Mining has been successfully operating its Selinsing Gold Mine in Malaysia with excellent performance at low cost. Now, the Company has the potential to sustain its production with fully replaced Reserves by upgrading the existing plant for processing sulphide gold Reserves. The Feasibility Study announced in February 2019 is significant to Monument, and was done by Snowden Mining Industry Consultants Pty Ltd. In summary, the result of Feasibility Study gives the entire Selinsing Project a six-year mine life from March 2018 based on reserves of 267Koz (resources of 880Koz) with positive cash flow of $98 Million at a gold price of $1,300/oz, and two years return to capital. The Feasibility Study gives us the foundation to support funding of the Selinsing Sulphide Project. Once funding for the Selinsing Sulphide Gold Plant is in place, our production is expected to return back to a higher level. In 2019, Australian gold miners have shifted their attention to the Murchison, Cue and Meekatharra areas. We updated our Resources to 381Koz presented in the SRK Consulting (Australasia) Pty Ltd NI43-101 Resources Estimate Report in July 2018, completed our internal economic assessment; based on which we refocused to an exploration strategy aiming to increase gold inventory. We then successfully identified new drilling targets both on surface and underground through data analysis and geological structure studies which was initiated in 2019 and continued in 2020. We plan to commence a Murchison exploration plan as soon as possible to test those targets. In parallel, as copper and iron prices continue to strengthen, it is a good time to unlock the value of Mengapur. We delivered the Snowden NI43-101 resources estimation for copper in October 2018 and are now looking for business partners to development the copper project. With the gold price maintaining its current level around $1,500 per ounce and the overall investment market showing more interest in mining this past summer, further success in Monument projects could help shareholders gain value for their patience. I’d like to thank again our shareholders for their long standing support. Sincerely, ROBERT F. BALDOCK Executive Chairman Fiscal 2019 was a stepping stone to show the market our value built for growth. The Company sustained positive cash flow from operations at Selinsing and continued working on exploration and project development that further lifted our Resources and Reserves up at all of our three major projects under NI43-101 standards. The feasibility study for Selinsing Sulphide Gold Project in particular has opened up opportunities for funding. $7.81 million cash was attributed to this effort, showing our business development stayed focused on turning the Company into a second stage production and looking for growth cornerstone opportunities. Three NI43-101 Technical Reports include: the Feasibility Study for the Selinsing Gold Sulphide Project, the updated Mineral Resource Estimate at the Murchison Gold Project and the Mineral Resource Estimate at the Mengapur Copper-Iron Project. These new technical updates have demonstrated the significant value and upside of our projects for development, financing and potential return to our shareholders should they be properly funded and operated. They also open up the door for corporate development opportunities. We also identified significant new regional exploration targets in our Western Australia gold projects at Meekatharra, which is very attractive to investors in this surging gold market. In the meantime, we have obtained very strong support from Pahang Government for our Mengapur Project. Selinsing Gold Mine produced 15,763 ounces of gold in 2019 from remaining oxide ore inventory for gross revenue of $20.6 million, a gross margin of $8.8 million and a net cash from production of $2.14 million, improved from $1.43 million last year. Cash cost was $713 per ounce with all-in sustaining cost of $1,040 per ounce. It has brought our aggregated Selinsing Gold Mine production to 297,868 ounces at an average cost of $484 per ounce with gross revenue of $399 million, gross margin of $242 million and a net cash from production of $172 million. Subsequent to the financial year, the 1000th gold bar was poured in October 2019 that round up gold production to 304Koz level. The focus during fiscal 2019 was on the Selinsing Gold Sulphide Project Feasibility Study