A New Gold Producer in Malaysia. Executing the Next Stage of Growth

Transcription

1 A New Gold Producer in Malaysia Executing the Next Stage of Growth June 2011

2 Cautionary Statement This presentation includes certain estimates, projections and forward looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended that have been provided by the Company with respect to its anticipated future performance. Such forward looking statements reflect various assumptions by the Company concerning anticipated results, which assumptions may or may not prove to be correct. No representations are made as to the accuracy of such statements, estimates or projections. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of While these statements are made to convey the Company's progress, business opportunities and growth prospects, such forward-looking statements represent management's opinion. Whereas management believes such representations to be true and accurate based on information and data available to the Company at this time, actual results may differ materially from those described. The Company's operations and business prospects are always subject to risks and uncertainties. 2

3 The Company Focused on gold production and exploration operating in Pahang State in the Central Gold Belt District in Malaysia Proven Mine Builders Three projects, 100% owned: Selinsing Mine Damar Buffalo Reef Famehub Established platform for Future Growth Low cost gold production at 100% Selinsing Gold Property Additional reserves 100% owned at Damar Buffalo Reef Years of gold exploration ahead at 32,000 acre Famehub area land package (130 Sq Kms) Attractive valuation 3

4 Capital Structure Shares Outstanding: M Warrants: 80.6M Options: 25.3M Convertible Note Shares: 20.0 M Convertible Note Warrants: 20.0 M Fully Diluted: M Share Price (June 13, 2011): $ Week High/Low: $0.74 / 0.24 Market Capitalization: $104.2 M Convertible Notes: $8.00 M 4

5 Malaysia Government: Federal Parliamentary democracy with a constitutional monarchy Population (2009): 28.3 million Annual Growth Rate: 2% Nominal GDP (2009): $191.5 billion Annual real GDP growth rate: 5.9% (2006); 6.3% (2007); 4.6% (2008); - 1.7% (2009) Nominal per capita income (GNI): $6,897 Workforce (10.89 million, 2007): Services: 57% Industry: 28% (Manufacturing: 19%; Mining and Construction: 9%; agriculture: 15%) (Source: Wikipedia) 5

6 Land Position 100% owned Selinsing & Damar Buffalo Reef properties totaling over 2,000 acres along a 4.2 km strike zone 100% owned Famehub land package totaling 32,000 acres to the North and East of the Selinsing mine site 6

7 Malaysia Geological Survey Selinsing has secured a partnership with an Australian University Geology Department to fully fund a program in which they will survey the country for large metal deposits Once this survey is complete, the data will be compiled into a comprehensive database/report and donated to the Malaysian Government and kept private for three years, before becoming public data The company being the sponsor of this program will be in a position of advance knowledge regarding results and seek to secure and increase an appropriate land tenure position 7

8 Management Team Robert Baldock President & CEO 30 years of experiences of raising equity and mining project finance, directing mining project development and mill construction. Cathy Zhai CFO, Corporate Secretary & VP Corporate Finance 16 years experience with publicly listed companies at CFO s capacity or equivalent in corporate finance, public reporting and business strategic planning. Kevin Wright Project Mining Engineer and General Manager 33 years experience in designing, building and managing safe, profitable mines. Zaidi Harun VP Exploration 18 years of exploration experiences, 11 years at Selinsing Gold project. Charlie Northfield Processing Manager A hands on Mineral Processing Engineer with 30 years broad experience throughout the mining industry in gold, metal sulphides and oxides in addition to industrial minerals processing. 8

9 Selinsing Gold Mine Team at the Mine Site 9

10 Selinsing Resources (First Pit) NI Reported Resource Tonnes Grade (g/t) Oz/Au Oxide Sulphide Indicated (0.59 g/t Au cut-off) Inferred (0.59 g/t Au cut-off) 4.82 M , ,000 96, M ,000 20, ,000 10

