March 11, 2021 – TheNewswire - Vancouver, Canada – Baru Gold Corp. (TSXV:BARU) | (OTC:BARUF) is pleased to announce that its Board of Directors has approved the 2021 annual budget which includes a 35,000-metre Resource Development drilling program targeted to start in mid-2021 and run for 13 months until completion. The initial area targeted for this drilling is covered in the Sangihe 2010 NI 43-101 which identified 835,000 ounces gold inferred resource between Binebase and Bawone villages over a distance of approximately 1.2 kilometres. An infill drilling program will be conducted in this area to upgrade some of the inferred resources into indicated and measured resource status. Exploration drilling will continue over an additional 1.45 kilometres from Bawone to South of Salurang villages area over which this anomaly continues. After the initial exploration drilling in this area has been completed, the identified resources will then be infill drilled to bring some of these resources into indicated and measured status as well. Full technical details on the Sangihe land package and reports can be accessed here https://barugold.com/projects/sangihe-gold-project/
Terry Filbert, Chairman and CEO, commented, “This is an extremely exciting year for Baru Gold with the beginning of construction on the Sangihe Gold mine is imminent. With over 42,000 hectares and an initial past NI 43-101 resource of 835,000 ounces of gold, this sizable 35,000 meters program will test new high potential targets and upgrade existing resource to next tier while Baru advances to cashflow.
On operational updates for the last month, our engineering team has been preparing the project site on Sangihe Island. The team is in the midst of land acquisition and will soon begin hiring construction staff. The Company expects to commence production in Q2 of 2021, once construction is complete.
“Once the project is producing gold, the drilling program will start and will be funded out of cashflow. This will enable Baru to expand the project faster, in addition to extending the mine life at the same time. We believe this will be a large resource and will positively affect the Company’s bottom line, with no further dilution to shareholders as the Company will be self-funding.”
The approved budget for the Sangihe Gold Project includes costs for constructing the heap leach pad, developing the mining pit, the building of roads, supporting infrastructure, and hiring staff needed to pour its first gold, targeted for Q3 2021. The Company currently has sufficient funds available to cover all the budgeted and approved expenditures.
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.
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 10, 2017 by Ian Taylor MAusIMM(CP) and Anthony James Woodward MAusIMM, MAIG filed on SEDAR. Only 10% of the gold-bearing area has been explored. The Company's 70-percent interest in the Sangihe-mineral-tenement contract of work ("CoW") is held in 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 CORPORATION
Baru Gold Corporation (formerly East Asia Minerals) 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.
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 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.
Our team of mining and finance professionals are based both in North America and locally in Indonesia and boasts extensive experience in starting and operating small-scale gold and coal assets. With sufficient funds and strong retail and institutional shareholder 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.
BARU GOLD CORPORATION
Per: “Terry Filbert”
Terry Filbert, Director
President & CEO
For investor contacts more information, please contact:
647-725-3888 ext 702
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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.