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Meet the junior gold explorer led by experienced professionals with extensive international experience and a broad range of skills in the mineral exploration and mining industry… ranging from project generation and early-stage exploration to feasibility studies and mine development.
Baru Gold Corp. (
TSX-V.BARU,
OTCMKTS: BARUF,
Forum) is a Vancouver, BC-based mineral resource exploration company focused on developing and producing precious metals projects in mining-friendly Indonesia with significant resource upside potential and near-term production capabilities. Currently, Baru Gold is working on developing its Miwah and Sangihe Projects.
Stockhouse Media’s Dave Jackson was joined by company CEO & Chairman Terry Filbert to discuss recent company news, a wide variety of mining and investment topics and to introduce Baru Gold to our Stockhouse audience.
SH: So first off, for Stockhouse our metals & mining investor audience new to Baru Gold, can you tell us a little bit about yourself and the company? TF: Well, the company has been around since 2005 and I actually joined 2017 on the behest of one of the major investors (John Hathaway, Tocqueville). Since 2017, I have been in charge of trying to get the company back on top of its game. It was up to, I think, it was in 2011. This was a $800 million market cap company at $8 million Canadian dollars per share. And at that time there was some issue with Miwah project and some issues with a protected forest, which has since been resolved but sidelined the predecessor East Asia Minerals ever since. When I came in, I'd already been mining in the area in place North sell OAC for several years. And I was looking at pursing saggy from my own project. I was then persuaded by the major shareholder. That it'd be great. You know, I would come into the company to support me and they wanted me to be able to, since I lived in Indonesia at the time and still do, when you get out of here basically, I would be a good place to turn the company around, which I've been trying to do since I started out in 2017. Actually at that time, the company valuation was a million Canadian, down from 800 million Canadian that does 11. I mean, it's been up to 35 million, I think we're down now. I'm like 26.7 million. So changes on a daily basis. Right now what we're trying to accomplish is get the company into a positive cashflow production as quickly as possible. I'm not an exploration gambling roll the dice but a production guy. So I spent all my time focused on Sangihe into production for a long time doing due diligence on it before I was looking to buy it myself and a lot about it that we had sent just getting the - contract of work (COW) a 30-year license which includes everything you need for a long time. And then also we have raised the funding. We need the last three months to basically get it into production. So we're actually fully funded to that production by Q2 2021 to currently we're doing the land acquisition and we should be breaking ground in a month or so to start the construction process and start pouring our first gold sometime this summer. SH: For investors that might not be too familiar with mining operations in Indonesia, can you give us a brief overview of the jurisdiction, Terry?
TF: Well, actually Indonesia gets a bad name mainly because ofBre-X one bad deal from 20 years ago. And a lot of people understand with Bre-X actually really was Filipino geologists with a bunch of Canadians. They Indonesians were damaged as much as everybody else, but they get blamed for it for some reason. So it’s reality they're working in their business – mining in Asia is getting easier every year in life it’s often two steps forward, one step back issues, but a reality the last two years of working there full time, I found it easier over year. We have a simple Contract of Work (COW) ownership which has been grandfathered in. It's a contract directly with the government and superior to the current IUP and that alone makes BARU Gold worthwhile, as this license allows us to explore, develop, and now operate. So in that way they Indonesia has made mining and production simpler and faster – one with policies that makes operation faster. And two, it actually improves that process. So let's see, we have right now an area which will allow us to get into production faster in North America. They do have, they do, they are trying to basically go, you know, keep their environmental issues under control as that is, you know, that has had some problems Indonesia, and they're trying to basically, but it's still easier, but I think in North America but you know, as for that, it's we don't pay any of the taxes have been in our loyalty and then of course, or capital gains tax so it's really, it's not an expensive jurisdiction to work at either. SH: The company has an aggressive and ambitious plan for developing the two “underdeveloped and underexplored” projects across the Indonesian archipelago. Can you explain how this business model, in particular, works? TF: Well, basically the business model right now is maybe saying, yay. They were trying to get Sangihe to production as quickly as