We are filled with anticipation and optimism as we look ahead to the promising future of our Alason property in Indonesia. Situated approximately three hours southwest of Manado, Indonesia, Alason stands as a first rate heap leaching area with high ore grades and low cost access. Our CEO, Nils Olquist, is featured in a photo holding a 12kg (26 lbs.) disc from the initial phase of processing (right), showcasing an impressive 80% purity. Additional visuals capture various stages of processing and refining, highlighting the meticulous and effective techniques employed in our gold extraction and processing endeavours.
The original 25,000-tonne leach pad, along with associated infrastructure, was completed in November 2019 with the first successful processing run completed in April 2020. At the onset of the Covid-19 pandemic shortly thereafter and associated travel restrictions and border closures, operations were suspended and will be recommenced in the second quarter of this year.
History of the Alason Project
The Alason property is located in an area about three hours West of Manado, the provincial capital where our Talawaan operation is located. Alason is based in a tropical rainforest area which as significant reserves of high grade, volcanic hosted ore. Gold in this particular area was first discovered by the Dutch about 200 years ago. Newmont Mining pioneered heap leaching operations in the area over 30 years ago and amassed geological survey data which confirmed the extend of the area and high quality of the ore available.
As is or policy throughout our operations in Indonesia, we employ only local workers and have very good relationships with the village leaders. This is an operation that was already producing and running for about six or seven years before we acquired the property.
Production Outlook 2024
Alason was shut down due to Covid in June 2020 but it will be restarted in the second quarter of this year (2024). Our focus is getting this operation back into production. Our contract with our operating partner at Alason is on a BOT (Build, Operate Transfer) basis with net revenue shared between Brookmount and our partner. 30% of net revenue. Getting this operation back online fast is a high priority. Actual production takes 6 weeks, so by the end of 1st quarter, beginning of 2nd quarter (2024), Alason should be producing gold.