29-April-2022

HIGHLIGHTS

  • Substantially thicker and higher grade mineral intercepts at Jugan Prospect confirmed following assay results for the first two batches of Besra’s 2021-2022 diamond drilling program in the Bau Gold Field corridor.
  • Significant intercepts included:
    • JUDDH-83: 26 m @ 23 g/t Au from surface (0m) to 26m;
    • JUDDH-84: 58 m @ 67 g/t Au from surface (0m) to 58m; and
    • JUDDH-85: 19 m @ 21 g/t Au from 9m to 28m.
    • JUDDH-86: 20 m @ 25 g/t Au from surface (0m) to 20m;
    • JUDDH-87: 47 m @ 21 g/t Au from surface (0m) to 47m; and

                                   11 m @1.56 g/t Au from 52m to 63m;

    • JUDDH-88: 26 m @ 79 g/t Au from surface (0m) to 26m;

                                   46 m @ 1.80 g/t Au from 29m to 75m; and

                                   10 m @ 4.26 g/t Au from 79m to 89m.

  • Further assay results are pending, following shipment of four additional batches of Jugan Prospect diamond drill core samples to SGS Laboratories during the Quarter.  
  • Approval received from Natural Resources and Environmental Board, Sarawak, for Terms of Reference of Jugan Prospect Environmental Impact Assessment (EIA).
  • Agreement with Zhengzhou Zhonjia Heavy Industry Co. (HZJ) of China for offsite flotation test work and design plans of  a ~200 TPD pilot plant for the Jugan Prospect.

The Board of Besra Gold Inc (ASX: BEZ) (“Besra” or “Company”) is pleased to provide this Activity Report for the calendar quarter ending 31 March 2022.

Besra’s CEO, Dr Ray Shaw commented:

 “Our Bau team continued their outstanding performance during the March Quarter, in spite of covid-19 restrictions remaining in place. Assay results received for the first two batches of core samples from the Bau Prospect support higher mineralisation tenor and a larger near surface mineralisation footprint implying low strip ratios favourable to future potential open-pit mining. We extended the initial Jugan drilling program and are now seriously considering Jugan as a future potential stand-alone development opportunity on the basis of the outstanding drill results received to date.

BACKGROUND

Overview of Bau Gold Project

The Bau Gold Project is located 30km – 40km from Kuching, the capital city of the State of Sarawak, Malaysia, on the island of Borneo (Figure 1). Bau township is located approximately 6km to the SW of Jugan (Figure 2).

Besra controls, directly and indirectly, a 97.8% interest (92.8% on an equity adjusted basis) of the Bau Gold Project. This project lies at the western end of an arcuate metalliferous belt extending through the island of Borneo. In Kalimantan, the Indonesian jurisdiction portion of Borneo Island, this belt is associated with significant gold mining areas including Kelian (7 Moz) and Mt Muro (3 Moz).

The Bau Gold Project is defined by a gold mineralisation system covering approximately a 8km x 15km corridor, centred on the township of Bau. Within this corridor the Company has identified total Resources of 72.6Mt @ 1.4 g/t for 3.3Moz of gold, involving a number of discrete deposits (Table 1) together with an Exploration Target ranging between 4.9 Moz and 9.3 Moz[1], [2] (on a 100% basis). The Bau Gold Project is well serviced by first class infrastructure including access to deep water ports, international airport, grid power, communications, and a multitude of service providers.

[1] Refer Prospectus dated 8 July 2021, Section 3.11 and Attachment G.

[2] Jugan Exploration Target ranges between 2.0 – 3.2 million Oz based on a range of grades of 1.82 – 2.50 Au g/t. The potential quantity and grade of the Exploration Targets is conceptual in nature; there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration work will result in the estimation of a Mineral Resource

Figure 1:  Location of Bau Gold Project. Inset shows tenement interests within Sarawak

Table 1 – JORC 2012 Compliant Resources for the Bau Gold Field Project.

Figure 2:  Location of Bau Gold Project.

Jugan Project

The Jugan Project is located approximately 6 km NE of Bau township (Figure 2). Contained within the Pedawan Formation, the mineralisation is shallowest across a local topographic high – Jugan Hill.

