KUCHING: Interest in Borneo Oil Bhd’s shares picked up last week on progress in its gold mining activities.
The company saw its share price gain half a sen last Friday to close at seven sen. It was one of the most actively traded counters last week.
The company recently announced a tie-up with Minetech Construction Sdn Bhd (MCSB) to carry out gold mining activities in Bukit Ibam, Pahang.
Its wholly-owned subsidiary Borneo Oil & Gas Corp Sdn Bhd (BOG) has entered into a memorandum of understanding (MoU) with MCSB to work together towards the materialisation of a business contract, which would involve BOG appointing MCSB as the contractor for the mining works for the Bukit Ibam gold prospect.
BOG has identified MCSB, which is 100%-owned by Minetech Resources Bhd, as a “competent and suitable” contractor for carrying out the mining works. MCSB is currently undertaking mining excavation works at Selinsing gold mine at Sungai Koyan, Kuala Lipis in Pahang.Borneo Oil said the parties entered into the MoU to lay out the general terms for the proposed joint collaboration to undertake mining works starting from the excavation of mining ore in one of the eight zones where a detailed exploration work was completed recently.
The excavation of mining ore will be extended to the other seven zones upon the completion of detailed exploration by BOG, Borneo Oil told Bursa Malaysia last Thursday.
BOG will provide geological advice in terms of excavation and, if needed by, appointed an independent geological advisor to provide the required duties and plan the mining scheme and related works with MCSB.
MCSB, on the other hand, will provide the plant and equipment for excavation works and qualified personnel to carry out blasting activities.Earlier this month, Borneo Oil said based on the reserves assessment on the detailed exploration works on the first zone in Bukit Ibam, the total resources assessed was 22,200 ounces or 621,917 grammes of gold in 1.66 million tonnes of ore with an average grade of 0.42 gramme per tonne.
“Based on metallurgical tests conducted, up to 90% of the gold can be extracted, 30% by gravity and 70% by carbon in leach (CIL).
“There are two methods in which gold from the first zone can be extracted, either by a CIL circuit (which is preferred) where 90% of the gold can be extracted or by heap leaching (which is not preferred) where 30% of the gold can be extracted, ” according to Borneo Oil, which owns home-grown fast food restaurant chain SugarBun.
Borneo Oil said the findings of the preliminary exploration works on seven of the eight zones earlier had shown potential gold resources of 1.866 tonnes.
The detailed exploration works on the first zone was conducted by an independent consultant Yves Cheze, who is a member of the Australian Institute of Geoscientists and member of the Institute of Geology Malaysia.
A report on the reserves assessment on the detailed exploration work has been prepared and signed off by Cheze under the Australasian Code of Reporting of Exploration Results, Minerals Resources and Ore Reserves on Aug 5.