Monument Reports Second Quarter Fiscal 2022 (“Q2 FY2022”) Results Gross Revenue of US$5.05 Million and Cash Cost of US$1,810/Oz
February 28, 2022 News Release Release #02 - 2022
Monument Reports Second Quarter Fiscal 2022 (“Q2 FY2022”) Results
Gross Revenue of US$5.05 Million and Cash Cost of US$1,810/Oz
Vancouver, B.C ., February 28, 2022, Monument Mining Limited (TSX -V: MMY and FSE: D7Q1) “Monument” or the
“Company” today announced its production and financial results for the second quarter of fiscal 2022 and the six months
ended December 31, 2021. All amounts are expressed in United States dollars (“US$”) unless otherwise indicated (refer to
www.sedar.com for full financial results).
President and CEO Cathy Zhai commented, “I am glad that the second quarter progressed the Selinsing Flotation Plant Project
to 37% completion and awarded all major equipment suppliers and construction contractors successfully. Purchase orders for
major long lead items of equipment were issued, and fabrication of the flotation cell went well, and the civil work has
completed the earth work. We stay on schedule anticipating the dry commissioning completion by June 2022. At the
Murchison Gold Project, the Phase 1 drill program assays were highly encouraging and highlighted a new high -grade
mineralization at the Junction Target in an area where there is significant room to extend mineralization with further drill
programs. The Murchi son Phase 2 drilling program commenced targeting down dip and down plunge of known high grade
deposits aimed at testing the potential expansion of the underground resource .”
Second Quarter Highlights:
• Murchison Phase 1 drilling results confirm discovery of new high-grade mineralization at the Junction Target;
• Murchison Phase 2 drilling started with 2,918 meters (12 RC holes) drilled;
• Peranggih RC drilling and channel sampling confirms the extension of oxide mineralization and potential supplies to the
mill;
• Selinsing Flotation Plant Project is progressing as planned with 37% completion to date;
• Selinsing Gold Mine’s Q2 production impacted by heavy monsoon rains:
- 1,683oz of gold produced in Q2, FY2022 (Q2, FY2021: 2,963oz);
- 2,873 ounces (“oz”) of gold sold for $5.05 million in Q2, FY2022 (Q2, FY2021: 3,754oz for $6.84million);
- Average quarterly gold price realized at $1,828/oz in Q2, FY2022 (Q2, FY2021: $1,889/oz);
- Cash cost per ounce sold was $1,810/oz in Q2, FY2022 (Q2, FY2021: $1,103/oz);
- Gross margin decreased by 106% to negative $0.15 million in Q2, FY2022 (Q2, FY2021: $2.69 million);
- All-in sustaining cost (“AISC”) increased to $2,146/oz in Q2, FY2022 (Q2, FY2021: $1,501/oz) ( section 15 “Non-
IFRS Performance Measures” of Q2 Management’s Discussion and Analysis (“MD&A”).
Second Quarter and Six Months Production and Financial Highlights
Three months ended
December31,
Six months ended
December 31,
2021 2020 2021 2020
Production
Ore mined (t) 85,209 112,073 160,181 193,649
Ore processed (t) 1,770,975 963,863 3,713,309 2,022,019
Average mill feed grade (g/t) 129,000 152,836 285,611 319,268
Processing recovery rate (%) 0.56 0.89 0.55 0.94
Gold recovery (oz) 63% 58% 64% 61%
Gold production (1) (oz) 1,683 2,963 2,726 6,467
Gold sold (oz) 2,873 3,754 4,296 6,854
Three months ended
December 31,
Six months ended
December 31,
2021 2020 2021 2020
Financial (expressed in thousands of US$) $ $ $ $
Revenue 5,046 6,835 7,429 12,754
Gross margin from mining operations (153) 2,694 195 5,753
Income before other items (2,124) 1,159 (2,879) 3,102
Net loss (2,502) (649) (3,769) (511)
Cash flows (used in) provided by operations (4,023) 796 (4,000) 1,543
Working capital 38,605 20,384 38,605 20,384
Loss per share – basic and diluted (US$/share) (0.01) (0.00) (0.01) (0.00)
Other US$/oz US$/oz US$/oz US$/oz
Average realized gold price per ounce sold (2) 1,828 1,889 1,823 1,899
Cash cost per ounce sold:
Mining 728 365 660 323
Processing 897 552 838 520
Royalties 164 172 165 168
Operations, net of silver recovery 21 14 20 10
Total cash cost per ounce sold 1,810 1,103 1,683 1,021
By-product silver recovery 0 1 0 1
Operation expenses 0 40 11 26
Corporate expenses 9 6 7 7
Accretion of asset retirement obligation 13 9 16 10
Exploration and evaluation expenditures 47 19 35 16
Sustaining capital expenditures 267 323 361 219
Total all-in sustaining costs per ounce sold 2,146 1,501 2,114 1,300
(1) Defined as good delivery gold bullion according to London Bullion Market Association (“LBMA”), net of gold doŕe in transit and refinery adjustment.
