Monument Mining plans first gold production in August 2009

The market has announced the recent production of Monument Mining Limited, with a significant price gain appreciated. The stock in trade yesterday appealed again to 11 percent. Thanks to lower production costs in Malaysia Monument beckon with gold prices at current high levels of profit margins.
The crisis makes good management certainly the difference. The Canadian Monument Mining Limited is continuing on its way to the gold production on the Selinsing project in Malaysia continued unperturbed, although in December last year, an approved credit line in excess of 10 million CAD from investors due to lack of liquidity was withdrawn. According to the latest report, the company plans already in May this year, the mining order in August with a simple gold production to begin. In order to save investment costs will initially be produced only gold that has gravity separation can be obtained. For the first cash flow is then already in December of the second stage of production, including chemical leaching of ground ore can be realized. For the achievement of the first production stage, the company estimated investment of 7.6 million CAD. News monument still has cash in the amount of 11.4 million CAD.

CEO Robert Baldock has over the years, very quickly turning the lever. Until December last year, he could assume that the company to build the full production and to reach break even for another 10 million CAD in the form of cheap credit would be available. Instead of following the retreat of investors long after alternative financing sources in the capital to seek, has, with its CEO Baldock mine engineers simply the mine plan and in particular the dismantling planning modified, so that the company gradually and without any additional capital to the destination. If the plan succeeds, the shareholders may be doubly pleased because they are not – such as through the subsequent exchange of a loan against shares – will be further diluted.

Differently from the original plan is now at the beginning of the only high-level production from ore veins visible on the surface removed. The gold contents and metallurgy of this material allow for the grinding of a gold extraction by virtue of gravity separation. This procedure also former manager at the Selinsing property and used as, inter alia, significant wash tailings (tailings) left behind, still significant residual amounts of gold contained. Monument wants to wash these mountains anyway later in the production and contribute to chemical leaching, the residual gold win. The material from the (old) will be washing mountains at full production to provide the mill feed to homogenize.

Selinsing The mine currently has a indicated resource of 3.63 million tonnes with a gold content of 1.76 g / t. This is equivalent to 205,000 ounces of contained gold. With a targeted production rates from an average of 40,000 ounces, these deposits for five years. At today’s gold price of approximately USD 940 would Monument Mining 600 USD net profit because the profits from the production for the first five years are exempt. In October 2008, another monument to calculate the total cost of production can be. With an estimated production cost 341 USD, the Company has a very attractive margin and with a rising gold prices, this leverage benefit. In an initial Jahresprodukton of 40,000 ounces of gold would Monument in 2010 with a profit margin of 24 million USD flirt. With approximately 155 million currently outstanding shares and an estimated overall business costs in the amount of approximately 3 million U.S. dollars, would Monument a profit of 21 million USD, or about 0135 USD per share, ie approximately 0.10 EUR. The stock is currently at approximately 0175 EUR traded and has substantial potential course.

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