TORONTO (miningweekly.com) – Toronto-listed junior Monument Mining on Friday said gold recovery from the Selinsing gold processing plant, in Malaysia, during the second quarter ended December 31 was 17 289 oz, a 28% increase when compared with the 13 544 oz produced in the same period a year earlier.

The recovery increase was mainly owing to the increase in processing capacity as a result of the recent plant expansion; however, the realised benefit of more tons processed was offset by a drop in feed grade and processing recovery rate.

The company said that both the drop in feed grade and in processing recovery rate were expected in the mine plan and are the result of the transition from oxide to sulphide ore.

Gold production, net of gold dore in transit and refinery adjustment, was 15 902 oz, an increase of 35.5% compared with 11 736 oz for the same period in 2011.

Monument reported gross revenue in the quarter of $19.6-million from selling 11 353 oz of gold.

For the six months ended December 31, 2012, gold recovery increased by 16% to 29 530 oz and gold production increased by 14% to 26 808 oz, compared with the same period a year earlier. These increases were also a result of the increased mill throughput, offset by lower feed grade and recovery rate.

"The increase in gold production is a direct result of the plant expansion and our team's dedicated efforts to commission and fine tune the expanded process plant. The expansion was financed from cash flow and now we are seeing the payback in the bottom line,” Monument CEO Robert Baldock said in a statement.

The company in October reported Selinsing Mining (SMSB), the previous owner of the Selinsing mine, had filed a claim to a 5% participation right in the mine in the High Court of Malaya, in Shah Alam.

The claim statement alleged that SMSB was entitled to a share of production/profit from Monument’s subsidiary Selinsing Gold Mine Manager (SGMM), based on SMSB's alleged 5% participating interest in SGMM.

Monument added it would “vigorously” dispute the claim.

Monument acquired the Selinsing property in 2007 and declared commercial production at the mine in September 2010.

The company’s TSX-Venture-listed shares traded down 1.19% on Friday at 41.5 Canadian cents apiece.