Murchison Gold Project First Round of RC Assay Results and Scoping Study Update

Best Intercepts of 3m @ 19.58g/t Au (including 1m @ 53.2g/t), and 5m @ 10.32g/t Au including 1m @ 46.9g/t obtained in extensions to mineralisation*

VANCOUVER, Aug. 27, 2014 /CNW/ - Monument Mining Ltd. (TSX-V: MMY and FSE: D7Q1) "Monument" or the "Company" is pleased to announce the first round of drilling results from the resource drilling programme at the Murchison Gold Project in Western Australia, through its wholly owned Australia subsidiary Monument Murchison Pty Ltd. The Murchison Gold Project is 100% owned by Monument Mining Ltd. and consists of the Burnakura and Gabanintha projects.  Figure 1 shows a Location Plan for the Project (Appendix 3).

Highlights of the drill results

To date, a total of 93 RC holes have been completed in this first phase of drilling at Alliance and New Alliance, with assay results from 64 holes now available.  Table 1 in Appendix 1 shows a breakdown of fire assay results completed by SGS Australia for intervals of mineralisation greater than 0.5g/t Au.   Table 2 in Appendix 2 contains the location details for all drillholes assayed to date.  Figure 2 shows the distribution of drill holes containing mineralised assay results greater than 0.5g/t Au (Appendix 4).

The majority of drilling to date has been drilled at 60° inclination towards grid west, or as vertical holes.  This drilling has confirmed the Alliance/New Alliance mineralisation is hosted within several north to northeast trending, moderately east dipping (~30°) narrow quartz veined zones with an average true thickness varying from 2 metres to 5 metres. Drillhole orientation was designed to target perpendicular to mineralisation for true thickness, except where vertical holes were drilled – See Table 1.  True thickness of mineralisation will be calculated once a resource model is compiled.  The drillhole intercepts here represent the actual sample intervals obtained from drilling.

Exploration Manager, Lisa Wells, has said that pleasing results have been obtained from this first round of drilling at Alliance and New Alliance.  She said "Drillholes targeting extensions to the historical mineralization which trend along the eastern side of the Alliance Pit and the western side of the New Alliance pit have increased the mineralization areas from this round of drilling.  Drillhole 14MRC013 has produced an excellent result of 3m @ 19.58g/t from 78 to 81m including 1m @ 53.2g/t.  In addition a number of exploration drillholes in previously untested areas have shown up with mineralization indicating the potential for the area to host further mineralisation.  The best intercept has revealed 6m@ 2.62g/t Au including 1m@ 7.5 from 37 to 43m.  These results are better than expected." 

A programme of PQ diamond drilling has also been completed over the Alliance/New Alliance deposits for a total of 426 metres.  The 6 PQ sized holes targeted mineralised material across the grade range of the deposit, to enable the collection of representative composites for metallurgical test work purposes.    The drill core has been sent to ALS-Ammtec in Perth and test work has recently commenced.  The work is aimed at testing metallurgical recoveries in CIP/CIL as well as heap leaching, and the physical characteristics of the ore for comminution design.

Background and progress on the exploration program

The drilling programme was initiated in May 2014 at the Alliance and New Alliance open pit deposits at the Burnakura Project. Figure 3 shows the geological map for the Burnakura Tenement area.  The drilling program has been designed to validate the historical resource, increase the grade and geological continuity of the mineralisation through infill drilling and to test for resource extensions and define further exploration targets. This work will contribute to the current Scoping Study for the project which has been designed to provide a commercial outcome within an eighteen month time frame from acquisition. Reader shall read this news release in conjunction with its news release dated on May 26, 2014.   

Various studies are currently underway progressing towards a Scoping Study for Alliance and New Alliance: 

Resource confirmation and study

To date the historical estimates are under review by independent consultants Cube Consulting ("Cube"). The complete database of both historical and current drilling is being checked and validated by Cube for consistency.  This is now being held in a secure SQL database server with current drill data being validated and input as it becomes available.  Cube has also reviewed the QAQC procedures and quality control data undertaken during the current drilling programme and considers at this stage that the veracity of the data is appropriate for the purposes of mineral resource estimation. A mineral resource estimate for the Alliance/New Alliance deposits will be completed on finalisation of the outstanding assays from this programme.

Fugro Geospatial has been commissioned to fly an aerial survey in order to provide a detailed digital terrain model to 12cm resolution.  This work will aid in the resource and mine planning studies. The survey is due to commence within the next week.