possible. We hope to have, I mean, we're building a hundred thousand tonne leach pads expanding to larger 200,000 leach pads, but what will be operational at one time you have one being torn down the rebuilt, the other will basically be, you know, the operating in production. So with that, we should be able to start pouring. I mean, even in the beginning, when we start, we'll have maybe 10,000 ounces a year to start out with just as we build up our recovery. But over, and we'll also dig and add a Merrill Crowe plant initially to the mining plan. We'll be using our teams more processing, which local processes. And that's great. It's cheaper to process, but it's not very environmentally friendly. Is we wanting to be on, even though everyone's using it, it's not really, we want to basically be better. Number two, basically, we'll be able to scale faster and it can't scale well within our artesian system and also just recover silver as well. And we have a lot of silver on our property and now silver is starting to take off. It makes sense. Merrill Crowe plants are great at uncovering silver. So once that goes in that we should be able to push up hopefully 4,000 ounces over 24 months. And that's our, that is really our goal. After 24 months of operation would be towards the form of a model. We also have a 35,000-meter drilling program to start hopefully expanding Sangihe gold deposit, hopefully in the summer July target and that space, that 13-month program, 35,000 years we have a 2010 43-101resource to beyond 1 million ounces from current 800k+. We tend to basically drill that and then this anomaly goes another anomaly which is several kilometers. It's not like another 1.4 kilometers, but during that, when they did spots, the one on one, there are no drill holes, but the novelty goes onto this coast. This is a neck of Martabe basically of a peninsula. And it's the next post we think we'll get is equal number of ounces. So we're hoping to bring a lot of those ounces into inferred and into measure. And then that will basically give us, you know we're hoping at least a million ounces to basically work with and bring up our, bring up our production using those ounces. Oh, this is also one more thing. This only 10% of the property, we have basically a hundred thousand acres, 40,000 acres that basically we had, and this is only 10% of it. So we still have 90% of the property to do detailed exploration on. So we expect to add lot more in resource next few years. SH: Terry, the company has heap leach pads – an industrial mining process used to extract precious metals – under construction. Its designed to generate cash flow and fund exploration, and the goal is four-thousand ounces of gold per month. How so? TF: The leach pad system was really used or perfected in Nevada in the seventies. It's been around, I think some English guy came out with a couple of years ago, but really it wasn't until the seventies that a number of companies learned that in Nevada, it was perfect for the type of a foam material they're working with. I was using heap leach pads over in North Sulawesi had several, but now they're all basically I think a total of maybe 50,000 tons. But they ran it quickly quick. They're small brand fast. This is going to be a hundred thousand, but actually to 100,000 tons next to each other. So as one is being operated, others were running a cyanide solution through the to the soil to extract the minerals. The other one will be torn down and rebuilt. So Avery, and so we used to go to, you know, Site A or Site B there's one set of tanks. One said, oh yeah, I want to set a gold tanks, one set of tanning ponds, you know, one gold room. So basically it, so we're running, you know, every day, 24 seven with ever wherever shutting down. So we're always going to have processing happening. So basically with this this will base to get us up to a thousand ounces a month fairly quickly. And so it should give us also 2000 ounces a month while after we've had several months to get our get our recovery to where we want it to be. That's, that's kind of a process that takes time is we work out the kinks and a new system, or at least a new site. So we will then build, we're also putting in a mural Crow plan. And after this Milko plant will base allows us to process faster. Also allow us to be okay, we're using our, we'll be using artesian processing before that. What's it, the premier Crow plant, it allows the process faster. They'll also get more material out than we are on the HR team will lose a little bit during the digital processing also. So once we have that we'll also add other heat please pants for the down as we do more drilling, we'll have other areas will start to basically pull, you know, product out from there too. So you keep adding more paths, another set, she gets up to 4,000 ounces a month and we're hoping basically 24 months. SH: Can you tell our investor audience how far along these projects are in terms of exploration and development, including the approval of permitting and licenses from the Indonesian government? TF: Sure. Well, San Diego, just the permit was finally issued. We actually finished everything last October, November, I think November. And