High-grade copper-gold porphyry discovery in Indonesia€¦ · Province on the Northern Tip of...

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High-grade copper-gold porphyry discovery in Indonesia OCTOBER 2014

Transcript of High-grade copper-gold porphyry discovery in Indonesia€¦ · Province on the Northern Tip of...

Page 1: High-grade copper-gold porphyry discovery in Indonesia€¦ · Province on the Northern Tip of Sumatra Island, Indonesia ! One of the Highest Grade Porphyry Discoveries of the Last

High-grade copper-gold porphyry discovery in Indonesia

OCTOBER 2014

Page 2: High-grade copper-gold porphyry discovery in Indonesia€¦ · Province on the Northern Tip of Sumatra Island, Indonesia ! One of the Highest Grade Porphyry Discoveries of the Last

Disclaimer

This presentation regarding Barisan Gold Corporation (“BGC”) contains “forward looking statements”, as that term is used under applicable securities laws, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Barisan Gold Corporation, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements include, but are not limited to, statements or information concerning future work programs at the Upper Tengkereng porphyry discovery Abong gold deposit, results and timing of any work programs, timing of release of assay results and receipt of permits or technical consideration. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, mine life estimation, permitting timelines, the possibility that future exploration, development or mining results will not be consistent with expectations, metal recoveries, accidents, equipment breakdowns, title matters and surface access, labour disputes or other unanticipated difficulties with or interruptions in production, the potential for delays in exploration or development activities or the completion of new or updated feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations (including copper, gold, fuel, steel and construction items), currency fluctuations, failure to obtain adequate financing on a timely basis and other risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. The words anticipate, believe, estimate and expect and similar expressions, as they relate to us or our management, are intended to identify forward looking statements relating to the business and affairs of Barisan Gold Corporation. Except as required under applicable securities legislation, we undertake no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

This presentation is not intended, and should not be construed as, an offer to sell or a solicitation of an offer to buy any securities in the United States. Neither this presentation nor any copy of it may be taken or transmitted or distributed, directly or indirectly, into the United States.

In relation to the United States and U.S. persons, this presentation is strictly confidential and is being furnished solely in reliance on applicable exemptions from the registration requirements under the U.S. Securities Act of 1933, as amended. The securities of the Company have not and will not be registered under the U.S. Securities Act or any state securities laws, and may not be offered or sold within the United States, or to or for the account or benefit of U.S. persons, unless an exemption from the registration requirements of the U.S. Securities Act is available. Accordingly, any offer or sale of securities of the Company will only be offered or sold (i) within the United States, or to or for the account or benefit of U.S. persons, only to qualified institutional buyers (“QIBs”) in transactions not involving a public offering and (ii) outside the United States in offshore transactions in accordance with Regulation S. Any purchaser of shares in the United States, or to or for the account of U.S. persons, will be deemed to have made certain representations and acknowledgements, including without limitation that the purchaser is a QIB.

Dibiansyah Hamid, MAIG, a QP within the meaning of MI 43-101, has reviewed and approved the content of this presentation. 2

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Highlights

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Ø  Newly Discovered Porphyry Province Located in Aceh Province on the Northern Tip of Sumatra Island, Indonesia

Ø  One of the Highest Grade Porphyry Discoveries of the Last Two Decades (Multiple 200+ meter intercepts @ 1% Cu Eq.)

Ø  Fully Permitted, Actively Drilling Using two 1,750-meter Rigs

Ø  Also Own an Epithermal Gold Deposit with ~470,000 oz of 43-101 Inferred Resource (~ 2g/t Au Eq.)

