Monument Mining Limited (TSX-V: MMY) (FSE: D7Q1) started commercial production at its Malaysia gold operation on Friday.
The milestone was accomplished after 30 consecutive days of the Selinsing mine’s flotation plant operating at 90 per cent throughput capacity until August 16.
The company reported an average daily gold recovery rate of 61.4 per cent during that period, a sub-optimal result that Monument attributes to high clay content present in its freshly mined transition ore and a poor flotation response yielded from stockpiled transition ore mixed with oxides.
The company produced 79 tonnes of gold concentrate per day during that time, which it says was satisfactory when taking the variability of the transition ore into consideration.
“We are very pleased to announce this landmark event at the Selinsing gold mine. After 12 years of gold bullion production that generated positive cash flow, now the gold sulphide project will continue the legacy,” said Monument’s President and CEO Cathy Zhai.
To date, the company’s flotation plant has produced 9,100 metric tonnes of gold concentrate averaging 37.5 g/t Au. The company made its first shipment of the concentrate to an unnamed buyer at the end of June consisting of 490 dry metric tonnes.
Monument says 6,550 tonnes are currently in the process of being shipped to a series of different buyers. Gold concentrate is an intermediate product or semi-processed material obtained through the processing of gold ore which results in a sand-like substance with a much higher concentration of gold than the original ore.
Selinsing mine’s flotation plant used for processing ore at night. Photo via Monument Mining
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Despite the company’s enthusiasm about achieving commercial production at the project, it says it is having frequent issues with failing pressure filter cloths and has started seeking new vendors to resolve the issue.
Monument also has a series of gold properties in Western Australia collectively known as the Murchison gold portfolio. The company has 327.2 million outstanding common shares with a market capitalization of $34.4 million.
The Selinsing mine has generated $640 million in revenue to date from gold sales.
Monument shares dropped by 3.85 per cent Monday to $0.12 on the TSX Venture Exchange but have steadily risen by over 78 per cent in the past year.
rowan@mugglehead.com
