Monument Mining Limited
Annual Report 2021

Plain-text annual report

Executing Value Creation ANNUAL REPORT ANNUAL REPORT 2 0 21 M O N U M E N T M I N I N G A N N U A L R E P O R T 00 CONTENTS O V E R V I E W T H E C H A I R M A N A N D LO C A T I O N S 2 0 2 2 O B J E C T I V E S P R E S I D E N T A N D C E O 01 2 0 2 1 H I G H L I G H T S 02 O U R B U S I N E S S 04 M E S S A G E F R O M 05 M E S S A G E F R O M T H E 06 M A R K E T 07 O P E R A T I N G 08 F I N A N C I A L 10 S E L I N S I N G 14 M U R C H I N S O N 19 S O C I A L 20 C O R P O R A T E R E S P O N S I B I L I T Y G O L D P R O J E C T I N F O R M A T I O N H I G H L I G H T S H I G H L I G H T S G O L D M I N E All figures in this annual report are in United States dollars unless otherwise noted. 01 2021 HIGHLIGHTS 2022 OBJECTIVES M O N U M E N T M I N I N G A N N U A L R E P O R T 2 0 21 OPERATING AND DEVELOPMENT SELINSING GOLD MINE • Developing the Sulphide Gold Project to treat sulphide ore and extend LOM by 6 years, including extensive testwork and engineering design to prepare for the flotation plant construction. • Exploration programs for extensional drilling on the existing mining areas to locate more oxide and leachable sulphide ore mill feed for processing plant. • Regional exploration including exploration work at Peranggih mineralization zones to provide additional feed material to oxide plant. MURCHISON GOLD PROJECT • Exploration drill results from the Burnakura and Gabanintha projects successfully identified down plunge extensions of existing high grade gold mineralization. • Commenced extensive exploration program at Murchison for further gold resource discovery. • Entered into a Joint Venture Arrangement to selling 80% of the Tuckanarra Gold Project for AUD $5 million cash subject to certain conditions, and retained a 1% NSR royalty over the 80% interest. MENGAPUR COPPER AND IRON PROJECT Spun-out 100% interest in Mengapur for $30m cash consideration, and retained a royalty of 1.25% of gross revenue on all the products produced at the Mengapur project, to focus on the company gold projects. PRODUCTION & FINANCIAL PERFORMANCE GOLD PRODUCTION: 10,282 oz. (2020: 17,360 oz.) PROJECT TO DATE: 325,509 oz. CASH COST: $1,178 per oz. (2020: $878 per oz) PROJECT TO DATE: $535 per oz. GROSS REVENUES: $23.27m (2020: $29.97m) PROJECT TO DATE: $452.1m SELINSING GOLD MINE Convert the current oxide plant to a sulphide plant in two phases: flotation plant and Biox® plant; and place the flotation plant into gold concentrate production. MURCHISON GOLD PROJECT Delineate additional new gold resources from current two-year exploration program at Burnakura and Gabanintha. Establish Murchison as a cornerstone gold development project. IMPLEMENT LONG-TERM GROWTH STRATEGY Value creation through an acquisition to build a larger gold production profile. 2 0 21 M O N U M E N T M I N I N G A N N U A L R E P O R T 02 OUR BUSINESS AND LOCATIONS Corporate Office Vancouver Monument Mining Limited is an established Canadian gold producer and mining asset developer with an experienced management team that has a successful track record of developing and operating mining assets. The Company owns and operates the Selinsing Gold Mine in Malaysia. The Selinsing Gold Mine is comprised of the Selinsing, Buffalo Reef, Felda Land and Famehub properties in Pahang State, Malaysia. Monument also owns the Murchison Gold Projects comprising Burnakura, Gabanintha and Tuckanarra (20% ownership) in the Murchison region of Western Australia. Monument’s value creation strategy is to build the Company into a long-term, sustainable, multi-project producer by investing our gold portfolio to increase mineral reserves and resources and build up the production profile of the Company. Monument maintains high standards in operations excellent, health, safety, environment and community development for all stakeholders. 2 CURRENT PROJECTS 14 YEARS IN OPERATION 200 COMMITTED PEOPLE 380.5km2 PROPERTY PORTFOLIO M O N U M E N T M I N I N G A N N U A L R E P O R T 2 0 21 SELINSING GOLD MINE Pahang State, Malaysia ABOUT Open pit gold mine with a one million tonnes per annum gold processing plant. (Project to date production 325,509 oz.) LOCATION 160km North of Kuala Lumpur LAND AREA 150.3km2 MURCHISON GOLD PROJECT Murchison Area, Western Australia ABOUT Historical open pit gold mine with 260 thousand tonnes per annum gold processing plant (on care and maintenance), with full mining camp and infrastructure. Exploring to increase the mineral reserves and mineral resources to establish as a cornerstone gold project. LOCATION 765km Northeast of Perth LAND AREA 230.2km2 Regional Office Perth 325,509OZ. TOTAL GOLD PRODUCED TO DATE $452.1M $535 8.82M TONNES TOTAL REVENUE TO DATE TOTAL CASH COSTS PER OZ TO DATE ORE PROCESSED TO DATE 2 0 21 M O N U M E N T M I N I N G A N N U A L R E P O R T 04 MESSAGE FROM THE CHAIRMAN GRAHAM DICKSON When I was appointed Chairman of Monument’s Board of Directors in February 2021, the world was in the middle of this unprecedented demanding time with the challenges of the Covid- 19 global pandemic which has entirely changed the way we work and live. Vaccines are being distributed around the world and countries enacting stimulus plans to support weakened economies. Monument’s board has put the health and well-being of our employees and our communities to the forefront. We are navigating the pandemic together and working to manage risk in all parts of the operations to keep our business strong. I was extremely honored to be the successor to Robert Baldock. Mr. Baldock created a strong legacy for Monument