eResearch Nov 27 2007

8/6/2019 eResearch Nov 27 2007

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THE SOURCEOF INDEPENDENT EQUITY RESEARCH

Data Source: www.BigCharts.com

Independent Equity Research Corp., 130 Adelaide Street W., Suite 2215, Toronto, Ontario, Canada M5H 3P5www.eresearch.ca

eResearch Information Report

AnalystsGraham Wilson, Ph.D., P.Geo

Bob Weir, B.Sc., B. Comm, CFA

This Information Report is a preliminary assessment of Monument Mining Limited. It is

not a detailed analysis of the Company, and contains no Recommendation, Target Price,

Earnings Estimates, or Risk Assessment. eResearch is in the process of completing a

full-scale analysis of the Company, and a comprehensive report will be available shortly.

PROFILEMonument Mining Limited (Monument Mining or the Company) is a junior

exploration and mining company, headquartered in Vancouver, British Columbiaand focused on the exploration and development of mineral properties in the Central

Gold Belt of peninsular (western) Malaysia. It has two 100%-owned projects, the

Selinsing Gold Development Project (Selinsing) and the Buffalo Reef exploration

property (Buffalo Reef), which is contiguous and continuous along the Selinsing

trend.

OVERVIEW Monument Mining has recently acquired a 100% interest in Selinsing and the

Damar Buffalo Reef, two adjacent Central Gold Belt mineral properties.

Both properties hold gold resources with opportunity for extension, and are

in the same district as two operating gold mines.

The initial mining plan calls for production of 40,000 ounces per year for

five years, with plant commissioning scheduled for Q3/08 and positive cash

flow commencing Q1/09.

The Company closed a $10 million private placement on June 25, 2007.

Two major shareholders together control 56% of Monument Mining

shares.

Experienced management in mine finance, exploration geology and mine

operations.

Malaysia has a long history as a mining country.

Price (Nov 26)$0.71

52-Week Range$1.51-$0.58

% Below High53%

% Above Low22%

Shares O/S

77.4 million

Market Cap$55.0 million

Average Daily Volume41,700

Year-EndJune 30

November 27, 2007

Monument Mining

Limited500-666 Burrard Street

Vancouver, BC V6C 3P6

Canada

Tel: 604-669-2929

Fax: 604-688-2419

www.monumentmining.com

MONUMENT MINING LIMITED(TSX-V: MMY; Frankfurt: D7Q1)


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eResearch Monument Mining Limited

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BACKGROUND

Monument Mining was formerly known as Moncoa Corporation, with the name change becoming

effective in April 2007. On June 25, 2007, the Company completed a reverse takeover with a 2:1 share

capital reduction on old Moncoa shares. Moncoas existing private subsidiaries were divested so that

Monument Mining could concentrate exclusively on mining and mineral exploration activities.

THE COMPANY

Monument Mining is a recent addition to the ranks of junior exploration and mining companies,

and is listed on both Canadian and German stock exchanges (TSX-V: MMY; Frankfurt: D7Q1).

The Company is well-placed in a region of proven gold endowment, in a reasonably progressive

developing country with adequate infrastructure. The ground position affords good opportunities

for expanding the resources to expand mill life.

Monument Mining has recently acquired a 100% interest in Selinsing and the Damar Buffalo Reef,

two adjacent mineral properties in the Central Gold Belt of peninsular (western) Malaysia (seebelow). Both properties hold gold resources with opportunity for extension, and lie in the same district

as the operating Penjom and Raub Australian gold mines, which have both produced 1,000,000

ounces each and still host a further approximately one million ounces in gold resources

The Company has a wealth of expertise and experience (see Management and Directors), perhaps

the most important investment in a seed venture such as this, in an environment where the firm is

a newcomer.

MAJOR SHAREHOLDERS

Two major shareholders, Avocet Mining PLC and Able Return Sdn. Bhd. (Able), together control

56% of Monument Mining stock (of which 77,395,023 shares were issued and outstanding as of

October 25, 2007).

Avocet, vendor of the Buffalo Reef ground and operator of the nearby Penjom gold mine, was issued

15 million Monument shares (19.4% of the outstanding shares, to be held in a voluntary pooling

agreement until June 2009).

Able was the vendor of the Selinsing interests and is Trustee of the Wira Mas Unit Trust which

was, in turn, the owner of all of the shares of Selinsing Mining Sdn. Bhd. Able, Selinsing and Polar

Potential Sdn. Bhd., a wholly-owned Malaysian subsidiary of Monument Mining, have entered

into a Purchase and Sale Agreement for Monument Mining to acquire 100% of the Selinsing Gold

Project. Wira Mas Trsut has received 31.4 million Monument shares held in escrow and subject tothe above voluntary pool until 2010.


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Information Report Information Report

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THE CENTRAL GOLD BELT OF MALAYSIA

Malaysia has a long history as a mining country, most notably for hard-rock and placer tin mining.