11 Proven Mine Builders Selinsing Gold Mine Project: From Greenfield acquisition to First Gold Pour 28 Months Complete Plant Construction 24 months Low Capital Expenditure $20 Million Gravity Circuit in Production January 2010 Full Commercial Production September 2010 Zaidi Harun (VP Exploration),Kevin Wright (Project Mining Engineer & GM), and Jimee Shah (Selinsing Gold Mine Manager Sdn Bhd) 11

12 Selinsing Open Pit Open Pit June 2007 Open Pit February

13 Selinsing Plant Plant Site June 2007 Plant Site February

14 The Production Process Trucking ore to the plant Gold bar Crusher Gold Pour Treatment Plant Processing Facilities 14

15 First Gold Pour October 2009 Commercial Production announced in September ,000 tonnes/year plant 40,000 oz/au year capacity Phase III Expansion: 75, ,000 oz Au Targeting Mid Selinsing Plant Highlights Recovery rate ranged between 92% - 95% over both oxide & sulphide material Cash cost estimated at U$317 for initial pit First pit estimated 5-year mine life Currently drilling for further resources at all properties 15

16 Production Data Production Data from Q MD&A Mining 30-Jun-10 Three months, Sep.30, 2010 Three months, Dec. 31, 2010 Three months, Mar.31, 2011 Nine months, Mar. 31, 2011 Ore Mined (tonnes) 662, , , , ,567 Waste moved (tonnes) 2,326, , , ,109 2,006,630 Ore Stockpiled (tonnes) 387, , , , ,130 Process Crushed ore (tonnes) 274,786 91,106 88,552 88, ,983 Ore Processed (tonnes 272,120 89,834 87,845 87, ,459 Average mill feed grade (g/t) Processing recovery rate 58.70% 90.00% 93.70% 93.70% 92.50% Ball mill availability (%) 89.20% 94.60% 96.10% 95.40% 95.90% Gold produced (oz) 13,793 9,050 11,348 11,904 32,302 Gold Sold (oz) 13,793 8,650 10,148 10,704 29,502 Revenue (in 000's) 16,316 10,863 14,119 15,031 40,013 Cash cost (US$/oz) Mining Processing Royalties Operations Total Cash cost (US$/oz)

17 Future Cash Flow Estimates In US$ millions Total Project Cash Injection Revenue Total Cash Inward Total Expenses Surplus Cash NPV 10%): 84 IRR: 104% Low Malaysian Operating costs: Average cash cost per ounce: US$317/oz Labour: Approx. 25% of Australian or Canadian rates allowing for a 2:1 efficiency factor. Contractors: Hourly rate for 30 ton pull CAT excavator with driver and fully maintained is under US$20/per hour * At $1,400 gold the surplus would increase to $176.0 Million. Financial Overview US$ US$1,000 Gold * 17

18 Phase III Plant Expansion Selinsing Plant-Phase III Expansion: Increased Capacity to treat 1,000,000 tonnes per year-designed In-house Construction Budget of C$8 M Construction Managed In-House Provides Flexible Treatment Options for variable ore types Targeting practical construction completion December 2011 and Final Commissioning by April 2012 Current Plant at Selinsing 18

19 Grand Opening Ceremony October 25, 2010 Selinsing Gold Mine Opening Ceremony was officiated by the Chief Minister of Pahang State Dato Sri Di Raja Yang Amat Berhormat Dato Sri Hji Adnan Bin Hji Jakob About 500 people in attendance, including the Chief Minister along with State Cabinet members, about 120 state officials and local community leaders, shareholders, the Company s Directors and officers, and guests from Europe, Australia and Canada Bob Baldock, President & CEO of Monument Mining; Chief Minister of Pahang State Dato Sri Di Raja Yang Amat Berhormat Dato Sri Hji Adnan Bin Hji Jakob; YH Dato Haji Lias b. Mohd Noor, CEO of Pahang State Development Corp. (PASDEC); and Zaidi Harun, VP Exploration of Monument Mining 19

