The Murchison Gold Project consists of the Burnakura, Gabanintha, and Tuckanarra gold properties, which are located in the Murchison Mineral Field, Western Australia. The Murchison Mineral Field has been explored since the 1900s and contains a number of currently operating gold projects. Burnakura and Gabanintha are located 40 km southeast of Meekatharra and 765 km northeast of Perth. Tuckanarra is located approximately 690 km north of Perth and straddles the Great Northern Highway, 75km to the south of Meekatharra, and approximately 40 km south west of Burnakura. The map below shows the location of the Burnakura, Gabanintha and Tuckanarra Tenements in Western Australia.
Burnakura and Gabanintha Properties
In February 2014, the Company acquired the Burnakura and Gabanintha properties, including a number of mining and exploration tenements and lease applications covering approximately 98 square kms of land. A historical Indicated Resource of 2.48 mt @ 3.2 g/t Au for 254 kOz and a historical Inferred Resource of 3.94 mt @ 2.3 g/t Au for 292 kOz as per the JORC guidelines of 2004 and 2012 within a number of previously operated open pits and an underground mine was determined by BM Geological Services in the report Murchison Gold Project: Burnakura and Gabanintha Resource inventory (December 2013). The purchase also included a fully operational gold processing plant, a newly developed camp site and all necessary infrastructures.
Gold Resources Estimates
On February 18, 2015 the Company announced an Inferred and Indicated Mineral Resource Estimate for the Alliance/New Alliance deposits at Murchison Gold Project, received from Independent Resource Consultants, Cube Consulting Pty Ltd ("Cube"), after incorporating the results from the first 102 holes drilled and in accordance with the requirements of NI 43-101.
An Indicated Mineral Resource of firstname.lastname@example.org/t Au for 98,400oz and an Inferred Mineral Resource of email@example.com/t Au for 4,400oz was reported at a 0.5g/t Au grade cut-off. This represents a very positive initial outcome toward the preparation of a preliminary economic assessment in respect of the Alliance/New Alliance deposits. The company is now undertaking a continuing program of ongoing exploration over the remainder of the historical Resources that were acquired in February, 2014.
Alliance/New Alliance Mineral Resource Estimate
Table 1 below shows a breakdown of the updated Mineral Resource estimate at a 0.5g/t cut-off:
Table1. Mineral Resource for Alliance and New Alliance at a 0.5g/t Au cut-off
The Company is working towards an economic understanding of the revised Resource model and estimate, with a view to a commercial outcome; however, the Mineral Resource has not demonstrated economic viability at this stage. All tonnage, grade and ounces have been rounded to reflect the relative uncertainty and the approximate quality of the estimate.
The full technical report, prepared in accordance with NI 43-101, is filed on SEDAR and the Monument website under Technical Reports titled: "NI 43-101 Technical Report on the Alliance and New Alliance Gold Deposits Burnakura, Western Australia." (Amended) (August 2015)
The exploration drill program was started in May 2014 at the Alliance and New Alliance open pit historical deposits, and has been extended into Federal City at the Burnakura Project. 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 Resource estimate study and form the basis of an economic assessment with the view to provide a commercial outcome within an eighteen month time frame from acquisition. Various studies are currently underway progressing towards a preliminary economic assessment for the Alliance, New Alliance and Federal City Resources.
Environmental permitting by Independent Consultants, Animal Plant Mineral, has been ongoing. Recently a large scale blanket drilling programme has been approved by the Department of Mines and Petroleum. This will allow 370 holes for each tenement to be drilled, within the 50m x 50m drill grid and enable the company to follow up favourable drilling immediately instead of waiting for approvals. The map below shows the Burnakura Tenement Area including the Alliance, New Alliance and Federal City Pit Areas.
Geological Map for the Burnakura Tenement Area
Development at Burnakura site
Care and Maintenance
: 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. A plant recommissioning inspection was carried out to inspect and test the plant for safety purposes and readiness for recommissioning while the plant remains under Care and Maintenance. The Company's maintenance programme is keeping the asset in good order.
Metallurgical test work
on samples generated from Alliance/New Alliance is underway. The work is testing the material for use with the existing CIL/CIP plant as well as potential for heap leach recovery and obtaining high level cost estimates for the building and construction of a heap leach facility were this to become economically feasible.
: The Company is in the process of reviewing process flow sheets for the metallurgical circuit of the CIL/CIP plant at site for the potential commencement of mining when economically viable in the future. High level construction cost proposals are currently being put together by Como Engineers. This focuses on commencing with the CIL/CIP plant to gain initial cash-flow, and then construction of a heap leach facility that links in to the existing circuit in the future.
In November 2014, the Company acquired the Tuckanarra properties consisting of two exploration licenses, six prospecting licenses, and a mining lease covering a total of 416 square kms and containing historical Indicated and Inferred JORC compliant Resources (see Company's news release dated August 28, 2014). The Tuckanurra Gold Project contains a historical Indicated Resource of 1.04 mt @ 1.65 g/t Au for 55.2 kOz and a historical Inferred Resource of 0.92 mt @ 1.51 g/t Au for 44.6 kOz within eleven separate prospects, determined by Ravensgate in its November 2012 "Independent Resource Model Report" according to the JORC guidelines 2004. The historical Resources are estimated using Ordinary Kriging and are reported above a block grade of 0.5 g/t Au. However, insufficient work has been done to classify the historical estimate as current Mineral Resources or Mineral Reserves. The Company is therefore not treating the historical estimate as current Mineral Resources or Mineral Reserves.
The above scientific and technical information has been extracted from news releases, compiled by Lisa Wells (B.Sc App Science, Geology, MAusIMM), and reviewed by Darryl Mapleson (BSc (Hons), FAusIMM) who is a Competent Person as defined by JORC guidelines and a Qualified Person for NI43-101 retained by Monument Mining Limited. He has been working in Australia for Monument as an independent consultant.