(2) Monument realized US$1,828/oz for the three months ended December 31, 2021 which excludes gold prepaid delivered of 723oz for comparison purposes.
(3) Total cash cost per ounce includes production costs such as mining, processing, tailing facility maintenance and camp adminis tration, royalties and operating costs such as storage, temporary mine
production closure, community develop ment cost and property fees, net of by -product credits. Cash cost excludes amortization, depletion, accretion expenses, idle production costs, capital costs,
exploration costs and corporate administration costs. Readers should refer to section 15 “Non-GAAP Performance Measures” of Q2 MD&A.
(4) All-in sustaining cost per ounce includes total cash costs and adds sustaining capital expenditures, corporate administrative expenses for the Selinsing Gold Mine including share-based compensation,
exploration and evaluation costs, and accretion of asset retirement obligations. Certain other cash expenditures, including t ax payments and acquisition costs, are not included. Readers should refer to
section 15 “Non-GAAP Performance Measures” of Q2 MD&A.
Q2 FY2022 Production Analysis
• Q2 FY2022 gold production was 1,683oz, a 43% decrease as compared to 2,963oz for Q2 FY2021. The decrease
resulted from heavy rain and a large quantity of super low -grade ore being fed into the mill although gold recovery
was slightly higher.
• Q2 FY2022 ore processed decreased to 129,000t from 152,836t for Q2 FY2021. The decreased mill feed was mainly
due to less oxide ore and old tailings being fed into plant.
• Average mill feed grade was 0. 56g/t Au in Q2 FY2022 as compared to 0.89g/t Au of Q2 FY2021. Q2 FY2022
processing recovery rate increased to 63.2% from 58.4% for Q2 FY2021. The slight increase in processing recovery
rate was mainly due to significant increase in Peranggih oxide materials being processed.
• Q2 FY2022 cash cost per ounce increased by 64% to $1,810/oz from $1,103/oz for Q2 FY2021. This increase was
primarily due to a significant reduction in the mill feed grade from 0.89g/t Au to 0.56g/t Au and significantly more
low-grade leachable sulphide ore and low-grade Peranggih materials being processed.
• Ore stockpile has reduced mainly as a result of lower mining rate primarily due to heavy rain in both Selinsing pit
and Peranggih pit especially towards to the end of the quarter.
Q2 FY2022 Financial Analysis
• Q2 FY2022 gold sales generated revenue was $ 5.05 million as compared to $ 6.84 million from Q2 FY2021. Gold
sales revenue was derived from the sale of 2,150oz (Q2 FY2021: 3,050oz) of gold at an average realized gold price
of $1,828 per ounce (Q2 FY2021: $1,889 per ounce) and the delivery of 723oz (Q2 FY2021: 704 oz at $1,525 per
ounce gold equivalent) in fulfilling gold prepaid sale obligations.
• Q2 FY2022 total production costs increased by 26% to $5.20 million as compared to $4.14 million from Q1 FY2021.
Cash cost per ounce increased by 64% to $1, 810/oz as compared to $ 1,103/oz of the same period last year. T he
increase was attributable to a 45% decrease in the mill feed grade from 0.89g/t to 0.56g/t, heavy rain, offset by an
increase in recovery to 63.2% (Q2 FY2021: 58.4%), as a result of processing significantly more leachable sulphide
ore and other low grade ores.
• Gross margin for Q2 FY2022 was negative $0.15 million before operation expenses and non-cash amortization and
accretion. That represented an 106% decrease as compared to $2.69million from Q2 FY2021. The decrease in gross
margin was attributable to significant lower grade ore feed, much lower volume of gold sold , and increased cash
costs.
• Net loss for Q2 FY2022 was $2.50 million, or ($0.01) per share as compared to net loss of $0.65 million or ($0.00)
per share from Q2 FY2021. The net loss was mainly caused by lower operating margins impacted by heavy rain.
• Cash and cash equivalents balance as at December 31, 2021 was $27.79 million, a decrease of $10.83 million from
the balance at June 30, 2021 of $ 38.62 million due to $4 million used in operation activities, $5.5 million
development cost in Selinsing including $3.8 million spent in sulphide project development , and $1.3 million spent
in Murchison exploration and maintenance activities . As at December 31, 2021, the Company had positive working
capital of $38.61 million as compared to that at June 30, 2021 of $48.54 million.
Development
Selinsing Gold Mine
The Sulphide project development comprises the Stage 1 Flotation plant project and Stage 2 BIOX® leaching plant. The
flotation plant construction includes project management, project validation, flotation design and engineering, procurement,
construction and commissioning. Mine development included upgrading of tailing storage facilities, pit push backs, and river
diversion. The flotation plant is expected to be completed by June 2022 with an estimated cost of up to $20 million. As of
December 31, 2021, 37% of overall project has been completed.
