Monday, June 20, 2011

Sovereign Gold to fund Ibam Hill gold JV exploration in Malaysia

Australian-listed Sovereign Gold Company has entered into a 50% joint venture in the advanced Ibam Hill gold exploration project in Malaysia through Almusyarakah Mining Minerals SDN BHD. AAM's founder and chairman is Abdul Hakam, a prominent banker. Through its 100% subsidiary MAS Gold Pty Ltd, Sovereign Gold will fund development of the project up to A$1.5 million and also provide expertise.

The project is located in the Eastern Gold Belt in the Malaysian state of Pahang in the Bukit Ibam State Forest Reserve, 152 km from Kuala Lumpur. An initial exploration target of 100,000-150,000 oz gold has been set for the near surface, open pitable resource that averages 1-2 g/t of gold.

Sovereign Gold’s CEO, Nick Raffan and Chief Geologist, Michael Leu will oversee the project through participation on the project management committee and the company has appointed Tan Sri Ibrahim Menudin, former group chief executive of Malaysian Mining Corporation and Richard Yap, director of business development for TA Enterprise Berhad, as advisers to the project.

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