Last checked at 26 Feb 2007 07:32
Kalimantan Gold Corporation Limited For Immediate Release NR07-1 TSX Venture ExchangeFebruary 26, 2007 and AIMVancouver, British Columbia Symbol: "KLG"
Oxiana preparing to drill Kalimantan Gold porphyry copper gold targets
Kalimantan Gold Corporation Limited is pleased that Oxiana Limited, an Australian mining company, has confirmed the potential for discovering significant new copper gold deposits in Indonesia as part of its recently signed option deed with Kalimantan Gold Corporation Limited. In setting out its first work programme under the agreement Oxiana reports that the Kalimantan Gold copper gold project in Central Kalimantan showed "significant scale and intensity of mineralisation" and that the work programme was now set up to test a number of targets in the most efficient and timely manner.
"We are very pleased indeed to get this early report from Oxiana who now have a full-time presence on the ground and are setting themselves up for an intensive period of research and drill testing on the project," commented Kalimantan Gold CEO Rahman Connelly. "During the year they will be focusing on our three primary prospects, Beruang, Mansur and Baroi and initial results from the review programme already look extremely encouraging."
The agreement covers Kalimantan Gold's 941 km‚² Contract of Work ("KSK CoW") din Central Kalimantan and initially commits Oxiana to spending US$2.5 million on data compilation and drilling 12 deep holes over a period of 12-18 months. Oxiana will then have the option of earning a 40% stake by the completion of a pre-feasibility study and 66.67% stake by the completion of a bankable feasibility study. By this time it will have spent an estimated US$37.5 million.
The work programme involves taking each prospect in turn - initially Beruang, followed by Mansur and then Baroi - and carrying out a thorough review and reinterpretation of data in a full 3-D environment. The work will include extensive re-logging, re-mapping and re-processing of geophysical data in order to better define new drill targets.
Oxiana has advised that programme planning for Beruang will be completed by mid March with drill rig mobilization to follow shortly after. In addition to working on the three immediate target prospects, Oxiana will also review all the other significant prospects and anomalies identified on the KSK CoW, with drilling to follow if appropriate.
Preliminary results of review work
Oxiana review work to date has focused on Beruang with the emphasis on defining alteration zoning in areas of planned drilling and assessing potential in other areas.
Initial results indicate the presence of porphyry-style stockwork veining at the surface and in a number of areas not previously drilled by Kalimantan Gold. If further work confirms the potential, these represent targets for relatively near surface porphyry-style mineralization.
There has also been recognition of porphyry-style veining and late-stage magmatic-volatile features in the north of the Beruang prospect area. This enhances the area's porphyry potential.
About Kalimantan Gold
Kalimantan Gold Corporation Limited is a junior exploration company listed on both the TSX Venture Exchange in Canada and on AIM. The company is focused on copper and gold in Indonesia and has exploration rights in two areas: the Jelai-Mewet epithermal gold prospects in East Kalimantan and the copper-gold porphyry prospects in Central Kalimantan.
About Oxiana
Oxiana Limited is an international mining and exploration company listed on the Australian Stock Exchange. With a market capitalization of around A$4 billion, Oxiana owns and operates the Sepon gold and copper mines in Laos, the Golden Grove base and precious metals operation in Western Australia and is developing the Prominent Hill copper-gold mine in South Australia. The company is also exploring in Australia, Asia and the Pacific.
For further information please visit www.kalimantan.com or contact:
Rahman Connelly Gerald Cheyne Deputy Chairman and CEO, Keith, Bayley, Rodgers & Co Kalimantan Gold Limited Telephone: +61 7 552 32298 Telephone: +44 (0)20 78712274 +61 418 116 955 Email: gerald.cheyne@wcwb.co.uk Email: rconnelly@ozemail.com.au Nick Cottam Associates (UK public relations) Telephone +44 (0) 7834 978139
The TSX Venture Exchange does not accept responsibility for the adequacy or the
accuracy of this release. KLG NR07-1
KALIMANTAN GOLD CORPORATION LTD