Vancouver, BC - Baru Gold Corp (the “Company” or “Baru”) and its subsidiary PT. Tambang Mas Sangihe (the “Company” or "PT TMS"), is pleased to announce the filing of a Technical Report and Mineral Resource Estimate (the "Resource Estimate Report") on the Sangihe Gold and Silver Project in accordance with the National Instrument 43-101 – Standards of Disclosure in Mineral Projects.
The Resource Estimate Report was requested by the Company to prepare for production operations and satisfies a requested due diligence requirement. Since the last Resource Estimate Report, there has been a large shift in the macroeconomic environment and more than a doubling of the price of gold. These changes in economics required a redesign of the plan for production operations.
The Mineral Resource Estimates for the Sangihe Project is reporting on only part of the 65-ha area targeted for the initial production and is not estimating the resource in the remaining 25,000 ha of gold bearing area. For this approximately 0.15% of the Company’s Contact of Work area, the Mineral Resource Estimate was completed using a cut-off grade of 0.20 g/t Au for oxide material and a deposit dependent sulphide cut-off grade of 0.50 g/t at Binebase and 1.0 g/t at Bawone.
Mineral Resource Estimates are as follows:
INDICATED
3.15 Mt at an average grade of 1.12 g/t gold and 19.4 g/t silver containing an estimated 114,000 oz of gold and 1.93 Moz of silver.
INFERRED
2.30 Mt at an average grade of 1.22 g/t gold and 14.5 g/t silver containing an estimated 91,000 oz of gold and 1.08 Moz of silver.
Compared to the “Independent Technical Report on the Mineral Resource Estimates of the Binebase and Bawone Deposits, Sangihe Project, North Sulawesi, Indonesia” (Mining Associates Pty Ltd, May 30, 2017), the global percentage change in resource categories is modest:
|
Category |
Tonnes (t) |
Au (g/t) |
Ag (g/t) |
Au (oz) |
Ag (Moz) |
|
Indicated |
-0.2% |
-0.6% |
-1.7% |
-0.6% |
-2.0% |
|
Inferred |
-9% |
-5% |
12% |
-13% |
2.0% |
Table 1: Change in Resource Categories between the 2017 & 2025 Resource Estimate Reports
The small reduction in indicated gold ounces reported reflects an optimisation and alteration of the operational layout, which together significantly increases overall profitability.
This is the third NI 43-101 compliant resource estimate produced for this deposit. The current Resource Estimate Report is suitable for mining planning and production schedules, and this will replace and supersede all previous NI 43-101 reports.
In this Resource Estimate Report, Mining Associates have recommended an exploration program with appropriate budget. To date only 7% of the 42,000 ha Sangihe Project area has been geologically explored.
The Resource Estimate Report has an effective date of January 6, 2025, and was completed by Mining Associates Pty Ltd, out of Brisbane, Australia at the request of Frank Rocca, Chief Geologist of Baru Gold Corp. The report titled "Independent Technical Report on the Updated Mineral Resource Estimates of the Binebase and Bawone Deposits, Sangihe Project, North Sulawesi, Indonesia” will be filed on the SEDAR+ website at www.sedarplus.ca and posted on the Company's website.
The scientific and technical data contained in this news release has been reviewed and approved by Frank Rocca, BAppSc.(Geology), MAusIMM, MAIG, CPI-KCMI, Chief Geologist of Baru Gold Corp, and is the Qualified Person as defined under NI 43-101 who has reviewed and approves the content of this release.
Taking into consideration the low cost of production, high price of gold and exploration upside, this reaffirms the Company’s belief that the Sangihe Gold and Silver Project is an extremely attractive project to develop. The Company notes that the Resource Estimate Report used USD$2,643/oz for the price of gold.
The Company has planned a 25,000-metre drilling program once sufficient resources are secured. The initial area targeted for this drilling program is covered in the Sangihe 2010 NI 43-101 report which identified 835,000 ounces of gold as an inferred resource between Binebase and Bawone villages over approximately 1.2 kilometers of strike length. An infill drilling program will be conducted in this area to upgrade some of the inferred resources into indicated and measured resource status. The Company has prepared 27 drill pad sites which will be the focus of activity. Thereafter, exploration drilling will continue over an additional 1.45 kilometers from Bawone to South of Salurang village following the continuation of the known geochemical anomaly and with additional guidance from the ongoing structural study. Once that program has been completed, the identified resources will then be infill drilled to bring some of these resources into indicated and measured status. The drilling rig will then be further deployed for targeted work in the region.
ABOUT SANGIHE GOLD PROJECT
The Sangihe Gold Project (“Sangihe”) is located on the Indonesian island of Sangihe, off the northern coast of Sulawesi with a gold bearing area of approximately 25,000 ha. Sangihe has an existing National Instrument 43-101 report suitable for mining planning and production schedules for an area within the 65-ha area targeted for initial production. Within the area targeted for initial production, the National Instrument 43-101 report estimates over 219,000 oz of gold resource (Inferred: 105,000 and Indicated: 114,700), and over 3 million oz of silver resource (Inferred: 1,055,600 and Indicated: 1,972,400) as reported in the Company’s “Independent Technical Report on the Updated Mineral Resource Estimates of the Binebase and Bawone Deposits, Sangihe Project, North Sulawesi, Indonesia” (Mining Associates Pty Ltd, February 1st, 2025).
Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. 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
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 other Indonesian corporations. The term of the Sangihe CoW agreement is 30 years upon commencement of the production phase of the project.
Baru has met all the requirements of the Indonesian government and has been granted its environmental permit.
ABOUT BARU GOLD CORP.
Baru Gold Corporation is a dynamic junior gold developer with NI 43-101 gold resources in Indonesia, one of the top ten gold producing countries in the world. Based in Indonesia and North America, Baru’s team boasts extensive experience in starting and operating small-scale gold assets.
BARU GOLD CORP
Per: “Terry Filbert”
Terry Filbert, Chairman and CEO
info@barugold.com
For investor contacts more information, please contact:
Kevin Shum
Investor Relations
kevin@jeminicapital.com
647-725-3888 ext 702