Monument Mining sustained production at the Selinsing Gold Project in Malaysia during the March quarter despite the processing of super low grade ore and delays in production from the Felda Land deposits. The company produced 3875 ounces, which was 59% lower than the corresponding period of 2015.
Processing of the super low grade ore is being carried out during the transition phase to treat sulphide ore.
The cash cost per ounce during the quarter was US$665, up from $560 in the corresponding 2015 quarter and gross revenue from gold sales was $4.46 million on 3580 ounces sold, down from $12.46 million on 18,950 ounces sold.
The average ore head grade was 0.95 gram/tonne (g/t) gold, down from 1.44 g/t, and the processing recovery rate was 69.1%, down from 82.2%. Ore mined increased to 110,138 tonnes from 96,761 tonnes and plant throughput increased by 17% to 264,159 tonnes.
The company is expediting the process of preparation for gold mining start-up at Felda Land, while cautiously monitoring and improving gold production productivity.
Monument’s president and CEO Robert Baldock said, “It is expected that gold production can be lifted by December 2016 when the conversion of Felda Land into mining lease is anticipated to be completed.”
A second trial Intec pilot plant run is planned for the current quarter to test the response of ores containing varying amounts of pyrite and arsenopyrite using sulphide ores from Buffalo Reef. This trial will allow the gold recovery of sulphide pre-concentration by flotation methods to be compared with the first trial on gravity concentrate.
The second trial will be carried out with the assistance of Orway Mineral Consultants (WA) Pty Ltd of Perth, Western Australia who is engaged to oversee the pilot plant operation.
During the March quarter, Intec Project metallurgical drilling comprised of 14 RC pre-collar drill holes for 1107 metres and 19 DD drill holes for 1901 metres across Buffalo Reef South, Buffalo Reef Central and Felda Land to collect representative ore samples for the second pilot plant run. Those samples have been concentrated by flotation and will be fed into the pilot plant for testing in the current quarter.
The results of this second pilot plant run are anticipated to be available in July for Orway to complete economic analysis of the Intec technology sulphide gold recovery process. The economic analysis will be incorporated into an updated NI43-101 technical report.