Kuala Lumpur: Sabah-based Borneo Oil Berhad announced that its wholly-owned subsidiary, Borneo Oil Corporation Sdn Bhd (BOC), has received the approval from the Department of Minerals and Geoscience Malaysia to undertake mine development, mining and gold processing operations via the Carbon In Leach (CIL) process at the Bukit Ibam gold tenement in Pahang under an approved Operational Mining Scheme (OMS).
The approval marks a significant regulatory milestone that enables Borneo Oil through BOC to advance toward commercial-scale gold production at one of Peninsular Malaysia’s historically recognised gold belts.
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Bukit Ibam is about 40km from Muadzam Shah and 90km from Kuantan and gold mining there dates back to the 19th century, with subsequent exploration during the early and mid-20th century.
Modern exploration has since identified further potential not previously delineated using older technologies.
Under an Exclusive Production Sharing Agreement, BOC has the exclusive right to conduct all mining works on a mining tenement measuring approximately 1,200ha situated at Hutan Simpan Bukit Ibam Mukim Keratong, Daerah Rompin, Pahang Darul Makmur.
This key OMS approval covers a 187-ha mining lease within the mining tenement valid until Dec. 21, 2027, with an option for renewal. The OMS approval allows construction of a Carbon-In-Leach (CIL) processing plant and expanded gold mining operations for the Borneo Oil Berhad Group.
In July 2016, BOC completed an independent exploration report based on trenching and drilling data. A total of 2,209 samples were collected from 15 trenches, with additional trenches excavated for site infrastructure.
Based on the resource estimation, the Bukit Ibam Gold Project is estimated to contain 60,814 ounces of gold (1.892 mt of gold).
The total inferred gold reserve to date is estimated at 5.008mt of gold available for the CIL processing.
BOC has received approval to proceed with the construction of a full-scale processing facility under the OMS. The CIL process, combined with gravity recovery, is widely used in the gold industry for efficient extraction of gold from oxide ores.
The Group has shortlisted experienced EPCC (Engineering, Procurement, Construction and Commissioning) contractors for the construction and commissioning of the CIL plant, marking the next key phase of development.
The OMS approval strengthens Borneo Oil’s position in the gold mining sector and supports the Group’s strategy to build a sustainable upstream mining and mineral processing business in Malaysia.
With regulatory approval in place and processing infrastructure progressing, Bukit Ibam is poised to become a key contributor to Borneo Oil’s long-term growth.
As at today, the gold price is USD5,053 per ounce as per COMEX GOLD (RM637 per gram/ RM637,000 per kg).