Previous drilling has formed the basis of the current JORC Resource at Jugan which comprises:

  • Measured + Indicated Resource of 870,000 Oz1 at 1.5 g/t Au;
  • Inferred Resource of 90,000 Oz1 at 1.6 g/t Au; and
  • Additional Exploration Target[3], [4] of 2.0 – 3.2 Moz at 1.8 – 2.5 g/t Au.

Previous drilling also revealed the bulk of mineralisation to be bound by  two thrust faults; the hanging and footwall thrusts, vertically separated by between 40m – 100m. To the northeast this thrust  bound  sheet rolls over into a steeply plunging limb, with mineralisation remaining open at depth, beyond the current limit of drilling – circa 300m, sub-surface.

Bau 2021-2022 Drilling Program

The Bau 2021-2022 drilling program commenced in early November 2021. It will comprise some 3,000m – 4,000m of diamond hole drilling on key prospects within the Bau Gold Field corridor, including Jugan, Bekajang and Pejiru. At Jugan the drilling program has provided infill and step-out geological control from the pre-existing drilling. This includes investigating potential depth and strike extensions of mineralisation in order to both confirm, and challenge, the wire-frame model used to develop Jugan’s Resource inventory.

Table 2: Jugan Project diamond drill hole specifications

During the March 2022 Quarter, approximately 1,083m of fully cored drilling was completed, for a total to-date of 1,780m. In view of the quality of the assay results and visual inspection of the drilled core yet to be assayed, it was decided to extend the original program at Jugan to include an additional 4 drill holes. The total 17-hole program is shown in Figure 3 and drill hole details are tabulated in Table 2.

[3] Jugan Exploration Target ranges between 4.9 Moz – 9.3 Moz based on a range of grades of 1.82 – 2.50 Au g/t.

[4] The potential quantity and grade of the Exploration Targets is conceptual in nature; there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration work will result in the estimation of a Mineral Resource.

Assaying

During the March 2022 Quarter assay results for the first two batches of core samples (for drill holes JUDDH-82 to 88, inclusive) were received and released to the market. A further 3,900kg of core, comprising 1308 samples (for drill holes JUDDH-89 to -96) were also shipped to SGS laboratories at Pt Klang for sampling during the Quarter.  Assay results for these samples are pending.

Figure 3: Location of the 2021-2022 JUDDH-82 to -98 DDH hole program at Jugan Prospect

Significant intercepts for the first two batches of assay results are:

    • JUDDH-83: 26 m @ 23 g/t Au from surface (0m) to 26m;
    • JUDDH-84: 58 m @ 67 g/t Au from surface (0m) to 58m; and
    • JUDDH-85: 19 m @ 21 g/t Au from 9m to 28m.
    • JUDDH-86: 20 m @ 25 g/t Au from surface (0m) to 20m;
    • JUDDH-87: 47 m @ 21 g/t Au from surface (0m) to 47m; and

                                   11 m @1.56 g/t Au from 52m to 63m;

    • JUDDH-88: 26 m @ 79 g/t Au from surface (0m) to 26m;

                                   46 m @ 1.80 g/t Au from 29m to 75m; and

                                   10 m @ 4.26 g/t Au from 79m to 89m.

Overall, the drilling results have encountered substantially thicker and more consistent mineralisation than otherwise indicated by the historical drilling results. These intercepts also have higher grades compared to the average global grades at Jugan. The results indicate a larger near surface mineralisation footprint across Jugan Hill, and its southwestern flank, than had previously been identified. In turn, this implies   lower strip ratios, more favourable to future potential open-pit mining, in this vicinity than had been anticipated.

For example, JUDDH-84 intercepted a continuous interval of mineralisation from surface to 58m @ 2.67 g/t, some 15m – 20m thicker than that encountered in surrounding historical drill holes (Figure 4).

Figure 4: Section A showing the position of drill hole JUDDH-84

Likewise, the interception of 82m of almost continuous mineralisation in JUDDH-88 from surface (over an interval of 89m) provided confirmation of lateral continuity from outcrop at Jugan Hill down-dip in the direction of the northeast plunging limb. It provides increased confidence that the bulk of the mineralisation between the lower footwall thrust and overlying hanging wall thrust is laterally  continuous  in the dip direction (Figure 6 ).

