Barisan Gold officials have decided to re-initiate exploration and drilling activities at the Upper Tengkereng porphyry prospect in Aceh province following the revelation that a material potion of the prospect is outside a forest area. In coming weeks a drill rig will be mobilized to the site and drilling will resume in late August after the Ramadan holiday.
The revelation came to light after further consultation with forestry departments at the regency and provincial level and the assessment of forestry maps, and means that most of Upper Tengkereng can be explored without the issuance of a forestry borrow-use permit.
The company plans to initially drill up to 3000 metres that will seek to expand and define the high-grade zones intercepted in a previous hole. Each hole will take 4 to 6 weeks to complete with another 2 to 4 weeks for assaying. This exploration will count towards the work commitment required under the company’s exploration licence.
In December 2010, Barisan’s subsidiary PT Gayo Mineral Resources, drilled the previous hole which returned 691 metres @ 0.4 grams/tonne gold and 0.3% copper and was fully mineralized from surface to the bottom of the hole. The hole included a 90-metre interval towards the top containing 0.7% copper and 0.4 grams/tonne gold, and the hole ended in 40 metres containing 1.5 grams/tonne gold and 0.5% copper.
The company’s other 5 primary porphyry targets are located in primary forest classification areas which are subject to an extended government moratorium released on May 13 which prohibits the issuance of new borrow-use permits in primary forest areas for an additional two years until May 12, 2015. These porphyry targets will remain on care and maintenance during the moratorium.
In January 2012, Barisan released an initial NI 43-101 resource for its Abong gold deposit also in Aceh province. Based on 130 drill holes totalling 8660 metres, an initial resource containing 8.5 million tonnes @ 1.5 grams/tonne gold and 10.7 grams/tonne silver was calculated by Mining Associates, of Brisbane, Australia.
The Abong deposit is in production forest and is unrestricted by the government’s moratorium. The company has worked diligently with the various levels of governments to obtain a forestry borrow-use permit for Abong but 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 a recommendation of the regency government, the company has requested 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 one year period, allows the company to protect its Abong exploration timetable. Under Indonesia’s mining law, exploration licences are valid up to 7 years, after which they must be converted to mining licences or be relinquished. By suspending its IUP, Barisan Gold guarantees it will have enough time to complete drilling and feasibility studies before the 7-year period ends.
The company is also selling its Collins prospect stake. A number of approvals have been received from various government authorities and the closing of the transaction is expected to occur during the third quarter of 2013. Proceeds from the sale will help finance Upper Tengkereng drilling.
Barisan Gold Corp is a Canadian-based exploration company engaged in the acquisition and development of mineral properties in Indonesia. Barisan owns and operates two gold and gold-copper properties in Aceh Province on the northern tip of Sumatra Island, comprising the Barisan gold-copper porphyry belt and the Abong epithermal gold project.