BARU GOLD Positive Metallurgical Study at Sangihe GOLD Project Indicates GOLD Recoveries of 85% and Silver Recoveries of 96%
News Release
April 11, 2022 BARU: TSX.V | BARUF: OTCQB”
BARU GOLD POSITIVE METALLURGICAL STUDY AT SANGIHE GOLD
PROJECT INDICATES GOLD RECOVERIES OF 85% AND SILVER
RECOVERIES OF 96%
Vancouver, BC – BARU Gold Corp (the “Company” or “Baru”) is pleased to report
on our commitment and the viability of the Sanighe Gold project based on the
metallurgical studies and the milestones on permitting and advancing the Sangihe
Gold project. With land clearing and construction ongoing, the BARU Gold team has
reviewed metallurgy of the project in detail.
A metallurgical review and study are a crucial part of transitioning an exploration
project to a producing mine site. It is during these tests, that the engineering team and
contractors can assess the condition, composition, and best recovery methods for the
materials to be mined. A higher recovery rate (defined as percentage of metal
extracted from ore during processing), will mean the Company can recover more gold
and silver per tonne of ore mined. Further, a positive metallurgical study can de -risk
the project further and assist mining engineers in refining the flow sheet design. This
in turn increases efficiency and lowers the environmental footprint of the operation.
In September 2018, Baru’s subsidiary, PT. Tambang Mas Sangihe or “TMS” (the
holder of the Sangihe CoW licence) received approval of the Indonesian Feasibility
Study (IFS) by Ministry of Energy and Mineral Resources at an open meeting
attended by TMS and representatives of both Provincial and Central mines
departments. The IFS, was conducted by Resindo Resources and Energy, an
Indonesian consulting firm and was comprised of several elements:
a) Metallurgical drilling to identify the most suitable heap-leaching locations.
b) Geotechnical drilling to provide the most up-to-date and accurate core samples
for pit wall design, fragmentation of ore and ore excavation rates.
c) Hydro-geological surveying to help locate and identify the water table level in
the pit design and best water sources needed for upcoming drilling, heap-
leaching and ultimately gold production.
All drilling required for the IFS was completed and the metallurgical test results were
as follows:
a) Bottle Roll Test of the Cyanide Soluble assay results showed gold rec overies
of 85% and silver recoveries of 96%.
b) Agglomeration test results have been completed with the majority of the
samples tested agglomerating very well
Baru Gold Corporation
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c) Carbon Column Test work reached 83.80% recovery of gold.
d) Acid Forming test work of overburden rock s amples taken from the
geotechnical drilling core indicated that only rock samples with more than 5%
sulphides were Potential Acid Forming and these rock samples constitute less
than 9% of the overall Binebase Resource.
The Indonesian Feasibility Study is not a Feasibility Study as defined by CIM as required
by NI 43-101 but it is required under Indonesian law in order to obtain a licence to construct
a production facility.
In February 2021, the Ministry of Energy and Mineral Resources (MoEMR) upgraded its
Sangihe Gold Project Contract of Work (“CoW”) to Operation Production status. This
licence provides Baru Gold with the rights to operate precious metal mines on 42,000
hectares on Sangihe Island. To date only 10% of the area has been geologically explored.
Exploration will be upgraded through a resource development drilling program and will be
expanded to other areas of the CoW once production cashflow has been initiated.
The Company intends to proceed to produc tion 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 w ill not
be salable at a price that will cover the project’s operating and maintenance costs.
The existing CoW licence for the Sangihe gold project is a 30- year licence and under the
recently issued 2020 mining regulations can be extended for 20 years. This CoW
production status upgrade also gives the Company rights for refinery and export licences.
The Board of Directors have approved a 35,000 -metre Resource Developm ent drilling
program. 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, 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 , an 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.
Terry Filbert, Chairman and CEO, commented , “I have been in Indonesia since mid-
February overseeing all aspects of the Indonesian operations and don’t plan to leave until
we are in production. Given the current price of gold, low production costs and continuing
field analysis of the 23 new exploration targets identified in the structural study that
provided promising results , t he Company remains steadfast towards the goal of
production. Baru has constituently and diligently worked towards that goal and plans to
provide regular updates on activities to the shareholders as milestones are achieved.”
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 (“Sangihe”) is located on the Indonesian island of Sangihe, off
the northern coast of Sulawesi. Sangihe 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" (May 30, 2017). Readers are cautioned that mi neral 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's 70- percent in terest 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 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 received approval for the upgrade of its licence
to advance the Sangihe project to construction and production in 2022.
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 of mining and finance professionals boasts extensive
experience in starting and operating small-scale gold and coal assets. With strong retail and
institutional shareholder support, Baru is positioned to become Indonesia’s next gold
producer.
Frank Rocca, BAppSc.(Geology), MAusIMM, MAIG, CPI -KCMI, 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 CORP
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 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.