Kalimantan Gold completes drilling program

Kalimantan Gold Corporation Limited has completed a 9 hole-drilling program totaling 1918 meters, between March and August 2001, at the company's Beruang Kanan Prospect located in Central Kalimantan.

The company announced on Wednesday that results have successfully extended the previously identified mineralized structure within the Main North and Central Zones from 800 by 300 meters to 1.3 kilometers by 300 meters.

The main goals of the modified drill program were achieved, which in brief are:

(1) Extended the zone of subsurface mineralization associated with a 1.5 by 1 kilometer copper, molybdenum, and gold geochemical anomaly within the Main North and Central Zones. (2) Identified the likely porphyry copper source of this wide spread mineralization contained within this complex geological and structural setting. (3) Verified the Induced Polarization (``IP'') geophysical model for the Beruang Kanan Prospect.

Initially, the program was designed to drill 6 holes over the greater 2.5 kilometer strike length on the Main Zone mineralization. Subsequently, the programme was modified once IP geophysical data had been interpreted and the results of the initial drill holes were to hand. Drilling of the South Polymetallic Zone and the South Main Zone will be done in future programmes.

Utilizing the Company's man-portable diamond drill rig, capable of depths to 280 meter in BQ size, holes were drilled greater than 200 meters apart, with the exception of several holes which were 100 meters apart.

Select mineralized core was sawn in half on site and sent as 3 meter samples to the IndoAssay Laboratory in Balikpapan, East Kalimantan. (*)