Jul 16 2013
Barisan Gold Corporation (TSXV-BG) wishes to provide shareholders with an update on its exploration and permitting activities at its various properties located in Indonesia.
Upper Tengkereng Porphyry Prospect
After further consultation with the forestry departments at the regency and provincial level assessing relevant central government forestry maps, it has come to our attention that a material portion of the Company's Upper Tengkereng prospect is located outside of a forest area, which in turn means that it can be explored without the issuance of a forestry borrow-use permit (please see map of Upper Tengkereng prospect and forestry boundary at www.barisangold.com/barisanporphyry/uppertengkereng).
In light of this information, Barisan Gold has decided to re-initiate exploration and drilling activities at Upper Tengkereng. In the coming weeks, a drill rig will be mobilized to site and drilling will resume in late August after the Ramadan holiday. The Company plans to initially drill up to 3,000 meters that will seek to target, expand and define the high-grade zones intercepted in Hole UTD-002. Each hole will take approximately 4-6 weeks to complete with another 2-4 weeks for assaying before results are released to the market. This exploration program will count towards the work commitment required under the Company's exploration license.
In December 2010, the Company's subsidiary, PT Gayo Mineral Resources, drilled Hole UTD-002 which returned 691 meters at 0.4g/t gold + 0.3% copper fully mineralized from surface to the bottom of the hole. The hole included a 90 meter interval towards the top of the hole containing 0.7% copper + 0.4g/t gold and the hole ended in 40 meters containing 1.5g/t gold + 0.5% copper.
The Company's other 5 primary porphyry targets are all located in primary forest classification which is subject to the extended moratorium of the Indonesian Government released on May 13, 2013, which prohibits the issuance of new forestry borrow-use permits for all projects located in primary forest for an additional two years until May 12, 2015. These porphyry targets will remain on care and maintenance during the moratorium period.
Abong Gold Deposit
In January 2012, the Company released an initial NI 43-101 resource for its Abong gold deposit located in the Province of Aceh, Indonesia. Based on 130 drill holes totalling 8,660 meters, an initial resource containing 8.5 million tonnes at 1.5 g/t gold + 10.7 g/t silver was calculated by Mining Associates Pty Ltd. of Brisbane, Australia.
The Abong gold deposit is located in production forest hence is not restricted by the moratorium in force by the Indonesian Government covering primary forests. Over the past few months, the Company has worked diligently with the various levels of governments to obtain a forestry borrow-use permit for the Abong gold deposit. Despite strong support from the regency and provincial governments, the Company continues to wait to receive permission to proceed with its application from a local timber company who shares the surface and forestry rights at Abong.
Based on the recommendation of the regency government, the Company has decided to request a suspension of its Izin Usaha Pertambangan ("IUP") at Abong while it seeks final support from the timber company. The suspension, valid for an initial 1-year period, allows the Company to protect its timetable for completion of exploration activities at Abong. Under Indonesia's mining law, exploration licenses (IUPs) are valid for a period of up to 7 years after which they must either be converted to mining licenses or be relinquished. By suspending its IUP, Barisan Gold guarantees that it will have enough time to complete drilling and feasibility studies prior to the end of the 7-year exploration period as suspension basically stops the clock.
Collins Sale
As announced on March 4, 2013, the Company is in the process of selling its interest in the Collins prospect. A number of approvals have now been received from various government authorities and the closing of the transaction is expected to occur in the third quarter of 2013. The proceeds from the sale will be used towards the drilling at Upper Tengkereng.
Shareholders are reminded that the Annual and Extraordinary General Meeting will be held in Vancouver on July 18, 2013. Alex Granger, Chief Executive Officer and Director of Barisan Gold, will be present and can separately update investors on the Company's activities.
Dibiansyah Hamid, MAIG, the designated QP within the meaning of NI 43-101, has reviewed and approved the content of this release.
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.
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FOR FURTHER INFORMATION, visit the Company's website at www.barisangold.com, or contact:
Kristy Reynolds, Investor Relations Vancouver T: +1 604 684 8676 E: [email protected]