and the board has always been aligned with his philosophy to build value through growth in the Company’s mineral property portfolio. I will diligently progress this culture, and we will be doing everything within our capacity to advance our value creation strategies, continue to strengthen the Company’s gold resource base, and protect shareholder equity. Over the past year, the Monument management team and employees have tirelessly worked together for the safety of our people and to successfully execute the business objectives. I want to offer my genuine appreciation to all Monument employees, who have displayed incredible stability, inner strength and understanding in response to the Covid-19 pandemic and the obstacles we faced together. measured, indicated and inferred resources to build out an early-stage production story for the already permitted plant and infrastructure. In fiscal 2021, the board wholeheartedly supported the corporate development strategies by management. The Company has streamlined operations by spinning out the Mengapur base metals project in Malaysia, and sold an 80% interest in the Tuckanarra gold property in Western Australia. The strengthened cash reserves allows us to fund the Selinsing Flotation Plant expansion and exploration of Murchison to support and implement the corporate strategy The first value creation strategy is to advance the Selinsing Sulphide Project into production through a two stage de-risking process. The first stage is the construction of a flotation plant to produce gold concentrates, and the cash generated from these sales will be used as construction funding for stage 2; the BIOX® plant. Over the past 14 years Selinsing has been the flagship project, with a dedicated operations team, and has an additional six-year life of mine for the sulphide project. The second value creation strategy is to develop the Murchison Gold Project into a cornerstone asset though a two- year exploration program to potentially delineate additional ounces to increase the existing 381koz NI 43-101 compliant The third value creation strategy is to seek suitable gold asset acquisition targets to move Monument to a larger gold producer in order to build better market value for shareholders. Each one of these value creation strategies can provide an increase in the Company’s asset value and provides potential catalysts for re-rating the share price going forward into fiscal 2022 and beyond for our shareholders. Monument is open to all opportunities to optimize our future growth. Our Board is working hard to ensure that the Company’s successful track record continues and this year demonstrates we have the right team to conquer all the challenges the future may hold for our employees, communities and shareholders. Sincerely, Graham DIckson Chairman 4 05 MESSAGE FROM THE PRESIDENT & CEO CATHY ZHAI In spite of the challenges of the Covid- 19 pandemic on the world’s economy and its citizens, Monument and its people have responded quickly and effectively to safeguard our employees and support our communities as a top priority, and minimize production risk. By spinning out 100% of the Mengapur base metal project and 80% of the Tuckanarra property, we have made a breakthrough achievement in fiscal 2021: restructured our mineral portfolio with gold focus and liberated cash to support our ongoing corporate and gold projects. As of June 30, 2021, we established a solid financial position with over $38.62 million in cash and cash equivalents on hand; this increased liquidity improves the company’s credit profile and financial strength. Moving forward, we have laid the groundwork in the last quarter for the Company’s value creation strategies to build incremental gold resources and reserves, and increase the production profile through exploration, the plant expansion and disciplined acquisitions. The market reflects this increased value with a higher share price to benefit our shareholders comparing to the beginning of the year. A journey of a thousand miles starts beneath one’s feet. The Company is focused on implementing its three pronged development objectives: to establish the Murchison Gold Project as a cornerstone gold development project; to place the Selinsing sulphide project into production by implementing a two-stage approach; and to build the production profile through additional targeted acquisitions or other transactions in the gold sector. The corporate and projects development shall be reviewed from time to time accordingly upon changes in market conditions. Selinsing Gold Mine produced 10,282 ounces of gold in 2021 from mining super-low grade ore, leachable sulphide ore and Peranggih materials for gross revenue of $23.24 million, a gross margin of $8.10 million and net cash from production of $4.81 million. This has brought our aggregated Selinsing Gold Mine production to 325,509 ounces at an average cost of $535 per ounce with gross revenue of $452.1 million, gross margin of $279.3 million and net cash from production of $275.0 million. Our corporate philosophy is “Can Do” and “Doer”. We are proud of our management and employees that their commitment and determination have continuously been winning the battle against Covid interruption of the operations, the transition to sulphide gold production from oxide production and so on. Development work at Selinsing prioritized flotation plant construction with both internal and external flotation testwork taking place, which has validated the design parameters to deliver marketable gold concentrates for sale in June 2021. Detailed engineering work and procurement are