Baru Gold Corp (“Baru Gold” or “The Company”) is pleased to announce it has commenced the sourcing of heap leach operational equipment, and the hiring of mining contractors. We are also happy to provide an update on the operational licence.
Baru Gold’s CEO, Terry Filbert, comments, “Baru Gold continues to move ahead toward commencement of production and cash flow from gold production on the Sangihe project in the first half of 2021. We have begun procuring equipment and additional land, and we expect the Operation Licence to be signed off as soon as the Indonesian Mining Department (EDSM) re-opens after its shutdown due to COVID-19. The health and safety of our staff is our top priority and I would like to thank our team for following the health and safety protocols to keep COVID-19 under control within the Company despite the recent second wave of the pandemic sweeping through Jakarta.”
EQUIPMENTS & CONTRACTORS FOR MINING
With the Environmental Permit application (AMDAL) approval in October, and the subsequent payment of the outstanding financial obligations paid in Q4 2020, Baru Gold has ramped up operational activities by procuring the supplies necessary for the 100,000 tonne heap leach pad outlined in the Company’s business plan. The construction of the heap leach operation has begun and it is not contingent on receipt of the operational permit, which is expected once the Mining Department re-opens.
As the operation is just starting up, initial cash capital expenditure outlay will be minimized through the leasing of excavators, dump trucks, and dozers from local contractors, and the sourcing of other small equipment and supplies from local vendors.
ADDITIONAL LAND ACQUISITION
Based on data compiled by the Company’s engineering team, the Company has completed its survey of the areas required for mining operations. We will soon be completing the land acquisition with the government and the local land users for the additional land needed for the project. These additional hectares at Sangihe will provide Baru Gold with space for an operational base, warehouses, accommodations, and production facilities required for proper operations. Per our August 22, 2020 news release, Martin Jati Lawyers has been retained and is working on our behalf on the land survey and acquisition service for the mining area located within the PT. Tambang Mas Sangihe’s Contract of Work.
After the Environmental Permit application (AMDAL) and approval in October 2020, and the subsequent November 2020 payment of the outstanding financial obligations, Baru Gold is now only waiting for the Indonesian Mining Department to issue the licence. As a reminder, Baru’s Contract of Work (CoW) provides the Company with a full permit from an exploration and feasibility licence to a full 30-year production licence.
As of December 2020, the Company has prepared and submitted all necessary documentation for the official sign off on this permit. However, the Company has been advised that due to increased COVID-19 infection rates in the main Indonesian cities, the Mining Minister’s office in Jakarta, which is authorized to issue the license, has been temporarily shut down in favour of remote working to limit the potential spread of the disease. All staff are relying on virtual meetings to conduct normal business activities and this has understandably slowed the process.
The Company expects this last administrative review and approval to be completed shortly, and is, within the proper authorities, concurrently advancing on operational fronts, including the hiring of personnel, and the preparation of the production site.
ABOUT SANGIHE GOLD PROJECT
The Sangihe gold-silver project is located on the island of Sangihe off the northern coast of Sulawesi and has an existing National Instrument 43-101 inferred mineral resource of 114,700 indicated and 105,000 inferred ounces of gold as reported in the Company's "Independent Technical Report on the Mineral Resource Estimates of the Binebase and Bawone Deposits, Sangihe Project, North Sulawesi, Indonesia" dated May 30, 2017. Only 10% of the gold bearing area has been explored. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Company's 70-percent interest in the Sangihe-mineral-tenement contract of work ("CoW") is held through PT. Tambang Mas Sangihe (TMS). The remaining 30-percent interest in TMS is held by three Indonesian corporations. The term of the Sangihe CoW agreement is for 30 years upon commencement of the production phase of the project.
The Company intends to proceed to production without the benefit of first establishing mineral reserves supported by a feasibility study. The Company cautions readers that the any production decision made by the Company will not be based on a NI 43-101 feasibility study of mineral reserves that demonstrates economic and technical viability and as such, there may be involved increased uncertainty and various technological and economic risks such as the interpretation of drill results; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with our expectations; commodity and currency price fluctuation; failure to obtain adequate financing; regulatory, recovery rates, refinery costs, and other relevant conversion factors, permitting and licensing risks; general market and mining exploration risks and production and economic risks related to design and engineering, manufacturing, technological processes and test procedures and the risk that the project’s output will not be salable at a price that will cover the project’s operating and maintenance costs.
ABOUT BARU GOLD CORPORATION
Baru Gold Corporation (formerly East Asia Minerals) is building Indonesia’s new gold producer. We are a dynamic junior gold developer with NI43-101 gold resources in Indonesia, a top 10 gold producer countries in the world. In Q3 2019, Baru Gold has completed milestone AMDAL environmental permit and paid dead-rent tax on its Sangihe Gold open pit heap leach operation and is awaiting Operation License to advance the project to construction and production in 2021.
Our team of mining and finance professionals are based both in North America and locally in Indonesia and boast extensive experience in starting and operating small-scale gold and coal assets. With over $5.5 million in cash and strong retail and institutional shareholders support, Baru Gold is well positioned to take advantage of the increased interest in gold and precious metals with both exploration upsides and operation cashflow in 2021.
Frank Rocca, BAppSc. (Geology), MAusIMM, MAIG, Chief Geologist of Baru Gold Corp. is the Qualified Person as defined under NI 43-101 who has reviewed and approves the content of this release.
BARU GOLD CORPORATION
Per: “Terry Filbert”
Terry Filbert, Director
President & CEO
For investor contacts more information, please contact:
647-725-3888 ext 702
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Certain statements in this News Release, which are not historical in nature, constitute “forward looking statements” within the meaning of that phrase under applicable Canadian securities law. These statements include, but are not limited to, statements or information concerning future work programs, results and timing of any work programs, the Company’s performance or events as of the date hereof. These statements reflect management’s current assumptions and expectations and by their nature are subject to certain underlying assumptions, known and unknown risks and uncertainties and other factors which may cause actual results, performance or events to be materially different from those expressed or implied by such forward looking statements. Those risks include the interpretation of drill results; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with our expectations; commodity and currency price fluctuation; failure to obtain adequate financing; regulatory, recovery rates, refinery costs, and other relevant conversion factors, permitting and licensing risks; general market and mining exploration risks and production and economic risks related to design and engineering, manufacturing, technological processes and test procedures and the risk that the project’s output will not be salable at a price that will cover the project’s operating and maintenance costs. Forward-looking statements should not be construed as investment advice. Readers should perform a detailed, independent investigation and analysis of the Company and are encouraged to seek independent professional advice before making any investment decision. Accordingly, readers should not place undue reliance on any forward-looking statement. Except as required by applicable securities laws, the Company disclaims any obligation to update or revise any forward looking statements to reflect events or changes in circumstances that occur after the date hereof.