CNMC’s flagship mine in Kelantan has 623,000 ounces of gold

SINGAPORE: CNMC Goldmine Holdings Ltd’s flagship gold mine in Kelantan contains mineral resources of about 623,000 ounces (oz) of gold as at end-2016 despite mine depletion during the year.

According to an independent expert geologist’s annual review, this figure was the highest since exploration started in 2007.

The review by Australia-based Optiro Pty Ltd, a mining-focused consulting group, estimated 13.25 million tonnes of measured, indicated and inferred resource at
CNMC’s 10 sq km Sokor gold field.

Based on an overall gold grade of 1.5g per tonne, this translates into 623,000oz of gold underground after depleting all gold mined to Dec 31, 2016, more than Optiro’s previous year estimate of 618,000oz.

The findings are part of Optiro’s latest Qualified Person’s Report for CNMC, which began producing fine gold at Sokor in 2010 after three years of exploration.

“To date, CNMC has focused its exploration on the known prospects within the Sokor Block,” wrote Christine Standing and Ian Glacken, authors of the 60-page report.

“There is considerable potential remaining in the Sokor Block’s mining licence to locate additional gold and base metal mineralisation.”

In February 2017, CNMC completed the acquisition of a 51% stake in Pulai Mining Sdn Bhd, which is authorised to mine gold, iron ore and feldspar on a about 38.41 sq km brownfield site in Kelantan near to its Sokor project.

In March 2017, CNMC announced it was in the process of acquiring its third mining asset in Kelantan.

“The report reaffirms our team’s ability to find new mineral resources even as we continue to extract gold from the ground. We endeavour to explore for more gold and other minerals in 2017, not only in Sokor but also in our recently acquired Pulai Mining site,” CNMC CEO Chris Lim said in a statement yesterday.

CNMC offered RM2.5 million for a 100% shareholding in KelGold Mining Sdn Bhd, which has the rights to explore iron ore, gold and/or other minerals in an area of about 15.5 sq km and is in the midst of renewing its rights to explore gold and/or other minerals in an area of about 8.7 sq km in Kelantan.

According to CNMC, Optiro’s report was prepared according to guidelines of the internationally-accepted Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The Code is prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia in December 2012.

The report also revealed an addition of 246,000oz silver, 1,880 tonnes of lead and 1,830 tonnes of zinc at Sokor last year compared to 2015, increasing the total overall resources in the ground for silver to 1,964,000oz, lead 22,678 tonnes and zinc 21,448 tonnes. – Bernama