which was successfully completed in January 2019, given a six-year life of mine (“LOM”) with an NPV of $27.56 million. At a gold price of $1,300 per ounce, the Project would generate net cash flow after tax of $97.00 million from operations, or $45.00 million net of capital expenditure. The Execution plan has been in place for construction. Exploration work at Selinsing was aimed to supply additional oxide material around the mining area to sustain production, and to identify regional exploration targets ready for regional exploration planned after the Selinsing Sulphide Project is placed into production. Drilling programs carried out at Peranggih in fiscal 2019 will be followed up with a trial mining arranged in the second quarter of 2020. Drilling at Selinsing Pit 4 area confirmed continuity of the high grade mineralized structure along the strike length at the southwest corner. The oxide materials will be mined scheduled in later 2020. Murchison Project delivered a new gold resource estimation that was reported in a July 2018 NI43-101 Technical Report at Burnakura, where Indicated Resources have increased to 293Koz from 98.4Koz and Inferred Resources to 88Koz from 4.4Koz. Positive geological outcomes from three drilling programs at Burnakura showed that ANA mineralization is controlled in the favorable Banded Iron Formation horizon continuous at depth, NOA 7/8 mineralization has extended down plunge and assay results from shallow oxide drilling are encouraging. 2019 Message from the President and CEO program for high priority drill targets at Gabanintha and Burnakura. At Mengapur, a NI43-101 Mineral Resource Estimation Technical Report was announced in the second quarter of fiscal 2019. The Mineral Resource estimate incorporated a total of approximately 112,000m of drilling and together with the metallurgical testwork in progress, will provide a foundation to develop a feasibility study. The Company continues to seek a funding partner for development to unlock the project’s value. Looking forwards, 2020 is a critical year with the following deliveries: - Selinsing Sulphide Project financing, construction, and then production; - Murchison Gold Project drilling to test targets for new gold; - Mengapur development for copper project; and - Opportunities for corporate growth. While funding continues to be challenging to all juniors in the mining space, our team has demonstrated the capability, experience and determination to deliver Monument era 2.0. Sincerely, Subsequent to the year end, the Company completed a 3D structural geological study at Murchison which confirmed near mine down-plunge potential and highlights regional prospectivity, supporting a drilling CATHY ZHAI President and CEO MESSAGE FROM THE PRESIDENT AND CEO 04 2019 CORPORATE PROFILE Monument Mining Limited is an established Canadian gold producer and mining asset developer with a successful track record and an excellent management team. The Company owns and operates the Selinsing Gold Mine in Malaysia. The Selinsing Gold Mine comprising Selinsing, Buffalo Reef, Felda Land and Famehub properties in Pahang State, Malaysia and the Murchison Gold Project which comprises the Burnakura, Gabanintha and Tuckanarra properties in the Murchison area of Western Australia. It also owns the Mengapur Copper and Iron Project in Pahang State, Malaysia. Monument’s focus is to build-up the portfolio of mineral assets to increase shareholder value and become a mid-tier gold focused producer. It has committed to achieve its objectives through finding high quality gold and other base metal assets that are near production and have high potential for future growth. As a disciplined operator, Monument consolidates opportunities and operations in a safe, environmentally friendly and socially responsible manner. Selinsing Gold Portfolio Pahang State, Malaysia Selinsing has a producing open pit gold mine with a 1 million tonnes per annum gold processing plant and associated infrastructure. Located 158.6km North of Kuala Lumpur. Contains 150.3km2 land area. Murchison Gold Portfolio Murchison Area, Western Australia Burnakura has a 260 thousand tonnes per annum gold processing plant, mine camp and all infrastructure. Located 765km Northeast of Perth. Contains 258.7km2 land area. Mengapur Copper & Iron Portfolio Pahang State, Malaysia Mengapur has a partially refurbished 1,000 tonnes per day copper flotation