Ø  Grossly Undervalued Versus Peers with a Market Cap of Only C$5 million

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Corporate Information

Barisan Gold Corp. TSX-V: BG

Share Price C$ 0.14

52-Week Range C$ 0.07 – C$ 0.44

Basic Shares Outstanding 40.8 million

Diluted Shares Outstanding 46.1 million

Market Cap C$ 5 million

Cash-on-Hand ~ C$ 0.5 million

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Project Location

Barisan Gold’s projects are located in the north west part of Indonesia on the ring of fire, which has been a major mining district for the last 50 years

Grasberg (Freeport): world’s largest copper and gold mine

Gosowong (Newcrest): one of the world’s highest-grade gold mines

Batu Hijau (Newmont): significant gold-copper porphyry 5

Note: the mineralization on adjacent properties is not necessarily indicative of the mineralization on the Company’s property

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Aceh Province

v  89,523 hectares of exploration ground in Aceh Province

v  Excellent logistics: v  Provincial highway

crosses the deposits v  Water readily available v  No significant

population center anywhere in the area

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Exploration Licenses

v  Barisan owns a direct 80% equity interest in 2 contiguous Exploration Licenses

v  2 Indonesian parties own the remaining interest and are free carried to feasibility

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Barisan’s Porphyry Targets

v Barisan Gold majority owns an entire porphyry province, initially explored by Rio Tinto in the 1990s, that contains at least 8 outcropping porphyry prospects

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Upper Tengkereng Prospect

v  Initially discovered by Rio Tinto in the 1990s (8 shallow mostly vertical holes)

v  The previous owner drilled two deeper holes in 2008-10, including the discovery hole, UTD-002, which identified a high-grade porphyry zone below 500 meters

v  At surface, there is a 300m x 500m diorite porphyry zone that has been mapped by Barisan Gold’s geologists (grading up to 0.5 g/t Au & 0.3-0.4% Cu through channeling and sampling)

v  Active drilling ongoing (Barisan Gold currently drilling UTD-014)

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Upper Tengkereng Prospect

v  Summary of the first eight (8) Upper Tengkereng holes:

Ø  All holes mineralized from surface with average intercept length of 850 meters

Ø  Average Grade: ~0.6% Copper Equivalent (above average of new porphyry discoveries)

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Hole # From (m)

To (m)

Intercept (m)

Au g/t

Cu %

Au Eq. g/t

Cu Eq. %

Adj. Cu Eq.

%

001 10 638 628 0.4 0.2 0.8 0.5 0.5

002 10 696 686 0.4 0.3 0.9 0.6 0.6

003 8 922 914 0.4 0.3 0.8 0.5 0.6

004 6 1,064 1,058 0.3 0.2 0.7 0.4 0.5

005 4 966 962 0.5 0.2 0.9 0.5 0.7

006 4 990 986 0.5 0.3 1.0 0.6 0.6

007 292 1,116 824 0.7 0.3 1.2 0.7 0.7

008 4 894 890 0.5 0.5 1.3 0.8 0.8 Au Eq. & Cu Eq. calculated at current market prices and include molybdenum credits Adjusted Cu Eq. grade excludes post mineral intrusive zones

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Upper Tengkereng Prospect

v  Drilling so far has validated two (3) distinct high grade zones and identified two (2) additional high grade prospective areas at Upper Tengkereng

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302,100 mE

464,300 mN

464,400 mN

464,700 mN

464,600 mN

464,500 mN

302,100 mE301,900 mE

301,900 mE

302,000 mE

302,000 mE301,800 mE301,600 mE301,400 mE

301,500 mE

301,500 mE

301,600 mE 301,700 mE 301,800 mE

301,700 mE

464,

800

mN

464,

500

mN

464,

300

mN

464,

400

mN

464,

600

mN

464,

700

mN

301,400 mE301,300 mE

301,300 mE

ProjectedMineralization Outline

UPPER TENGKERENGPROSPECT

Scale 1 : 3000 Date : Oct 26, 2013

LEGEND :

Mineralized intrusive

UT Drillhole

High Grade ZoneIdentified through Drilling

InterpretedChlorite-Serecite Zone

InterpretedPhyllic-Potassic Zone

High Grade Zone(@150-300m depth)0.4g/t Au + 0.7% Cu

High Grade Zone(start @400m depth)

1g/t Au + 0.5% Cu

UTD001A

UTD002

UTD003UTD004

High Grade Zones

High Grade Prospects

1

2

3

A

B C

D

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Upper Tengkereng Prospect

v  Southwest-Northeast Cross Section covers 500 meters across and shows the (3) distinct high-grade zones identified so far at Upper Tengkereng

