The Selinsing operation is focused on preparation for Sulphide Gold Production (the "Sulphide Project"). In the 2016 PFS a biological treatment approach was chosen as an economically viable option for the Company to maximize gold recovery from the sulphide material. The 2016 PFS revealed the Sulphide pre-treatment plant will require an estimated capital of $39.5 million, providing a $23.1 million NPV and 34.8% rate of return. The Company continues to optimizing its production on oxide materials. The remaining sulphide ore will be processed primarily through an additional biological pre-treatment circuit planned to be added to the existing plant.
The Company is doing additional testwork to further optimize bioleach sulphide treatment recoveries through the BIOX(r) Process. The BIOX(r) Process is conventional patented methodology to treat sulphides which has been on the market for decades. It uses micro-organisms in the oxidation of certain gold bearing sulphide minerals in order to facilitate gold recovery. Positive BIOX(r) Process testwork results were received which showed on average 90% recovery of gold from representative samples of ore from the Buffalo Reef area at Selinsing, given these samples being high in gold and Sulphur grades were expected to give the best overall performance in terms of the above parameters.
A Front End Engineering Design ("FEED") study has been scoped and commenced, together with an internal Definitive Feasibility Study ("DFS") which will further update the existing 2016 PFS. Timed to be completed in advance of the FEED study, the DFS will enable the Company to make a construction decision with a preliminary execution plan prior to full FEED study enactment. Upon success of the DFS and FEED final design, in-house construction and commissioning. The upgraded plant can be expected to enable the Company to continue gold production at Selinsing for a further estimated six years through to 2023 without further ore discovery according to the 2016 PFS.
Mining at Felda Block 7
Felda is gazetted as a group settlement area covering 3,920 acres owned by local individual "Settlers". Monument signed agreements with Settlers with consent from Felda allowing exploration to be carried out at Felda where exploration rights have been acquired from Settlers. Out of this total area, 39.12 acres have been converted to mining land at Felda Block 7. The Proprietary Mining Leases (the "PMLs") were issued to the land owners.
Pursuant to Contract to Mine Agreement with the Felda Block 7 owners, the Company has exclusive right to mine under Felda Block 7 PMLs. This will provide immediate additional oxide feed to the gold plant. Felda Block 7 contains the extension of the BRC oxide ore body which can now be readily mined and also allows the pit to be fully developed across the boundary to access the entire sulphide ore beneath BRC.