Monument to buy Murchison gold project in Australia

7 January 2014 (Last Updated January 7th, 2014 18:30)

Monument Mining has agreed to acquire the Murchison gold project in Western Australia from a group of Australian firms.

Monument Mining has agreed to acquire the Murchison gold project in Western Australia from a group of Australian firms.

Monument will pay A$15m to Jinka Minerals, Kentor Minerals (WA) and KGL Resources to acquire the project.

The deal includes a number of mining and exploration tenements and lease applications covering about 98km² of prospective lands for resource extension.

The tenement package holds a historical resource estimate of 546,000oz of gold, a gold processing plant, a newly-developed camp site and all necessary infrastructure.

Monument said that without distraction from its present operational programme in Malaysia, it will move quickly to get the project into production.

The Murchison gold project features both the Burnakura and Gabanintha properties, located near Meekathara in the Murchison Mineral Field, approximately 765km north of Perth.

The project was previously operated by Barrick Gold and produced 150,000oz of gold from the immediate region up to the late 1990s, but operations shut down when gold prices dropped.

Monument intends to start production from a heap leach operation, potentially processing ore from both the Burnakura and Gabanintha locations within the project.

The company said that preliminary engineering for a two million tonnes pad has been carried out and draft operating permits have been prepared in anticipation of filing applications with regulators.

Monument acquired an additional crushing plant to allow up to three stages of crushing and a mixer, agglomerator and stacker.

The production pad will be located near the current infrastructure at Burnakura.

Metallurgical test work data reviewed by independent metallurgical and engineering consultants during the company's due diligence review indicates that material from only one of the pits required pre-stacking agglomeration.

The mine also has an assay laboratory that would facilitate assays and heap leach results simulations through metallurgical test work programmes.

A drill programme will also be undertaken to confirm grades. It would upgrade and increase the resource and provide data and material for the metallurgical test work programme.

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