Monument raising $38M for Malaysia gold project

Monument Mining (MMY-V) is raising $38 million to move its 100%-owned Selinsing gold project in Malaysia toward production.

The project has an indicated resource of 4.8 million tonnes grading 1.5 grams gold per tonne for 231,000 oz. (National Instrument 43-101-compliant), plus 10.3 million inferred tonnes grading 1.17 gram gold for 388,000 oz. gold.

The resource is near surface, and amenable to open-pit mining. Monument plans to use a carbon-in- leach circuit, and metallurgical tests indicate gold recoveries of 92-95%. The company eyes production in the first quarter of 2009.

Speaking at a recent Richmond Club event in Toronto, CEO Robert Baldock said he’s hopeful that exploration at the Damar Buffalo Reef project, which is contiguous with Selinsing, can increase resources. The two form a 4.2- km-long mineralized trend. Monument estimates gold resources at Damar Buffalo Reef, which conforms to Australia’s JORC code, at 1.9 million indicated tonnes grading 2.49 grams gold per tonne for 185,000 oz. gold, plus 568,000 inferred tonnes grading 1.62 gram gold.

Baldock anticipates that $28 million will be raised in equity, and $10 million in convertible notes. Besides advancing Selinsing to production, he is hoping to negotiate the purchase of exploration rights for an additional 129.5 sq. km in the area, as well as a database of exploration results from previous owners. The money should be sufficient for these purchases as well.

Baldock likes Malaysia for its political stability and its low labour costs. Selinsing and Damar Buffalo Reef are subject to a 5% government royalty; Damar Buffalo is also subject to a 2% state government royalty.