KALIMANTAN GOLD
Kalimantan Gold Corporation Ltd (KGC) is an AIM and TSX-listed junior exploration company focused on exploration in Kalimantan, Indonesia where it has been active for a number of years. The company is exploring for gold and copper in two distinct areas of Kalimantan and is also seeking to acquire a number of coal prospects in the region.
In East Kalimantan, KGC is currently undertaking a 4,000 metre drill programme at its 100%-owned Jelai gold prospect and results to date indicate the potential for a major epithermal gold deposit. This has been confirmed by the economic geologist Dr Peter Pollard in an independent report on the project and the company expects to announce an inferred resource for Jelai in the next few months.
In Central Kalimantan KGC’s Contract of Work (CoW) has multiple copper porphyry prospects which, according to Dr Pollard, still have considerable untested potential. A number of companies have expressed interest in reviewing the KSK data with a view to signing a co-operation agreement.
In addition to its exploration work, KGC supports development in the villages surrounding its project areas through a Foundation, YTS. Villages are encouraged by YTS to plan for the future with the help of a Village Development Fund, the aim being to facilitate self help wherever possible.
Kalimantan Gold consolidates copper-gold porphyry project
Kalimantan Gold Corporation (TSX-V & AIM:KLG), the gold, base metals and coal exploration company with assets in Indonesia, said it had acquired the remaining 25% interest in its KSK Contract of Work that it did not already hold.
The KSK Contract of Work is a 941 square kilometre zone containing 38 mineral prospects in Central Kalimantan. Previous work has identified several copper-gold porphyry deposits.
“Kalimantan Gold believes that promising targets remain to be tested within the KSK COW prospect area and is seeking a partner that will commit to a work program that will enable this potential to be thoroughly tested”, the company added.
Kalimantan Gold will issue 20 million shares for the stake to Kalimantan Investment Corporation (KIC), which will hold post transaction approximately 33.4% of Kalimantan Gold. Kalimantan added that KIC will dissolve itself and distribute the shares it holds in Kalimantan Gold to its 400 or so shareholders.
Rahman Connelly, Deputy Chairman and CEO, commented,
"Owning 100% of the KSK COW greatly simplifies what was a complex corporate structure of this valuable mineral asset. The structure acted as a barrier in attracting a major mining company to assist in moving this project forward. In anticipation of the PCK acquisition completing, a confidentiality agreement has been executed with a major mining company and a detailed data review is currently underway as the first step towards a possible joint venture agreement."
Other KALIMANTAN GOLD articles
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11/11/08 Kalimantan Gold gets encouraging initial resource estimate from Jelai gold project vein
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12/05/08 Kalimantan Gold – Audio Interview Transcript
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03/12/07 Developing a pipeline of projects
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25/07/07 Kalimantan Gold: Report from the front line.
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24/07/07 Report from the front line.
Other KALIMANTAN GOLD news
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17/11/08 Kalimantan Gold signs option on coal opportunity in Indonesia
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29/09/08 Kalimantan Gold intercepts More High-Grade Gold at Jelai Gold Project
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28/07/08 Kalimantan Gold expects maiden resource estimate for Jelai Gold Project by October
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13/06/08 Kalimantan Gold completes CDN1.1 million placing
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19/05/08 Kalimantan Gold plans to top up its coffers
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15/04/08 Kalimantan Gold commences deep drilling at Jelai Gold
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25/03/08 Kalimantan Gold adds to senior management
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26/02/08 Kalimantan Gold director snaps up shares
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28/01/08 Kalimantan Gold still sees untested potential