High-grade copper-gold porphyry discovery in Indonesia

High-grade copper-gold porphyry
discovery in Indonesia
SEPTEMBER 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

Newly Discovered Porphyry Province Located in Aceh
Province on the Northern Tip of Sumatra Island, Indonesia

One of the Highest Grade Porphyry Discoveries of the Last
Two Decades (Multiple 200+ meter intercepts @ 1% Cu Eq.)

Fully Permitted, Actively Drilling Using two 1,750-meter Rigs

Also Own an Epithermal Gold Deposit with ~470,000 oz of
43-101 Inferred Resource (~ 2g/t Au Eq.)

Grossly Undervalued Versus Peers with a Market Cap of Only
C$7 million
3
Corporate Information
Barisan Gold Corp.
TSX-V: BG
Share Price
C$ 0.165
52-Week Range
C$ 0.06 – C$ 0.44
Basic Shares
Outstanding
40.7 million
Diluted Shares
Outstanding
46.1 million
Market Cap
C$ 7 million
Cash-on-Hand
~ C$ 1 million
4
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
Gosowong (Newcrest):
one of the world’s
highest-grade gold mines
Batu Hijau (Newmont):
significant gold-copper
porphyry
Grasberg (Freeport):
world’s largest copper
and gold mine
Note: the mineralization on adjacent
properties is not necessarily indicative of the
mineralization on the Company’s property
5
Aceh Province
 89,523 hectares of
exploration ground in
Aceh Province
 Excellent logistics:
 Provincial highway
crosses the deposits
 Water readily available
 No significant
population center
anywhere in the area
6
Exploration Licenses
 Barisan owns a direct
80% equity interest in
2 contiguous
Exploration Licenses
 2 Indonesian parties
own the remaining
interest and are free
carried to feasibility
7
Barisan’s Porphyry Targets
 Barisan Gold majority owns an entire porphyry province, initially
explored by Rio Tinto in the 1990s, that contains at least 8
outcropping porphyry prospects
8
Upper Tengkereng Prospect
 Initially discovered by Rio Tinto in the 1990s (8 shallow mostly vertical holes)
 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
 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)
 Active drilling ongoing
(Barisan Gold currently
drilling UTD-012)
9
Upper Tengkereng Prospect
 Summary of the first eight (8) Upper Tengkereng holes:
 All holes mineralized from surface with average intercept length of 850 meters
 Average Grade: ~0.6% Copper Equivalent (above average of new porphyry discoveries)
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
10
Upper Tengkereng Prospect
 Drilling so far has validated two (3) distinct high grade zones and identified two (2)
additional high grade prospective areas at Upper Tengkereng
High Grade
Zones
A
3
High Grade
Prospects
C
D
1
2
B
11
Upper Tengkereng Prospect
 Southwest-Northeast Cross Section covers 500 meters across and shows the (3)
distinct high-grade zones identified so far at Upper Tengkereng
Advanced Argillic
High Grade
Chalcocite-Chalcopyrite
Limestone
Covellite
Rich Silica
Pyrophyllite
Alunite
1.1%
0.9%
Gold Rich Strong Argillic
Chalcocite-Chalcopyrite
Barren
Low Grade
Intra-Mineral Porphyry
Grades are Cu Eq. calculated at current market prices and include Mo credits
Advanced Argillic
Altered Hydro-Breccia
12
Upper Tengkereng Prospect
Advanced Argillic Altered
Hydro-Breccia
0.4-0.6%
(0.7-1.0g/t)
Covellite Rich
Silica-Pyrophyllite-Alunite
1-Sep-14
1.0-1.2%
(1.7-2.0g/t)
0.7-1.0%
(1.2-1.7g/t)
Limestone
Grades are Cu Eq. & Au Eq. calculated at current market prices and include Mo credits
 Southeast-Northwest Cross Section covers 500 meters across and focuses on the near
surface high-grade zones identified at Upper Tengkereng
High Grade
Chalcocite-Chalcopyrite
13
Upper Tengkereng Prospect
 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
PUT-016
(50o dip)
PUT-015
(50o dip)
PUT-013/014
(50o/80o dip)
UTD-012
(80o dip)
14
Upper Tengkereng Prospect
 Near-Surface High Grade Zone Consists of 3 Layers
 From 0 to 100m, Advanced Argillic Altered Hydro-Breccia (~ 0.4-0.6% Cu Eq.)
 From 100 to 400m, High-Grade Covellite Rich Silica-Pyrophyllite-Alunite (~ 1.0-1.2% Cu Eq.)
 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
ASSAYS PENDING
012
IN PROGRESS
Cu Eq. & Au Eq. calculated at current market prices and include molybdenum credits
15
Upper Tengkereng Prospect
 Soil geochemistry of the Upper Tengkereng prospect has outlined three (3) distinct high
grade copper zones and two (2) distinct high grade gold zones
Copper Soil Geochemistry
Gold Soil Geochemistry
16
Abong Epithermal Gold Deposit
 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
 A-130 hole, 8,660-meter Phase
I drilling campaign was
conducted in 2007-08
17
Abong Epithermal Gold Deposit
 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
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
18
Abong Epithermal Gold Deposit
 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
 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
19
Abong Epithermal Gold Deposit
 A cross section clearly shows the strata bound nature of the gold-bearing siliceous
replacement layer between the mudstone and the limestone
20
Abong Epithermal Gold Deposit
 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
 Higher grade intercepts include 14 meters @ 6.31 g/t Au
21
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
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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
$7 million
$8 million
$29 million
$21 million
Cash
$1 million
$0.8 million
$9 million
$3 million
23
Key Upcoming Dates
Private Placement Closing
Early Sep ‘14
Assays Released for Hole UTD-009
Mid Sep ‘14
Completion of Hole UTD-012 (@ ~700m)
Mid Sep ‘14
Beginning of Holes UTD-013/014
Mid Sep ‘14
Receipt of Technical Consideration for Abong
Q3 2014
Receipt of Abong Forestry Borrow-Use Permit
Q4 2014
24
TSX-V: BG
www.BarisanGold.com
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