The prospects of striking gold for Southern Alliance Mining (SAM) have received a boost, with the mining company set to enhance its gold prospecting capability.
Under a Memorandum of Understanding (MoU) signed between SAM subsidiary Selatan Anjung Minerals and the Department of Mineral and Geoscience Malaysia, State of Johor (JMG Johor), the miner will tap the government agency’s institutional expertise, historical geoscience datasets and accumulated geoscience knowledge to improve exploration planning, target generation and geological interpretation at the Tenggaroh mine.
In addition to iron ore and rare earth elements, SAM ventured into gold mining through a joint venture with the Sultan of Johor in 2021. Based on SAM’s findings, 21.04% of assay samples from the Tenggaroh mine show potential gold mineralisation, with results of 0.1 gram/tonne.
According to a June 30 press release, the MoU establishes a formal framework for cooperation in mineral exploration, geoscience research, scientific publication and related activities, with a particular focus on the sampling, study and exploration of metallic minerals within an area of approximately 7,045 hectares located in the Tenggaroh exploration licence area in Mersing, Johor. The MOU has an initial term of six years from the date of signing and may be extended by mutual agreement.
SAM managing director Pek Kok Sam says that the collaboration aligns with the company’s mission and values. ““This MOU is fully consistent with SAM's commitment to responsible, science-driven exploration and our long-term strategy of developing Malaysia's mineral resources sustainably, for the benefit of our shareholders and all stakeholders,” says Pek.
“As Malaysia's sole Federal Government agency mandated to lead the field of minerals and geoscience in the country, JMG's decision to enter into this formal arrangement with SAM lends meaningful institutional credibility to the Tenggaroh Exploration Licence area and reflects its merit as a metallic mineral exploration target.”