underway for construction. During 2021 we have increased drilling expenditures at Selinsing pits and Peranggih south and central to locate more economic oxide and leachable sulphide materials, expecting to sustain production to bridge the transition period. Peranggih production has made a noticeable contribution to revenue. The Murchison Project refocused on optimizing regional exploration targets and assessing the opportunity for early production to turn Murchison into a cornerstone project. The decision has been made to hold off early stage production based on the economic re-assessment completed during 2021 which has been extensively reviewed by SRK and from geological interpretation work. The Company announced a 2 year exploration program in the fourth quarter, aiming to add significant additional resources to the current resource base. The strategy involves testing the high priority regional targets through Greenfield exploration at Burnakura and Gabanintha to discover shallow stand alone or satellite gold deposits, as well as testing down dip of high-grade mineralization underneath existing pits. In July 2021, subsequent to the year end, phase one drilling commenced in field. We will monitor the drilling programs very closely and announce our drill results as practical as possible to the market. Looking ahead to fiscal 2022, we will stay focused and persistent, and we will be open minded and be creative. I would like to take this opportunity to thank and acknowledge our employees and business partners for their alertness, teamwork, and strength they have shown during this very difficult year. And thank you to all our shareholders and stakeholders, and may everyone stay safe in 2022. Together we shall face the challenges of the Covid pandemic, uniting us as we continue on our successful path to advance our value creation strategies forward into the future. Sincerely, Cathy Zhai President & CEO 2 0 21 M O N U M E N T M I N I N G A N N U A L R E P O R T 06 MARKET OVERVIEW Capital Structure As of June 30, 2021 SHARES OUTSTANDING: 325,971,563 SHARE PRICE: $0.14 RSUs: 14,523,466 52 WEEK HIGH/LOW: $0.21/$0.07 FULLY DILUTED: 340,495,029 MARKET CAPITALIZATION: $45.64 M In fiscal 2021 the gold price has had moderate volatility and remained relatively unchanged from a year ago. There have been geopolitical uncertainties that have affected gold’s short-term volatility, and as well world economies continue to use stimulus packages and the printing of money to revive their financial systems as a result of the Covid-19 pandemic’s negative effects on financial economies. The continuation of these global trends into 2022 is the underpinning for a potentially stronger gold price. Quarterly Average Gold Price London Fix PM Monument Realised z O / $ S U 2,000 1,900 1,800 1,700 1,600 1,500 1,400 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Fiscal 2020 Fiscal 2021 Fiscal 2021 Trading Volumes TSK Volume FSE Volume Fiscal 2021 Stock Closing Price (CDN) Closing Price TSX Closing Price FSE 8m 7m 6m 5m 4m 3m 2m 1m 0 0 2 l u J 0 2 g u A 0 2 t p e S 0 2 t c O 0 2 v o N 0 2 c e D 1 2 n a J 1 2 b e F 1 2 r a M 1 2 r p A 1 2 y a M 1 2 n u J 0.20 0.18 0.16 0.14 0.12 0.10 0.08 0.06 0.04 0.02 0.00 0 2 l u J 0 2 g u A 0 2 t p e S 0 2 t c O 0 2 v o N 0 2 c e D 1 2 n a J 1 2 b e F 1 2 r a M 1 2 r p A 1 2 y a M 1 2 n u J Fiscal Year Fiscal Year 07 OPERATING HIGHLIGHTS M O N U M E N T M I N I N G A N N U A L R E P O R T 2 0 21 Key Performance Indicators Ore Mined (Tonnes) Ore Processed (Tonnes) Average Head Grade (G/T) Processing Recovery Rate (%) Gold Production (Ounces) Gold Sold (Ounces) Revenue (USD$ 000s) Cash Cost Per Ounce (USD$/oz) FISCAL 2020 FISCAL 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 46,797 88,255 85,691 234,030 215,304 157,413 0.99 71.4% 4,852 4,323 6,343 855 0.98 65.8% 4,827 4,473 6,606 903 1.49 76.2% 5,370 7,323 11,618 893 42,331 68,961 1.06 67.2% 2,311 3,282 5,404 839 81,576 112,073 161,805 166,432 152,836 165,361 0.98 63.6% 3,504 3,100 5,919 922 0.89 58.4% 2,963 3,754 6,835 1,103 0.72 57.6% 1,977 2,523 4,397 1,315 72,074 94,940 0.72 64.3% 1,838 3,473 6,085 1,386 Accumulative Gold Production Project-to-date: 325.5koz Total Production - Prior Period Production Total production ) z O ( n o i t c u d o r P 350k 300k 250k 200k 150k 100k 50k 0 2 1 0 2 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 8 1 0 2 9 1 0 2 0 2 0 2 1 2 0 2 1200 1100 1000 900 800 700 600 500 400 300 200 100 0 z O r e P t s o C h s a C Cash Cost Per Ounce Project-to-date: $535/oz Cash costs per oz Project-to-date avg cash costs per oz 2 1 0 2 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 8 1 0 2 9 1 0 2 0 2 0 2 1 2 0 2 Fiscal Years Fiscal Years Capital Expenditures GOLD PORTFOLIO Selinsing Murchison Previous Fiscal Years Acquisition in Cash Buildings, Plant & Equipment Mine Development Exploration Total Fiscal 2021 Buildings, Plant & Equipment Mine Development Exploration Sale of 80% interest in Tuckanarra project Total Total Acquisition in Cash Buildings, Plant & Equipment Mine Development Exploration Total 17,234 35,399 20,942 31,924 105,439 1,226 2,389 272 - 3,887 17,234 36,565 23,331 32,196 109,326 17,035 1,854 1,577 15,132 35,598 37 125 979 (2,664) (1,523) 14,749 1,891 1,702 15,733 34,075 2 0 21 M O N U M E N T M I N I N G A N N U A L R E P O R T 08 FINANCIAL HIGHLIGHTS Monument sustained gold production operations at the Selinsing gold plant, while development work continued toward the transition from oxide ore production to sulphide ore production. Gold sales generated $23.24 million for fiscal 2021 comprised of 12,850oz of gold sold at an average