Anchor Resources has been granted approval for underground mining and development works at the Lubuk Mandi Gold Project in Terengganu state, Malaysia. Trial mining will begin at the project in mid-November.
Approval was granted by Malaysia's Minerals and Geoscience Department and extends from October 12, 2017 to October 31, 2019.
A new mining agreement was signed in May this year between Singapore-listed Anchor's wholly-owned subsidiary Angka Alamjaya Sdn Bhd (AASB) and Great Aims Resources Sdn Bhd (GAR).
GAR took over mining operations in August and has since built a winching control room and tunnel entrance. Its machinery is capable of producing 20 to 25 parts per million of gold concentrate.
The agreement with GAR followed Anchor's termination of a previous cooperation agreement with Sinomine Resource Exploration Co, which it previously engaged to carry out hard rock gold mining, processing and smelting works at Lubuk Mandi.
In a mutually agreed decision, both parties agreed that Anchor pay Sinomine an outstanding amount of US$306,487.53 and a penalty of US$30,648.75 for drilling work that Sinomine had undertaken which fell outside the scope of the cooperation agreement.
The new agreement with GAR will see it carry out gold mineral mining works on an exclusive basis. Revenue generated from the sale of gold will be distributed between GAR and Anchor Resources on a 65:35 basis. GAR will also pay to Anchor monthly payments representing GAR's 65% share of total tributes and royalties, with the minimum contribution being S$25,689 a month.
Anchor together with Malaysia subsidiaries, Angka Alamjaya and Angka Mining Sdn Bhd, was incorporated in the Republic of Singapore on August 12, 2015 as a private limited company under the name of Anchor Resources Pte Ltd. It was subsequently listed on the Catalist board of the Singapore Exchange on March 18, 2016.
The group is in the business of exploring, mining and producing gold for sale primarily in Malaysia. Its headquarters are in Kuala Lumpur and the group has concession rights to the Lubuk Mandi and Bukit Panji mines, both in the state of Terengganu.
The current focus for mining and production of gold is at Lubuk Mandi and the processing facilities utilise the gold treatment and extraction method of flotation to produce gold from tailings material with gold recoveries.