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Interview with Klaus Eckhof, Chairman of Burey Gold Ltd. (ASX: BYR): Giro Gold Project, Located within the Moto Greenstone Belt that Hosts Randgold and AngloGold 17Moz Kibali Project

on 7/28/2016
Burey Gold Limited (ASX: BYR) is focused on exploring for gold in the northeastern part of the Democratic Republic of Congo. Their key asset is Giro Gold Project, located within the Moto greenstone belt that hosts Randgold and AngloGold Ashanti’s 17Moz Kibali Project just 30km east of Giro. We learned from Klaus Eckhof, Chairman of Burey Gold, that with the turn in the market instead of raising $1 to $2 million, they were able to raise $12 million, which will allow the company to conduct parallel exploration drilling programs at Giro in the northwestern and in the southern parts of the project. According to Mr. Eckhof despite having been diluted over the last 3 or 4 years by the low share prices and the difficulty of raising capital, the company is still quite tightly held.

Dr. Allen Alper: This is Dr. Allen Alper, Editor-in-chief of Metals News interviewing Mr. Klaus Eckhof, Chairman of Burey Gold. Could you tell me a bit about your company, what's happening in Africa and the Democratic Republic of Congo and also Guinea with your gold company?

Mr. Klaus Eckhof: Yes. Just to give you a little background, I've been in the Congo for the last 16 years. I founded Moto Goldmines and found 20 million ounces there. That was sold off to Randgold Ashanti after we found the 20 million ounces. After that, I had another company, Tiger Resources, that's a copper producer now in Congo and then another company, Alphamin Resources, AFM, which is one of the highest grade Tin projects on the planet now, also in the Congo. During that period, a company called Burey Gold approached me to find them a new project. I told them I have a new gold project up in the northeast, 20 kilometers away from Kibali, which is now Randgold Ashanti, the old Moto Gold project. We started building there a couple of years back and the first hole was around 97 meters at 2.6gt AU.We found bigger anomalies up in the north and moved the drilling rigs up there. The anomalies there are 4 or 5 times bigger than Giro. The first drillhole was quite spectacular. We had 15 meters at 250 gt AU.

Dr. Allen Alper: Could you tell me a little bit about the geology of the area?

Mr. Klaus Eckhof: Yeah, the geology is pretty much the same as Kibali’s. You have granitoid intrusions. You have volcanoclastics in between these granitoid intrusions. For example, at the Giro project gold is finely disseminated. But we also have, as we saw in the Douze Match area, in the northeast, very high grade intercepts there, too. The gold there is finely disseminated with some higher grade packages in between.

Dr. Allen Alper: Very good! Could you tell me a bit about your plans for this year and next?

Mr. Klaus Eckhof: Yeah, because 4 to 8 weeks ago, the market turned and instead of raising $1 to $2 million, we were able to raise $12 million. So we will be drilling out the resource at Giro down in the south and parallel to that, we will continue exploration building up in the northwestern part of the project. We are drilling there with RC and will, hopefully, establish an area of mineralization on the surface where we can drill deeper. At the moment, we are only drilling down to 30 meters or 40 meters in the northwest. That will change in the next program. We have finished this program. There are probably around 600 to 900 essays coming along and samples from sequence holes within the next 2 to 3 or 4 weeks. Then we will go for a bigger scale program up into the northwest.

Dr. Allen Alper: Could you tell me a little bit about your capital structure, your share structure?

Mr. Klaus Eckhof: Yeah, despite having been diluted over the last 3 or 4 years by the low share prices and the difficulty of raising capital, we have 1.25 billion shares out there but out of that, we own 50%. It's still quite tightly held. If we continue with good results and if the share price stays above 5 cents, the options will be exercised in the next 12 months. That would give us another $25 million coming into the company and we don't have to go to the market again at all.

Dr.Allen Alper: That sounds good. Could you tell me a bit about your team, your board and yourself?

Mr. Klaus Eckhof: It's a very tight, small company. It's myself and then Mark Gasson. He worked for us at Tiger. He worked at Moto. He worked at Alphamin and all the other companies I named before. He's also very Congo-phile. The other person is Mark Calderwood. He's the founder of Perseus Mining, which had a market cap of 1.4 billion at one stage and is in production in Ghana. Then Kevin Thomson, who was the exploration manager of Perseus which is still a major shareholder, around 10% at the moment. Then Susmit Shah. You'll probably find him on most of the boards from Perseus to Tiger and everywhere else as a company secretary and/or as a corporate director.

Dr.Allen Alper: It sounds like you have a good board. Could you tell me a little bit about how it is to operate in the Congo?

Mr. Klaus Eckhof: It's basically just a small tent operation. There are not major offices. It's a very, very basic camp that we have there at the moment. We have two geologists on site and then on Congolese field staff in the order of 3 to 10, depending on what is required for our drilling programs, and other works which we're doing regionally. It's a very small company from a management point of view.

Dr.Allen Alper: Could you tell me the primary reasons our high-net-worth readers/investors should consider investing in your company?

Mr. Klaus Eckhof: It's pretty simple. If you look at over the last 10 years, the best gold stock on the planet is Randgold. Which has one of the lowest production costs? It's Randgold. Where is Randgold situated? Their flagship project is the Kibali project. If you look at it from an operational point of view, it took me 4 years only to find 20 million ounces and it took Randgold only 4 years to bring into production the 600,000 ounces per annum. Where in the world can you do that? It's one of the easiest places in the world to work.

Dr.Allen Alper: Well, that sounds very good.

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