Figure 5: Section D showing location of JUDDH-86 &-88

Figure 6: Section B showing location of JUDDH-87

Figure 7: Core recovered from JUDDH-88 for portion of the interval 82m-88m @5.98 g/t Au, proximal to the interpreted footwall thrust.

Importantly, the results of JUDDH-87, located approximately 150m to the W-NW of JUDDH-88, which exhibit similar lateral continuity in the dip direction, resolve significant strike-oriented continuity of this mineralisation dip-oriented geometry.

Visual sulphide mineralisation has been observed in core recovered from all holes. The sulphides at Jugan are dominated by arsenopyrite with subordinate pyrite, either as highly disseminated fine grain occurrences (mostly within shales) or associated within veining, stockworks, sand laminations and occasional breccia.  Because gold mineralisation at Jugan is dominantly refractory, gold mineralisation is normally correlated with the presence of visible sulphides, whereas the occurrence of visible “free” gold in core is very rare. Figure 7 shows typical ore associated alteration for portion of JUDDH-88 between 82m—88m was assayed at an average  grade of 5.98 g/t Au.

Flotation Scoping Study

ZJH Minerals Company Ltd of Zingzen China has been mandated to undertake test work, including crushing, grinding, conditioning, reagent responses, flotation, dewatering and drying for selected representative bulk samples from the Jugan Prospect.  These results will be used to prepare a test report and flow chart for designing a 200 TPD flotation plan which is currently under consideration.

Jugan Environmental Impact Assessment

During the Quarter, Chemsain Konsultant Sdn Bhd completed, on Besra’s behalf, the initial phase of its investigations including preparation of a Report on the Terms of Reference for a EIA of the Jugan Prospect These terms of reference have now been accepted by the Sarawak National Resources and Environment Board. This EIA involves a process of evaluating the likely environmental impacts associated with a future proposed development proposal of the Jugan Project including mining and processing of which further testing involving bulk sampling utilising an on-site pilot plant will be crucial. The EIA will be used for decision-making purposes by the Natural Resources and Environment Board of Sarawak and other relevant agencies.

ACTIVITY OUTLOOK FOR THE NEXT QUARTER

Jugan Prospect

The diamond core drilling program will be completed at Jugan and the balance of pending assay results will be received. These will be integrated into the existing Resource model together with new geological control.  The EIA will continue during the next Quarter.

Bekajang Prospect

Drilling will next be undertaken within the Bekajang Prospect following completion of drilling at Jugan. Bekajang is located 5km south of Jugan, and approximately 1km from Bau township. Drilling at Bekajang will involve an initial program of 16 holes to identify extension of the previously identified Bekajang Mineral Resource which has already been delineated:

  • An Indicated Resource of 120,400 oz @ 2.02 g/t Au1,
  • An Inferred Resource of 524,100 oz @ 1.53 g/t Au1; and
  • An additional Exploration Target of 0.50 Moz – 0.80 Moz[5],[6]  at 2.0 -3.0 g/t Au.

Previous drilling intercepts to be followed up included:

  • BYDDH-04 – 47m @ 4.53 g/t; including 14m @ 7.54 g/t Au & 3m @21.5 g/t Au;
  • BYDDH-02 – 40m @4.79 g/t Au including 18m @7.3 g/t Au & 3m @15.2 g/t Au;
  • BYDDH-06 – 12m @ 3.35 g/t Au, including 1m @ 24.6 g/t Au; and
  • BYDDH-09 – 9m @ 24.08 g/t Au.

 

[5]The Bekajang Exploration Target ranges between 8 – 9 million tonnes based on a range of grades of 2 –  3 g/t Au.

[6] The potential quantity and grade of the Exploration Targets is conceptual in nature; there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration work will result in the estimation of a Mineral Resource.

Corporate

On 31 March 2022, the Company held cash reserves of $2.854 million and no debt.

The Securities on issue on 31 March 2022 were:

Additional ASX Listing Rule Disclosures

ASX Listing Rule 5.3.1 – payments for direct exploration expenditure during the quarter totalled $1.053 million.

Details of the exploration activities undertaken during the March 2022 quarter are as noted in this Activities Report.

