Kalimantan Gold to Regain 100% Control of KSK CoW, Indonesia
January 02 2014 - 2:00AM
Business Wire
Kalimantan Gold Corporation Limited (the “Company”) (TSX-V:KLG)
(AIM:KLG) has been delivered notice of intention to cease sole
funding and to withdraw from the joint venture agreement made April
18, 2011 by its joint venture partner, Surya Kencana LLC, a wholly
owned subsidiary of Freeport-McMoRan Exploration Corporation
(“Freeport”), in relation to the Company’s KSK Contract of Work
copper project (the “KSK CoW”) in Kalimantan, Indonesia. The
effective date of the withdrawal will be January 31, 2014 after
which time Freeport will forfeit its interest in the KSK CoW to the
Company and deliver to the Company any mining information held by
Freeport regarding the KSK CoW that is not already in possession of
the Company.
It is important to understand that the decision to withdraw from
the project was not based on the geological prospectivity of the
project.
A number of Indonesian groups expressed interest in the KSK CoW
during 2013. The Board will now make contact with these parties and
others to discuss possible partnerships and ways forward.
Freeport funded over $33 million of exploration expenditures
since April 2011 on the KSK CoW, leaving the Company with a wealth
of exploration data and multiple drill targets. During their
involvement, over 30,000m of drilling was completed, over 28,000
samples were analyzed, 4,762 line kilometers of airborne
geophysical surveys were completed, and 24,363 ha of the KSK was
covered with a high resolution Lidar imaging survey. A drill plan
had been prepared to expand the identified zone of mineralization
at Beruang Kanan where the two most recent drill holes, BK57 and
BK58, both intersected significant mineralization (refer Press
Release dated 22 August 2013).
Since September 2013, data compilation, resampling of historical
core samples, petrographic studies, age dating and follow-up
mapping and sampling at Mansur, Baroi, and Tumbang Huoi has
identified several well defined deep potential copper porphyry
drill targets.
Faldi Ismail, CEO, commented, “Freeport has been a
magnificent joint venture partner which has hugely
developed our understanding and significantly enhanced the
prospectivity of the KSK CoW. We remain optimistic that a new
partner will be found to complete the project and will shortly
recommence discussions with those interested parties."
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 is a director and the Chairman of KLG. He acts
as a technical consultant to KLG and has sufficient experience
which is relevant to the style of mineralization and types of
deposits under consideration and to the activity he is undertaking
to qualify as a Qualified Person under NI43-101.
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
Director Corporate Development Telephone: +44 (0) 2077311806
Mobile: +44 (0) 7717473168
Email: gerald.cheyne@kalimantan.com
VSA Capital Limited
Andrew Raca / Justin McKeegan Telephone: +44 20 3005 5004 / +44 20
3005 5009
Email: araca@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 multiple
porphyry copper and gold prospects. For further information please
visit www.kalimantan.com
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.
Kalimantan GoldFaldi Ismail, +61 (0) 423 206 324Deputy
Chairman and CEO, Kalimantan GoldEmail:
faldi.ismail@kalimantan.comorGerald Cheyne, +44 (0)
2077311806Director Corporate DevelopmentMobile: +44 (0)
7717473168Email: gerald.cheyne@kalimantan.comorVSA Capital
LimitedAndrew Raca / Justin McKeeganTelephone: +44 20 3005 5004
/ +44 20 3005 5009Email: araca@vsacapital.comorKLG's Nominated
AdviserRFC Ambrian LimitedStuart Laing, +61 8 9480 2506Email:
stuart.laing@rfcambrian.com