BARU GOLD 2021 Operational Summary and 2022 Outlook
News Release
January 18, 2022 Trading Symbol: “BARU: TSX.V | BARUF: OTCQB”
BARU GOLD 2021 OPERATIONAL SUMMARY
AND 2022 OUTLOOK
Vancouver, BC - Baru Gold Corp. (the “Company” or “Baru”) is pleased to provide stakeholde rs and
shareholders with an operational summary for 2021 and an outlook for 2022.
2021 SUMMARY
Listing on US Exchange
Baru began trading on the OTCQB under the ticker symbol BARUF. The OTCQB is a US marketplace
for en trepreneurial an d development -stage U S and international companies that are committed to
providing a high- quality trading and information experience for their investors. The OTCQB is the
middle tier of the three over-the-counter trading platforms.
Dead Rent Tax
In Jan uary, $356,000 (approximately Indonesian Rupiah 3.8 billion) in tax was paid to the
representative office of the Ministry of Energy and Mineral Resources.
Work Program Approval by Indonesia Government
In January, the Company’s work pl an and budget Rencana Kerja Angaran Belanj a (“RKAB”) for PT
Tambang Mas Sangihe ( “TMS”) for 2021 was formally approved by the Ministry of Energy and
Mineral Resources. The RKAB inclu des planning and proposed expenditures for constru ction, mining,
production, com munity programs, environmental rehabilitation, and geological and geotechnical
investigations for 2021 and beyond.
COVID-19 Impact
In July, Indonesia reported more than 2.5 mi llion case s in total, with daily coronavirus infections
reaching 50,000 cases. Compared with the winter peak of 11,000 new cases per day in January of 2021,
the delta and lambda variants significantly impacted the spread of COVID-19 in Indonesia.
Baru Supports Indonesian Government in Lawsuit
Baru joined the Ministry of Energy and Mineral Resources of the Republic of Indonesia ( “MEMR”) in
responding to a lawsui t filed in J akarta. Baru was not named in the la wsuit, but the Company pro-
actively and vigorously supported the MEMR. In that the lawsuit related to the mining permit gr anted
to Baru’s 70-per-cent-owned subsidiary PT Tambang Mas Sangihe, the Jakarta Administrative Court
approved the C ompany's request for permission to be present duri ng court proceedings. Since August
2021, the Company was present for all court dates pursuant to the proceedings.
Baru Gold Corporation
1021 West Hastings St, 9th Floor
Vancouver, BC V6C1L6
https://barugold.com
Production Licence
The Company applied for and received the upgrade of the Sangihe G old Project’s Contract of Work
(“CoW”) to a full production and export licence. Baru’s subsidiary TMS, the holder of the Sangihe
CoW, submitted the application to the Ministry of Energy and Mineral Resources of North Sulawesi,
Indonesia. The Company’s detailed works program and business plan (“DWP” and “BP” respectively)
were approved by the Ministry of Energy and Mineral Resources at an open meeting attended by TMS
and representatives of both Provincial and Central mines departments. To complete the li cence upgrade
on the Sangihe project, to Operation Production status, the C ompany needed and received final
approval from the Minister of Energy and M ineral Resources. The licen ce upgrade allowed Baru to
begin construction of the gold production facilities and infrastructure for the Sangihe project.
Appointment of New Directors
Baru appointed three new independent directors in 2021. The new board members bring decades of
operational experience on heap leach technology and relationships with the financial markets.
In February, Mr. Joseph Keane was appointed to the board. Mr. Keane built metallurgical engineering
and c onsulting firm KD Engineering & Co for an eventual sale to SS Metcon. Mr. Keane was
instrumental in starting the first semi- autogenous copper sulphide flotation mill in the Philippines,
doubling the production capacity of the largest gold mine in the Southeast Asian countr y. In addition,
he was the project sponsor for China's largest gold heap leach mine (30,000 tonnes per day and 133,000
ounces gold per year) in Inner Mongolia, which was subsequently acquired by China Gold International
and expanded to 250,000 ounces gold per year with a resource of over three million ounces.