and iron magnetite recovery pilot plant and associated infrastructure. Located 130km Southeast from Selinsing Gold Mine. Contains 9.35km2 land area. 05 CORPORATE PROFILE 2019 BY THE NUMBERS 3 Number of Projects 418.35km2 Property Portfolio 12 Years in Operation 297,868 ounces Total Gold Produced to Date $398.9 million Total Revenue to Date 199 Number of People Worldwide CORPORATE PROFILE 06 2019 MARKET PERFORMANCE QUARTERLY AVERAGE GOLD PRICE Capital Structure (as of June 30, 2019) Shares Outstanding: 325,371,565 RSUs: Fully Diluted: Share Price: 19,443,665 343,695,029 $0.05 52 Week High/Low: $0.08/$0.04 Market Capitalization: $16.2 M FISCAL 2019 STOCK CLOSING PRICE (CDN) FISCAL 2019 TRADING VOLUMES 07 MARKET PERFORMANCE OPERATING HIGHLIGHTS Key Performance Indicators 2019 ACCUMULATIVE GOLD PRODUCTION CASH COST PER OUNCE Project to Date 297.9M Oz Project to Date $484/Oz Capital Expenditures OPERATING HIGHLIGHTS 08 2019 FINANCIAL HIGHLIGHTS Monument’s completed economic and technical studies at the project portfolios, while current operations continued gold production at the Selinsing gold plant in transition from oxide ore production to sulphide ore production. Gold sales generated $20.99 million for fiscal 2019 comprised of 16,505oz of gold sold at an average realized gold price of $1,260 per ounce. Total production costs were $11.77 million during the year. Gold production generated a mining operating profit of $4.78 million before non-cash amortization and accretion and corporate expenses were $1.88 million. Net loss for the year was $0.50 million, or $0.00 per share (basic). The Company’s cash and cash equivalents, including the restricted cash balance, as at June 30, 2019 was $9.34 million down from $15.01 million held on June 30, 2018. During the year, cash investment in exploration and evaluation activities were $1.02 million at Selinsing, $1.60 million at Murchison, and $0.31 million at Mengapur. Working capital was $24.52 million at June 30, 2019, a decrease of $2.58 million compared to the prior year. 09 FINANCIAL HIGHLIGHTS The quarterly financial results of the Company are outlined for the past eight quarters. The financial results of the Company reflect its income from gold mining operations, on-going corporate business development, administrative costs and other income or expenses. 2019 FINANCIAL HIGHLIGHTS 10 2019 SELINSING GOLD MINE The Selinsing Gold Portfolio is located in Pahang State, Malaysia and includes Selinsing Gold property, Buffalo Reef property, Felda Land, and Famehub properties. The Buffalo Reef property lies along strike to the north of the Selinsing Gold property. Felda Land and Famehub properties are located east and north of Selinsing and Buffalo Reef properties. The one million tonne per annum (“tpa”) gold processing plant is located on the Selinsing site and is easily accessible by all of its owned properties. GOLD PRODUCTION The Selinsing gold processing plant, since opening, has total gold production from October 2009 through June 30, 2019 of 297,868 ounces, average cash cost per ounce of $484, ore processed of 7,566,699 tonnes, gross revenues of $398.9 million, with 4.77 Mt ore mined at an average grade 1.56 g/t, and recovery rate of 79.5%. The Selinsing mine is transitioning and aims to convert the oxide gold treatment plant to a sulphide gold treatment plant. The plant upgrade revealed in the Feasibility Study (January 2019) will require capital of $53 million and provides a $28 million NPV and 49% rate of return at $1,300/oz gold price, with approximately 6 years life of mine without further ore discovery. Gold production for fiscal 2019 was 15,763 ounces compared to 22,854 ounces in the previous year. The cash cost was $713 per ounce compared to $753 per ounce in the previous year. The average head grade was 0.80g/t from 1.03g/t in the previous fiscal year, and the mill feed was 934,843 tonnes from 891,936 tonnes in the previous year as production processed stockpiled super low grade oxide ore, old tailing materials and ore from production at Selinsing Pit 5/6 and Buffalo Reef in transition toward treating sulphide ore. Ore mined was 166,940 tonnes compared to 298,875 tonnes for the previous fiscal year. Process recovery rate was 69.5% compared to 72% in the previous year. 2019 11 SELINSING GOLD MINE 480000.000000 478000.000000 476000.000000 474000.000000 472000.000000 4 2 0 0 0 0 0 0 0 0 0 0 . 