realized gold price of $1,864 per ounce. Total production costs were $15.13 million during the year. Gold production generated a mining operating profit of $8.10 million before non-cash amortization and accretion and operation expenses, and corporate expenses were $1.87 million. Net loss for the year was ($99.32) million, or $0.31 per share (basic). The Company’s cash and cash equivalents, including the restricted cash balance, as at June 30, 2021 was $38.62 million up from $10.13 million held on June 30, 2020. During the year, cash investment in exploration and evaluation activities were $0.29 million at Selinsing, $1.15 million at Murchison, and $0.11 million at Mengapur. Working capital was $48.54 million at June 30, 2021, an increase of $29.75 million compared to the prior year. SELECTED ANNUAL INFORMATION Balance Sheet (in thousands of USD) Current assets Non-current assets Total assets Current liabilities Non-current liabilities Equity attributable to shareholders Total liabilities and shareholders' equity Working capital (including restricted cash) JUNE 30, 2021 JUNE 30, 2020 JUNE 30, 2019 JUNE 30, 2018 JUNE 30, 2017 $ 54,522 87,254 141,776 5,983 8,915 126,878 141,776 48,539 $ 25,121 222,458 247,579 6,335 14,823 226,421 247,579 18,786 $ 31,497 219,781 251,278 6,978 17,610 226,690 251,278 24,519 $ 33,935 220,350 254,285 6,831 19,710 227,744 254,285 27,104 $ 29,419 220,383 249,802 4,970 12,773 232,059 249,802 24,449 Income Statement (in thousands of USD) YEAR ENDED JUNE 30, 2021 YEAR ENDED JUNE 30, 2020 YEAR ENDED JUNE 30, 2019 YEAR ENDED JUNE 30, 2018 YEAR ENDED JUNE 30, 2017 Revenue Production costs Gross margin from mining operations Operation expenses Accretion, depletion and amortization Corporate expenses Loss from other items Income tax recovery/(expense) Net loss Loss per share (basic) Loss per share (diluted) $ 23,236 (15,133) 8,103 (593) (3,943) (1,871) (99,734) (1,280) (99,318) $(0.31) $(0.31) $ 29,971 (17,027) 12,944 (770) (5,691) (1,974) (1,955) (2,829) (275) $(0.00) $(0.00) $ 20,993 (11,772) 9,221 - (4,436) (1,884) (2,354) (1,046) (499) $(0.00) $(0.00) $ 19,250 (11,103) 8,147 - (4,669) (4,527) (3,242) (458) (4,749) $(0.02) $(0.02) $ 15,719 (11,990) 3,729 - (4,671) (4,347) (2,131) 215 (7,205) $(0.02) $(0.02) $23.24M GOLD SALES $8.10M OPERATING PROFIT $48.54M WORKING CAPITAL M O N U M E N T M I N I N G A N N U A L R E P O R T 2 0 21 The quarterly financial results of the Company are outlined for the past eight quarters. The financial results of the Company reflect its income from gold mining operations, on-going corporate business development, administrative costs and other income or expenses. Revenue In Millions Production Costs In Millions 30 23 21 19 8 1 0 2 9 1 0 2 0 2 0 2 1 2 0 2 Gross Margin In Millions 13 9 8 8 30 20 10 0 15 10 5 0 17 15 15 12 10 11 5 0 50k 40k 30k 20k 10k 0 8 1 0 2 9 1 0 2 0 2 0 2 1 2 0 2 Working Capital In Millions 9 3 5 , 8 4 4 0 1 , 7 2 9 1 5 , 4 2 6 8 7 , 8 1 8 1 0 2 9 1 0 2 0 2 0 2 1 2 0 2 8 1 0 2 9 1 0 2 0 2 0 2 1 2 0 2 Note: The weighted average gold price excluded gold prepaid delivery during the period. FISCAL 2020 FISCAL 2021 Revenues (000’s) Weighted average gold price: London Fix PM (per ounce) Monument realized (per ounce) Net earnings (loss) before other items and tax (000’s) 745 Earnings (loss) per share before other items and tax: Q1 ($) Q2 ($) Q3 ($) Q4 ($) Q1 ($) Q2 ($) Q3 ($) Q4 ($) 6,343 6,606 11,618 5,404 5,919 6,835 4,397 6,085 1,477 1,475 1,485 1,485 757 1,609 1,602 2,303 1,688 1,684 704 1,907 1,909 1,943 1,890 1,889 1,159 1,837 1,830 1,811 1,807 (396) (1,009) Basic Diluted Net earnings (loss) after other items and tax (000’s) Earnings (loss) per share: Basic Diluted 0.00 0.00 208 0.00 0.00 0.00 0.00 0.01 0.01 0.00 0.00 (1,076) 1,866 (1,273) (0.00) (0.00) 0.01 0.01 (0.00) (0.00) 0.01 0.01 138 0.00 0.00 0.00 0.00 (0.00) (0.00) (0.00) (0.00) (649) (96,104) (2,702) (0.00) (0.00) (0.30) (0.30) (0.01) (0.01) 2 0 21 M O N U M E N T M I N I N G A N N U A L R E P O R T 10 SELINSING GOLD MINE The Selinsing Gold Mine 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 to the north of the Selinsing Gold property. Felda Land and Famehub properties are located east and north of Selinsing and Buffalo Reef properties. A 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. M I N I N G O P E R A T I O N S A T S E L I N S I N G G O L D M I N E 10,282 OZ. 2021 GOLD PRODUCTION $1,178 /OZ. CASH COST $1,864 /OZ. AVERAGE ANNUAL GOLD PRICE REALIZED M O N U M E N T M I N I N G A N N U A L R E P O R T 2 0 21 GOLD PRODUCTION EXPLORATION The Selinsing Gold Mine produced 10,282 ounces in fiscal 2021 compared to 17,360 ounces in the previous year. The cash cost was $1,178 per ounce compared to $878 per ounce in the previous year. The average head grade was 0.84g/t Au from 1.11g/t Au in the previous fiscal year, and the mill feed was 579,569 tonnes down from 675,708 tonnes in the previous year mainly from transitional leachable sulphide ore from Selinsing pits blended with Peranggih oxide material, and old tailing materials. Ore mined was 427,528 tonnes compared to 263,074 tonnes for the previous fiscal year. Process recovery rate was 60.8% compared to 70.9% in the previous year. The Selinsing oxide materials are running to the end of the life cycle. The new life of mine production will be commencing upon completion of the flotation plant to supply marketable sulphide gold concentrates. 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 4 2 6 0 0 0. 