Minetech Resources Bhd is a Malaysia based company primarily engaged in the production of quarry products, civil engineering works, production of asphalt premix products and production of bituminous products. The products produced by the company are sold to developers or contractors in the property development or construction sectors. Majority of the revenue is generated from the Quarry products segment. Quarry products division includes extraction and the sale of granite quarry products. It offers civil and property construction services, such as blasting, roads and drainage, earthworks, and water reticulation and sewerage. The company’s quarries and premix manufacturing facilities are all located in Malaysia..
MINETECH has 43 years (since 1977) of drilling and blasting business
sevices now the company wanted to expand their business into gold mining
business due to attractive gold price , decades of quarry mining
experience has brought them an opportunity to participate in gold
mining. this lead to form a MOU with bornoil:
Borneo Oil Bhd (BornOil) inked a memorandum of understanding (MoU) with
Minetech Resources Bhd (MRB) to carry out mining works at Bukit Ibam, Pahang.
Both companies, via their respective wholly-owned subsidiaries, Borneo Oil & Gas Corporation Sdn Bhd (BOG) and Minetech Construction Sdn Bhd (MCSB),
will work together towards the materialisation of a business contract
which will involve BOG appointing MCSB as the contractor for mining
works at Bukit Ibam.
MCSB, which specialises in rock blasting, civil engineering,
construction and infrastructure development, is also involved in the
business of mining and has the prerequisite equipment, expertise and
personnel with experience in mining works.
MCSB is also currently undertaking mining excavation works at Selinsing Gold Mine at Sungai Koyan Kuala Lipis, Pahang, according to separate announcements to Bursa Malaysia
To note, MRB executive chairman Datuk Awang Daud Awang Putera also sits
on the board of Serba Dinamik Holdings Bhd as a non-independent and
non-executive director.
BornOil's Bursa Malaysia announcement stated the collaboration with
MCSB will reduce BOG's capital outlay required for the mining works and
free up resources to continue with exploration works on other zones.
It will also provide the parties an opportunity to collaborate in the
field of mining and to utilise each respective party's experience and
strength, the filing added.
Under the MoU, MCSB will among others provide the plant and equipment
for the purpose of excavation and qualified personnel to implement
blasting activity.
To recap, BornOil had made an announcement to Bursa Malaysia on 6
August 2020 that it intends to proceed with excavation and mining on the
first Zone of Bukit Ibam in Pahang, where it is believed to contain
total resources of 22,200 ounce or 621,917 gm of gold in 1.66 million
metric tons of ore with an average grade of 0.42 g/t.
The findings were made by Dr Yves Cheze, a member of the Australian
Institute of Geoscientists as well as the Institute Geology Malaysia.
Dr Yves had also recommended for BornOil to develop the exploration of
not only the immediate extension of the first zone but also in seven
other zones within the mining area that have similar geology as they may
hold significant potential for additional gold resources.
Back in May 2010, Perbadanan Kemajuan Negeri Pahang (PKNP)
signed an exclusive agreement with HDL Global Sdn Bhd (HDL) for the
prospecting and mining rights to an area covering 1,200 hectares within
Hutan Simpan Bukit Ibam in Pahang.
Subsequently in March 2015, BornOil, via an exclusive production
sharing agreement with HDL, was granted sole and exclusive right to
prospect, explore, mine, extract, process, sell and collect all revenue
of sales with respect to all minerals and precious metals including gold
over the said area.
Currently, an area measuring approximately 462 acres within the area
has been issued with a mining lease on which BornOil is currently
carrying out mining works.
At the conclusion of Phase 1 and Phase 2 of the preliminary exploration
works on seven of the eight zones, an assessment of potential gold
resources dated March 2019 was prepared by Dr Yves showing potential
gold resources of 60,032 ounce or 1,866,943 gm (1.866 ton) of gold.
Gold prices have been on the rise, and, for the first time, breached the US$2,000 an ounce mark last week.
On the other hand, Borneo Oil Bhd (BornOil) group is set to 'strike gold'
with its Bukit Ibam mining venture as the company intends to proceed
with excavation and mining on the first Zone of Bukit Ibam in Pahang.
BornOil in a filing to Bursa Malaysia said the site is believed to
contain total resources of 22,200 ounces or 621,917 grams of gold in
1.66 million metric tons of ore with an average grade of 0.42 g/t.
The findings was also affirmed by Dr Yves Cheze, a member of the
Australian Institute of Geoscientists as well as the Institute Geology
Malaysia.
Dr Yves has also recommended BornOil group to develop the exploration
of not only the immediate extension of the first zone but also in
several other zones in the mining area that have similar geology as they
may hold significant potential for additional gold resources.
To recap, back in May 2010, an exclusive agreement had been inked
between Perbadanan Kemajuan Negeri Pahang (PKNP) and HDL Global Sdn Bhd
(HDL) for the prospecting and mining rights to an area covering 1,200
hectares within Hutan Simpan Bukit Ibam in Pahang.
Subsequently, in March 2015, BornOil via an exclusive production
sharing agreement with HDL, was granted the sole and exclusive right to
prospect, explore, mine, extract, process, sell and collect all revenue
of sales with respect to all minerals and precious metals including gold
over the said area.
Currently, an area measuring approximately 462 acres within the area
has been issued with a mining lease on which the BornOil is currently
carrying out mining works.
The mining area, in turn, is divided into eight zones on which the
BornOil group has been conducting detailed exploration works.
At the conclusion of Phase 1 and Phase 2 of the preliminary exploration
works on seven of the eight zones, an assessment of potential gold
resources dated March 2019 was prepared by Dr Yves showing potential
gold resources of 60,032 ounces or 1,866,943 gm (1.866 ton) of gold.
BornOil is also continuing with exploration works on the other seven zones at an interval of three to six months for each zone.
Gold prices have been on the rise, and, for the first time, breached the US$2,000 an ounce mark a few days ago.
Minetech Resources Bhd executive chairman Datuk Awang Daud Awang Putera raised his direct stake to 24.12% or 255.76 million shares.
Not only aggresive share purchase from Datuk Awang, we can see insider private placement bought 10% of total share at 0.281
PRICE NOW AT 0.285 which we think is extremely cheap especially we
could bought is nearly at same cost with Dato Awang and Private
placement purchaser
comparing with other gold related counter such as tomei pohkong ,we gave target price of minetech :
TP1 RM1
Disclaimer:
Please be informed that our analysis are solely for education purpose;
it is neither a trading advice nor an invitation to trade.
For trading advice, please speak to your remisier or dealer representative.
You are responsible for your own risk management
Do Your Own Due Diligence (DYODD)
For trading advice, please speak to your remisier or dealer representative.
You are responsible for your own risk management
Do Your Own Due Diligence (DYODD)
https://klse.i3investor.com/blogs/share4u2019/2020-08-18-story-h1512396491-Minetech_is_now_officially_new_gold_linked_stock_excavation_from_rock_t.jsp
