MMY to Acquire Australian Tuckanarra Gold Project Monument Enters Agreement to Acquire Tuckanarra Gold Project in Western Australia (cnw)
VANCOUVER, Aug. 28, 2014 /CNW/ - Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) "Monument" or the "Company" is pleased to announce it has entered into the "Tenement Purchase Agreement " with Phosphate Australia Limited ("POZ"), a company whose ordinary shares are listed on the Australian Stock Exchange ("ASX") for the acquisition of the Tuckanarra Gold Project in Western Australia.
Pursuant to the Tenement Purchase Agreement, the Company has agreed to acquire, free and clear of any encumbrances, a 100% interest in the Tuckanarra Gold Project consisting of eight exploration and prospecting licenses and a mining lease application covering a total of 99.73km2 in the Murchison Mining District in Western Australia and containing approximately 100,000 historical indicated and inferred JORC compliant ounces of gold as detailed below. Native title has been extinguished over all the historical gold resources, with the exception of the Miners' Dream resource. There are no private royalty encumbrances.
The consideration for acquiring the Tuckanarra Gold Project is comprised of A$2,000,000 in cash and the issue of 10,000,000 Monument common shares at a deemed issue price of C$0.25 per share. The acquisition is subject to satisfactory completion by the Company of due diligence in respect of the Tuckanarra Gold Project and receipt of TSX Venture Exchange acceptance in the case of the Company.
A non-refundable deposit of A$50,000 was paid to secure an exclusivity period for the Company to conduct due diligence, which will be applied against the cash portion of the purchase price upon closing. The parties have agreed to complete the acquisition five business days after completion of due diligence by the Company and receipt of required approvals of regulatory authorities or such other date as agreed. The acquisition is expected to be completed by October 24, 2014.
The Tuckanarra Gold Project is situated approximately 690km north of Perth and straddles the Great Northern Highway, 75km to the south of Meekatharra in the Murchison Province of Western Australia, and approximately 40 Kilometers south west of the Burnakura mill that Monument has recently acquired. The Tuckanarra land holdings also has a section of the main ore haulage road that can be accessed from the main sealed Perth-Meekatharra Highway to the Burnakura mill facility. The close proximity to Monument's Burnakura mill will allow the Company to accelerate development of the property.
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. The Company believes that the quality of the data supporting the resources meets industry standards. The historical resources confidence categories and the reliability of the estimate are consistent with the JORC 2004 guidelines. However, readers are cautioned that a qualified person (within the meaning of National Instrument 43-101) has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. The Company is not treating the historical estimate as current mineral resources or mineral reserves.
If the acquisition is completed, the Company plans to conduct a confirmation, in-fill and expansionary drilling program including duplicating the metallurgical studies previously carried out with a view to producing a scoping study review.
Table 1: Historical resource inventory and the historical classification as per JORC 2004
| Deposit | Indicated | Inferred |
| Tonnes (t) | Grade (g/t) | Gold (Oz) | Tonnes (t) | Grade (g/t) | Gold (Oz) |
| Anchor Laterite | 41,000 | 1.00 | 1,300 | 76,000 | 0.87 | 2,100 |
| Bollard Laterite | 104,000 | 1.01 | 3,400 | 217,000 | 1.02 | 7,100 |
| Cable Central | 63,000 | 1.44 | 2,900 | 19,000 | 1.26 | 800 |
| Cable East | 317,000 | 1.93 | 19,600 | 67,000 | 1.75 | 3,800 |
| Cable West | 62,000 | 2.09 | 4,200 | 63,000 | 2.96 | 6,000 |
| Cable West (High Grade) | 3,000 | 53.98 | 5,500 | - | - | - |
| Drogue Laterite | 356,000 | 0.95 | 10,800 | 182,000 | 0.87 | 5,100 |
| Lucknow | 13,000 | 1.53 | 600 | 76,000 | 1.43 | 3,600 |
| Maybelle | 78,000 | 2.57 | 6,400 | 48,000 | 2.28 | 3,500 |
| Maybelle North | 5,000 | 2.95 | 500 | 99,000 | 2.11 | 6,700 |
| Miners Dream | | | | 72,000 | 2.55 | 5,900 |
| Grand Total | 1,042,000 | 1.65 | 55,200 | 919,000 | 1.51 | 44,600 |
The technical information concerning the Tuckanarra Gold Project in this press release has been compiled, reviewed and approved by Darryl Mapleson (BSc (Hons), FAusIMM) who is retained by Monument Mining Limited as a Qualified Person as defined by National Instrument 43-101, and a Competent Person as defined by JORC guidelines. He has been working in Australia for Monument as an independent consultant.
About Monument
Monument Mining Limited (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 Limited
Suite 1580 -1100 Melville Street
Vancouver, BC V6E 4A6