Owing to the sharp decline of the iron ore market and predictions that low iron is here for some years to come due to oversupply, Monument Mining has re-thought its focus on production of iron from its Mengapur project as a main marketable product. While not abandoning iron, will concentrate and refocus on high grade magnetite and copper.
The company’s president and CEO Robert Baldock said, “Our continuing test work and upgrading of the sulphide copper flotation plant will bring opportunity for additional cash flow.”
Commenting on the company’s September quarter results, he said: “Fiscal 2015 started with the continuing decline in gold price and other metals which is of considerable concern to shareholders and the entire investment market.
“Under this challenging economic environment, Monument’s business strategy works to its advantage: we continue low cash cost gold production at Selinsing by optimizing the plant performance and work to build up sustainable cash flow down the road through R&D work on treating sulphide gold ore materials at Selinsing, resource exploration at Murchison Gold Project and the Malaysia region, work on producing iron and copper at Mengapur and the continued strategic acquisition of mineral resources around the Murchison and Gascoyne regions in Western Australia.”
During the quarter the company produced 9745 ounces from Selinsing, down from 10,515 ounces in the corresponding quarter of 2013. The cash cost per ounce was US$699, up from US$503 in the corresponding quarter while gross revenue from gold sales was $8.18 million on 6300 ounces sold, down from $16.0 million. The profit margin generated from gold production was $2.1 million compared to $7.33 million.
The ore processed increased by 8% to 253,514 tonnes and the processing recovery rate increased by 6% to 84.4%.
The company is continuing test work at Selinsing for sulphide ore gold recovery and is also undertaking test work at Mengapur for magnetite and copper recovery.
Monument has commenced exploration drilling at the Perangih prospect at Buffalo Reef, Malaysia, and is in the final stages of assessing the alternative gold recovery process for phase IV sulphide treatment method for Buffalo Reef.
In Western Australia the company completed its initial targeted exploration program at the Murchison project and has commenced additional drilling.