Kalimantan Gold Corporation Limited ("KLG") is pleased to
announce drilling results from its ongoing delineation and scout
drilling programs at its KSK Copper Project in Kalimantan,
Indonesia together with plans for a substantial drilling and
exploration program at the project in 2013 budgeted up to $16.2
million.
Highlights:
- Definition drilling continues to
intersect broad intervals of significant copper mineralization at
the Beruang Kanan Prospect, including:
- BK034-01: 60.1m @ 1.03% Cu, from
171.6m
- BK038-01: 67.5m @ 0.63% Cu, from
66.8m
- Preliminary resource estimate for
Beruang Kanan expected second quarter of the year
- Deep drilling at Beruang Tengah
intersected a 170 meter down hole intersection of porphyry-related
quartz veining, with low to moderate grade copper-gold and
molybdenum mineralization, results from drill hole BTD06-01
included:
- BTD06-01: 3m @ 25.0g/t Au from
48m
- BTD06-01: 170m @ 0.22% Cu, 0.14g/t
Au and 114ppm Mo (0.32% CuEq), from 231m
- Field mapping at eastern Beruang
Tengah has identified strong sulphide mineralization in outcrop,
measuring 250 by 250 meters, located 1km east of Beruang Tengah
Prospect proper. Preliminary fire assays returned up to 9.6g/t Au
from rock chip samples.
- 15,108m of drilling completed to
date, the current drill production is approx. 2,500m per month with
further delineation and deep drilling planned.
Figure 1: Strong chalcopyrite and primary covellite
mineralization in Beruang Kanan drill core.
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KLG’s & SKL’s exploration activities at the KSK Copper
Project have recently been focusing on delineation drilling and
deep drilling at Beruang Kanan, deep drilling at Beruang Tengah, as
well as reconnaissance mapping & sampling and prospect
evaluations throughout the permitted area to further prioritize the
drill targets. There are more than 300 workers involved in drilling
and exploration activities over the permitted areas of the KSK
Contract of Work (“CoW”). All exploration activities are helicopter
supported, using a B3 Squirrel operated by PT Hevilift Aviation
Indonesia and the back up support of a Hughes MD500 helicopter
operated by PT Intan Angkasa.
Resource delineation drilling at the Beruang Kanan copper
prospect is well underway, with two rigs active since mid-2012. A
third larger capacity rig is currently testing deeper levels of the
Beruang Tengah porphyry Cu-Au-Mo system. A team of 16 geologists
are systematically mapping, sampling and evaluating eight of 16
known prospects throughout the CoW. This work has identified
several new prospects and upgraded some existing prospects to drill
ready targets. A deep drill hole will be commenced at the Focus One
copper gold porphyry prospect in February.
Beruang Kanan
Grid-based delineation drilling at Beruang Kanan is being
completed at 100 meter centers. The drilling is targeting a 1.8km
long copper in soil anomaly and seeking to define the mineralized
zone intersected in previous drilling. As of the end of January, 17
of 29 proposed holes, for 5,391.5 meters of drilling, had been
completed. The majority of these holes were drilled at -60 degrees
across an east-dipping mineralized zone.
Figure 2: Beruang Kanan drill hole location map – showing hole
and drill pad completion status
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Drill results to date confirm significant copper mineralization
over a strike length of 750m; the system remains open to the south
(Table 1). High grade mineralization is hosted in three discrete
sulphide-rich breccia and replacement zones, characterized by
cavity fill and replacement chalcopyrite (and covellite after
chalcopyrite) hosted in re-opened, anastomosing quartz veins
(Figure 2). Covellite and chalcocite predominate in the
near-surface environment while chalcopyrite predominates at deeper
levels. At depth, geologists observed late stage hypogene covellite
veins cross-cutting older chalcopyrite dominated mineralization,
suggesting multiple mineralizing events.
Table 1 : Recent significant [delineation]
assays Beruang Kanan Prospect (0.3% Cu cutoff)
Hole ID From(m)
To(m) Length(m)
Cu(%) Comments BK032 17.8 72.3 54.5
0.73
Breccia and vein hosted high grade copper
mineralization
BK032 159.5 182.2 22.7 0.56 BK032 190.3 220.5
30.3 0.54 BK033 21.6 60.5 38.9
0.39 BK034 6.0 65.1 59.1 0.63 BK034 75.6 96.6 21.0
0.54 BK034 171.6 231.7 60.1 1.03
BK035 72.2 123.2 51.0 0.50 BK036
6.3 56.1 49.8 0.43 BK037*
NSA NSA NSA NSA BK038 66.8 134.3 67.5
0.63 BK038 195.5 207.2 11.7 0.49
BKD02-02 204.3 212.5 8.2 0.71
BKD03-01 197.5 210.3 12.8 0.93 BKD03-01 227.7 274.2 46.6 0.72
BKD03-01 289.3 300.4 11.1 0.57
*NSA – no significant assays
Beruang Tengah
The deep scout drilling program at Beruang Tengah continues with
four holes completed into the target to the end of January. DDH
BTD06-01, intersected a zone of copper-gold mineralisation hosted
in porphyry-related quartz veining (40-50 volume percent of the
rock locally) hosting disseminated and stockwork mineralization
from 231 meters to 401m depth. Petrographic work has identified
chalcopyrite, bornite and molybdenite mineralization in stockwork
veins.
