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.
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.
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.
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)