Interest In Gold Mining In ECER To Perk Up

KUALA LUMPUR, Jan 9 (Bernama) — Interest in gold mining within the East Coast
Economic Region (ECER) is expected to perk up as the companies would be able to tap
into the infrastructure being developed for various state projects.
In a statement here today, the ECER secretariat said London-listed Peninsular Gold Ltd
has invested RM60 million to build a state-of-the art carbon-in-leach plant in the ECER.
It said the plant would be able to extract 85 per cent of the gold residue left in the
mine’s tailings.
Quoting Singapore’s Business Times, the ECER secretariat said Peninsular, listed on
London’s Alternative Investment Market in 2005, planned to capitalise on the soaring
global gold prices which hit a record of US$868 (US$1=RM3.27) an oz last week.
Its chairman/chief executive, Datuk Seri Andrew Kam Tai Yeow, said production would
start before the end of the third quarter this year.
“I have always believed in gold. I began investing in gold assets when the price was
around US$250 and I’m still bullish,” said Kam, who owns 53 percent of Peninsular.
He said Peninsular has proven gold reserves of 202,000 oz in his family-owned mine.
“Operating approximately 25,000 oz yearly, the mine should be able to go on for another
10 years,” he said.
Kam was optimistic the operations would bring in good margins considering Peninsular’s
cost of recovering gold from tailings and rock of US$200 an oz and the gold price of
US$868 an oz now.
Meanwhile, another of Peninsular’s unit has been given the rights to mine gold in 20,000
hectares around Raub.