Borneo Resource Investments has commenced discussions on the possible acquisition of an existing gold mining operation in the province of Viscayas. A 2012 geological report on the sizeable property has estimated remaining proven gold reserves of 87,000 ounces and inferred reserves of 1.7 million ounces.
The property, comprising 52 mining claim blocks, is characterized by quartz vein and pyrite type gold deposits mineable down to a depth of more than 500 metres. It is one of the oldest and largest producing mines in the province and has been operated, non-continuously, for the past 70 years with recorded production of 1.5 tonnes of gold over that period.
The present owners of the property are refurbishing the mine and upgrading the reserve estimates to a standard consistent with the disclosure requirements under US reporting guidelines.
Borneo’s CEO Nils Ollquist says, “We are very pleased to be moving forward on this transaction, completion of which would elevate the critical mass of our gold reserves and, ultimately, production, to another level. We are very familiar with the gold industry in the Philippines which shares many characteristics with mining in Indonesia, and look forward to an opportunity to be able to close on a transaction which would inject considerable strength into our balance sheet and more than offset any negative impact which arose from the asset write down which took place last year.
“We continue to be bullish on the gold price given current political instability in Europe and highly volatile financial markets worldwide. These factors, combined with continuing bullion accumulation by China and India, should underwrite stronger bullion prices over the next 12 months.
“We will continue to develop our heap leaching operations in Sulawesi, Indonesia, as our core area of business going forward and can report that we are in the second production cycle on our recently completed higher capacity leach pad.
“The Philippine operation is fortunate to have a strong and highly experienced management team. On a combined basis, our operations would be stronger, both in terms of production and, most importantly, asset value, which would significantly enhance our financing capabilities for future growth,” he adds.
Borneo Resource Investments is a mining company that mines gold and develops producing gold mines as well as coal mining properties in the Republic of Indonesia. Borneo’s current assets include three gold properties, two of which are producing gold. Cash flow-producing investments in gold properties help fund Borneo’s operations and investments in gold, while the company develops high value, longer-term investments in thermal coal concessions. Borneo currently has one coal concession in the Borneo region of Indonesia.