Brookmount Gold Announces Significant Operational Progress in Indonesia
Reno, Nevada, Jan. 29, 2025 – Brookmount Gold (sic. Brookmount Explorations Inc.) (OTC: BMXI), a gold exploration and production company, provides an update on the transition and progress achieved since the official handover earlier this month at our Indonesia mining operations. With key changes implemented, the company is on track to enhance productivity and operational efficiency while setting the foundation for long-term growth.
Key Updates from On-Site Activities
Mining Operations: Workforce Transition and Optimization: A new contract structure has been negotiated with 50 workers now in place. Compensation for mineshaft workers has been simplified to 100,000 Rupiah (US$6.50) per ore bag per worker, replacing the previous profit-sharing model, which will result in significant cost savings.
Leadership Appointments: A new project manager and shift manager have been appointed, bringing the operating/management team to seven, at a combined salary of A$5,000 per month.
Safety Enhancements: Comprehensive safety protocols have been introduced, including PPE (hard hats, gloves, boots, and goggles) and shift briefings focused on ore targets, safety advisories, and feedback.
Improved Communication & Monitoring: CCTV systems and two-way radios have been installed at shaft sites to improve communication and oversight.
Production Update: Mining has commenced as a test run at one of our site locations (40-meter depth), producing 150 bags (7,500 tonnes) of ore in four shifts over two days of mining. Initial results from the test run yielded 200 grams of gold dore, indicating an average grade exceeding 1 gram per bag or 20 grams/tonne.
Expansion Plans: The company plans to deploy two additional hydraulic drills to double production capacity compared to using jackhammers and to improve efficiency.
Processing Enhancements: Ore crushing efficiency is being evaluated with plans to install an onsite pre-crusher next month, reducing processing time significantly. Existing processing tanks have sufficient capacity (135 tonnes) to support the target ore throughput of 500 bags/day by June, yielding 0.5 kg of gold dore (approx. 250 g of pure gold). Additional ball mills will be installed in a covered, concreted area to support expanded processing.
Capital Requirements: To support these advancements, Brookmount Gold plans to allocate initial funding of US$50,000 next week for the immediate purchase of two hydraulic drills and a sinking fund to cover an onsite crusher. One drill has already been received by the local distributor and could be in service immediately, with the second unit most likely by the following week.
“As of December 2, 2024, full operational control was achieved in Indonesia, securing 100% of cash flow from operations,” stated Nils Ollquist, CEO of Brookmount Gold. “Under the previous investment agreement, retained cash from unallocated earnings was reinvested by the joint venture partner into expanding gold reserves, upgrading operational assets, and other applications. This transition ensures the free cross-border flow of cash generated from operations, strengthening our funding structure, reducing reliance on external financing, and minimizing potential dilution for our shareholders. It positions Brookmount Gold to focus on long-term growth and delivering enhanced value to stakeholders.”
“The significant operational progress following the January handover of the Indonesian operation has placed Brookmount Gold on a clear path to success and growth,” continued Nils Ollquist. “This progress aligns with and supports our long-term strategy of strengthening our operational efficiency, expanding reserves, and maximizing shareholder value. With this solid foundation, we are well-positioned to deliver sustainable growth in the years to come.”
What this means for investors
The recent operational improvements represent a transformative step in Brookmount Gold’s growth strategy. By securing control of 100% of the cash flow generated from operations, the company is now positioned to reinvest in expanding production capacity, upgrading infrastructure, and maximizing operational efficiency.
A key aspect of this transition is the establishment of free cross-border flow of funds from operations. This allows Brookmount Gold to seamlessly transfer earnings from its Indonesian operations to support global corporate initiatives, enhance liquidity, and fund growth opportunities across other strategic areas. It ensures greater financial flexibility and efficiency, which ultimately strengthens the company’s ability to execute on its long-term plans.
For investors, these advancements translate to a stronger financial foundation, reduced reliance on external financing, minimized dilution risks, and a clearer path to long-term shareholder value. Brookmount Gold remains committed to transparency and operational excellence as it continues to unlock the full potential of its Indonesia mining operations.
About Brookmount Gold
Founded in 2018, Brookmount Gold is a high-growth gold-producing company quoted on OTC Markets in the United States (OTC: BMXI). With operating gold mines in Southeast Asia and exploration and production assets in North America, the company is focused on acquiring and developing high-quality gold assets with JORC/NI 43-101 verified resources.
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