In an announcement made to Bursa Malaysia Securities Bhd, Borneo Oil Berhad (“BORNOIL” or “the Group”) has 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).
This approval marks a significant regulatory milestone that enables BORNOIL, through BOC to advance toward commercial-scale gold production at one of Peninsular Malaysia’s historically recognised gold belts.
A Historically Rich Gold District: Bukit Ibam is situated approximately 40 km from Muadzam Shah and 90 km from Kuantan. Gold mining in the area dates back to the 19th century, with subsequent exploration carried out during the early and mid-20th century. Modern exploration has since identified further mineralisation potential that was 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 1,200 hectares (3,000 acres) situated at Hutan Simpan Bukit Ibam Mukim Keratong, Daerah Rompin, Pahang Darul Makmur.
Regulatory Green Light Obtained: This key OMS approval covers a 187-hectare mining lease within the mining tenement valid until 21 December 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.
Defined Gold Resources and Further Upside
Historical exploration, trenching and drilling programmes conducted across multiple phases at Bukit Ibam, together with subsequent competent person and internal technical assessments, indicate the presence of meaningful gold resources across several zones within the tenement.
In July 2016, BOC completed an independent exploration report based on trenching and drilling data. Trenching commenced in January 2016 and was completed by 30 April 2016, with assay results finalised on 10 June 2016. A total of 2,209 samples were collected from 15 trenches, with additional trenches excavated for site infrastructure. Sampling intervals were generally 2.5 metres, with intervals of 1 metre and 5 metres in areas of varying mineralisation.
Based on the resource estimation, the Bukit Ibam Gold Project is estimated to contain 60,814 ounces of gold (1.892 mt of gold).
In 2020, BOC appointed Dr. Yves Cheze (MAIG, IGM) to evaluate the JORC-compliant gold resources for the Bukit Ibam Gold Mining Project. The JORC report covered a portion of the mining area referred to as “Zone B.” Based on a geological model of a vertical mineralised structure, the resources were estimated to an average vertical depth of approximately 100 metres, with potential for further extensions at depth. Based on the said report, the inferred reserves for gold at Zone B is 22,200 ounces (0.69mt of gold).
In 2022, drilling conducted on part of Zone D and H, yielded an inferred resource 6,360 ounces (0.2mt of gold) as contained in an interim report as announced.
The above information was previously disclosed in the Company’s announcements dated 19 July 2016, 6 August 2020, 10 August 2020 and 5 May 2022 in relation to the Mineral Resources and Ore Reserve Reports.
Further to the Mineral Resources and Ore Reserve Reports referred to above, BOC has also carried out an internal assessment, which is not JORC-compliant, to evaluate the gold content on the oxide resources. The total inferred gold resources over an estimated volume of 1,560,975 m3 of gold containing oxide ore is estimated to be at 56,460 ounces (1.756 mt of gold).
In addition, the old tailings at Bukit Ibam tenement are estimated to contain approximately 1.18 million tonnes of ores, representing an estimated approximately 14,570 ounces (0.47mt of gold)
Based on the above, the total inferred gold reserve as at to date is estimated at 5.008mt of gold available for the CIL processing, which involves a combined cycle of gravity and leaching processes. From the metallurgical tests done by BOC, 30% of the gold in the oxide ore is recoverable by gravity and the remaining balance of gold in the oxide ore is recoverable via the CIL leaching process with a recovery rate up to 80%. In line with the OMS, BOC has to date recovered approximately 5,343 grams (5.343 kgs) of gold through the gravitational process.
Beyond these reports, further exploration within the project area are ongoing, the results of which will be announced in due course.
METALLURGICAL TESTS AND ESTIMATED RECOVERY RATES: The Company has conducted internal metallurgical test work on representative oxide ore samples from the Bukit Ibam tenement to assess expected gold recovery using a combined gravity and Carbon-In-Leach (“CIL”) processing method. Based on the metallurgical tests performed to date, approximately 30% of contained gold in oxide ore is recoverable through gravity concentration. The remaining balance of gold in the oxide ore is recoverable through the CIL leaching process, with an additional recovery rate of up to approximately 80% of the non-gravity recoverable gold. This implies an indicative overall metallurgical recovery potential of approximately 85%–90%, subject to ore characteristics, feed grade variability, plant optimisation, and operational conditions.
Processing Plant Development
In preparation for mining operations, BOC previously completed a pilot Carbon-In-Leach (CIL) plant at Bukit Ibam and has now 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.
Positioning BORNOIL for Growth
The OMS approval strengthens BORNOIL’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 BORNOIL’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)