the problem is then everything shut down because of COVID. I mean, they shut down all of the mining offices. So they opened up for one day and February 8th, I think it was to be issued purpose. Everyone's waiting for it. We got our permit issued finally. So, but we didn't stop because we knew that we actually had this finished. So we actually already started sending people to the site. We put an engineering team in January onto the site. We started moving, we started meeting, you know, we're starting to mobilize everything. And so that was what basically set us up. So now we're ready to basically do all the land purchasing. We're just now starting to make offers to the landowners. And that's, it's actually their land users who were basically pursuing it. They used their ranch and use their land for a period of time. And so, so during this time then we'll hopefully start breaking ground or we're hoping they can get a lot of that done in March and start breaking ground in April. And then basically in a few months, it doesn't take long to build the police presence and a few months this summer we'll actually pouring the first gold and it'll take, like I said, it'll take probably two quarters to get our recovery where you want it to be. So a third quarter, we hope to be up to a hundred percent of every 180% recovery, which is about the best we'll do 85% of the number of grams in the ground there. SH: The company has planned drill program of 35-thousand metres this summer to expand the resource with a goal of one-million ounces of gold. This is impressive. How to you plan to achieve it? TF: By getting some drugs and some RC juries there? Now it's basically a little too artsy jewelry is a take me around 13 months to do this. We'll bring on a team that we'll have next portion team there. And actually we may, we may be continuing on, like I said, this is only 10% of the area during the same time we're doing the drilling. We'll have an exploration teams going South to our other 90% of the project and look for hotspots. So we hope to basically keep the drillers, keep going for several years and bring a lot more than a million announces I'll bet. Our first started Fergus target right now is this, this plan has already been developed is about a may analysis in both India, inferred and measured, and there'll be both oxide and cell phones. So basically that is what we helped to have done. We'll start it in January July with double the target. The target is July, as long as it goes on, truck targets, July has started, which would be the August, the following year it'd be finished, but then that 35,000-meter program, then we start the next program someplace else. If we, once we've got that area, you know, targeted. SH: Can you tell our audience about your corporate management team, along with the experience and innovative ideas that they bring to the metals & mining space? TF: The best team in the world! Of course, a lot of these guys who worked for the years, I mean when nice things. So I'd been there a long time. I can find the people that don't work well with me or work well with, you know, work well period. And they're not with me anymore. The ones I have right now kill for we have a great legal team which a lot of people, you know, kind of say, well, you know, he, she doesn't the legal dead to have a really good legal system. It does work. Basically it's not the same as the Western legal system, but at the same time, you know, it does it, you know, we can get things done very efficiently, especially through the mining department. And the top of that, we have a great COO. My COO has been in Indonesia for 35 years, I guess he's opened up about seven mines. He’s basically copper and gold. I think he had worked the last mine he worked for was actually opened up a coking coal. The only coal he worked, I was cooking coal is not a couple of, not a lot of Coca-Cola Indonesia, by the way. And so, but he was, he was SFA and he's worked for most Australian companies. He's a Kiwi but he actually speaks fluent Bahasa. He was actually my mentor for a long time when I was doing coal. And he was the one that taught me the importance of community and, you know, committee relations. And he's a big believer in that. He basically gives solve any problem with the locals and that is really where you have the issues. The locals are really sweethearts. I mean, I love working with Indonesians, but they're not Westerners. And they don't think the same way as I think, you know, so there'll be times where I will want, wonder what the heck they're doing. Why are they saying that? Why are they causing this problem? And care's really keeping figured out really quick. And he's really good at basically making, not just solve the problem, making everyone like us a lot more after the problems. I mean, basically, and that just makes life so much easier. He's great. The mining part too he's open to lots of minds. He's also got one of the best networks because he's worked for a lot of large Western companies there. And especially the, you know, the, the mines, very few people that's worked for Western company has worked with Gary once or twice. So Gary has a great, you know, great back with