2. Second Site West of Manado.
A second site west of Manado with 2 contiguous areas totalling approximately 17 HA of high grade volcanic hosted ore has also begun production Average ore grade of this property is in excess of 1.5g/tonne. In conjunction with its Taiwanese operating partner at this facility and at a cost of over $500k, the Company has recently completed construction of state of the art heap leaching facilities on this site, comprising a 25,000 tonne leach pad, together with associated infrastructure and has recently commenced processing operations at this site.
Brookmount currently owns and operates two gold production facilities in Northern Indonesia and is also in the process of reviewing acquisitions of additional operations in Indonesia and the Philippines. The Company’s existing operations comprise of two key sites:
The first facility is a 50 hectare reserve and onsite processing facility located in a high grade volcanic hosted sediment body in the district of Talawaan, adjacent to the airport at Manado, regional capital. This facility, which has been in operation for 4 years, comprises ball mills (ore crushers), 5 high capacity floatation tanks, tailing ponds and off site smelting operations. Ore is excavated from strategic locations on the property based on existing ore distribution data as well as onsite drill tests. Geologist estimates put remaining reserves at over 2 tonnes (70,000oz) or approx. $180mm at current gold prices.
The facility also processes ore from 3rd party mining operations on a contract basis contributing up to 35% of monthly revenue. The operation has been cash flow positive since the beginning of 2018 and generated revenue of over $3mm in the first 3 quarters of 2019, with net earnings in excess of $1.2mm.”