ASX Listing Rule 5.3.2 – the Company confirms there were no mining production and development activities undertaken during the March 2022 quarter.

ASX Listing Rule 5.3.3 – there were no changes to Besra’s interests in the Bau Gold Project at 31 March 2022.

ASX Listing Rule 5.3.4 – Besra provides the following information with respect to its actual expenditure as of 31 March 2022 versus its “use of funds” statement as set out in its Prospectus and its actual expenditure since ASX admission[7].

[7] Forecast expenditure classifications used in the Prospectus may differ from the classifications used in the Appendix 5B.

Besra believes it has access to the necessary resources to remain on schedule to meet the activities and commitments outlined in the Prospectus and included in the use of funds table in section 2.6 of the Prospectus.

ASX Listing Rule 5.3.5 – payments to related parties during the Quarter as outlined in sections 6.1 and 6.2 of the Appendix 5B consisted of the following:

  • Non-executive director fees included in staff costs for services provided during the quarter totalled $59,000 are included in 1(d) of Appendix 5B.
  • Executive director fees for services provided during the quarter and capitalised to exploration and evaluation costs totalled $41,000 are included in 2.1(d) of Appendix 5B.
  • As outlined in the Company’s Prospectus, certain directors had accrued director fees for the financial years up to and including 30 June 2021 and through to 30 September 2021. Amounts totalling $206,000 were paid during the quarter in part settlement of amounts due and are included in outlays at 3.9 of Appendix 5B. In addition, as outlined in section 9.7 of the Prospectus, amounts due on working capital loans to certain directors were repaid during the quarter and included at 3.9 of Appendix 5B.

This ASX release was authorised by the Audit Committee of Besra Gold.

For further information:

Australiasia North America
Ray Shaw
Chief Executive Officer
Email: ray.shaw@besra.com		 James Hamilton
Investor Relations Services
Mobile: +1 416 471 4494
Email:   jim@besra.com 

Competent Person’s Statement

The information in this Announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. Kevin J. Wright, a Competent Person who is a Fellow of the Institute of Materials, Minerals and Mining (FIMMM), a Chartered Engineer (C.Eng), and a Chartered Environmentalist (C.Env). Mr. Wright is a consultant to Besra. Mr. Wright has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code (2012 Edition) of the Australasian Code for Reporting of Exploration Results, and a Qualified Person as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

Kevin J. Wright consents to the inclusion in this Announcement of the matters based on his information in the form and context that it appears.

Disclaimer

This Announcement contains certain forward-looking statements and forecasts concerning future activities, including potential delineation of resources. Such statements are not a guarantee of future performance and involve unknown risks and uncertainties, as well as other factors which are beyond the control of Besra Gold Inc. Actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending upon a variety of factors. Nothing in this Announcement should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities.

Unless otherwise indicated, all mineral resource estimates and Exploration Targets included or incorporated by reference in this Announcement have been, and will be, prepared in accordance with the JORC classification system of the Australasian Institute of Mining and Metallurgy and Australian Institute of Geoscientists.

Disclosure

The Pejiru Sector lies within MC/KD/01/1994 which has been pending renewal for a number of years. As outlined in the Malaysian Solicitor’s Report on Title (Attachment G) of the Replacement Prospectus of Besra dated 8 July 2021, until a decision is made, the intention of section 48(9) of the Minerals Ordinance is to enable mining activities to continue on a pre-existing licence, in those prior lands of MC/KD/01/1994, until a determination of the renewal is made.

The information in this announcement is based on the following publicly available announcements previously lodged on the SEDAR platform which are available on https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00001815 or on Besra’s website www.besra.com.

  • Besra Gold Inc Bau Gold Project Sarawak Malaysia Exploration Target Inventory. Lodged SEDAR Platform Feb 26, 2021;
  • Besra Bau Project – Mineral Resource and Ore Reserve Updated to JORC 2012 Compliance. Lodged SEDAR Platform Nov 22, 2018;

 

Besra (Accipiter virgatus), also called the besra sparrowhawk, occurs throughout southern and eastern Asia. It is a medium sized raptor with short broad wings and a long tail making it very adept at manoeuvring within its environment and an efficient predator.