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Advanced Argillic Altered Hydro-Breccia

Advanced Argillic

Low G

rade Intra-M

ineral Porphyry

High Grade Chalcocite-Chalcopyrite

Barren

Limestone

Gold Rich Strong Argillic

Chalcocite-Chalcopyrite

Grades are Cu Eq. calculated at current m

arket prices and include Mo credits

Covellite Rich Silica Pyrophyllite

Alunite

1.1%

0.9%

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Upper Tengkereng Prospect

v  Southeast-Northwest Cross Section covers 500 meters across and focuses on the near surface high-grade zones identified at Upper Tengkereng

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Covellite Rich Silica-Pyrophyllite-Alunite

Advanced Argillic Altered Hydro-Breccia

High Grade Chalcocite-Chalcopyrite

Limestone

Grades are Cu Eq. &

Au Eq. calculated at current market prices and include M

o credits

0.4-0.6% (0.7-1.0g/t)

1.0-1.2% (1.7-2.0g/t)

0.7-1.0% (1.2-1.7g/t)

1.0%

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Upper Tengkereng Prospect

v  Current focus solely on near surface high-grade zone discovered in south-central part of the deposit where drilling seeking to define boundaries of the zone

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302,100 mE

464,300 mN

464,400 mN

464,700 mN

464,600 mN

464,500 mN

302,100 mE301,900 mE

301,900 mE

302,000 mE

302,000 mE301,800 mE301,600 mE301,400 mE

301,500 mE

301,500 mE

301,600 mE 301,700 mE 301,800 mE

301,700 mE

464,

800

mN

464,

500

mN

464,

300

mN

464,

400

mN

464,

600

mN

464,

700

mN

301,400 mE301,300 mE

301,300 mE

ProjectedMineralization Outline

UPPER TENGKERENGPROSPECT

Scale 1 : 3000 Date : Oct 26, 2013

LEGEND :

Mineralized intrusive

UT Drillhole

High Grade ZoneIdentified through Drilling

InterpretedChlorite-Serecite Zone

InterpretedPhyllic-Potassic Zone

High Grade Zone(@150-300m depth)0.4g/t Au + 0.7% Cu

High Grade Zone(start @400m depth)

1g/t Au + 0.5% Cu

UTD001A

UTD002

UTD003UTD004

PUT-015 (50o dip)

PUT-016 (50o dip)

PUT-013/014 (50o/80o dip)

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v  Near-Surface High Grade Zone Consists of 3 Layers Ø  From 0 to 100m, Advanced Argillic Altered Hydro-Breccia (~ 0.4-0.6% Cu Eq.)

Ø  From 100 to 400m, High-Grade Covellite Rich Silica-Pyrophyllite-Alunite (~ 1.0-1.2% Cu Eq.)

Ø  From 400 to 800m, High-Grade Chalcocite-Chalcopyrite (~ 0.7-1.0% Cu Eq.)

Hole # From (m)

To (m)

Intercept (m)

Au g/t

Cu %

Au Eq. g/t

Cu Eq. %

001 340 474 134 0.7 0.3 1.2 0.7

002 226 420 194 0.4 0.5 1.2 0.8

004 428 754 326 0.8 0.5 1.5 0.9

006 142 736 594 0.6 0.4 1.3 0.8

008 188 694 506 0.7 0.6 1.8 1.1

009 44 214 170 0.8 0.4 1.5 0.9

012 212 624 412 0.9 0.5 1.7 1.0

Upper Tengkereng Prospect

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Cu Eq. & Au Eq. calculated at current market prices and include molybdenum credits

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Upper Tengkereng Prospect

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Copper Soil Geochemistry Gold Soil Geochemistry

v  Soil geochemistry of the Upper Tengkereng prospect has outlined three (3) distinct high grade copper zones and two (2) distinct high grade gold zones

