Can Besra Gold Overcome Lease Hurdles to Unlock 2.28 Million Ounce Bau Resource?

Strategic Review and Resource Update

Besra Gold Inc (ASX, BEZ) has delivered a comprehensive update on its Bau Gold Project in Sarawak, Malaysia, following a strategic and cost review aimed at reinforcing capital discipline and technical credibility. Central to this update is an independently verified JORC Mineral Resource Estimate (MRE) of 53.0 million tonnes at 1.3 grams per tonne gold, equating to 2.28 million ounces. While the total contained gold and tonnage have decreased compared to the 2021 estimate, notably the measured resource category and overall grade have improved, reflecting a more realistic assessment of mining parameters and recent drilling data.

The resource update was conducted by Widenbar and Associates Pty Ltd, incorporating over 8,800 metres of drilling since the last major update, and applying stringent economic extraction criteria consistent with JORC standards. However, certain areas previously included, such as Say Seng and Taiton, were excluded due to urban encroachment and national park designation, underscoring the challenges of land use in the region.

Tenure and Technical Challenges

Securing the renewal of the critical mining lease ML 05/2012/1D remains Besra’s paramount priority and a significant hurdle. Despite ongoing engagement with Sarawak government officials, including the Deputy Premier and Ministry heads, there is no guarantee the lease will be renewed. This uncertainty directly impacts the company’s ability to advance development studies and capital investment decisions.

An independent technical review by Minescope Services has highlighted metallurgical complexity within the Bau deposits, with varying mineralisation styles necessitating further test work to define an optimal processing flow sheet. The review also recommends a disciplined exploration campaign, particularly in the southern Bau corridor around Pejiru and Sirenggok, where inferred resources remain open and less affected by tenure risks.

Corporate Restructuring and Governance

Besra has undertaken significant corporate restructuring to streamline operations and reduce overheads. This includes consolidating its administration to Perth, Western Australia, and rationalising its Malaysian operations to focus on licence renewal efforts. The board saw changes with Dr John Blake appointed as Non-Executive Chairman, alongside new directors Matthew Greentree and David Potter, while former Managing Director of North Borneo Gold, Matthew Antill, was made redundant.

These moves aim to position the company closer to key technical advisers and suppliers, enhancing governance and operational efficiency amid the challenging regulatory environment.

Environmental and Legal Landscape

Environmental monitoring during the quarter met all regulatory standards, with no adverse impacts reported. The company continues to implement erosion and sediment control measures and is progressing revised environmental plans through local authorities.

On the legal front, Besra faces ongoing proceedings related to Quantum Metal Recovery Inc and other parties in Ontario, Canada. While these matters remain unresolved, Besra is not currently contesting the claims. The outcomes of these proceedings could have future implications but have not materially affected current operations.

Financial Position and Outlook

Besra reported a cash balance of AUD 11.7 million at the end of December 2025, with quarterly operating and investing cash outflows reflecting ongoing exploration and corporate activities. The company has not commenced mining production or development activities, pending resolution of tenure and technical studies.

Looking ahead, Besra’s focus will be on securing mining lease renewals through continued government engagement, advancing exploration in lower-risk areas, and updating project execution plans aligned with regulatory and capital constraints.