In April, Mr. John Ellis joined the board. In the late 90’s, Mr. Ellis was the chairman and chief
executive officer of Anglo Gold North America, setting up Anglo's gold- mining ventures in the
Americas. He was respons ible for gold exploration as well as the acquisition/operation of projects in
the United States, Canada, and Mexico. He also provided guidance to Inco in Indonesia in the early
2000s for a large nickel laterite mine producing 160 m illion pounds of nickel annually. He is currently
serving as a director of Jaguar Mining Inc., a mid-sized gold producer in the Americas.
In August, Mr. Colin Davies joined the board. A professional geologist by trade, Mr. Davies started his
career at Anglo American as a gold mi ne geologist in South Africa at Vaal Reefs working on
brownfield exploration. His trave ls took him across the world with BP Minerals for diamonds and
ultimately to Jakarta, Indonesia, where he would spe nd near ly 30 years mainly in gold exploration.
Early formative roles with Santa Fe Gold and the Pelsart Group led into senior management positions
with global mining contractors before culminating with eight years at the J Resources Group, a US$300
million market capitalization mid-cap 150,000-ounce-per-annum gold producer.
Land Acquisition
Throughout 2021, after the production licence was granted, Baru has been actively working to acquire
land from local residents to construct its mine. The commitment to sell most of the land targeted for
acquisition in phase one by Baru was secured in September 2021. T he Company has since focused its
efforts confirming titles and preparing legal documents for closings on the purchase of the land. The
initial land to be a cquired is more than sufficient for the first phase of the operational plan. The
processing operations will start with two heap leach pads.
Baru is equally proud of the relationships it ha s built w ith the local residents who are fully supportive
of the C ompany's i nitiatives which include the offering of jobs and busi ness opportunities for the
residents of the island. They welcome a fully engineered mining operation that has the full support of
the federal government.
Sangihe Gold Project Construction Commences
In October, construction commenced at the Sangihe heap leach operation. Phase one consists of
clearing land, building two 100,000- tonne heap leach pads, pit overburden removal, preparation of
waste dumps, a crushing facility, and a processing plant area all with access to roads.
Private Placement
In October, Baru announced a private plac ement of $1.5 million and in November closed the
oversubscribed financing raising $1.67 million. The funds will be used to further the e xploration
program and to provide support for the start-up of production at the Sangihe gold project.
Structural Study Commissioned
Also, in October, the Company appointed Murphy Geological Services (“MGS”) to conduct a structural
study for the entire Sa ngihe Island Contract of Work (CoW) area. The draft study will be completed in
January 2022. This effort will involve the acquisition, processing, and interpretation of Sentinel -2 and
Hi-Res (WorldView, GeoEye and Pleiades) satellite imag ery to develop a structural syn thesis for th e
geological occurrence of known gold occurrences, and to establish a benchmark for future exploration
targets.
Drilling Commences at Sangihe
On December 21st, Baru commenced the 25,000-metre exploration program with the arrival of the drill
rig on Sangihe Island. To date t he Company has prepared 27 drill pad sites which will be the focus of
activity over the next two months.
Local Employees Hired
At the end of 2 021, the C ompany had 80 island residents on payroll. This number does not include
numerous secondary jobs created by the suppliers that support Baru’s business needs in the community.
With the additional hires the Company expects the total number to exceed 150 employees over the next
few months as it proceeds with construction, drilling, and other production activities.
OUTLOOK FOR 2022
The Company’s primary goal is to bring the measured and indicated resources to 1,000,000 ounces for
the project. Construction activities will continue during t he first quarter with production commencing
shortly thereafter. The target will be to produce 1,000 ounces per month once 10 0% operational status
has been achieved.
Baru expects 2022 to be exceptionally busy. Exploration drilling will happen in three phases. Phase- 1
will be infill d rilling betw een Binebas e and Bawone, Phase-2 will be exploration drilling between
Bawone and Salurang, and Phase-3 will be infill drilling between Bawone and Salurang.
The Company also plans exploration of the unexplored areas of the entire Sangihe Island Contract of
Work (“CoW”) area using data from the structural study that is expe cted to be comple ted by end
January 2022. The satellite imagery will be used to de velop a structural synthesis for the geological
occurrence of known gold occurrences , and to establish a benchmark for future exploration targets .
This is only one technique that will utilized to further our gold discovery ambitions.
