Kalimantan Gold Corporation (KLG) is pleased to provide an
update on the exploration program at the KSK Copper Project in
Kalimantan, Indonesia, that is being sole funded by Surya Kencana
LLC (SK LLC), a subsidiary of Freeport-McMoRan Exploration
Corporation.
Highlights:
- Surya Kencana LLC elects to continue
to sole fund exploration and feasibility
- 5,418m of drilling currently
completed with an additional 2,373m in progress. Results
include:
- BK031-01: 28.9m @ 0.61% Cu, 0.06g/t Au,
1.27 g/t Ag from 16m
- BK032-01: 60.6m @ 0.74% Cu, 0.02g/t Au,
0.67g/t Ag from 14.8m
- 675 Rock Chip and 730 soil samples
collected
Sole Funding Election by SK LLC
Having completed sole funding exploration to $7,000,000, SK LLC
has notified KLG that SK LLC has elected to continue to sole fund
all remaining exploration and feasibility study expenditure under
the Earn-In Agreement, subject to SK LLC’s right to withdraw from
the Joint Venture in accordance with the terms of the Agreement.
“We have reached an historic milestone in the life of this project
now that SK LLC has exercised its option to continue sole funding
during the Feasibility Study period," said Faldi Ismail, CEO of
KLG.
Drilling Program Update
Two Duralite drill rigs have been utilized on the deep porphyry
copper program and two smaller Jackro rigs have been assigned to
the Beruang Kanan near-surface delineation drilling program. Two
deep and six delineation holes have been completed and a further
two deep holes (BTD06-01 and BKD02-02) are nearing completion.
Drill hole statistics are presented below.
KSK Drilling Statistics:
Hole ID Incl. Planned depth (m)
Date started Date completed
Current depth (m) Remarks BTD05-01 -70 1200 23
May 2012 28 May 2012 97.30 Completed BTD05-02 -75 1200 6 Jun 2012
13 Aug 2012 1,389.00 Completed BKD01-01 -70 1200 7 Jun 2012 3 Aug
2012 1,169.50 Completed BK030-01 -60 300 3 Jul 2012 29 Jul 2012
301.00 Completed BK029-01 -60 300 6 Jul 2012 1 Aug 2012 300.00
Completed BK032-01 -60 300 3 Aug 2012 23 Aug 2012 300.20 Completed
BK031-01 -60 300 5 Aug 2012 23 Aug 2012 300.50 Completed BKD02-01
-70 1000 12 Aug 2012 27 Aug 2012 377.80 Completed BTD06-01 -60 1200
30 Aug 2012 16 Oct 2012 1,200 In Progress BK033-01 -60 300 31 Aug
2012 21 Sep 2012 282.10 Completed/Assays Pending BK034-01 -60 300
31 Aug 2012 17 Sep 2012 300.70 Completed/Assays Pending BKD02-02
-70 1200 5 Sep 2012 16 Oct 2012 1149.20 In Progress BK035-01 -60
300 27 Sep 2012 14 Oct 2012 300 Completed/Assays Pending BK036-01
-60 300 23 Sep 2012 12 Oct 2012 300.20 Completed/Assays Pending
BK037-01 -60 300 16 Oct 2012 - 45.15 In Progress BK038-01 -60 300
16 Oct 2012 - 152.80 In Progress
TOTAL (m) 8,005
Beruang Tengah Deep Holes
Assays received from BTD05-02 at the Beruang Tengah Prospect
show an even distribution of weak copper-gold mineralization from
surface to 986m depth, with an average grade of 739 ppm Cu and 0.09
g/t Au -. The ratio of Au:Cu is also very consistent at around 1:1.
This result, while not returning economic grades, does suggest that
a porphyry system is present. The second (BKT06 -01) of at least 4
holes planned at the prospect is located 400 meters south of
BKT05-02 and currently at a depth of 1200m. The hole comprises
variably stockwork veined, medium to fine grained diorite and
medium to coarse grained equigranular granodiorite with
overprinting phyllic alteration. The veins are comprised of
quartz-sericite-pyrite+/- chalcopyrite+/- molybdenite All
subsequent drill holes at Beruang Tengah will be directed at
locating the potential high grade portions of this porphyry
system.
Beruang Kanan Deep Holes
The first drill hole (BKD01-01) within the main zone at Beruang
Kanan did not produce any significant intercepts, although several
small zones with minor copper mineralization were encountered. A
second drill hole, BKD02-02 in the southern part of Beruang Kanan,
is currently at 1200m. A third planned deep drill hole at Beruang
Kanan (BKD03-01) will test the central zone where the delineation
drilling is currently underway.
Drill location of the two Duralite drill
rigs at KSK Copper Project:
To view the graphic KLG1, please click on the following
link:
http://www.fscwire.com/pr/KLG1.jpg
Beruang Kanan Shallow Delineation Drilling
The operation of the two shallow-level drill rigs continued on
the central mineralized zone of Beruang Kanan. Seven holes have
been completed and a further two are in progress (BK037 and
BK038).
This drilling continues to test the strong silica clay pyrite
altered volcanic breccia that contains chalcopyrite and covellite
mineralization in strongly sheared and silica flooded zones with
irregular white quartz veining. Assays have been returned from
holes BK029-01, BK030-01, BK031-01 and BK032-01 and are reported in
the table below:
Table of significant intercepts from Beruang
Kanan definition drilling*:
HOLE ID FROM TO
LENGTH/m Cu/% Au/ppm
Ag/ppm BK029-01 11 126.5 115.5 0.42 0.04 0.63 BK030-01 4.5
148.1 143.6 0.17 0.02 0.3 Including 4.5 37.7 33.2 0.23 0.02 0.5
BK031-01 16 110 94 0.31 0.04 1.55 including 16 44.95 28.95 0.61
0.06 1.27 BK032-01 0 220.5 220.5 0.42 0.02 0.69 including 14.8 75.4
60.6 0.74 0.02 0.67
*Low level analysis of gold in rocks and soils by 50 g fire
assay fusion, AAS finish. Determination of base metals by Triple
Acid digest, ICP-OES finish.