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Abong Epithermal Gold Deposit

v  Abong is a large epithermal gold deposit that lies within a 2.0 x 0.8km corridor, consisting of an extensive flat-lying near surface blanket

v  A-130 hole, 8,660-meter Phase I drilling campaign was conducted in 2007-08

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Abong Epithermal Gold Deposit

Prospect Tonnage Gold Grade

Silver Grade

Contained Gold

Contained Silver

Bulan 5,979,000 1.64 g/t 9.6 g/t 315,000 oz 1,840,000 oz

Bintang 1 403,000 1.85 g/t 16.8 g/t 24,000 oz 217,000 oz

Bintang 2 2,105,000 0.97 g/t 12.7 g/t 66,000 oz 857,000 oz

Abong Total 8,487,000 1.49 g/t 10.7 g/t 405,000 oz 2,914,000 oz

v  On January 9, 2012, Mining Associates Pty Ltd. (Brisbane) released an initial NI 43-101 inferred gold resource estimate for the Abong deposit located within the Barisan I IUP, containing 405,000 ounces of gold and 2.9 million ounces of silver (approximately 467,000 ounces of gold equivalent) at a 0.4g/t gold cut-off grade

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Abong Epithermal Gold Deposit

v  The grade distribution across the deposit correlates with a broad zone of silicification associated with early phase, low grade mineralization. Brittle fracturing of the early silicification along the north-west trending structure resulted in deposition of high grade mineralization as is evident in the ore distribution. Mineralization between Bulan and Bintang is structurally offset along a north-east fault

v  Mineralization remains open to the south-west of Bulan and to the west and north of Bintang with the potential to significantly add ounces to the deposit

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Page 20: High-grade copper-gold porphyry discovery in Indonesia€¦ · Province on the Northern Tip of Sumatra Island, Indonesia ! One of the Highest Grade Porphyry Discoveries of the Last

Abong Epithermal Gold Deposit

v  A cross section clearly shows the strata bound nature of the gold-bearing siliceous replacement layer between the mudstone and the limestone

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Page 21: High-grade copper-gold porphyry discovery in Indonesia€¦ · Province on the Northern Tip of Sumatra Island, Indonesia ! One of the Highest Grade Porphyry Discoveries of the Last

Abong Epithermal Gold Deposit

v  The Abong gold deposit is generally defined as a mineralized silicified tabular sheet that is 10-15 meters thick over a 2km strike length and up to 800 metres wide

v  Higher grade intercepts include 14 meters @ 6.31 g/t Au

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Abong Forestry Permit Application

Regency Level (Aceh Tengah)

- Documentation, Maps, Surveys… & Bupati Recommendation Letter ✔

Provincial Level (Aceh)

- Technical Review & Recommendation Letter from Forestry Department ✔

- Governor Recommendation Letter ✔

Central Government Mines Department

- Technical Consideration In Progress

Central Government Forestry Department

- Planology Department Review and Recommendation

- Forestry Administration Department Review and Recommendation

- Forestry Inventory & Mapping Department Review and Recommendation

- Forestry Area Management Department Review and Recommendation

- Forestry Area Permit Issued by Minister of Forestry 22

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Barisan Gold Under Valued?

Barisan Gold Doubleview Cordoba Cornerstone

Ticker BG.V DBV.V CDB.V CGP.V

Country Indonesia Canada Colombia Ecuador

Prospect Upper Tengkereng Hat San Matias Cascabel (15%)

Intercept (m) 506 94 101 324

Au g/t 0.7 0.4 0.7 1.2

Cu % 0.6 0.3 1.0 1.1

Market Cap $5 million $8 million $29 million $21 million

Cash $0.5 million $0.8 million $9 million $3 million 23

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Key Upcoming Dates

Private Placement Closing Oct ‘14

Assays Released for Hole UTD-013 Nov ‘14

Completion of Hole UTD-014 (@ ~600m) Nov ‘14

Beginning of Holes UTD-015/016 Nov‘14

Receipt of Technical Consideration for Abong Q4 2014

Receipt of Abong Forestry Borrow-Use Permit Q1 2015 24

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TSX-V: BG www.BarisanGold.com 25