The Penjom Gold Mine: Bringing Modern Gold Mining Technology to Peninsular Malaysia

The story of the Penjom gold mine located near Kuala Lipis on the Malay Peninsular demonstrates the valuable role successful exploration companies can play in the development of the gold mining industry. Avocet Mining PLC ('Avocet') began exploration in the area on a limited budget in 1989, securing land tenure around the Penjom alluvial workings in July 1990. The lease granted, known as Block 7, formed part of a land package offered at the time by the Pahang State Government to develop the resources of the area. Until the late-1980s, the Kuala Lipis region, situated approximately 180 km north west of Kuala Lumpur, had restricted accessibility for security reasons precluding serious exploration or mining activity. The situation has changed dramatically in the 1990s, with several foreign explorers active in the Peninsular, targeting old alluvial and underground workings adjacent to the north-south trending Raub-Bentong Suture. Deeper drilling of these prospects has shown there is potential for both small- to medium-scale open pit mining and possibly underground operations, providing companies such as Avocet with an ideal mining investment opportunity.