BORNEO Resource Investments has completed a second processing area to extract gold from ore at its Ratatotok complex in northern Sulawesi. The company has also commenced production at a new heap leach processing area which has the capacity to process 5000 tonnes of ore per month.
The Ratatotok complex previously had one heap leach processing area that was already operating at full capacity, processing 2500 tonnes of ore per month. With an increase of its production capacity to a monthly total of 7500 tonnes, Borneo has tripled monthly gold production capacity to 7-10kg (245-350 ounces) of gold.
“This additional capacity enables us to leverage operations at Ratatotok for a relatively small investment. The technology and low environmental impact of the heap leaching process enables us to scale up production capacity incrementally with minimal requirements for additional labour and materials,” says Borneo’s CEO Nils Ollquist.
“We intend to continue to acquire high ore-grade properties adjacent to our existing operations as we scale up production and cash flow from operations. We anticipate this added capacity will increase the momentum in our current revenue and gross profit growth.”
Borneo’s current assets include four gold properties, two of which are producing. Cash flow producing investments in gold properties help fund Borneo’s operations and investments in gold, while the company develops high value, longer-term investments in thermal coal concessions. It currently has one coal concession in the Kalimantan region.
Borneo started gold production from surface mining at its 50 hectare Talawaan property in June 2013. Production at this mine alone put the company into profitability for the third quarter of 2013. Based solely on Borneo’s management’s projections and current gold prices, Talawaan has estimated gold reserves of approximately US$240 million.
In December 2013 Borneo acquired Ratatotok South, a producing gold mining property, and immediately commenced operations. The 8.5 hectare Ratatotok South property is in the middle of a well-established gold reef structure near the village of Ratatotok in the Southeast Minahasa Regency. The property was purchased with key assets on site including an ore stockpile ready for processing, as well as significant infrastructure including an ore crusher and other ore processing equipment.
Ratatotok is a 30 hectare property along the northern border of the Ratatotok South property while Ratatotok Southeast is a 15 hectare property that Borneo acquired in January 2013. It is also adjacent to Ratatotok South.
Borneo, which is publicly traded on the US OTCQB, has strong relationships with local miners in Indonesia, creating unique access to mining opportunities in the country, which was ranked the eighth largest gold producing nation in 2012.