Kalimantan Gold announces assay results

By Romel S. Gurky

AIM and TSX- listed Kalimantan Gold Corporation Limited (KLG) announced on Thursday assay results from an additional seven holes drilled as part of an intensive resource evaluation program in progress at its flagship Beruang Kanan copper project in Central Kalimantan.

Moderate to high grade copper mineralization was reported in all seven holes and drilling to date continues to meet or exceed expectations. Good continuity of mineralization is being confirmed between holes and sections within the Beruang Kanan Main (BKM) deposit and additional copper mineralization continues to be intersected beyond the existing mineral resource boundaries to the west. As in the previously reported holes the copper mineralization occurs near surface hosted in stock work fractured and quartz veined breccia, and as open space fill.

In total 15 holes for 1196.1 meters have been completed to date and two holes are currently in progress.

RESULTS
Final assays have now been received for an additional 537 meters in 7 drill holes.

Holes BKM32450-03 (75.2m end of hole ("EOH")), BKM32450-04 (65.4m EOH) and BKM32450-05 (65.4m EOH) were all drilled as infill holes on section line BKM32450. BKM32450-03 intersected a cumulative 26m interval (3 individual sections) of highly elevated copper mineralization in centimeter to meter scale quartz veins within a strongly silicified and brecciated host rock. BKM32450-04 intersected a cumulative 7.2m interval (2 individual intersections) of moderate and highly elevated copper mineralization in centimeter to meter scale quartz - pyrite veins and BKM32450 intersected high grade near surface copper in brecciated and silicified volcanoclastic rocks with significant chalcocite mineralization reported. Better assay intervals received from each of the above three holes respectively include:
5.0 meters at 2.05% Cu (from 48.0 meters depth)
5.2 meters at 1.21% Cu (from 58.0 meters depth)
17.0 meters at 1.61% Cu (from 12.0 meters depth)
? Including 7.0 meters at 2.06% Cu (from 20.0 meters)

Holes BKM31750-03 (75.0m EOH), BKM31750-04 (75.3m EOH), BKM31750-05 (90.3m EOH) and BKM31750-06 (90.4m EOH) were collared to expand the BKM deposit beyond its current western limits on section line BKM31750. The covellite-chalcocite copper mineralization in each hole appears to be considerably more pervasive within the host rock than in other parts of the deposit.

BKM31750-03 intersected stockwork and vein hosted copper mineralization throughout most of hole

Better intercepts from BKM31750-03 include:
64.0 meters at 0.74% Cu, (from 8.0 meters depth)
? Including 5 meters at 1.60% Cu (from 8.0 meters)
? Including 8 meters at 1.16% Cu (from 15.0 meters)

Hole BKM31750-04 intersected a cumulative 41.3m interval (4 individual intersections) of moderate grade copper mineralization in centimeter to meter scale quartz veins and bottomed in copper mineralization with the final 1.3 meters assaying 0.67% Cu. BKM31750-05 and BKM31750-06 respectively intersected 15.0m interval of near surface copper mineralization in centimeter to meter scale quartz veins and, a cumulative 19.5m interval (4 individual intersections) of moderate and high grade copper mineralization in centimeter to meter scale quartz veins.

These three holes extend copper mineralization for a further 150 meters beyond the current western limits of the BKM Resource on the southern part of the deposit. Better intercepts include:

BKM31750-04:
17.0 meters at 0.98% Cu, (from 39.0 meters depth)
10.3 meters at 0.74% Cu, (from 65.0 meters depth)
BKM31750-05:
15.0 meters at 1.02% Cu, (from 17.0 meters depth)
BKM31750-06:
10.0 meters at 0.81% Cu, (from 75.0 meters depth)
? Including 7 meters at 1.02% Cu (from 78.0 meters)

Drilling planned for the BKM deposit in 2015 is designed to increase Resource confidence and expand the size of the deposit. An update of the Resource Estimate is planned for Q3 2015. The first eleven holes have confirmed continuity of mineralization on each section line drilled and the BKM31750 section drill holes indicate copper mineralization is potentially more pervasive in the southern part of the BKM deposit than previously recognized.

Resource in-fill and expansion drilling is complete on section line BKM31750 and is now continuing on BKM32450.

Tony Manini, Kalimantan Gold's Chief Executive Officer commented: "Kalimantan Gold is very pleased with the initial results of our 2015 resource evaluation program at BKM, which continue to meet or exceed our expectations. All holes drilled thus far have intersected good widths of near surface copper mineralization amenable to open pit mining. The deposit continues to grow in size and good internal continuity is being confirmed. Operationally the field teams are doing an exceptional job with the program running smoothly and safely, to time and budget. We look forward to keeping all our stakeholders fully informed as this exciting project is advanced through the various stages of evaluation"

Editing by Johannes Simbolon