BornOil expands mining activities with newly secured mining lease

KUALA LUMPUR: Borneo Oil Bhd (BornOil) group has expanded its mining activities in Pahang following the approval of a new mining lease pursuant to its exclusive production sharing agreement (EPSA) with HDL Global Sdn Bhd (HDL).

In a press statement, it explained that the new lease forms part of a mining area measuring approximately 1,200 hectares (3,000 acres) at an area located at Hutan Simpan Bukit Ibam, Keratong, Rompin, Pahang contracted to HDL by Perbadanan Kemajuan Negeri Pahang (PKNP) in 2010. In an announcement to Bursa Malaysia, BornOil said that the new mining lease issued on April 21, 2021 covers an area of 175.04 hectares (432.53 acres). This new area is adjacent to an existing area where BornOil is conducting mining works, measuring some 187 hectares (462 acres).

To recap, the BornOil group had entered into an EPSA with HDL in 2015 to carry out prospecting, exploration, mining, extraction, processing, marketing, sales and collection of sales revenue with respect to all minerals and precious metals including gold.

HDL is principally engaged in acquiring and leasing of land for prospecting of minerals and related activities.

In 2010, it had entered into an exclusive agreement with PKNP, resulting in HDL being granted sole and exclusive rights to undertake and carry out mining works on the said area.

Under the agreement, HDL is granting the BornOil group sole and exclusive rights to prospect and explore the area for minerals and precious metals including gold.

With this new mining lease, the BornOil group would have a total mining area of 362 hectares (894.53 acres) at the said area.

On August 6, 2020, BornOil had announced potential gold resource of 60,032 ounce based on the JORC report on the said area. BornOil is confident that, with continued exploration, the potential gold resource will increase in the future.

The group had also recently acquired interest in Ratna Pura Sdn Bhd which owns a mining lease measuring 194.224 hectares (479.733 acres), also located at Keratong.

With this new mining lease, the BornOil group will operate a combined mining area of 556.18 hectares (1,374.26 acres), while continue exploratory works on the remaining 838 hectares (2,069 acres) of the mining area.

In the announcement, BornOil said that the group would be able to leverage its mining expertise due to present domain knowledge, while also saving on deployment of equipment and machinery.