0 0 0 0 0 0 ¯ 480000 .000000 478000 .000000 476000 .000000 474000 .000000 472000 .000000 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 Basic Intrusive Intermediate Intrusive Permian Argillite Under Application Tenement Devonian Metasediment Permian Limestone Permian Volcanic Silurian Metasediment Triassic Sediment Tenement Road No. 1 2 3 4 5 6 7 Name Tenement Type Area (Ha) Mining Lease 34.93 Ha Mining Lease 40.56 Ha Mining Lease 89.19 Ha Mining Lease 43.62 Ha License ML5/2000 Selinsing Mine MC1/124 Selinsing Mine ML7/2011 Dry Dump Area Buffalo Reef MC 1/111 Buffalo Reef North Mining Lease 155.73 Ha ML12/2012 Mining Lease 187.90 Ha ML11/2009 Tailing Dam Area PML 1-10/17 Mining Lease 21.14 Ha Felda Block 7 Location Owner Kuala Lipis Able Return (100%) Kuala Lipis Kuala Lipis Kuala Lipis Kuala Lipis Kuala Lipis Kuala Lipis Able Return (100%) PKNP (SMSB/SGMM) (100%) PKNP (DAMAR) (100%) PKNP (DAMAR) (100%) PKNP (DAMAR) (100%) PKNP (DAMAR) (100%) At the Selinsing Gold Mine the short-term exploration is focused on existing mine areas, such as Selinsing, Buffalo Reef South (BRS), BRC, and Buffalo Reef North (“BRN”), to locate more oxide and leachable sulphide ore through extensional drilling to increase mill feed for the current gold plant configuration. Opportunities for infill and extension drilling have also been verified on and around Selinsing Pits, particularly Pit 5 and Pit 6, aiming to intercept oxide shallow high-grade mineralization. A RC drilling program was completed at Selinsing which consisted of 1,128m over 19 holes at Pits 4, 5, and 6. A total of 1,335 samples including 225 QAQC samples were assayed. The drill program aimed to identify and define mineralization areas with average grades that can be immediately mined economically in the current CIL plant. The main drilling target was the shallow dipping structure extension close to the east flank of the pits. The drilling program resulted with several significant intercepts. “The strategy at Selinsing is to place the Sulphide Project into production by implementing a two-stage approach and deliver flotation production in the second quarter of 2022.” A RC drill program was undertaken at Peranggih to upgrade the grade and ounce of mineralized material from grade control drilling. The program consists of two phases with the first phase completed in April 2021 with 1,697m drilled over 34 holes. The second phase drilling was interrupted by the mine closure and nationwide lockdown due to rising Covid-19 cases, with 420m over 9 holes completed and still in progress at yearend. Drill assays received from the Selinsing Mine lab showed moderate to high grade interceptions. 2 0 21 M O N U M E N T M I N I N G A N N U A L R E P O R T 12 SELINSING GOLD MINE CONT. DEVELOPMENT The Selinsing Gold Mine continues to mine oxide and transition ore as preparation work is progressing for the transition from oxide gold production to sulphide gold production and to convert the current plant to one with a sulphide treatment circuit. Flotation plant construction has been prioritized as the first phase of the sulphide gold production. Development work during the year focused on improving the performance of flotation recoveries and optimization of the flotation plant conceptual design. Flotation testwork took place during the year both in-house and at the on-site metallurgical laboratory, which provided positive results. Additionally, independent off-site flotation testwork at Bureau Veritas Laboratory (“BV Lab”) in Perth Australia successfully replicated the positive on-site results subsequent to the yearend. BV Lab testwork included samples from diamond drilling at Buffalo Reef pits BRC2, BRC3, BRC4 and BR North and proved that the Selinsing on-site laboratory test results are repeatable in a commercial laboratory for fresh and transition ore. BV Lab fresh ore results reported gold concentrate at an average 34 g/t at a gold recovery in the low to mid-90s percent and transition ore had an average concentrate gold grade of 42.5 g/ with gold recoveries between 80-82 percent. Based on the successful test results, Orway Mineral Consultants (“OMC”) was engaged to modify and optimize the flotation conceptual engineering design based on the Snowden feasibility study work (February 2019), in order to produce salable gold concentrates as the first stage of the Sulphide treatment plant expansion strategy. This Sulphide Flotation Circuit Design includes flotation testwork parameters, process design criteria, circuit modelling, engineering design brief and consumables estimates. Subsequent to the yearend, Minecore Pty Ltd advanced the detailed engineering design. Layout of the new flotation plant has been completed, including the trash screen, conditioners, rougher, scavenger and cleaner flotation cells, concentrate and water recovery thickeners and filter press. Procurement of long lead equipment is well advanced with quotations received for flotation cells, thickeners, blowers, compressors and filter presses. At Selinsing, additional development work was carried out including: an underground mining desktop study, Tailing Storage Facility (“TSF”) lift construction to 540m RL, and mining cutback and testwork for oxide mining assessment at Peranggih. 3 D M O D E L O F S U L P H I D E F LO TA T I O N C I R C U I T M O N U M E N T M I N I N G A N N U A L R E P O R T 2 0 21 MINERAL RESOURCES AND RESERVES 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. TABLE1: SELINSING-BUFFALO REEF/FELDA MINERAL RESERVES AS OF MARCH 31, 2018 (SNOWDEN) CATEGORY OXIDE (above approx. 0.4 g/t Au cut-off) TRANSITION (above approx. 0.75 g/t Au cut-off) SULPHIDE (above approx. 