Kalimantan Gold commences drilling at Jelai Mewet prospect

Vancouver-based junior exploration firm Kalimantan Gold Corporation Limited (KGC) reported on Monday that it has commenced drilling at its Jelai Mewet gold prospect in East Kalimantan, where a 4000 meter drill program began on the 14th July and is scheduled to run for the next six months with the objective of identifying an initial gold resource.

As part of the program KGC is diamond drilling approximately 32 holes to further test the Mewet vein system which was previously explored by Indochina Goldfields (now Ivanhoe Mines).

The drill team at Jelai has begun operations using a man-portable diamond drill rig capable of depths to 80 meters to first intersect and identify the veins at shallow depths. A larger rig capable of 300 meters will then be used to explore the veins at greater depths with the objective of locating mineralized vein before infilling with series of deeper drill holes, the company said.

Meanwhile, the company also reported ?encouraging? early indications at KGC's Beruang copper gold prospect in Central Kalimantan where five drill holes to depths of between 300 and 600 meters have been completed as part of the Oxiana joint venture.

All holes to date have intersected variably altered and mineralized volcanic units with results from the first hole, KBK 21, reporting 44m at 0.6% copper (from 16.6 meters) and 41.7m at 0.5% copper (from 147 meters). At least three additional holes will be drilled in the current program at Beruang before moving to the Baroi and Mansur prospects where drill targets are being finalized. A total of 7000 meters of drilling is proposed within the current program, the company said. (alex)