Jan 09, 2012
Barisan Gold Announces Initial Abong Resource
VANCOUVER, B.C. -- January 9, 2012 -- Barisan Gold Corporation (TSXV-BG) is pleased to announce that Mining Associates Pty Ltd. out of Brisbane, Australia ("Mining Associates") has completed an initial National Instrument 43-101 ("NI 43-101") compliant inferred resource estimate for the Abong deposit. At a 0.4g/t gold cut-off, Mining Associates estimates an initial NI 43-101 compliant inferred resource of 8.5 million tonnes of 1.49g/t gold and 10.7g/t silver, containing 405,000 ounces of gold and 2.9 million ounces of silver.
* Gold equivalent ounces have been calculated assuming the 1 year trailing average metal prices (gold price of $US1571.52 per ounce, and silver price of $US35.12 per ounce) for a silver to gold equivalency ratio of 0.022:1. Gold recovery is assumed to be 95% and silver recovery is assumed to be 85%.
The Abong deposit is located within the Barisan I Izin Usaha Pertambangan ("IUP") owned by PT Linge Mineral Resources ("PTLMR"). PTLMR is 80% directly owned by Barisan Gold, who is also the sole operator of the project and responsible for funding 100% of the expenses of the project until completion of a feasibility study. The Abong deposit is located within Production Forest as per the classifications of the Ministry of Forestry of the Republic of Indonesia ("MoF"). Production Forest is one of the lowest levels of forest designations in Indonesia and carries no open-pit mining restrictions like in some other forest designation areas. Furthermore, all the prospective areas at Abong lie outside Primary Forest as per the classifications of the MoF with relations to the current two-year forestry moratorium.
The resource estimate was completed using accepted, industry standard methods that conform with NI 43-101 based on 130 drill holes completed by East Asia Minerals Corp. ("EAMC") in 2007-08 at Abong for a total of 8,660 meters. Drill hole samples have been analyzed for gold and silver at Intertek assay laboratories in Jakarta, Indonesia. All sample results are monitored with an appropriate QA/QC program and passed the quality checks. A technical report on the Abong gold deposit will be filed with SEDAR within 45 days of this release.
Near-term focus at Abong will concentrate on growing the initial resource. Drilling conducted by EAMC as well as field exploration conducted both by EAMC and Barisan Gold have identified zones of potential extension to the current resource. To the northwest of the current resource, in the Bintang area, previous drilling has not closed off the deposit as the most northerly holes have all encountered mineralization. This is also the area of the resource where the highest grades have been returned. Barisan Gold has identified mineralized outcrops 2km north of the northernmost drill hole that returned assays of gold. To the northeast of the current resource, adjacent to the Bintang area, aeromagnetic surveys and filed exploration have identified a potential parallel system to Abong. Mineralized outcrops have been identified at surface 1.2km to the east of the eastern boundary of the resource pit shell.
Barisan Gold has already commenced field exploration to the northwest of the Abong resource in non-forest designated areas as it awaits receipt of a forestry borrow-use permit that will permit exploration work within the Production Forest designated area. Pending the results of the field exploration currently being conducted and the timing of receipt of forestry borrow-use permits, Barisan Gold intends on re-initiating drilling at Abong to add ounces to the initial resource calculated by Mining Associates. The below figure shows an overview of the Abong deposit, its land classification and drill hole locations.
Figure 1 -- Abong Drill Hole Locations
(also refer to http://www.barisangold.com/s/Abong.asp for this figure and other Abong figures)
In other news, Barisan Gold is pleased to announce that the previously ordered YDX 1800 drill rig from PT IndoDrill has arrived in Indonesia. The rig has just recently cleared customs in Jakarta and is on its way to site. In anticipation of its arrival, Barisan Gold is preparing drill platforms at both the Sekeulen and Upper Tengkereng prospects where the first porphyry hole of the next phase exploration program is being planned. The specific location of the first drill hole is still being discussed internally and with the relevant government authorities.
Mr Ian A. Taylor, BSc (Honours), MAIG, MAusIMM(CP), of Mining Associates, the designated Independent QP within the meaning of NI 43-101, has reviewed and approves the content of this release that relate to Abong inferred resource.
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About Barisan Gold Corporation
Barisan Gold (BG-TSXV) is a Canadian-based minerals exploration company listed on the TSX Venture Exchange under the symbol "BG". The Company is engaged in the exploration, acquisition and development of mineral properties in Indonesia. Barisan Gold currently owns and operates three gold and gold-copper properties in Indonesia's Aceh Province on the northern tip of Sumatra Island, namely the Barisan gold-copper porphyry belt, the Abong epithermal gold project and the Takengon gold-copper porphyry prospect. Barisan Gold currently has 40,706,186 shares outstanding.
Caution Regarding Forward Looking Statements
Certain statements in this News Release, which are not historical in nature, constitute "forward looking statements" within the meaning of that phrase under applicable Canadian securities law. When used in this News Release, such statements use words such as "may", "will", "expect", "intend", "anticipate" and other similar terms. These statements reflect management's current assumptions and expectations regarding future results, performance or events as of the date hereof and by their nature are subject to certain underlying assumptions, known and unknown risks and uncertainties and other factors which may cause actual results, performance or events to be materially different from those expressed or implied by such forward looking statements. Forward looking statements involve significant risks and uncertainties and should not be read as guarantees of future or performance results. Accordingly, readers should not place undue reliance on any forward looking statement.
Forward looking statements are based on assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made. The Company believes that the assumptions and expectations reflected in such forward looking statements are reasonable.
Forward looking statements are also subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward looking information. Those risks include the interpretation of drill results and the estimation of mineral resources and reserves; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with our expectations; commodity and currency price fluctuation; failure to obtain adequate financing; regulatory, permitting and licensing risks; and general market and mining exploration risks.
Except as required by applicable securities laws, the Company disclaims any obligation to update or revise any forward looking statements to reflect events or changes in circumstances that occur after the date hereof. Forward-looking statements should not be construed as investment advice. Readers should perform a detailed, independent investigation and analysis of the Company and are encouraged to seek independent professional advice before making any investment decision.
Investment in the common shares of the Company involves substantial risk. Please refer to the Prospectus, in particular, the section with the heading "Risk Factors".
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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