4 2 2 0 0 0 0 0 0 0 0 0 . 4 2 4 0 0 0 0 0 0 0 0 0 . 8 Peranggih Peranggih 2019 ¯ 4 2 6 0 0 0 0 0 0 0 0 0 . “The Aim for fiscal 2020 is Funding and Commencement of Construction for the Selinsing Gold Sulphide Project.” Telom Mine Buffalo Reef North Buffalo Reef Central Buffalo Reef South Rubber Hill Prospect Block 1 Prospect North Medang Ridge Selinsing Mine Ular - Seluar Prospect 5 7 4 2 1 6 3 470000.000000 0 0.5 1 2 Kilometers Tenement Map Acid Intrusive Intermediate Intrusive Basic Intrusive Permian Argillite Devonian Metasediment Permian Limestone Permian Volcanic Silurian Metasediment Triassic Sediment Tenement Road 157 , Ja lan Bukit Biu s,272 00 Ku al a Lip is,Pa han g Da rul Ma kmur Tel : 6 09 – 3 31 388 8 Fa x : 60 9 – 33 139 99 Under Application Tenement No. 1 2 3 4 5 6 7 8 Name Mining Lease Selinsing Mine Mining Lease Selinsing Mine Mining Lease Dry Dump Area Buffalo Reef Mining Lease Buffalo Reef North Mining Lease Mining Lease Tailing Dam Area Mining Lease Felda Block 7 License Tenement Type Area (Ha) ML5/2000 34.93 Ha MC1/124 40.56 Ha ML7/2011 89.19 Ha 43.62 Ha MC 1/111 155.73 Ha ML12/2012 187.90 Ha ML11/2009 PML 1-10/17 21.14 Ha Location Kuala Lipis Kuala Lipis Kuala Lipis Kuala Lipis Kuala Lipis Kuala Lipis Kuala Lipis Owner Able Return (100%) PKNP (SMSB/SGMM) (100%) PKNP (DAMAR) (100%) PKNP (DAMAR) (100%) PKNP (DAMAR) (100%) PKNP (DAMAR) (100%) Able Return (100%) SELINSING GOLD MINE 12 Peranggih Mining Lease 109.86 Ha ML2/2019 Kuala Lipis PKNP (DAMAR) (100%) 2019 MINERAL RESERVES AND RESOURCES The Company’s Feasibility Study (“FS”) reported Resources and Reserves at Selinsing, Buffalo Reef and Felda as seen in the following Table 1 and Table 2, which were prepared by Snowden Mining Industry Consultants Pty Ltd (“Snowden”) in a NI43-101 Technical Report “Selinsing Gold Sulphide Project”, filed on Sedar February 1, 2019 at www.sedar.com. 13 SELINSING GOLD MINE 2019 DEVELOPMENT The Selinsing Gold Mine is in a transition period as it moves from oxide gold production to sulphide gold production and is focused on the preparation to convert the current plant to one with a sulphide treatment circuit. In February 2019, the Company released the Feasibility Study for the Selinsing Gold Sulphide Project, which demonstrated that the BIOX® sulphide treatment technology is the preferred processing method to achieve the best economics for the project. The Feasibility Study has proven a six- year life of mine (LOM) with an NPV of $27.56 million based on reported oxide and sulphide ore reserves. Over the six-year LOM, a total 5.7 million tonnes of ore would be treated at an average grade of 1.45g/t for 223koz at a cost of $863.67 per ounce. At a gold price of $1,300 per ounce, the Selinsing Gold Mine Project would generate net cash flow after tax of $97.00 million from operations, or $45.00 million net of capital expenditure. With the gold price now higher than $1,500 per ounce, the Feasibility Study economics has been improved and provides the green light to obtain project financing. The Feasibility Study also highlighted the opportunity to include Inferred Resources. The Inferred Mineral Resource inside the Reserve open pit designs potentially contains an additional 20 koz of gold. The Inferred Mineral Resource external to the open pit design contains 130 koz of gold. Further exploration programs may be initiated to target the conversion of Inferred Mineral Resources to Indicated Mineral Resources. Monument’s preparation for Sulphide Gold Production continues, including documentation, procurement, and Bioleaching training through a pilot plant. Conversion of the existing Intec pilot plant to use as the bioleach test facility was initiated with equipment specifications prepared for the crusher, ball mill, pumps, cyclone, rougher and cleaner flotation cells, and reagent mixing and dosing pumps. Successful bioleach tests were conducted as training exercises for metallurgists and technicians to have better understanding of how the bioleach process works and essential parameters to be monitored. The project team is also working to optimize costs including expected maintenance and reagent consumptions to lower operating cost estimates and source local equipment to lower capital cost estimates. Construction of the latest raise of the tailings’ storage facility was completed in September 2019, subsequent to the year end, to an elevation of 533.3m RL and design is underway