Other mineral commodities include gold, tungsten and bauxite. The western (or peninsular) region

of the country, which includes the capital city of Kuala Lumpur, lies within the Southeast Asian

tin belt, source of roughly 10 million tonnes of tin metal, and at least half the worlds cumulative

production.

The Central Gold Belt of western Malaysia lies on the eastern flank of the S.S.E.-trending Main

Range batholith. Selinsing lies along a north-south structure near the west margin of the gold belt,

some 45 km northwest of the centrally-located Penjom mine. Gold at the Penjom mine occurs in

association with telluride and sulphide minerals, including galena and especially arsenopyrite.

Monuments projects are located nearby in Pahang state, in the central part of the peninsula.

KEY PROPERTIES

The accompanying map shows the location of the Companys mining projects:

Figure 1. Key Properties

Source: Company website


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1. Selinsing Gold Property

Monument Mining has a 100% interest in Selinsing and the Damar Buffalo Reef, two adjacent

mineral properties in the Central Gold Belt of western Malaysia. Both properties hold gold resources

with opportunity for extension, and lie in the same district as the operating Penjom and Raub

Australian gold mines, which each host more than one million ounces in gold resources.

The key Selinsing property is divided between two sub-leases. By virtue of a cash-and-shares

structured deal, Monument recently acquired a 100% interest in the whole project. Mining lease

MC1/113 contains the proposed mine site, and a 5% royalty is payable to the Malaysian government.

Mining lease MC1/124 contains gold resources in low-grade mine tailings and stockpiled ore. The

exploration potential of Selinsing, the nearby Buffalo Reef property, and local potential acquisition

prospects are a significant added attraction.

The Company announced in June 2007 that the Selinsing acquisition has an indicated mineral

resource of 3,630,000 tonnes at 1.76 grams per tonne (gpt), at a cut-off of 0.75 gpt for contained

ounces of 205,000 ounces of gold. In addition, an inferred mineral resource of 7,690,000 tonnes at a

grade of 1.34 gpt for contained ounces of 330,000 ounces of gold at a similar cut-off grade is described

in full in the NI 43-101 Reportfi

led on SEDAR on September 29, 2006 by the Company.

The deposit is shallow and amenable to open-pit mining, having been tested extensively, in the

main by reverse-circulation drilling. The initial mining plan calls for production of 40,000 ounces

per year forfive years, commencing in 2008.

The project is located close to an existing paved road, approximately two hours drive from Kuala

Lumpur. There is established infrastructure and a number of structures including a plant workshop

and assay laboratory. A new mine tailings impoundment is being designed adjacent to the proposed

new mine and plant.

Selinsing has seen episodic mining activity, initiated prior to 1888. The two mining leases cover

an area of some 170 acres. Cumulative production to date is estimated at about 85,000 ounces.

COMMENT: The region hosts features conducive to a variety of potentially gold-bearing deposits,

related to regional structures, felsic intrusions, porphyries, skarns and possibly sediment-hosted

(micron-scale or Carlin-type) deposits.

2. Buffalo Reef Property

The Buffalo Reef property, 100%-owned, provides a 4.5-km extension of the Selinsing gold trend.

The project has an Australian (JORC-compliant) indicated resource of 1,900,000 tonnes grading

2.49 gpt gold with a cut-off grade of 0.5 gpt gold (155,800 contained ounces). In modern times,

the Reef was explored by Damar Consolidated (1993-1996) and Avocet (1997-2006). The latter

divided the mineralization into three zones. The mesothermal quartz veins contain native gold, 2-3%

sulphides (pyrite and chalcopyrite with lesser galena and stibnite) and graphite. The resources are

broken down into sulphide, transitional and oxide categories. The quartz veins are mostly parallel

to the approximately north-south bedding. A shear zone of graphitic shale (often calcareous)

appears favourable to additional gold mineralization.


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Information Report Information Report

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In September 2007, Monument Mining announced the commencement of the first phase of

exploration on the project. The Company said that this work would be undertaken in parallel with

the development of the Selinsing Gold Mine project, and that the first assay results were expected

to be available in November/December 2007.

COMMENT: Such structures, with both sheared and brecciated rocks, and carbonaceous matter

which may precipitate gold from the ore fluids, are conducive to mineralization in many parts ofthe world.

PRIVATE PLACEMENT

Monument Mining closed a $10 million private placement on June 25, 2007.

MANAGEMENT AND BOARD OF DIRECTORS

Management:

Robert F. Baldock, President, Chief Executive Officer

Cathy Zhai, Chief Financial Officer, Corporate Secretary

Zaidu Harun, Vice President Exploration

Mike Kitney, Project Manager

John Barton, Project Engineer

Board of Directors:

Robert F. Baldock, Chairman

Carl Nissen

Zaida Harun

Patrick SoaresAdam Bradley

The Company has considerable strength and breadth of experience in its management. The key

personnel in mine finance and corporate governance, exploration geology and mine operations

have extensive experience in their respective roles. CEO Robert Baldock is supported by a team of

directors and technical staff with a high level of expertise in geology, metallurgy, engineering and

mine development. CFO Cathy Zhai also has extensive experience in mineral companies, including

the successful Hunter-Dickinson group of companies. On-the-ground expertise is provided by local

geological expert Zaidu Harun and his exploration team and field geologists..