20 Damar Buffalo Reef 20

21 Damar Buffalo Reef NI Reported Resource Tonnes Grade (g/t) Oz/Au Oxide Sulphide Indicated (0.5 g/t Au cut-off) Inferred (0.5 g/t Au cut-off) 2.30 M ,500 30, , M ,300 9,700 47,600 New NI Report represents a 20% increase in gold deposit compared to historical estimates Highly prospective geology trending north from Selinsing deposit Approximately 2,000 acres (> 4.2 continuous Km) Drill program to date suggests a much larger gold camp which stretches from Selinsing in the south to the north over a 4.2 km long shear zone and potentially further north to the Famehub lands 21

22 Mengapur Polymetalic Project Monument has entered into a binding Memorandum of Understanding (MOU) to acquire a 70% pre-financing interest in the Mengapur Polymetalic Project in Pahang State, Malaysia Located approximately 130 kilometres from Monument s wholly owned Selinsing Gold Mine near Sri Jaya, 12 kilometres from a highway and 75 kilometres from the Malaysian port of Kuantan A Definitive Feasibility Study (now historic study) was completed and published in October 1990 by Normet Engineering Pty Ltd resulting from a 58,000 metre diamond drilling program The acquisition remains subject to due diligence, confirmation of historical resource and reserve estimates, signing of a definitive sale and purchase agreement, financing, board and regulatory approvals and other conditions. 22

23 Mengapur Project Historic Estimates (For Background Information Only) As at October 1990: Tonnes (Million t) EQV Cu (%) S (%) Cu (%) Au (g/t) Ag (g/t) Sulphide Proven Probable Total 64, Tonnes (Million t) EQV Cu (%) S (%) Cu (%) Au (g/t) Ag (g/t) Oxide Measured Indicated Sub-total Sulphide Measured Indicated 130, Sub-total TOTAL Equivalent Cu % is based on the following assumptions: Recoveries for Cu, Au, Ag, and S of 76.6 %, 47 %, 48% and 82 % respectively and commodity prices in US$/kg of 1.37 Cu, 4,107 Au, 65 Ag and 0.09 S and a combined mining and process cost of US$ 4.45/ tonne. 23

24 Famehub Acquisition 32,000 acres (130 Sq Kms) of prospective land adjacent to Selinsing and Buffalo Reef providing significant upside potential 24

25 Aggressive Drilling Program $4.4 Million Resource Expansion Exploration program for 2010/2011 approved (Includes new 2 drill Rigs and support for a total of 4 company owned drill rigs) 12 months: 116 drill holes; 18,390 m aimed at: Increase Gold reserves Build up gold resource pipeline in Malaysia Selinsing: Convert inferred resources to reserves, measured and indicated Drilling at Selinsing Damar Buffalo Reef: Increase resource base along trend Famehub Area: Select prospective drill targets 25

26 Goals Production- Phase III Construction-Extension of Selinsing plant to increase Throughput capacity to approximately 1 M tonnes per year Exploration- Aggressive Drilling to increase resource inventory to > 1 M oz/au by ongoing and further exploration Asset Growth Use our cash flow to look for acquisitions to grow the assets of the company for all stakeholders 26

27 Corporate Social Responsibility Job Creation Over 180 Malaysian employees at the site, the creation of local jobs for community residents is key Goods & Services construction and expansion programs, operation of plant and mine provide a constant demand for labor, contract services and supplier goods and services from the local communities of Koyan and Kuala Lipis Training and Education Encouraging local young people to seek full education and improve their skills and professional capabilities Offering scholarships to local students to attend Universities and gain degree status education for professional roles such as underground and surface mining engineers, geologists, metallurgists, chemists, managers, and similar mining industry roles Offer work experience while they undertake their degree education and upon completion offer full employment 27

28 Investment Opportunity Building value with cash flow from operations As at March 31, 2011 Cash Backing per share of $0.193 cents Gold exposure at a low producing cost US$ oz/au (first pit estimate) MMY benefits from the high price of gold on the open market Exploration upside Acquisition growth potential 28

29 Contact Information Monument Mining Limited CHF Investor Relations AXINO AG Richard Cushing Investor Relations (Tel) Robin Cook Senior Account Manager (Tel) ext. 228 Wolfgang Seybold President and CEO (Tel)

30 Thank you! 30