for a further raise to 540m RL. EXPLORATION At Selinsing, the long-term exploration potential is to further discover sulphide resources to optimize the economic results of the sulphide project and increase the life of mine, and the short-term exploration programs aim to locate more oxide and leachable sulphide ore for mill feed. A diamond drilling program was completed at Selinsing Pit 4 to potentially locate more oxide and leachable sulphide ore. The results, announced subsequent to the year end, from 11 infill holes at the southwestern corner of Pit 4 confirmed the continuity of the high-grade mineralized structure within a 60m corridor along the strike length. A regional soil sampling program is targeting strategic development areas surrounding the Selinsing Gold Mine, aimed to test regional resource potential. The current target areas have been selected for sampling and assaying including additional sections at Peranggih and Panau. A total 947 soil samples were collected during the regional sampling program completed during fiscal 2019. The assay results are still pending and could lead to identifying further regional drilling targets. Road work to access the Peranggih Prospect has commenced, subsequent to year end, to prepare for a trial mining program to begin in October 2019. Depending on the outcome of the program, a follow-up exploration program may be designed to test additional areas within the district. SELINSING GOLD MINE 14 2019 MURCHISON GOLD PROJECT The Murchison Gold Project includes the Burnakura, Gabanintha and Tuckanarra properties, which are all located in the Murchison Mineral Field in Western Australia. The Murchison properties have multiple open pit and underground opportunities. Monument has been systematically performing the necessary work to validate the historical resources and discover new resources to continue updating the current resources under NI43-101 guidelines. At the Burnakura site there is a fully operational 260KTPA gold processing plant, 118 man mine camp, and all necessary infrastructure. “The updated NI43-101 Resource Estimation Report and the geological studies are preparing the Company for the next phase of exploration.” 15 MURCHISON GOLD PROJECT 2019 DEVELOPMENT The mineral resource estimation at Burnakura Gold Project was updated in July 2018 and a further internal economic assessment was completed in October 2018. Based on this assessment, the planned gold production was postponed to allow for more focus on surface and deep drilling programs to potentially increase gold resources for a better return on investment and to reduce operation risks. The development focus in fiscal 2019 has been on the identification of geological host structures suitable for target drilling with a view to increase gold inventories. Geological data compilation was completed for Burnakura and Gabanintha during the year and a drilling program is planned to commence in fiscal 2020 with both near surface and deep targets. 6 0 0 0 0 0 . 0 0 0 0 0 0 6 1 0 0 0 0 . 0 0 0 0 0 0 6 2 0 0 0 0 . 0 0 0 0 0 0 6 3 0 0 0 0 . 0 0 0 0 0 0 6 4 0 0 0 0 . 0 0 0 0 0 0 6 5 0 0 0 0 . 0 0 0 0 0 0 6 6 0 0 0 0 . 0 0 0 0 0 0 6 7 0 0 0 0 . 0 0 0 0 0 0 40 KM to Meekatharra Gabanintha Burnakura 7023000 .000000 7014000 .000000 Tuckanarra .000000 N orthern Great High w ay 7005000 ¯ ¯ 6996000 .000000 Project Location Main Office .000000 6987000 2.5 0 5 10 15 20 Kilometers Murchison Tenement Map 157, Jalan Bukit Bius,27200 Kuala Lipis,Pahang Darul Makmur Tel : 609 – 3313888 Fax : 609 – 3313999 Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community Exploration License Northern Great Highway Mining Lease Prospecting License MURCHISON GOLD PROJECT 16 2019 EXPLORATION IIn fiscal 2019, exploration at Murchison focused on developing regional discovery strategies to extend the current Mineral Resources reported in the July 2018 NI43-101 Resource Estimation Report. Understanding and honouring geological controls within the modelling phase has been a key step to de-risking the Mineral Resource. The updated Mineral Resource provides a solid foundation for the ongoing PEA study, which is being undertaken to support a production plan at the Murchison Gold Project. A compilation of historical records was completed for Burnakura and Gabanintha during the fiscal year to complete the database with all the available geological records to guide targeted exploration. The Company has now developed an exploration strategy to prepare exploration programs to test regional targets such as NOA 9, and deep underground potential targets at ANA, NOA 1, NOA 2, and NOA 7/8 areas. Subsequent to year end, the Company completed a 3D structural geological study at Murchison which confirmed near mine down-plunge potential and highlighted the regional prospectivity at Murchison. The study was comprised of a 3D survey, data analysis, 3D modeling, reporting and supports deep drilling target generation for a drilling program for both near surface and deep targets. 