Baru Gold Reports Further Progress on Production Approval

Baru Gold Corp. (BARU) confirmed that Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has accepted its production application as complete, eliminating the need for further meetings or submissions. The company anticipates receiving final production approval in October 2026, pending remaining administrative steps by the regulator. Management stated that the approval is guaranteed by Indonesian law and highlighted the project's potential to transform the local economy through employment, taxes, and royalties.

The Sangihe Gold Project covers approximately 25,000 hectares, with only 10% explored to date. Initial production targets a 65-hectare area. Baru holds a 70% interest in the Contract of Work (CoW) through PT Tambang Mas Sangihe (TMS), which carries a 30-year term upon production commencement. The environmental permit has already been granted.

The company intends to proceed to production without establishing mineral reserves supported by a NI 43-101 feasibility study, acknowledging increased technological and economic risks.

Baru Gold Corp. (BARU) released an update on September 8, 2026, confirming the regulatory trajectory outlined in its August 13 announcement. The Ecuadorian Ministry of Energy and Non-Renewable Natural Resources (ESDM) confirmed that the company’s application is complete and requires no further submissions. This milestone de-risks the immediate permitting timeline, though the progress is incremental and aligns with prior management guidance.

The decision to proceed to production without a NI 43-101 feasibility study introduces significant technological and economic uncertainty, as the project's viability has not been independently validated against current gold prices and operating costs. This development does not address the critical liquidity constraints that threaten the company's ability to fund plant construction and initial operations. Consequently, the market impact is expected to be limited to short-term sentiment, as the underlying capital structure and going concern risks remain unchanged.

Baru Gold Corp. is a Canadian junior mining company focused on the Sangihe Gold Project in North Sulawesi, Indonesia. The project is held through a 70% interest in PT Tambang Mas Sangihe (TMS), with the remaining 30% held by Indonesian corporate partners. The concession covers approximately 25,000 hectares of gold-bearing area, with only 10% explored to date.

Initial production targets a 65-hectare zone containing NI 43-101 inferred and indicated resources of over 200,000 ounces of gold and over 3,000,000 ounces of silver. The company has awarded a contract for a modular, automated electrowinning elution column plant, designed for an initial capacity of 1,500 ounces of gold per month, scalable to 3,000 ounces per month. Management emphasizes a strategy of proceeding to production without a feasibility study to conserve capital and accelerate timelines, while leveraging local manufacturing and experienced Indonesian management.