In terms of mine development, management has retained two experienced professionals. Mike

Kitney, a member of the Australian Institute of Mining and Metallurgy (AusIMM), will be adviserto the manager, and John Barton, AusIMM, a senior and broadly qualified mining professional,will

be the on-site representative reporting directly to Monument. Both will assist in the development

and subsequent management and operation of the Selinsing Gold Mine project.

Snowden Mining Industry Consultants Pty. Ltd., a major Australian contractor, has provided

management with three major independent reports on the Selinsing property and its resources.


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Each Research Analyst who was involved in the preparation of this Research Report hereby certifies that:

(1) the views, opinions, and recommendations expressed in this Research Report reflect accurately the Research

Analysts personal views concerning any and all securities and issuers that are discussed herein and are the subject

matter of this Research Report; and (2) the fees, earnings, or compensation, in any form, payable to the Research

Analyst, is not and will not, directly or indirectly, be related to the specific views, opinions, and recommendationsexpressed by the Research Analyst in this Research Report.

eResearch analysts on this report: Graham Wilson, Ph.D., P.Geo, is a geologist and mineralogist. He holds a B.A.

(Hons.) from the Dept. of Geology and Mineralogy, University of Oxford, and a Ph.D. from the Dept. of Mineralogy

and Petrology, University of Cambridge. He is a practising professional geoscientist in Ontario and a fellow of the

Geological Association of Canada, the Geological Society of India, and the Association of Applied (Exploration)

Geochemists. Dr. Wilson is also a member of the Association of Geoscientists for International Development,

Meteoritical Society, Mineralogical Association of Canada, Prospectors and Developers Association of Canada, and

Society of Economic Geologists.

Bob Weir, B. Comm, B.Sc., CFA. Bob Weir has 40 years of investment research and analytical experience in both

the equity and fixed-income sectors, and in the commercial real estate industry. He was at Dominion Bond Rating

Service (DBRS) from 1994 to 2001, latterly as Executive Vice-President responsible for conducting the day-to-daymanagement affairs of the company. He joined eResearch in 2004.

eRESEARCH ANALYST GROUPDirector of Research: Bob Weir / Vice President, Operations: Bob Leshchyshen

ANALYST CERTIFICATION

Financial Services

Robin Cornwell

Biotechnology/Health Care

Scott Davidson

Keith LueMarita Hobman

Transportation & Environmental Services/

Industrial Products

Bill Campbell

Mining & Metals

George Cargill

Neil Gow

Adrian Manlagnit

Oliver Schatz

Michael Wood

Energy & Utilities

Melvyn Misner

Oil & Gas

Eugene Bukoveczky

Achille DesmaraisDick Fraser

Ross Deep

Special Situations

Asim Bukhtiar, MBA, CFA

Bill Campbell

Bob Leshchyshen

Ross Deep

Nigel Heath

Amy Stephenson

Bob Weir

Chief Economist

Beverly Brooks


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For further information:Independent Equity Research Corp.

130 Adelaide St. West, Suite 2215, Toronto, ON, Canada M5H 3P5Telephone: 416-643-7650 Toll-free: 1-866-854-0765

www.eresearch.ca

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eResearch Recommendation System

Strong Buy: Expected total return within the next 12 months is at least 40%.

Buy: Expected total return within the next 12 months is between 10% and 40%.

Speculative Buy: Expected total return within the next 12 months is substantial, but Risk is High (see below).

Hold: Expected total return within the next 12 months is between 0% and 10%.

Sell: Expected total return within the next 12 months is negative.

eResearch Risk Rating System

A company may have some, but not necessarily all, of the following characteristics of a specific risk rating to qualify for that rating:

High Risk: Financial - Little or no revenue and earnings, limited financial history, weak balance sheet, negative free cash flows,

poor working capital solvency, no dividends.

Operational - Weak competitive market position, early stage of development, unproven operating plan, high cost

structure, industry consolidating, business model/technology unproven or out-of-date.

Medium Risk: Financial - Several years of revenue and positive earnings, balance sheet in line with industry average, positive free

cash flow, adequate working capital solvency, may or may not pay a dividend.

Operational - Competitive market position and cost structure, industry stable, business model/technology is well

established and consistent with current state of industry

Low Risk: Financial - Strong revenue growth and earnings over several years, stronger than average balance sheet, strong positive

free cash flows, above average working capital solvency, company may pay (and stock may yield) substantial dividends

or company may actively buy back stock.

Operational - Dominant player in its market, below average cost structure, company may be a consolidator, company

may have a leading market/technology position.

Documents

eResearch Nov 27 2007