Vancouver, B.C. - Baru Gold Corp (“Baru” or the “Company”), wishes to provide an update regarding a recent lawsuit filed in Jakarta against the Ministry of Energy and Mineral Resources of the Republic of Indonesia (“MEMR”). On August 19, 2021, an initial hearing was held pursuant to the proceedings.
Baru Gold was not named in the lawsuit, but the Company is proactively and vigorously supporting the MEMR. As the lawsuit relates to the mining permit granted to the 70% owned subsidiary, PT Tambang Mas Sangihe (“TMS”), the Jakarta Administrative Court approved the Company’s request for permission to be present during court proceedings.
Approval of the mining permit requires two components, an environmental study (AMDAL) and an Indonesian feasibility study (“IFS”). The Company carefully adhered to all laws, regulations, and requirements in the attainment of its mining license.
The AMDAL study, commenced in 2018, was conducted and completed by PT Sulindo Eko Konsultan, an Indonesian consulting firm. The initial draft was submitted in January of 2019. After meetings and consultations with local island residents and various government departments, and after final revisions, the report was approved in August 2020.
The IFS, which was prepared by Indonesian consulting firm Resindo Resources and Energy, is a multi-volume document equivalent to a JORC compliant pre-feasibility study. The IFS was approved by the MEMR in September 2019.
Note: The IFS is not a feasibility study as defined by CIM as required by NI 43-101. 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.
Mr. Terry Filbert, CEO of Baru, commented, “Since 2017, I have been focused on bringing the Sangihe gold project into production and generating cashflow. Baru Gold has been thorough and has completed all steps required to obtain the mining permit, which was granted by the MEMR in February 2021. The Company is confident the lawsuit is baseless, as the claims are frivolous and unfounded, which will eventually be brought forward in court.”
The next date court date has been set for September 2, 2021, at which time, TMS will support the MEMR in their response to the claim. Readers are advised that any information regarding the lawsuit, the support of the residents for the project and the Company’s operations on the island, as published and circulated by the so called Sangihe Save Island group (“SSI”) are false, misleading and inaccurate. For clarification, please contact the Company.
ABOUT SANGIHE GOLD PROJECT
The Sangihe gold 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.
ABOUT BARU GOLD CORP.
Baru Gold Corporation (formerly East Asia Minerals Corporation) is positioning itself to become Indonesia’s new gold producer. We are a dynamic junior gold developer with NI43-101 gold resources in Indonesia, one of the top ten gold producer countries in the world. In 2020, Baru Gold received approval on the environmental permit and became compliant on all government requirements for the Sangihe Gold Project. Baru has received the approval for the upgrade of its licence to advance the project to construction and production in 2021.
Currently, Baru is awaiting final land acquisition to conclude so construction of the heap leach can proceed with production expected to commence in 2021. The Company intends to proceed to production without the benefit of first establishing mineral reserves supported by a feasibility study.
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 sufficient funds and strong retail and institutional shareholders support, Baru Gold is well positioned to take advantage of the increased interest in gold and precious metals.
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.