The Asia Miner

OCT-DEC 2016

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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34 | ASIA Miner | Volume 13 • Issue 4 | 2016 Malaysia BESRA hopes that its long awaited refinancing and restructuring will be approved by the Ontario Securities Commission in Canada enabling it to refocus efforts on the large Bau Goldfield exploration project in East Malaysia. The company has made application to the commission to partially revoke the Cease Trade Order (CTO) of December 29, 2014 and amended on March 4, 2015 . The refinancing and restructuring can be completed once the ap- plication is approved . Although the company has operating gold projects in Vietnam, the company believes the Bau project will prove to be a company maker Besra holds a letter of financing for C$10-20 million from Molard Financial Management Services SA, a Swiss Fiduciary representing a pool of private clients, of which C$10 million is committed and the remainder is at the option of the investor . The company un- derstands that the first tranche of $10 million will be released upon completion of documentation after the CTO is varied . The new funds will help to meet creditor proposal arrangements and refocus efforts on Bau . The financing will also enable Besra to complete the audits of the last two years' financial statements and accordingly cure the filing deficiencies. This should enable the CTO to be lifted and a relisting to occur, subject to market conditions. Following completion of the restructure and refinancing, Besra in- tends to make preparations for relisting on an appropriate trading platform - either the TSX, ASX or an Asian bourse . This process could take up to six months and the specific condi- tions of the chosen bourse will also be a factor . The Bau Goldfield is a world-class project with the potential to dramatically increase Besra's gold production . Geologically similar to the Carlin Trend in Nevada, the property has multiple deposits and an established gold resource . Bau is a brownfield project, spread over a large geographic area in which Besra is in a consortium with a Malaysian company with material Bumiputra interest that owns rights to mining tenements covering much of the historic goldfield. Besra holds a 85.61% con- trolling interest with an agreement to increase ownership to 93 . 55% . Itinerant Chinese miners first began working the area in the 1800s and modern techniques made it production-worthy again with the rising price of gold in the 1970s . When the value of gold went the other direction in the 1990s, mining operations at Bau Goldfield ended . AN independent confirmation metallurgical test work program has been recommended and designed for the Intec Sulphide Ore Treat- ment process at Monument Mining's Selinsing Gold Project. The program was carried out by Orway Metallurgical Consultants after a review of results from the second Intec pilot campaign . The program was planned to ensure that results achieved from all test work programs at the Selinsing site will be verified by an in- dependent certified metallurgical laboratory under required QA/QC standards and recognised controlled environment . Monument says the results of the second pilot plant campaign have been analysed and are revealing for several reasons . Intec International Projects and DCS Technical have previously demon- strated that gold can be liberated from arsenopyrite material but not well from pyrite . The second pilot run demonstrated in the first batch that the Intec Process completely dissolved pyrite, thus liberating gold from this type of material and making it available for recovery by conventional carbon in leach (CIL) methods . This was despite the fact that the pi- lot plant campaign did not complete satisfactorily and only operated batchwise due to mechanical issues . Generation of the flotation concentrate from Buffalo Reef repre- sentative metallurgical drill program core samples for the second pilot plant campaign showed that on average more than 80% of gold was recovered into the concentrate . The concentrate was fed to the Intec Process pilot plant which, in the first batch using specific parameters, resulted in liberation of 86% of gold from the concen- trate . Subsequent batches were adversely affected due to lack of aeration . Further test work is ongoing to recover gold from the flotation tails which will be addressed in the Orway program and is expected to potentially increase overall gold recovery . The Orway recommended test program is designed, at a bench scale level, to provide an independent confirmation of the recov- eries of gold from sulphide resources that is planned to be mined from Buffalo Reef, using the Intec Process technology . Capital and operating costs will be developed for the Intec Pro- cess, as well as for biological, and acid leaching process as alter- natives for comparison purposes, and will be included in the study for the recovery of gold from Buffalo Reef sulphide mineralisation . ALS Metallurgy in Perth, Western Australia and Burnie, Tasmania will undertake this work . The Burnie laboratory has been set up to accommodate a large range of test-work programs . Besra refinancing Besra refinancing in train in train A section of the Intec Process pilot plant at Monument Mining's Selinsing Gold Project in Malaysia. Intec test program Intec test program progresses progresses Intec test program progresses

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