High-grade copper-gold porphyry discovery in Indonesia€¦ · Province on the Northern Tip of...
Transcript of High-grade copper-gold porphyry discovery in Indonesia€¦ · Province on the Northern Tip of...
High-grade copper-gold porphyry discovery in Indonesia
OCTOBER 2014
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
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$5 million
Corporate Information
Barisan Gold Corp. TSX-V: BG
Share Price C$ 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
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
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2
3
A
B C
D
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%
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%
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)
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
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
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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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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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
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
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
TSX-V: BG www.BarisanGold.com 25