Indonesia-focused Baru Gold (CVE:BARU) said today that the country’s Ministry of Energy and Mineral Resources has upgraded its Sangihe Gold Project Contract of Work to Operation Production status after a three month delay due to the Covid-19 pandemic in Indonesia.
Baru jumped nearly 14% today to 17 cents a share.
CEO Terry Filbert said the company has waited a long time for clearance.
“Since 2017, I have been focused on bringing the Sangihe gold project into profitable cash-flow production. After four long years we are now clear of obstacles to accomplish this goal,” said Filbert.
While it waited for the issuance of the licence upgrade, the company fast tracked the heap leach construction target. The company also mobilized its mining team to the site, started hiring local residents for the construction and production positions, identified land acquisition targets required for the project, and undertook steps to mitigate any environmental impact we may have on the island.
Filbert esimates that the construction phase at the mine will require 140 workers.
The existing CoW license for the Sangihe gold project is a 30-year license and under the recently issued 2020 mining regulations can be extended for 20 years. This CoW production status upgrade also gives the Company rights for refinery and export licences.
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