This will be undertaken via its wholly-owned subsidiary, Borneo Oil Corporation Sdn Bhd (BOC), Bernama reported.

The Labuan-based group said the approval was granted under an approved operational mining scheme (OMS), allowing the company to undertake mining activities and gold processing via the carbon-in-leach (CIL) method.

“This approval marks a significant regulatory milestone that enables Borneo Oil, through BOC, to advance towards commercial-scale gold production at one of Peninsular Malaysia’s historically recognised gold belts,” it said today.

The OMS approval covers a 187ha mining lease within a larger 1,200ha tenement located at the Bukit Ibam forest reserve in Rompin.

The approval is valid until Dec 21, 2027, with an option for renewal.

The approval also allows for the construction of a full-scale CIL processing plant to support expanded gold mining operations.

Borneo Oil said that based on resource estimates, the Bukit Ibam gold project is estimated to contain 60,814 ounces (about 1.89 tonnes) of gold, with a value of RM1.19 billion at current prices.

Borneo Oil said further inferred resources had been identified across several zones following exploration, drilling and technical assessments conducted over multiple phases.

The company said it had previously completed a pilot CIL plant in preparation for full operations and is now moving ahead with the development of a full-scale processing facility.

This will entail the shortlisting of engineering, procurement, construction, and commissioning contractors for construction and commissioning works.