Although Monument Mining produced less gold from its Selinsing operations in Malaysia during the financial year ending June 30, the company is well placed to increase production in the 2018 financial year. The reduction was primarily due to a delay in mining on the FELDA Land but this issue has been resolved with acquisition of FELDA Block 7.
Monument produced 12,845 ounces of gold in the 12 months, a decrease on the 18,155 ounces of the previous period. It sold 12,700 ounces for gross revenue of $15.72 million, compared to 23,150 ounces for revenue of $23.6 million in the 2016 financial year.
As well as the FELDA delay, production was impacted by a decrease in average ore head grade to 0.80 g/t gold from 0.88 g/t in the previous year, and a decrease in mill feed to 847,416 tonnes from 992,070 tonnes as production continued to process super low grade gold materials in transition toward treating sulphide ore.
The gold recovery rate decreased to 58.8% compared to 67.4% mainly due the mill feed from lower grade stockpile oxide, lower recoverability of leachable sulphide ore, and tailing materials.
The FELDA Block 7 proprietary mining leases have been approved and exclusive contract to mine agreements have been signed for closing. A prefeasibility study has been completed and a technical report filed replacing Selinsing gold inventories for six years of mine life.
A Front End Engineering Design (FEED) study at Selinsing aims to deliver an implementation execution plan for the sulphide project and will enable the company to make a construction decision based on the plan.
The company says the Burnakura Gold Project in Western Australia is ready for construction for the early stage production.
President and CEO Robert Baldock said, “The closing of the FELDA Block 7 acquisition in process will provide immediate additional oxide feed for sustainable production at Selinsing. Further exploration and study on the Peranggih mining tenement is exciting, aiming for a potential oxide system adjacent north of Buffalo Reef.
“The success of putting two gold projects into cash flow will lift up the Company’s sustainable production going forward.”