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Mengapur Project

Overview

Overview:


The Mengapur Project contains a large polymetalic skarn deposit with significant copper, sulphur, iron, gold and silver mineralization hosted in pyroxene and garnet skarn surrounding the Bukit Botak intrusion complex. The project is located in Pahang State, Central Malaysia, 16 kms north of the town of Sri Jaya and a major highway, approximately 130 kms southeast of Monument's wholly owned Selinsing Gold Mine and 75 kms northwest of the Malaysian port city of Kuantan.

The deposit was first discovered with anomalous stream sediment samples in 1979. In 1990 a historic resource estimate based on based 58,000 metres of diamond drilling was published outlining 224.409 million tonnes averaging 6.54% sulfur, 0.25% copper, 0.16 g/t gold, and 8.86 g/t silver*.

Monument acquired a 70% interest the Mengapur project in February 2012 and acquired the remaining 30% in December 2012. In November 2011 Monument acquired 100% interest in the adjoining Star Destiny property which hosts a portion of the Mengapur Project as defined in the 1990 historical Normet Feasibility study.

The Company is currently conducting confirmation and exploration drilling and metallurgical test work.

*Historic resource (Normet, 1990) is not NI 43-101 compliant and should not to be solely depended on. This historic resource is relevant as it provides an indication of the mineral potential of the project.

History:


Mengapur was first discovered in 1979 by the Geological Survey of Malaysia (GSM) with anomalous stream sediment samples. In 1983 Pahang State Government granted mining rights to Malaysia Mining Corporation Berhad (MMC). MMC drilled 58,000 metres of diamond drilling between 1983 and 1988 and completed a definitive feasibility study, but did not pursue development and the property reverted back to the Government after 1993.

Historical economic and resource estimates on the Mengapur Project were completed and published as a "Definitive Feasibility Study" (the "Historical Study") in October 1990 by Normet Engineering Pty Ltd with James Askew Associates completing the ore reserve and resource estimates, both of Perth, Western Australia. This historical study is summarized in a January 2012 NI 43-101 report by Snowden Mining Industry Consultants Pty. Ltd (see link below).

Cermat Aman Sdn. Bhd. ("CASB") acquired the mining lease to Lot 10210 that covers majority of the historical Proven and Probable reserve as identified in the Normet SP6 Design pit sometime before 2005. Malaco, a wholly-owned subsidiary of Sumatec Resources Bhd., purchased 58% of Cermat on July 5th, 2005 and later acquired the remaining 42%. Sumatec sold all of its shares in Malaco to Diamond-Hard Mining Sdn Bhd on March 17, 2008.

Current Development


Monument began the due diligence process of acquiring the Mengapur Project in May 2011 and closed the acquisition of 70% of the Mengapur Polymetalic Project in February 2012. Monument closed the acquisition through its wholly-owned Malaysian subsidiary, Monument Mengapur Sdn. Bhd. ("MMSB"). At closing MMSB acquired a 100% interest in CASB, the Company that holds most of the Mengapur Project (most of Zone A and all of Zone C) as identified in the historical Normet study. In exchange, MMSB: (i) arranged for the payment of an aggregate of US$60,000,000 in cash to the vendor of the Mengapur Project, Malaco Mining Sdn. Bhd. ("Malaco") and certain of Malaco's creditors; and (ii) issued 300 MMSB shares (representing a 30% interest in MMSB) to Malaco.

In December 2012 Monument acquired the 30 percent of the Mengapur project that it did not already own by purchasing through a Malaysian subsidiary, 30 percent of the shares of Monument Mengapur Sdn. Bhd. from Malaco Mining Sdn. Bhd. in consideration for US$16 million in cash. As a result, Monument now holds an indirect 100% interest in the CASB land.

Monument does not own the Fe in the "free-digging materials" in the oxide zone on CASB land as a result of previous agreements made by Malaco, made prior to Monument's purchase of Malaco, as stated in the January 2012 Mengapur NI 43-101 Technical Report by Snowden.

Monument Mining carried out due diligence drilling during May to December 2011 on the CASB land that included 10 drill holes totalling 2,544 m to help confirm the A Zone resource and SP6 Design Pit mineralization as identified in the 1990 historic Normet Feasibility study.

Monument is undertaking a phased development plan to advance the Mengapur project, following the same successful approach Monument used to bring its Selinsing gold mine into low-cost production. The phased Mengapur development plan includes, among other things, further drilling, construction of an onsite laboratory, and construction of a new concentrate plant as well as a parallel processing plant with 5000 tonnes per day capacity. Combined with its planned overhaul of an existing onsite concentrate plant, Monument believes that there is potential at Mengapur to process up to 6000 tonnes per day of material to produce copper and precious metal concentrate.


Star Destiny Property


In November 2011 Monument acquired 100% of Star Destiny Sdn. Bhd. ("SDSB") which holds the exploration permit for the Star Destiny property.

The 750 hectare Star Destiny property is contiguous to the southwest of the main Mengapur property. It covers a portion of the orebody identified in the original 1990 historical study (the Zone B Resource area) as well as potential extensions of the main deposit along strike and to depth. It is also essential to the full development of the deposit by providing layback area for safe and viable pit development.