0.75 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$1,300/OZ GOLD PRICE) Proven* 1,265 0.47 Probable** 991 0.91 P+P 2,256 0.67 19 29 48 - - - 45 1.53 2 1,310 0.51 21 757 1.72 41.9 2,680 2.03 175.1 4,428 1.73 246 757 1.72 42 2,725 2.02 177 5,738 1.45 267 *Proven Reserve is entirely stockpile material **Probable Oxide Reserve is a combination of in situ oxide material occurring in Selinsing and Buffalo Reef/Felda deposits plus Selinsing Old Tailings material; Probable Transition and Sulphide Reserve comprises in situ material occurring in Selinsing and Buffalo Reef/Felda deposits. TABLE 2: SELINSING-BUFFALO REEF/FELDA MINERAL RESOURCES AS OF MARCH 31, 2018 (SNOWDEN) CATEGORY OXIDE (above approx. 0.4 g/t Au cut-off) TRANSITION (above approx. 0.75 g/t Au cut-off) SULPHIDE (above approx. 0.75 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 MINERAL RESERVES (BASED ON A POTENTIAL US$2,400/OZ GOLD PRICE) Measured* 1,265 0.47 Indicated** 1,533 0.85 M+I 2,798 0.68 19 42 61 - - 1,086 1.49 1,086 1.49 In-ferred*** 349 1.05 11.8 485 1.22 - 52 52 19 45 1.53 2 1,310 0.51 21 8,052 1.60 415 10,671 1.48 509 8,097 1.60 417 11,981 1.38 530 5,563 1.79 319 6,397 1.70 350 *Measured Resource is entirely stockpile material **Indicated Oxide Resource is a combination of in situ oxide material occurring in Selinsing and Buffalo Reef/Felda deposits plus Selinsing Old Tailings material; Indicated Transition and Sulphide Resource comprises in situ material occurring in Selinsing and Buffalo Reef/Felda deposits ***Inferred Resource comprises in situ material occurring in Selinsing and Buffalo Reef/Felda deposits 2 0 21 M O N U M E N T M I N I N G A N N U A L R E P O R T 14 MURCHISON GOLD PROJECT The Murchison Gold Projects comprises the Burnakura, Gabanintha as well the Tuckanarra property in which Monument has a 20% free carry interest. All are located within the Murchison Mineral Field, which is a highly prospective historical gold province within the Murchison District of Western Australia. At the Burnakura site there is a fully operational 260k tonne per annum gold processing plant, a developed mine camp, and all necessary infrastructures. The Murchison properties include a number of open pit and underground opportunities with current and historical resources that are prospective for resource extension and regional exploration potential. The Company has systematically been endeavoring to convert the historical resources into current resources under NI43-101 standards. In addition, a new exploration program has commenced to potentially discover new resources on high quality structural gold targets to potentially increase the current resources and improve the economics for a gold production operation. D R I L L I N G P R O G R A M C O M M E N C E S A T M U R C H I S O N 381KOZ NI-43-101 RESOURCES 260KTPA CIL GOLD PROCESSING PLANT 118 PERSON MINE CAMP M O N U M E N T M I N I N G A N N U A L R E P O R T 2 0 21 N 10km 7 0 2 0 0 0 0 m E Meekatharra 40km GABANINTHA PROJECT Under Application BURNAKURA PROJECT Plant Site TUCKANARRA PROJECT JV Under Application Cue 30km 640000mE Murchison Project Tenement Status - September 2021 Mining Lease Exploration Licence Prospecting Licence Miscellaneous Licence Under Application DEVELOPMENT At Murchison, development work focused on optimizing regional exploration to test new high quality structural targets beneath cover for potential mineralization that may lead to the identification of shallow stand alone or satellite gold deposits to supplement the current resource base, as well as assess the opportunity for early production. The mine plan was completed by management and the independent review conducted by SRK Consulting (“SRK”) was received with recommendations. The scope of the SRK review was extended to cover geotechnics, hydrology, environmental compliance, as well as resource modelling, mining optimization and scheduling, and metallurgical recoveries. Tuckanarra Joint Venture (“JV”) In October 2020 Monument entered into a JV arrangement with Odyssey Gold Ltd. (“Odyssey”) to advance the Tuckanarra Gold Project, and in December 2020 sold an 80% interest in Tuckanarra to Odyssey for AUD$5 million subject to certain conditions, leaving Monument with a 20% free carried interest and a 1% NSR royalty over Odyssey’s 80% interest in the property. Odyssey will be solely responsible for funding the exploration and evaluation activities at Tuckanarra until a decision to mine is reached. The future processing of ore from tenements held by Odyssey through the Burnakura plant remains an option should commercial terms be reached. “ The strategy at Murchison is to explore for new gold resources to increase and define the Resource and improve the economics of the project, towards the goal of establishing Murchison as a cornerstone project.” 2 0 21 M O N U M E N T M I N I N G A N N U A L R E P O R T 16 MURCHINSON GOLD PROJECT CONT. Legend Location of Open Pit Mining Lease Exploration Licence Prospecting Licence DG Massuve Dolerite - Gabbro Ba Basalt - Massive/Pillow Mp Porphyritic Monzogranite Am Amphibolite Mb Biotite Monzogranite Hg Hb Gg Homeblende Granodiorite to Tonalite Homeblende Biotite Granodiorite Granophyric Gabbro Cht Cherty Tuff/Sediments Fs Au Ak Felsic Volcanics Archaean - Ultramafic Sequence Archaean - Komatiite D R I L L I N G A T B U R N A K U R A EXPLORATION The Company commenced work on a 2-year exploration strategy designed to test beneath cover for potential mineralization that is aimed to lead to the discovery of shallow stand alone or satellite gold deposits aiming to add significant additional resources to the current resource base. The strategy will involve testing down dip of high-grade mineralization underneath existing