Thursday, November 26, 2009

Basileia to Develop Gold Mine in Cambodia

A Korean-American businessman has secured a mining opportunity for precious and base metals in Cambodia amid soaring metal prices in international markets.

Jonathan Kim, chairman of Basileia Cambodia, secured for his company the rights to explore a gold mine in Andong Bor ― about 410 kilometers northwest of Phnom Penh ― after leading the company's successful effort to purchase 90 percent of the developing licence ownership Liberty Mining International Pty Ltd. (LMI) of Australia has held on the 363.5 square kilometers mine.

Kim signed the contract to set up a 9:1 joint venture, Basileia Mining Corp., with Richard Stanger, managing director of Liberty, in late October, a company executive said.

Yoon Dong-yeol, senior executive and vice president of Basileia, said that the two parties also inked a memorandum of understanding (MOU) on joint explorations of five other mines in the northeast part of the country. The mines have deposits of oil, gas, iron ore, coal, bauxite, copper and other precious metals, according to Yoon.

The Bo Sup Trup gold mine is estimated to have deposits of gold worth 1 trillion won to 3 trillion won in five veins that have been confirmed so far, including one with an estimated 440,000 tons of gold ore, with 15 grams of gold to be produced per ton, he explained.

The joint venture is ready to simultaneously conduct a geological survey and drill the mine from December, as it has completed a check of the drilling survey LMI had already drawn up, he said.

The gold mine has been internationally recognized and was registered as the No. 1 mine in a report on the natural resources of Cambodia issued by the United Nations in 1993.

"This is the biggest success I have achieved in five years since jumping into the mining business in Cambodia. We will explore and drill the mine in full scale from 2010," Jonathan Kim said in a press release.

"In a bid to help Korea secure mineral and gas mines, which they are in desperate need of, we will step up efforts in developing natural resources in Cambodia. We will also play a leading role in guiding Korean businesses hoping to invest or do business in the Southeast Asian nation."

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