HR and stuff like that too. Our Geo is great. Also our Geo has guys 25 years international experiences that he's an Ozzie. And basically, he worked for Barrick for eight years in Africa, opening up, you know, four gold mines. He was one, one that drove out San Diego, 2013. It says experience on somebody you want. And the first person I hired when I came back when I took over the competence, I hired him back because he wasn't with the company at the time. So basically, I brought her back and he's, he has been a really great person to work with and it works well with the team. Our team also includes a number of people that worked with before, back in 2013 or 15, all the good ones that I just held onto as tightly as I could. I mean, you went to find someone good energy to hold on to them. Anyplace, I think we have also East, even in Vancouver, we've got a great CFO. I mean, she basically has been with the company since I think she's probably the oldest employee of the company she's been around since 2007. So he knows where the bodies are buried combined to Barry winter to herself. So basically, but yeah, we have just Vancouver and also Indonesia, we have a really good team and works well together. We have lots of communications. We have, we have a bulletin boards, every knows what's happening on the site. So, I have a really good team. I made sure it's really easy. All you need to be. Yeah. When I can do it too much work, I figured there's a hiring opportunity. And then, and then, then they just have to basically be better at that than I am, which is a pretty low bar. So basically, we've got, you know, everyone on the team, whether accounting, whether I'm basically, you know, mining or engineers they are top notch. I mean it basically, and everyone, the thing is they all work well together. It's, it's, it's a good community. It's kind of a family. And so and we treat them that way too. You have, basically, if you work well for us, we're going to treat you well, you know, cause basically, you know I depend on them, you know, so I'm a guest there, you know, we're, we're going to have on this site of saggy, 140 employees during construction, 106 after structure's finished of that, basically 70% of her being from the Island, a lot of people on the Island, right? Clean, no mining, they would go out of their place in the mind. We've got a lot of people calling us from mining sites around there, just, Hey, I'm from [inaudible] can you bring me back? Because basically then they get to go home to their, their kids to wife had dinner, we'd have to put them up in facilities would have to basically feed them all the meals. And it's good for everybody in the community and especially us. And so the more we can put into the community and the better is for us, it's not just, yeah, it's not just the bottom line. It's basically makes life easier, which is good for the bottom line. And so, you know if we have a problem, they helped solve the problem. They don't make the problems. You know, so basically being part community is basically is being a partner. SH: And finally, Terry, if there’s anything else that I’ve overlooked and you’d like to add, please feel free to elaborate. TF: Well, I mean, say saggy is my love. I've been around Sangihe for the very beginning, and you've noticed that's fine. It's most of the time and that, I mean, I want to see cash flow. I love cash. I love money coming in. And I love the goal. They just say, Patrik a patient and you holding gold up. I did a lot. I love that part. But Miwah basically is something keeps coming up all the time and I'll give a couple of updates here. So MI Y is a really good project. It's been around, I mean, it's a company really start working with it back about five years ago. And so, and when I came in, I took a look at it. And so it's been three or four years since they worked on it, so to me, it's a lot of money to start out with and save time as a lot of issues. So I kind of put it aside and started working on it slowly, but we had been working on it. We were meeting all of these stakeholders who worked out kind of how to do this with stakeholders before I left. I forced that I can't orchestrate a turnaround over zoom. So I got to get back, but we will, hopefully we want to get back to be pursuing that so we can get some nice news about what you want to want to get back. But again, I've tried to get back to Malaysia. Indonesia has been closed for the last couple of months as Canada's bed for last six months. So basically, it's, you know, everyone's during COVID it slowed everything down a bit. Luckily, we had a really solid team, especially a core team in Indonesia already started before I left. And so as long as you hired the right core people, they, they, they're kind of like multiplied the same way. And so, I really don't have any worries right now with sending Sangihe. Meanwhile, we have really good legal team work on me while also, but reality I've gotta be there. So when I get there, we'll, you know, you'll start hearing news about Miwah. So now I'm just waiting for them to open the door. For information on Baru Gold Corp., visit
www.barugold.com FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.