Metallurgical test work

A high level modelling study of the Burnakura plant crushing circuit has been undertaken by Orway Minerals Consultants ("OMC").  This work indicates the validity of adding a Tertiary Crushing circuit to the current plant to increase the throughput rate and improve the ball mill feed size.  In addition the work has analysed the ball mill throughput rates.  A preliminary crushing circuit layout has been designed to integrate a potential heap leach facility using existing equipment, with a new tertiary crusher into a circuit that can feed both heap leach and the ball mill processing operations.

An initial site inspection of the Burnakura plant was completed by Orway Minerals Consultants ("OMC") to inspect the asset from a recommissioning perspective and review the crushing for the proposed heap leach plan.  A plant preservation plan has been proposed by OMC, and the Company intends to implement this in the short term.  This work will tie in with an analysis of the proposed heap leach facility and current existing equipment.

Environmental study

Environmental permitting by Independent Consultants, Animal Plant Mineral, has been ongoing with two Programmes of Works applications recently granted for drilling at Authaal and Federal City deposits.  Future permitting will include approvals to drill at Gabanintha and NOA deposits. Permits and environmental study requirements are currently being reviewed for the potential installation of a heap leach facility at Burnakura, and a review of the permits for the future tailings facility has been undertaken.

Site maintenance and development

Since the acquisition of the asset, Monument has ensured that the plant and fixed assets are being kept in good care and maintenance order with a view to future commissioning.  Site operations are fully functional for the needs of exploration with supply chain logistics firmly in place.  All safety policies and procedures have been implemented at the Monument site operations, as required by the Department of Mines and Petroleum.

Upon full completion of the current drilling at Alliance and New Alliance deposits, the Company intends to commence an RC drilling campaign at the Federal City deposit in the near future.  This will be followed up with diamond drilling for metallurgical test work purposes. The programme has been designed with the same intent as the Alliance/New Alliance programme, with the aim to drill infill and extensional holes; and to test exploration targets while confirming the validity of the historical resource.

Future exploration programmes targeting further mineralisation potential are currently in the planning stages given the promising results obtained from exploration drillholes in this first round of drilling.

The scientific and technical information in this press release has been compiled and reviewed by Darryl Mapleson (BSc (Hons), FAusIMM) who is a qualified Geologist retained by Monument Mining Ltd. and is a Qualified Person as defined by JORC guidelines and NI43-101. He has been working in Australia for Monument as an independent consultant.

The above stated development outlook is to the effect that a Scoping Study has not been completed and there is no certainty the proposed operation will be economically viable.

About Monument

Monument Mining Ltd. (TSX-V:MMY, FSE:D7Q1) is an established Canadian gold producer that owns and operates the Selinsing Gold Mine in Malaysia. Its experienced management team is committed to growth and is advancing several exploration and development projects including the Mengapur Polymetallic Project, in Pahang State of Malaysia, and the Murchison Projects in Burnakura and Gabanintha, Western Australia. The Company employs over 300 people in both regions and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighboring communities.

Robert F. Baldock, President and CEO
Monument Mining Ltd.
    Suite 1580 -1100 Melville Street
           Vancouver, BC V6E 4A6

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Forward-Looking Statement

This news release includes statements containing forward-looking information about Monument, its business and future plans ("forward-looking statements"). Forward-looking statements are statements that involve expectations, plans, objectives or future events that are not historical facts and include the Company's plans with respect to its mineral projects and the timing and results of proposed programs and events referred to in this news release.  Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". The forward-looking statements in this news release are subject to various risks, uncertainties and other factors that could cause actual results or achievements to differ materially from those expressed or implied by the forward-looking statements.  These risks and certain other factors include, without limitation: risks related to general business, economic, competitive, geopolitical and social uncertainties; uncertainties regarding the results of current exploration activities; uncertainties in the progress and timing of development activities; foreign operations risks; other risks inherent in the mining industry and other risks described in the management discussion and analysis of the Company and the technical reports on the Company's projects, all of which are available under the profile of the Company on SEDAR at www.sedar.com.  Material factors and assumptions used to develop forward-looking statements in this news release include:  expectations regarding the estimated cash cost per ounce of gold production and the estimated cash flows which may be generated from the operations, general economic factors and other factors that may be beyond the control of Monument; assumptions and expectations regarding the results of exploration on the Company's projects; assumptions regarding the future price of gold of other minerals; the timing and amount of estimated future production; the expected timing and results of development and exploration activities; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; exchange rates; and all of the factors and assumptions described in the management discussion and analysis of the Company and the technical reports on the Company's projects, all of which are available under the profile of the Company on SEDAR at www.sedar.com.  Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

SOURCE Monument Mining Ltd.