pits as well as test some of the high priority regional targets through Greenfield exploration of the land package at Burnakura and Gabanintha. An evaluation is being done on the potential for the 170km2 highly prospective land holding to host such a gold system examining: structurally targeted extensional drilling along strike and beneath the known deposits, geochemical anomalous zones of outcropping mineralized systems previously identified through soil sampling and drilling, and geophysical and remote sensing data for structural targets beneath shallow cover. M O N U M E N T M I N I N G A N N U A L R E P O R T 2 0 21 A large proportion of the Murchison Gold Project land holding has limited outcropping prospective Archean Greenstone geology with a younger cover sequence of Tertiary lateritic material and transported sheet wash ranging from 1 metre to 20 metres thick concealing the bedrock resulting in these areas having not effectively been explored despite having prospective host lithologies and structural settings. Subsequent to the yearend, the Company commenced the first stage of drilling, planning for 18,000 metres combined AC and RC drilling. Drill targets include: south-southwest of Munro Bore to test the mineralization system, Banderol South to test if the trend continues south from the Banderol open pit, Junction Area to better define basement geology and test beneath cover. To aid this exploration strategy the Company is integrating and evaluating historical data (geology, geophysical, and geochemical) collected by various companies over the past 50 years to identify high potential target areas distal to known deposits or beneath cover. The targeted areas are to be evaluated as part of this ongoing exploration program using on the ground exploration techniques including soil sampling, aircore “AC” drilling, reverse circulation (“RC”) drilling, and geological mapping as appropriate to test for indications of significant gold mineralization. BURNAKURA PROJECT Legend Target Area Exploration Licence Prospecting Licence N Burnakura Plant Site BANDEROL SOUTH TARGET MUNRO BORE EXTENSION TARGET “ The Monument exploration team is excited to begin drilling after extensive work to identify high quality targets at the Murchison Gold Project.” JUNCTION TARGET 2km 2 0 21 M O N U M E N T M I N I N G A N N U A L R E P O R T 18 MURCHINSON GOLD PROJECT CONT. 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. UPDATED MINERAL RESOURCES, BURNAKURA GOLD PROJECT (SRK, JULY 2019) DEPOSIT CATEGORY LOWER CUT-OFF (Au g/t) TONNES (Kt) AU (g/t) GOLD (Koz) NOA1-6 ANA Authaal Federal City Total* NOA7-8** Grand Total Indicated Inferred Indicated Inferred Indicated Inferred Indicated Inferred Indicated Inferred Indicated Inferred Indicated Inferred 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 3.0 3.0 - - 1,030 609 2,141 92 - 556 96 259 3,267 1,516 776 35 4,043 1,551 2.1 2.3 1.6 1.5 - 1.4 1.3 1.3 1.7 1.8 4.6 3.9 2.3 1.8 68 44 107 4 - 25 4 11 179 84 114 4 293 88 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. 19 SOCIAL RESPONSIBILITY M O N U M E N T M I N I N G A N N U A L R E P O R T 2 0 21 In the fiscal year, our communities were under continuous threat from the Covid-19 pandemic and we put our employee safety as priority number one and as a result local social activities were limited. In Malaysia, a nationwide standard operating procedure (“SOP”) for dealing with the pandemic was imposed, including physical distancing, temperature screening, regular testing and contact tracing. Public schools were closed, and education was focused on online learning. With strict SOP and limited social programs, the communities surrounding the Selinsing gold mine recorded very few positive cases. The Selinsing Gold Mine has hosted an internship program for students from the institute of higher learning annually, however due to the pandemic situation the educational and third-party visits were halted in the first half of 2021, but will continue when such time as the Covid-19 situation improves to the point where these internship visits can take place safely. During this pandemic period, support has been given to the front line workers, community policing and contributions to those directly affected by the pandemic. I N S T R U C T I O N F O R C O V I D - 1 9 S E L F - T E S T I N G K I T P L A N T I N G V E G E TA T I O N A T T H E S E L I N S I N G G O L D M I N E S I T E During the 4th quarter of fiscal 2021, the operations for Selinsing Gold Mine were affected by the mine shutdown from May 22nd until May 30th 2021, by the Ministry of Health for sanitization purposes caused by three Selinsing staff that were infected by the Covid-19 virus as well as broader measures by the Malaysian National Security Council that imposed lockdowns from June 1st until July 4th 2021 for all non-essential business that includes the mining and mineral processing industry. Critical maintenance work was allowed to be carried out during the lockdown period including: mine slope maintenance and repair, process plant and TSF upkeep, environmental monitoring, and mitigation work. The process plant was allowed to be in warm-idling mode with scheduled inspections and repair work, and workforce capacity was reduced to 10%. The environmental monitoring program, water sampling, detoxification, and maintenance of the silt trap were carried out to ensure the site was safe and well looked after during the shutdown period. At a later stage in the lockdown, the Mineral Geosciences Department allowed 50 personnel to be working at the site to undertake critical maintenance work. – 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 2021 Audited Financial Statements and Management Discussion & Analysis, avaliable at www.sedar.ca and www.monumentmining. com. All dollar amounts in US$ except where noted. 