Delineation Drill Hole locations at Beruang
Kanan Prospect:
To view the graphic KLG2, please click on the following
link:
http://www.fscwire.com/pr/KLG2.jpg
Field Geology Programs
As part of a campaign to investigate all areas of interest in a
systematic manner, field geology programs have been initiated at
Focus 1 and Rinjen and extended at Beruang Kanan and Beruang
Tengah. The programs included follow-up sampling, grid soil
sampling, and geological mapping. The fieldwork in southern Beruang
Tengah was done to close the mapping of the diorite intrusion to
the south and also to extend the soil sampling grid in an effort to
close the copper and molybdenum-in-soil anomaly to the SW.
Field geology programs have been completed or are ongoing at
Beruang Tengah, Beruang Kanan, Low Zone, Focus 1, Ketambung and
Rinjen and include follow-up sampling, grid soil sampling, and
geological mapping. This activity is part of a campaign to
investigate all areas of interest in a systematic manner to
generate data to support defining additional drill holes targeting
these prospects.
Map showing current exploration
prospects:
To view the graphic KLG3, please click on the following
link:
http://www.fscwire.com/pr/KLG3.jpg
These programs have produced a total of 730 soil and 675 rock
samples.
Future detailed exploration activities will include geology,
structure and alteration mapping, geochemistry and potentially
geophysical surveys at these prospects plus the Mamuring, and
Volcano prospects.
Additional Forestry Permits
The process of applying for additional ground under the Forestry
Borrow to Use system (Pinjam Pakai) has been initiated to allow
access to other priority areas within the KSK Contract of Work
including Tumbang Huoi, Baroi and Mansur prospects.
Lab Facility for Preparation of Samples
The core sampling facility and sample prep lab commenced
operation in early July and has processed around 1257 rock chip and
soil samples and 2014 drill core samples to date.
Assays were carried out in Jakarta by PT Intertek (ISO
certified) with sample checks by PT Geoassy. Both labs include
routine Canadian Certified Reference Materials (CCRM), in-house
standards and blank samples are inserted with each sample
submission. Low level analysis of gold in rocks and soils was
carried out by 50g fire assay fusion with AAS finish, and base
metals were determined by triple acid digestion and ICP-OES
finish.
Corporate Social Responsibility (CSR) Program
Yayasan Tambuhak Sinta (YTS) is working in 21 Dayak villages,
located along the Kahayan River, just outside of the KSK concession
area. YTS’s program is focused on strengthening governance in the
area, and is helping communities take greater responsibility for
their own development agenda through participatory planning,
institution strengthening and economic development.
This initiative enables communities to engage more effectively
with local government in order to access improved services and
programs in education, health, infrastructure and economic
livelihoods.
YTS provides training and technical assistance to improve the
capabilities of villagers in growing crops, raising animals, and
managing local resources. In 2012, this support concentrated on
vegetables, fish, pigs and rubber.
In collaboration with the local credit union, YTS provided
training on savings, credit, and small business development. By
joining the credit union, people establish savings accounts and can
access credit for their household or business.
At district level, YTS has a two-year program to improve the
capacity of district staff to improve their annual planning and
budgeting mechanism. This will result in delivering better support
programs and services to communities.
The YTS Community Development Program accounted for 4% of
expenditure and includes:
a. Village Development Planning
b. Village Development Fund & Technical Support for Economic
Livelihoods
c. Village Institutional Development
d. Kalimantan Kids Club – a scholarship program
e. Information & Communication Media and Events
All data, as disclosed in this press release, has been
reviewed and verified by the Company's Qualified Person for the KSK
Project, Dr. Peter Pollard, who is a Member of the Australasian
Institute of Mining and Metallurgy (Chartered Professional).
Dr Pollard acts as a technical consultant to KLG and has
sufficient experience which is relevant to the style of
mineralization and type of deposit under consideration and to the
activity he is undertaking to qualify as a Competent Person under
the JORC Code.
-Ends-
About Kalimantan Gold
Kalimantan Gold Corporation Limited is a junior exploration
company listed on both the TSX Venture Exchange in Canada and on
AIM in London. The Company has two exploration projects in
Kalimantan: the Jelai epithermal gold project in East Kalimantan
and the KSK Contract of Work in Central Kalimantan with potential
for multiple porphyry copper and gold prospects. For further
information please visit www.kalimantan.com
To view the graphic KLG4, please click on the following
link:
http://www.fscwire.com/pr/KLG4.jpg
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This news release contains forward-looking statements that are
based on the Company’s current expectations and estimates.
Forward-looking statements are frequently characterized by words
such as “plan”, “expect”, “project”, “intend”, “believe”,
“anticipate”, “estimate”, “suggest”, “indicate” and other similar
words or statements that certain events or conditions “may” or
“will” occur. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause
actual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such
forward-looking statements. Such factors include, among others: the
actual results of current exploration activities; conclusions of
economic evaluations; changes in project parameters as plans
continue to be refined; possible variations in ore grade or
recovery rates; accidents, labour disputes and other risks of the
mining industry; delays in obtaining governmental approvals or
financing; and fluctuations in metal prices. There may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. Any forward-looking statement
speaks only as of the date on which it is made and, except as may
be required by applicable securities laws, the Company disclaims
any intent or obligation to update any forward-looking statement,
whether as a result of new information, future events or results or
otherwise. Forward-looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on
such statements due to the inherent uncertaint