Mr. Terry Filbert, Chairman and CEO of Baru Gold, commented, “Despite ongoing uncertainties
surrounding COVID -19 and seasonal delays due t o weather and logistic issues in Indonesia, 2021
marked a transformative year of activities for Baru. With the oversubscribed financing we closed in Q4
2021, Baru is well po sitioned to proceed with drilling and continue its ongoing construction activities
at the Sangihe gold project. In 2021 we laid the foundation for significant growth, and we are looking
forward to 2022.”
ABOUT SANGIHE GOLD PROJECT
The Sangihe Gold Project (“Sangihe ”) is located on the I ndonesian island of San gihe, off the nor thern
coast of Sulawesi. Sangihe has an existing National Instrum ent 43- 101 inf erred mineral resour ce of
114,700 indicated and 1 05,000 inferred ounces of gold, as reported in the Company's "Inde pendent
Technical Report on the Mine ral Resource Estimates of the Binebase and Bawone Deposits, Sangihe
Project, North Sulawesi, Indonesia" (May 30, 2017). Reade rs are cautioned that mineral resources that
are not min eral reserves do not have demonstrated economic viability. The Company inte nds to
proceed to producti on without th e benefit of first establishing min eral reserves sup ported by a
feasibility study.
The Company's 70-percent interest in the Sangihe-mineral-tenement Contract of Work ("CoW") is held
through PT. Tambang M as Sangihe (“T MS”). The remaining 30- percent intere st in TMS is held by
three Indonesia n corporations. The term of the Sangihe CoW agreemen t 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. The Company has receiv ed approval for the upgrade of i ts licence to advance the Sangihe
project to construction and production in early 2022. Construction at Sangihe gold heap leach project is
currently underway.
Note: The Company cautions readers that the any production decision made by the C ompany will not be based
on a NI 43- 101 feasibility study of mi neral reserves that demonst rates economic and technical viabil ity and as
such, there may be involved incre ased uncertainty an d v arious technological and economic r isks such as the
interpretation of drill res ults; the geology, grade and continuity of mineral deposit s; the possibility that future
exploration, development or mining results will not be consistent with our expectations; commodity and currency
price fluct uation; f ailure to obtain adequa te financing; regulatory, recovery rates, refinery costs, and other
relevant conversion factors, permitting and licensing r isks; general market and m ining exploration risks a nd
production and economic risks related to design and engineering, manufacturing, technological processes and
test procedures and the risk tha t the pro ject'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 is a dynamic junior near -term producer and 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 of mining and finance professionals boasts extensive experience in starting
and operating small-scale gold and coal assets. With sufficient funds and strong retail and institutional
shareholder support, Baru is positioned to become Indonesia's next gold producer.
Frank Rocca, BA ppSc.(Geology), MAusIMM, MAIG, Chief Geologis t of Ea st Asia Minera ls 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
+1-206-890-8285
For investor contacts more information, please contact:
Kevin Shum
Investor Relations
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 N ews Release, which are not historical in natu re, constitute “forward looking statements” within the meaning
of that phrase u nder applicable Cana dian securities law. These statements include, but are not limi ted to, statemen ts or i nformation
concerning future work programs, results and timing of any w ork programs, the Company’s performance or events as of the date hereof.
These statements reflect m anagement’s current assumptions and expectations and by their nature are subject to ce rtain underl ying
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 statem ents. Those risk s include the inter pretation of d rill
results; the geology, grade and continui ty of mineral deposits; the possibility that future exploration, development or mining results will
not be consistent with our expectations; commodity and currenc y price fluctuat ion; fa ilure to obt ain adequate f inancing; regulatory,
recovery rates, refiner y costs, and other rele vant conversion factors, permitting and licensing risks; general market and mining
exploration risks and production and economic risks related to design and engineering, manufac turing, technological processes and test
procedures and the risk that the proje ct’s output will not be salable at a price that w ill cover the project’s ope rating and maintenance
costs. Forward -looking statements should not be construe d as in vestment advice. Readers s hould perform a detailed, independent
investigation and analysis of the Company and are encouraged to seek independent profe ssional advice befor e making any investment
decision. Accordingly, readers should not place undue r eliance on any forw ard-looking st atement. Except as required by applicable
securities laws, the Company disclaims any obligation to update or revise any forw ard looking statements to reflect events or changes in
circumstances that occur after the date hereof.