Management's Discussion and Analysis for 1Q 2015 is due next week together with the first quarter financials. Things for investors to look out for include: (1) the rate of cash burn on corporate overheads, (2) the status of tenure at Beutong (i.e. what progress if any has been made on getting the Production IUP and how much has been spent on that), (3) a target range for equity raising (and management's opinion on the prospects for achieving that). Investors will recall that previous management's equity raising target of $ 3-5 million announced towards the end of last year resulted in only just over $ 1 million being raised on less than favorable terms. Considering the greater depth and breadth of the new management team can Tigers Realm do better?
The Company will require additional financing, through various means including but not limited to equity financing, for continued operations and for the substantial capital expenditures required to achieve planned principal operations. The Company plans to raise additional financial resources through equity financings during the next twelve months. While the Company has been successful in the past in obtaining financing, there is no assurance that it will be able to obtain adequate financing in the future or that such financing will be on terms acceptable to the Company. These factors indicate the existence of a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.
Investors need to remember that half the company's share capital was issued to Tigers Realm and associates in exchange for the Beutong copper prospect in the Province of Aceh, for which an IUP Production License has been applied for and continues to be sought. At the time of the reverse take-over of KLG by TR the Technical Report on Beutong suggested that the Production License would be obtained in April. That target has, it seems, not been achieved.
Tony Manini, Kalimantan Gold's Chief Executive Officer commented:
"We are very pleased with the initial assay results from the 2015 drill program at the BK project. The continuity of copper mineralization observed to date has fully met our expectations and we have already identified an area to the south of current drilling with potential to further expand the BKM deposit. We have a comprehensive program of drilling and test work proposed for the BKM deposit and nearby prospects in 2015 and we look forward to progressively reporting further results as they become available"
Final assays were received for a total of 323.1 meters in the four drill holes reported to date. A drill hole location plan and a table of full assay results are provided in Figure 1 and Table 1 respectively.
Hole BKM32450-01 (92.4m end of hole ("EOH")) drilled as an infill hole on section line BKM32450 intersected strong near surface copper mineralization in brecciated and silicified volcaniclastic rocks. Three wide intervals of mineralization were reported as follows:
14 meters at 2.02% Cu (from 4.7 meters depth)
Including 6.0 meters at 3.71% Cu (from 4.70 meters) 22 meters at 0.88% Cu (from 32.0 meters depth)
Including 5.0 meters at 1.10% Cu (from 35.0 meters) Including 6.0 meters at 1.57% Cu (from 45.0 meters) 15 meters at 0.57% Cu (from 76.0 meters depth)
BKM32450-02 (70.6m EOH) also drilled as an infill hole on section line BKM32450 hit a post mineral dyke and failed to intersect the key target zone of mineralization. Three narrow mineralized intervals were intersected; including a small interval assaying 2m at 2.08% Cu (from 49.5 meters depth).
Hole BKM31750-01 (75.1m EOH) drilled on section line BKM31750 intersected a cumulative 23m interval (over 3 individual intersections) of highly elevated copper mineralization in centimeter to meter scale quartz veins. Better assays received from this interval include 9.0 meters at 0.73% Cu (from 19.0 meters depth)and 10.0 meters at 0.57% Cu (from 41.0 meters depth).
BKM31750-02 (85.0m EOH) also collared as an infill hole on section line BKM31750 intersected a broad zone of copper mineralization comprising covellite and chalcocite in centimeter scale quartz veins and zones of strong silicification. Copper mineralization is more pervasive than previous holes located nearby and extends beyond the current limits of the BKM deposit. Better results include:
54 meters at 1.10% Cu, (from 16.5 meters depth)
Including 16 meters at 1.67% Cu (from 17.5 meters) Including 19 meters at 1.22% Cu (from 37.5 meters)
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