12 May  2023

Bau Gold Project (Bau) – mineral concentrate

The Directors of Besra Gold Inc (Besra or the Company) refer to the Company’s ASX announcement dated 9 May 2023 (entitled “Further steps to move 3Moz Bau Gold Project closer to production”) and more specifically to the statement included therein, which advised that the legally binding Gold Purchase Agreement (GPA) may be terminated by Quantum Metal Recovery Inc (Quantum) “…if Bau doesn’t produce gold in mineral concentrate by no later than 31 December 2023.   

Besra advises that clause 8.1(a)(ii) of the GPA requires that “the Initial Project (Bau) first produces gold in mineral concentrate by no later than 31 December 2023.”

To provide additional clarity around the clause, Besra confirms that the clause does not refer to, or require, the pouring of gold. What the clause does require is that gold in mineral concentrate is produced from Bau on or before 31 December 2023.

To achieve this requirement, Besra intends to have a pilot plant commissioned (prior to the end of the year) that produces mineral concentrate (which is not the same as pouring dore). In essence, there is a requirement that Besra demonstrates proof of concept – being able, by the end of the year, to physically produce a concentrate from Bau that contains gold. 

The pilot plant is expected to have a capacity of up to 200 tpd, which is not a commercial scale operation and is not intended to produce gold per se, merely concentrate.

Based on studies undertaken to date by ZJH Minerals Company Ltd of China (as reported in the Company’s Quarterly Activities Reports since 2 May 2022), the Board of Besra considers the requirement to produce the concentrate is highly achievable. 

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

Michael Higginson

Company Secretary