Technical Report


NI 43-101 Technical Report, Mengapur Project (Amended) (January 2012) Snowden Mining Industry Consultants Pty. Ltd. Technical Report-Mengapur Project, Malaysia -Filed Feb 29, 2012 Prepared by independent "qualified persons" Walter Dzick and Roderick Carlson.

Mengapur Project Presentation Link:


Mengapur Project NI 43-101 Technical Report Summary (December 2011)
 

Your Vote is Important

Your Vote is Important

Please vote by 4 PM Pacific Time on December 28, 2011.


You may vote via the internet at www.proxyvote.com following the instructions found on the enclosed Voting Instruction Form. If you haven't receive your materials, have any questions or require assistance voting your shares, please call our proxy solicitor, Laurel Hill Advisory Group at 1-877-304-0211 or via email at assistance@laurelhill.com.


At the Meeting, shareholders will be asked to approve, among other things, the Company's acquisition of a 70% interest in the Mengapur Polymetalic Project in Malaysia (the "Acquisition") and the concurrent financing of the Acquisition by way of private placement. These items are discussed in detail in the Information Circular disseminated by the Company in connection with the Meeting.

Background to the Acquisition of the Mengapur Project

The Company's mission is to increase shareholder value by seeking to become a diversified mid-tier producer through expansion and development of its existing pipeline of mineral assets and to grow through acquisition of new resource properties with promising economic potential in Southeast Asia. The Company's portfolio of properties currently includes the producing Selinsing gold mine, the advanced Buffalo Reef exploration gold project and several grass root gold prospective properties. The Company has for some time been actively seeking to add to its portfolio consistent with this mission. The Mengapur Project is an exciting opportunity which meets all of our objectives.

The Mengapur Project is a large polymetalic project, previously owned by the Malaysian Mining Corporation, which in the early 1990's had done extensive exploration and development work on the property.

Following successful completion of our due diligence and extensive negotiations, the Company entered into a definitive acquisition agreement (the "Definitive Agreement") in late November to acquire a 70% interest in the Mengapur Project for an aggregate consideration of $60 million. Under the Definitive Agreement, the Company will acquire an interest in approximately 185 hectares within an area that was the subject of extensive historical exploration that had identified significant mineral potential.

In the course of our due diligence review, we examined the historical data contained in a detailed study completed in 1993 on the Mengapur Project, conducted our own limited confirmatory drilling and investigated the results of the limited copper and iron production occurring from the project. The Company also examined the detailed plans contained in the historical study for a long-life open pit mining and processing operation for the production of iron, copper and fertilizer by products. The historical study and the Company's own analysis also considered the potential for silver and gold production from the Mengapur Project.

The Company concluded that the Mengapur Project presented a unique and exciting opportunity, consistent with our mission, and with the potential for long-life revenue generation to leverage our expertise and expand our operations.

Financing the Acquisition and the Mengapur Project

The Acquisition and plans for the subsequent exploration and development of the Mengapur Project require greater financial resources than presently available to the Company. As well, the opportunity to acquire the Project was only available to the Company provided it could make significant up front deposits and complete the Acquisition in an extremely short period of time frame.

In order to raise the needed financing for the Project, management and the Board considered the alternative financing sources available including debt financing, forward sales, public offering, rights offering or other alternatives.

Due to present market uncertainty, the ongoing global financial crisis and in order to minimize financial risk to shareholders, the Company chose the certainty of a committed private placement to finance the acquisition and development of the Mengapur Project. In addition, due to the tight timeframe to close the acquisition demanded by the vendor of the Mengapur Project, the window for equity financing is too narrow to complete a rights offering or a brokered deal. The Company had to seek a guaranteed source of funds to be able to satisfy concerns expressed by the vendor during commercial negotiation. The vendor's main concern from the outset was the low capital base of the Company in undertaking project that is much larger than Selinsing. The arranged financing satisfied all of those concerns.

On December 2, 2011, the Company announced that it would conduct a non-brokered private placement (the "Private Placement") of up to 140,000,000 units consisting of one share and a 3-year 70¢ warrant at a price of $0.50 per unit for gross proceeds of up to $70,000,000. As required by the policies of the TSX Venture Exchange, shareholders will be asked at the Meeting to approve the private placement, as it will result in the subscriber, Tulum Corporation Ltd., holding over 40% of the Company's outstanding shares.

To address the dilution that shareholders would concern, Monument intends to strategize the phases of development of streams of production in order to generate the cash flow to further fund the Mengapur project from off take sales arrangement. By equity financing, Monument shareholders will suffer dilution upfront, but in the medium term the private placement and the Mengapur Acquisition are expected to ultimately build greater value to all shareholders.

The Company does not intend to complete the Acquisition unless the Private Placement is completed concurrently.

The Company is excited about the prospects presented by the Mengapur Project and encourages Shareholders to attend the Meeting and Vote FOR the Acquisition and financing in order to allow us to advance our mission.

Your vote is important, no matter how many or how few shares you may own. Whether you are able to attend the meeting or not, we urge you to vote TODAY.