2 0 21 M O N U M E N T M I N I N G A N N U A L R E P O R T 20 CORPORATE INFORMATION DIRECTORS BANKERS OFFICERS & MANAGEMENT Cathy Zhai CPA-CGA, B.Sc. President & CEO Zaidi Harun B.Sc. Vice President, Business Development Andrew Charles Northfield, B.Sc.(Hons), ACSM General Manager, Selinsing Gold Mine Neil Rauert BE (Mining), MEngSc., FAusIMM(CP) Senior Project Manager, Technical Support Geoffrey Clynick B.Sc.(Hons), ARSM, MAusIMM Chief Managing Geologist Michael Lee BComm., CPA Interim CFO CORPORATE HEADQUARTERS Suite 1580, 1100 Melville St, Vancouver, British Columbia V6E 4A6 Canada Graham Dickson Victoria, British Columbia Cathy Zhai Vancouver, British Columbia T 604.638.1661 F 604.638.1663 info@monumentmining.com www.monumentmining.com Zaidi Harun Kuala Lipis, Malaysia STOCK LISTING TSX Venture Exchange Symbol: MMY Frankfurt Stock Exchange Symbol: D7Q1 REGISTRAR AND TRANSFER AGENT Computershare Trust Company of Canada Vancouver, British Columbia Michael John Kitney Perth, Australia Dato’ Sia Hok Kiang Kuala Lumpur, Malaysia Jean-Edgar Trentinian Geneva, Switzerland AUDITORS Grant Thornton LLP Vancouver, British Columbia 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 St, Vancouver, British Columbia V6E 4A6 Canada T 604.638.1661 F 604.638.1663 info@monumentmining.com www.monumentmining.com G O L D P O U R A T S E L I N S I N G G O L D M I N E CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS This annual report includes statements con- taining forward-looking statements or for- ward-looking information under applicable Canadian securities laws (hereinafter collec- tively referred to as “forward-looking state- ments”) about Monument, its business and future plans. Forward-looking statements are statements regarding possible events, condi- tions or financial performance that are based on assumptions about future economic condi- tions and courses of action and include expec- tations, 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 state- ments 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 economical- ly exploited. Any statements that express or involve discussions with respect to predic- tions, 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 for- ward-looking statements. Forward-looking statements in this annual report include, without limitation, statements related to: the Company’s expectations re- garding future gold production at the Selinsing Gold Mine; the ability of the Company to ad- vance exploration and development properties into commercial production; the results of testing gold and copper recovery technolo- gies; 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 explora- tion, development and environmental protec- tion 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, uncertain- ties and other factors that could cause actual results or achievements to differ materially from those expressed or implied by the for- ward-looking statements. These risks and certain other factors include, without limita- tion: risks related to gold, base metal and other commodity price fluctuations; risks related to general business, economic, competitive, geo- political and social uncertainties; uncertainties in testing gold and copper recovery technolo- gies that have not been proven in the field; un- certainties 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 pos- sibility 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 feasi- bility studies, including those related to the interpretation of drill results, and the geology, grade and continuity of mineral deposits; for- eign operations risks, including risks related to changes in mining license rights, tax rates and government royalty requirements; risks related to the ability to obtain financing required to de- velop mining properties or to complete signif- icant technical, environmental or engineering studies; risks related to foreign exchange fluc- tuations; risks related to environmental regula- tion and liability; risks associated with failure to maintain community acceptance, agree- ments and permissions (generally referred to as “social license”); risks related to the out- come of legal actions, including any ongoing legal litigation; other risks inherent in the min- ing 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 fac- tors 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 expec- tations; costs of future activities will be as expected; capital and operating expenditures will be as expected; exploration, mining and processing activities will be viable operational- ly and economically and proceed as expected; political matters in Malaysia and other juris- dictions in which the Company does or may carry on business in the future will be stable, and that mining rights, tax rates, and govern- ment royalty regimes in those jurisdictions will not undergo significant change; 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 iden- tify important factors that could cause actual results to differ materially from those con- tained 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 un- certainties 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 antic- ipated in such statements. Accordingly, read- ers should not place undue reliance on for- ward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with appli- cable securities laws. M O C . G N I I N M T N E M U N O M 

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