Besra Gold Unveils Hybrid Mine Plan Backed by A$23.2m Cash for Jugan BFS
Besra Gold Inc. reports a robust cash position of A$23.2 million, supporting the expanded Jugan Bankable Feasibility Study that now includes a hybrid open-pit and underground mining approach. The renewal of the Jugan mining lease remains pending but progress continues with key metallurgical and geotechnical work underway.
- A$23.2 million cash balance to fund Jugan BFS and pilot plant commissioning
- Hybrid open-pit and underground mine design introduced to reduce surface footprint
- Mining lease renewal for Jugan Project pending with positive government feedback
- Metallurgical and geotechnical drilling programs progressing, resource update due March 2025
- Pilot plant construction preparations and reagent trials advancing feasibility study
Financial Position and Project Funding
Besra Gold Inc. (ASX: BEZ) closed the December 2024 quarter with a healthy cash balance of A$23.2 million, providing ample funding for the completion of the Jugan Bankable Feasibility Study (BFS). This financial strength underpins critical activities including the commissioning of the Jugan Pilot Plant and associated processing trials, positioning the company well to advance its Bau goldfield corridor assets.
Mining Lease Renewal Status
The renewal of the Jugan Project’s key mining lease (ML 05/2012/1D) remains pending following an application lodged in May 2024. Despite positive feedback from Malaysian government officials, the State Minerals & Mining Authority’s meeting to consider the renewal was postponed, with a decision now expected by late February or early March 2025. Importantly, under the Minerals Ordinance, mining operations may continue during the renewal process, mitigating immediate operational risk.
Strategic Shift to Hybrid Mining Design
One of the most notable developments is the expansion of the BFS scope to include a conceptual hybrid mine design combining open-pit and underground mining methods. This marks a significant strategic pivot from the 2013 feasibility study, which focused solely on open-pit operations. The hybrid approach aims to substantially reduce the surface footprint, addressing environmental and land-use challenges while improving access to deeper mineralisation.
The underground component offers several advantages: reduced strip ratios and waste rock extraction, potential for greener mining methods such as mechanised shearing, and the ability to backfill stopes with tailings, enhancing mine stability and environmental outcomes. This design also promises to extend the mine life by enabling recovery of pillars post-mining.
Resource and Technical Studies Underway
To support the revised mine design, Besra has commissioned Widenbar and Associates to update the Jugan Resource estimates, incorporating recent infill drilling and the underground mining component. This update, expected in the March quarter, is anticipated to refine resource classification and potentially increase mineable resources without significant changes to total contained metal.
Metallurgical test work is progressing with deep drill holes providing representative samples for bio-oxidation, pressure oxidation, and carbon-in-leach trials. Early results from bio-oxidation tests are promising, showing gold extraction rates up to 98%, indicating potential for environmentally friendly processing methods. Concurrently, geotechnical drilling is gathering critical data on rock mechanics to inform pit wall and underground design parameters.
Pilot Plant and Operational Readiness
Preparations for the Jugan Pilot Plant are advancing with tenders for earthworks distributed and process plant tenders scheduled for release in the March quarter. Besra is also investing in workforce training and operational readiness, partnering with specialist firms to upskill personnel and ensure smooth commissioning and operation from day one. Reagent trials and beneficiation strategies are being refined to optimize gold recovery and reduce downstream penalties.
Environmental and ESG Considerations
The hybrid mining approach aligns with Besra’s sustainability priorities by reducing surface disturbance and enabling underground tailings disposal, which mitigates risks associated with traditional tailings dams. Additional environmental studies are planned, including groundwater impact assessments and exploration of green power options through Sarawak Energy’s hydroelectric resources.
Outlook and Next Steps
Looking ahead, the March 2025 quarter will be pivotal as Besra finalizes the BFS study manager appointment, advances resource updates, and awaits mining lease renewal. The company’s strategic shift to a hybrid mining model could redefine the Jugan Project’s development trajectory, balancing economic returns with environmental stewardship. With strong cash reserves and a clear development roadmap, Besra is well positioned to unlock value from its Bau goldfield assets.
Bottom Line?
Besra’s evolving hybrid mining strategy and robust funding set the stage for a transformative phase at Jugan, with lease renewal and BFS milestones to watch closely.
Questions in the middle?
- Will the mining lease renewal be granted on schedule, and how might delays impact project timelines?
- How will the updated resource estimates affect the economic viability of the hybrid mine design?
- What are the potential cost and operational implications of shifting from open-pit to hybrid mining methods?
