Baru Gold Corp. (TSX-V:BARU) and its subsidiary PT. Tambang Mas Sangihe have filed an updated Technical Report and Mineral Resource Estimate for the Sangihe Gold and Silver Project.
The updated estimate covers only a small portion of the company’s 42,000-hectare work area, focusing on a 65-hectare zone targeted for initial production.
Baru reported 3.15 million tonnes of indicated resources at an average grade of 1.12 g/t gold and 19.4 g/t silver, containing 114,000 ounces of gold and 1.93 million ounces of silver.
Inferred resources total 2.30 million tonnes at 1.22 g/t gold and 14.5 g/t silver, containing 91,000 ounces of gold and 1.08 million ounces of silver.
The report was prepared to support production planning and due diligence, reflecting economic shifts, including a significant increase in gold prices, which required a redesign of operations.
Mining Associates, the firm behind the study, has recommended further exploration, noting that only 7% of the project area has been geologically explored.
Baru Gold has planned a 25,000-meter drilling program to upgrade inferred resources, expand exploration, and further assess the project’s economic potential. The initial phase will target an area identified in the 2010 report containing 835,000 ounces of inferred gold.
The drilling program will later expand south of Salurang village, guided by geochemical anomalies and structural studies.