17 MURCHISON GOLD PROJECT MINERAL RESOURCES The Company reported Mineral Resources at Burnakura as seen in the table below, prepared by SRK Consulting (Australasia) Pty Ltd in a NI 43-101 Technical Report-(Updated Mineral Resources, Burnakura Gold Project), filed on Sedar July 18 2018 at www.sedar.com. 2019 (1) Small discrepancies may occur due to rounding. (2) All Mineral Resources have been reported on a dry tonnage basis. (3) SRK is unaware of any issues that materially affect the Mineral Resources in a detrimental sense. (4) Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. (5) Mineral Resources estimated by David Slater (Principal Consultant, SRK), QP. (6) *Open pit Resources (NOA1-6, ANA, Authaal, Federal City) are constrained in a Lerchs Grossman pit shell, **Underground Resources (NOA7-8) are constrained to >3g/t and 200m vertical depth MURCHISON GOLD PROJECT 18 2019 MENGAPUR COPPER & IRON PROJECT The Mengapur Copper & Iron Project is a large scale project in the Company’s pipeline, located 130kms southeast from Selinsing Gold Mine, includes a 9.35 km2 land area, and all infrastructure. It was historically owned by Malaysian Mining Corporation who defined the historic Polymetallic Resources in a full bankable feasibility study. DEVELOPMENT Mengapur is 100% owned by Monument and was acquired in 2012. There has been 112,000m drilled at Mengapur to date which includes 53,000m by Monument to confirm historical resources, and 59,000m of historical drilling. Metallurgical testwork was also carried out with studying downstream products. Infrastructure works completed included: a pilot processing plant upgrade, camp development, and on-site laboratories. The Mengapur geological and resource modelling work resulted in a NI43-101 Mineral Resource Estimation Technical Report announced in October 2019. The Mineral Resource estimate incorporated the 112,000m of drilling and together with the metallurgical testwork in progress, will provide a foundation to further assess economics. As copper and iron ore prices become more attractive, the Company intends to carry out follow-up work to assess the opportunity for copper production. The Company intends to continue work to assess the opportunity for copper production and is seeking a funding partner. MINERAL RESOURCES Table 1 presents the August 2018 Mineral Resource estimate for the Mengapur project, reported above a 0.3% Cu cut-off grade. To establish the requirement for the grade, quantity and quality of the body of mineralization to have reasonable prospects of eventual economic extraction, a cut- off grade of 0.3% Cu represents an assumption of an open-pit mining approach with limited selectivity and is based on values used at other similar deposits, along with consideration of the continuity above the cut-off grade. 19 MENGAPUR COPPER & IRON PROJECT TABLE 1 2019 (1) Small discrepancies may occur due to rounding. (2) All Mineral Resources have been reported on a dry tonnage basis. (3) Snowden is unaware of any issues that materially affect the Mineral Resources in a detrimental sense. (4) Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. (5) Mineral Resources estimated by John Graindorge (Principal Consultant, Snowden), QP. (6) The majority of the interpreted mineralization is within 200m of the surface and as such considered by Snowden to be within the limits of extraction by open-pit mining. A sensitivity analysis reflecting a possible selective approach to eventual economic extraction at higher cut-off grade of 0.5% is in table 2 below: TABLE 2 (1) Small discrepancies may occur due to rounding. (2) All Mineral Resources have been reported on a dry tonnage basis. (3) Snowden is unaware of any issues that materially affect the Mineral Resources in a detrimental sense. (4) Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. (5) Mineral