Proactive investors

Kalimanatan's current focus is on the Jelai gold project in East Kalimantan where we are undertaking a 4,000 metre drill programme and on carrying out due diligence at the five coal concessions - also in East Kalimantan - on which they have signed an Option Agreement to acquire a 75% stake.

Jelai Gold Project (click for more details)

An epithermal gold prospect in East Kalimantan

Kalimantan has been undertaking a major drill program at its 100%-owned Jelai epithermal gold property in East Kalimantan where the company has successfully tracked the results of the previous incumbent Indochina Goldfields (now Ivanhoe Mines) and is now achieving some promising results of its own.

The 5,000 hectare exploration concession contains 11 known anomalous gold prospects, only one of which, the Mewet vein system, was drilled by Ivanhoe. While Ivanhoe drilled only 15% of the cumulative 5km strike length within two individual veins of the Mewet vein system, the company has now confirmed the presence of some high grade gold mineralization in four individual veins at Mewet.

KGC's current drill program includes hole 26 which encountered 5.6 grams per tonne ("g/t") gold over an interval of 5.6 metres including 17.33 g/t gold over 1.20 metres and hole 27 which encountered 2.15 g/t gold over an interval of 5.95 metres including 10.30 g/t gold over 0.65 metres in the Sembawang vein; all within 47 metres from surface.

Coal prospects (click for more information)

The Indonesian coal boom

Over the past five years Indonesia's export coal production has soared from about 55 million tonnes per annum to around 150Mtpa. It is predicted that Indonesian coal production will double by 2017 to at least 400 million tonnes, most of which will be exported.

Kalimantan is already home to approximately 20 large scale coal mines, the biggest of which is Kaltim Prima Coal, owned by Bumi Resources, which produces approximately 35Mtpa of coal from a current resource of 4.5Bt. Notable new discoveries in recent times include the Pakar discovery in East Kutai, which has a substantial JORC-compliant resource of 3.3 billion tonnes of thermal coal. Churchill Mining is also active in the region having acquired a 75% interest in the East Kutai Coal Project where it has already established a sizeable resource.

Current KLG activity

KLG is currently carrying out due diligence on five coal concessions (KP's) offering exploration and development potential in East Kalimantan. KLG has signed an Option Agreement to acquire a 75% in the concessions and is actively working with partners to acquire interests in additional concessions in the area.

Baroi Prospect - porphyry copper-gold-silver

Baroi shares many characteristics in common with other major porphyry copper deposits in the region. The prime indicator throughout the Baroi prospect is the intense mineralization of metal-rich quartz sulphide veins and breccias. An aggressive geological mapping and sampling program subsequently defined an area containing mineralization of 6 by 4 kilometers. The eastern end, or Far East Zone (FEZ), produced multiple high grade quartz breccia veins at surface - eg, 12 meters @ 6.06% copper, 197.5 grams per tonne silver and 0.72 grams per tonne gold. This zone became the focus of ongoing exploration; an IP survey was conducted, which identified a large conductive body at depth that was believed to be the source of the widespread mineralization in the area. (Read More)

Beruang Kanan Main Zone -- Porphyry Copper

Beruang Kanan Main Zone is part of the greater Beruang prospect area where 8 mineralized zones are located at the margins of a 12 kilometer in diameter caldera. Exploration work at the Beruang Kanan Main Zone included 19 medium depth diamond drill holes which returned results up to 167 meters @ 0.59% copper. Five major mining companies conducted technical due diligence in 2001, but withdrew from discussions because of the unstable political and economic climate in Indonesia at the time.(Read More)

The Mansur Prosepct

The Mansur prospect displays classic porphyry alteration and geochemistry. Extensive work was carried out in the 1990's, including exploration funded by our joint venture partner, Cyprus Amax, which subsequently withdrew because of the unstable political and economic climate in Indonesia at the time.

In 1994, KIC drilled 11 diamond drill holes and then in 1997, in our joint venture with Cyprus Amax, another 7 holes were drilled. Most of the existing drill holes were located within the low-grade "doughnut hole" or central core while the best copper grades outside this area remain untested at the margins. In retrospect, it seems that Cyprus Amax may have applied the wrong geological model i.e. they did not understand South Western Pacific style of mineralization.

Consequently, this core zone gave inconclusive results, although intercepts up to 40m @ 0.24% Cu and 0.24 gpt gold were intersected in early shallow (100m) drill holes at the margins of the copper anomaly.

However, one hole in the first round of drilling intersected 6.12 gpt gold across 2 metres. (Read More)