Baur Gold (BARU.V) announced their Board of Directors has approved the company’s 2021 annual budget, which includes a 35,000-metre Resource Development drilling program. The drilling program is expected 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 report which identified 835,000 ounces gold inferred resource between Binebase and Bawone villages over a distance of approximately 1.2 kilometres. The 2010 report was prepared by an independent geologist who had no previous affiliation with the company.
An infill drilling program will be conducted in this area, which will help gather information on the minerals in the area and will help the company upgrade some of their inferred resources to indicated and measured resources.
Additional exploration will take place over 1.45 kilometres from Bawone to South of Salurang villages. After the initial exploratory drilling has been completed, infill drilling will begin to bring some of these resources to indicated and measured resource status.
“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,” commented Terry Filbert, Chairman and CEO of Baru Gold.
Baru’s engineering team has been preparing the project site on Sangihe island after being greenlighted by the Indonesian government last month. Baru is currently in the middle of a land acquisition and will soon begin hiring construction staff. They expect to commence production in Q2 of 2021 once construction is complete.
The budget approved by the Board of Directors includes a variety of other important expenditures. These expenditures consist of the construction of the heap leach pad, development of the mining pit, the building of roads, supporting infrastructure, and hiring staff needed to pour its first gold, targeted for Q3 of 2021. Baru currently the funds available to cover all the budgeted and approved expenditures.
“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,” added Chairman and CEO Terry Filbert.
The stock price has not moved significantly following the news.
Full disclosure: Baru Gold is an Equity.Guru marketing client.