Last checked at 19 Feb 2013 07:00
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.
Copyright Business Wire 2013