Besra Gold Announces: Jugan Project: Metallurgical Test Work - Incorporating New Mining Strategy

Rhea-AI Summary

Besra Gold Inc. (ASX: BEZ) has announced plans to commence a deep diamond drilling program for metallurgical testing in early 2025. Under new Managing Director Matthew Antill, the company has revised its Jugan Project strategy to include a smaller open pit followed by potential underground development up to 400 meters deep. This new approach offers advantages over the 2013 Feasibility Study, including reduced surface disturbance, lower tailings volume, and decreased environmental impact. The project aims to utilize hydropower from the nearby Sarawak grid and expects to confirm large mineralization zones ranging from 10-80 meters wide with 200-400 meter strike lengths, suitable for low-cost bulk underground mining.

Positive

• New mining strategy reduces environmental footprint and operational costs
• Project location near hydropower grid (250m) enables potential cost-effective green energy usage
• Large mineralization zones identified (10-80m wide, 200-400m strike lengths)
• Low-cost jurisdiction location advantageous for mining operations

Negative

• Mining license renewal (ML 05/2012/1D) still pending
• Pilot plant deployment delayed pending license renewal
• Project requires significant capital investment for underground development

Melbourne, Victoria, Australia--(Newsfile Corp. - November 25, 2024) - Besra Gold Inc. (ASX: BEZ) (Besra or the Company) is pleased to announce the planned commencement of a drilling programme consisting of deep diamond drillholes in readiness for metallurgical test work planned to commence in early 2025.

Under the guidance of North Borneo Gold's (NBG) newly appointed Managing Director, Mr Matthew Antill, the Company has undertaken a comprehensive review of the Jugan Project, pending the renewal of ML 05/2012/1D. The review included preliminary conceptual mine designs and internal desktop modelling which has prompted a new mining strategy that incorporates a smaller open pit at Jugan, followed by potentially up to a 400 metre deep underground development utilising modern mechanised mining methods.

The advantages of this strategy (when compared with the 2013 Feasibility Study, which included a very large open pit and required large areas for waste dumping and tailings storage), include;

• Smaller area of surface disturbance required for open pit mine area, waste dumping area and tailings storage facility area;
• Much lower volume of tailings storage required with tailings utilised in cemented stope fill underground.
• Lower impact on local community landowners.
• Reduced environmental impact; and
• Less land acquisition is required to execute the mining activities.

NBG's Managing Director, Mr Matthew Antill, said:

"It has been a pleasure joining the team on site in Sarawak, who have done an impressive job increasing the drilling density at Jugan in readiness for a resource update that is planned for early next year. The team are also eagerly awaiting the commencement of construction of the Jugan Pilot Plant, pending the anticipated renewal of ML 05/2012/1D. The plant is literally sitting in sea containers only a few kilometres from site awaiting the green light.

"The proposed development at Jugan will be a showcase for the Company by demonstrating the achievement of our gold mining ambitions while supporting the local community, creating jobs and utilizing best and sustainable mining and exploration practices in accordance with the Sarawak Government's revenue re-engineering initiatives.

"With an updated resource intended to be tailored for underground mining planned for release early next year, we expect to confirm from the 2013 Feasibility Study large zones of mineralisation modelled from 10 metres to 80 metres wide, with strike lengths ranging from 200 metres to over 400 metres in length - lending itself to a very low cost bulk underground mining method. At current gold prices, combined with Jugan being in a low mining cost jurisdiction, we expect to see a relatively low cut-off grade resulting in higher tonnage and ounce profiles.

"The Company is further investigating the possibility of utilising 100% hydropower supplied from the Sarawak grid, which lies just 250 metres from the Project site at its closest point."

20 sea containers located at Bau, storing the Jugan Pilot Plant

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3448/231273_3badad9cb4aaf91e_005full.jpg

This announcement was authorised for release by the board of Besra Gold Inc.

Michael Higginson
Company Secretary

N. American Contact:
James Hamilton
Investor Relations Services
M +1 416 471 4494
E jim@besra.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/231273

FAQ

What is Besra Gold's new mining strategy for the Jugan Project?

Besra Gold's new strategy involves a smaller open pit followed by underground development up to 400 meters deep, using modern mechanized mining methods, replacing the previous large open pit plan from the 2013 Feasibility Study.

When will Besra Gold (BESAF) begin its metallurgical test work program?

Besra Gold plans to commence metallurgical test work in early 2025, following a deep diamond drilling program.

What are the key advantages of Besra Gold's new Jugan Project mining strategy?

The key advantages include smaller surface disturbance, lower tailings volume, reduced environmental impact, less land acquisition requirements, and lower impact on local community landowners.

Where is the Jugan Pilot Plant currently located?

The Jugan Pilot Plant is currently stored in 20 sea containers located at Bau, a few kilometers from the project site, awaiting mining license renewal.