During Q2 FY2022 Mincore Pty Ltd. (“Mincore”) completed the detailed engineering design of the flotation plant. Equipment
specifications and data sheets were completed, and material take-offs and bills of material were issued for concrete, structural
steel, piping, valves and electric cables instrumentation. All civil and structural, mechanical and piping drawings were issued
for construction. Purchase orders for major long lead items of equipment were sent to the selected manufacturers. During the
quarter the construction contract has been awarded to Seong Henng Engineering Works Sdn Bhd, an experienced Malaysian
contractor which carried out the Selinsing Oxide Plant construction over 10 years ago.
During Q2 FY2022, R&D work produced the sample of flotation concentrate for pressure filtration testwork by the filter press
supplier McLanahan. It is also achieved a key milestone that the pilot plant was successfully commissioned into operation,
comprised ball mill and classifier, rougher / scavenger flotation cells and three stages of cleaner flotation. Samples of flotation
concentrate was produced and a sample of this was sent to McLanahan for filter press testwork. Antimony leaching tests was
carried out to support gold concentrates marketing effort.
The Tail Storage Facility expansion progressed 91.9% as of December 31, 2021, reached the 537m RL , which provides
adequate capacity till May 2023.
Murchison Gold Project
No mine development was planned during the second quarter of fiscal year 2022, with the focus on exploration at Murchison.
Murchison Project development is put on hold. The processing plant and other facilities are under care and maintenance and
in good co ndition. Site accommodations and catering are fully functional to host administrative, exploration and mining
activities.
Exploration Progress
Malaysia
Peranggih is currently the focus for identifying additional mineable material to extend production from the oxide plant at
Selinsing. In the Phase 1 and 2 Reverse Circulation (“RC”) drilling programs at Peranggih approximately 70% of holes have
hit gold mineralization above an oxide cut-off (>0.35g/t Au) at less than 50m below the surface, defining a mineralized zone
830m long and 60m wide. Exploration in the second quarter of FY2022 comprised of 396 channel samples, which tested
extensions to known mineralization at Peranggih, where follow-up RC drilling is planned in Q3 FY2022, and a new prospect
at Mentique, where further mapping and sampling are to be undertaken.
Western Australia
At the Murchison Gold Project, the Phase 1 RC and Air Core (“AC”) drill program completion was announced and comprised
3,465m in 46 RC holes and 10,484m in 349 AC holes, which were designed to test new targets away from known resources.
All assays from the Phase 1 drilling were received in January 2022, subsequent to the end of the second quarter, and significant
intercepts include 5m at 1.53 g/t Au from 31m (21BNRC037), 2m at 0.81 g/t Au from 111m and 3m at 1.91 g/t Au from 119m
(21BNRC038) and 2m at 1.56 g/t Au from 60m and 2m at 3.70g/t Au from 106m (21BNRC039) at Munro Bore, 8m at 0.97g/t
Au from 5m (21BNRC008) and 7m at 0.82g/t Au from 18m (21BNRC026) at FLC2, and 3m at 10.2g/t Au from 22m
(21BNAC213) at the newly discovered Junction Target.
A Phase 2 RC and diamond drilling (DD) program commenced in November 2021, and a total of 2,918m in 12 RC holes were
completed during the second quarter of FY2022, testing for extensions to known mineralization and resources at the NOA1,
NOA2, NOA78 and Alliance target areas. 1,406 RC samples from the Phase 2 drilling were dispatched to ALS Geochemistry
in Perth during the quarter. DD drilling was rearranged and postponed to March 2022 due to availability of the drill rigs. The
Phase 2 drilling program is expected to be completed by the end of March 2022 .
About Monument
Monument Mining Limited (TSX -V: MMY, FSE: D7Q1) is an established Canadian gold producer that 100% owns and
operates the Selinsing Gold Mine in Malaysia and the Murchison Gold Project in the Murchison area of Western Australia. It
has 20% interest in Tuckanarra Gold Project jointly owned with Odyssey Gold Ltd in the same region. The Company employs
approximately 200 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.
Cathy Zhai, President and CEO
Monument Mining Limited
Suite 1580 -1100 Melville Street
Vancouver, BC V6E 4A6
FOR FURTHER INFORMATION visit the company web site at www.monumentmining.com or contact:
Richard Cushing, MMY Vancouver T: +1-604-638-1661 x102 [email protected]
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release."
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 "wi ll 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 uncert ainties; 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 avai lable 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 project s; assumptions
regarding the future price of gold of other minerals; the timing and amount of estimated future production; the expected timi ng and results of
development and exploration activities; costs of future activities; capital and operating expenditures; succes s 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 availa ble 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 th ose 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.