Gold mining company Anchor Resources on Monday said it had received government nod for the operational mining scheme at the Lubuk Mandi Mine in Malaysia.
The Malaysia Minerals and Geoscience Department approved Anchor Resources' the underground mining and development works to be carried out at the Lubuk Mandi Mine, it said in a statement.
The mining agreement was inked in May this year between the company's wholly owned subsidiary Angka Alamjaya Sdn Bhd (AASB), and Great Aims Resources Sdn Bhd (GAR).
The approval for the operational mining scheme shall be effective from 12 October 2017 until 31 October 2019, it said.
GAR formally took over the mining operations at the Lubuk Mandi Mine on 1 August 2017, and has built a winching control room and tunnel entrance, as well as brought in relevant equipment since then, the company said.
Additionally, GAR is expected to commence trial runs of the mining works from mid-November 2017 with machinery capable of producing 20 to 25 parts per million of gold concentrate.
Shares in the company rose about 2 percent to S$0.069 on the Singapore Exchange. The stock has lost 24 percent so far this year.