Beruang Tengah Prospect
Hole ID
From(m)
To(m)
Length(m)
Cu(%)
Au(g/t)
Ag(g/t)
Moppm
CuEq(%)
Comments
BTD-06-01 48.00 51.00 3.0 0.05 25.00 8.73 38 13.89
GoldMineralization inEpithermalStyle
Veins
BTD-06-01 84.00 87.00 3.0 0.61
1.79 1.70 6 1.61 BTD-06-01 153.00
183.00 30.0 0.10 0.06 0.23 54 0.15
Porphyrycopper-gold-molybdenummineralization
inquartzstockworkveinsand asdisseminations
BTD-06-01 231.00 467.00 236.0 0.19 0.11 0.90 102 0.28 Including
231.00 401.00 170.0 0.22 0.14 1.02 114 0.32 BTD-06-01 513.00 536.00
23.0 0.11 0.04 0.58 80 0.15 BTD-06-01 597.50 629.00
31.5 0.13 0.04 0.52 256
0.20
Copper equivalent values is base don: CuEq = Cu+(Mo ppm/10000 *
1.85) + (Au g/t * 0.5509) + (Ag g/t * 0.0076); using US$3.00/lb
copper price, US$1,200/oz gold price, US$20/oz silver price and
US$10/lbs molybdenum price
Figure 3: BTD06-01 porphyry-related quartz stockwork
veining.
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Two larger capacity drill-rigs capable of depths of 2,000m were
contracted in late December from Major Pontil. One of the Longyear
LF130 rigs arrived on site in mid-January and is currently set-up
on pad BTD06, and will test deeper levels of the Beruang Tengah
porphyry system.
Beruang Tengah East
A new zone of copper – gold mineralization was recently
discovered at Beruang Tengah. This high sulphidation style of
mineralization, observed over an area 250m long by 250m wide, was
discovered in two creeks 1km east of the Beruang Tengah Prospect
proper. Preliminary gold results from 13 rock chip samples all
returned >1g/t Au and up to 9.7g/t Au. Follow-up mapping and
sampling to further define the dimensions and tenor of this
mineralization continues, with the goal of defining a drill
target.
Geological Mapping and Sampling.
To date seven prospects have undergone follow up geological
mapping and sampling, including rock chip , soil, and stream
sediment sampling. These prospects include; Low Zone, Beruang
Tengah, Beruang Kanan (Massive Polymetallic Zone), Ketambung, Focus
1 and Rinjen. A total of 2846 samples have been collected and sent
for analysis. This data is being compiled and drill hole targets
will be generated for drilling.
Other prospects scheduled for follow-up exploration this year
are Volcano, Beruang Kanan West, Beruang Central, Mamuring, plus
Tumbang Huoi , Baroi and Mansur, forestry permits pending.
During the 4th quarter of 2012, the Company completed an
Airborne Lidar survey (Light Detection And Ranging) over 25,000 ha
of the concession area, including all major prospect locations.
Results of the survey are being used to accurately map out /
interpret geological and structural features that are known to
control copper mineralization and the associated high resolution
imagery has provided excellent accuracy for spotting drill-holes at
the Beruang Kanan and Beruang Tengah prospects.
A fixed wing airborne gravity and magnetic survey is also
planned for early in the year over the entire CoW area.
Figure 4: KSK Contract of Work area showing present and planned
exploration prospects
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“We are extremely excited and optimistic about our 2013
exploration program. With our budget set this year at up to
$16.2m, an additional 14 major prospects will be explored this
year to generate drill targets with the intention of achieving up
to 3,000m of drilling per month initially. To date, 15,108m of
drilling has already been completed. Our community programs are
flourishing in all 21 local villages, we have ~300 staff and things
are certainly gearing up all round. ” stated Faldi Ismail, CEO of
the Company.
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.
For further information please contact:
Faldi Ismail
Deputy Chairman and CEO, Kalimantan Gold Mobile: +61 (0) 423 206
324
Email: faldi.ismail@kalimantan.com
Gerald Cheyne
Corporate Development (UK) Telephone: +44 (0) 2077311806 Mobile:
+44 (0) 7717473168
Email: gerald.cheyne@kalimantan.com
VSA Capital Limited
Nick Redfern/ Peter Damouni Telephone: +44 20 3005 5005/ +44 20
3005 5007
Email: pdamouni@vsacapital.com
KLG's Nominated Adviser
RFC Ambrian Limited Stuart Laing Telephone: +61 8 9480 2506
Email: stuart.laing@rfcambrian.com
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
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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 uncertainty therein.