Resources estimated by John Graindorge (Principal Consultant, Snowden), QP. (6) The majority of the interpreted mineralization is within 200m of the surface and as such considered by Snowden to be within the limits of extraction by open-pit mining. MENGAPUR COPPER & IRON PROJECT 20 2019 SOCIAL RESPONSIBILITY Monument’s Operations in Malaysia and Australia continue to achieve and implement best practices for a safe work environment and responsible mining. Building on the experience gained in the last 12 years and operating in a sensitive tropical environment, we carefully designed and implemented the project to ensure long term sustainability of the operation and to preserve the environment for a future generation long after the mine is closed. Our health and safety program focuses on preventing workplace injuries, illnesses and death. We emphasize a proactive approach to manage safety risk, improve compliance with laws and regulations, and increase productivity and enhance overall business operations. We continue to strengthen our health and safety culture throughout the organization and during the year there were no fatal injuries with only minor work-related accidents. Our environmental program aims to minimize the environmental impact and is guided by a regulatory framework, an impact study, and a management plan. Moving toward guided self-regulation introduced by the Department of Environment, we have implemented environmental tools that include the training of relevant personnel to become certified environmental professionals in various fields such as: scrubber operation, waste management, industrial effluent system and certified erosion, and sediment and storm water inspector. This initiative is to further enhance our high level of compliance and commitment to environmentally sustainable development. Our community program is committed to pursuing and contributing to the social and economic development of the community by improving their quality of life. The mine continues to be a major economic contributor not only to the impact areas but also to the state of Pahang through employment, wages, and benefit, local procurement of good and services, and payment of various taxes and royalty as well as direct CSR contributions. Our positive engagement with all stakeholders has resulted in the mine having operated without interruption since it commenced operations in 2009 and is expected to do so for many years to come. Roger L. Stangler, B.Sc., MEng, FAusIMM, MAIG, retained by Golder Associates Pty Ltd.,has reviewed, prepared, supervised the preparation and approved the scientific and technical disclosure in the Annual Report as a Qualified Person under NI43-101 standards. Read in conjunction with Monument’s Fiscal 2019 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 SOCIAL RESPONSIBILITY CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS 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 or 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. 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. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. 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 Stock Listing Officers & Management TSX Venture Exchange, Symbol: MMY Robert Baldock, CA (M), FCPA, FIMC Executive Chairman Cathy Zhai, CPA-CGA, B.Sc. President & CEO Zaidi Harun, B.Sc. Vice President, Business Development Matthew Antill, BE (Mining) General Manager, Operations Charlie Northfield, B.Sc.(Hons), ACSM General Manager, Selinsing Gold Mine Neil Rauert, BE (Mining), MEngSc. ,FAusIMM(CP) Senior Project Manager, Technical Support Roger Stangler, B.Sc., MEng, FAusIMM, MAIG Chief Managing Geologist Kelvin Lee, BBA,CPA-CGA CFO, VP Finance and Administration Directors Robert Baldock Kuala Lipis, Malaysia Cathy Zhai Vancouver, British Columbia Zaidi Harun Kuala Lipis, Malaysia Graham Dickson Vancouver, British Columbia Michael John Kitney Perth, Australia 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 Frankfurt Stock Exchange, Symbol: D7Q1 Registrar and Transfer Agent Computershare Trust Company of Canada Vancouver, British Columbia Auditors 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 Managing Director, AXINO GmbH Fleischmannstrasse 15 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 VALUE BUILT F O R G R O W T H TSXV: MMY | FSE: D7 Q1 

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