Kalimantan Gold completes mapping and sampling Baroi prospect

Junior mining company Kalimantan Gold Corporation Limited said Wednesday it had completed a first-pass mapping and sampling program at its Baroi prospect in Kalimantan and has identified high grade copper-gold and base metal mineralization over a large area covering 26 square kilometers.

The company said one brecciated tuffaceous rock sample returned assays of 16.4 percent copper, 17.8 grams of per tonne (gpt) gold and 460 gpt silver, while a 3 meter channel sample of a similar outcrop 2.5 kilometers to the east returned assays of 1.42 percent copper, 6.53 percent lead, 11.2 percent zinc, 120 gpt silver and 1.16 gpt gold.

The rocks exhibit a distinct porphyry signature with gradational variations of metal content in the system. Management believes that the potential for high-grade gold deposits may exist at the higher levels of the Baroi copper gold porphyry system.

The Baroi prospect is located in the southwest portion of the Contract area. As observed from satellite imagery, the prospect is in a distinctive circular feature having a diameter of 8 kilometers. The area is thickly vegetated and the rugged, hilly topography ranges in elevation from 300 to 1,000 meters above sea level. The recent completion of logging roads now provides easier access into this area.

Upcoming Programs

The exploration at Baroi is now focused on:

* Channel sampling of the central gold-copper-silver zone where high-grade mineralization is associated with several siliceous ledges.

* Channel sampling of 6 high-grade base metal-gold zones on the eastern side of the mineralized area. These zones range between 2 and 120 meters in width and have been observed over 600 meters in length.

* Geological mapping of the areas not yet investigated.

* Establishing a survey grid along a 7 kilometer long E-W baseline, with 4 kilometer N-S cross-lines at 200 meter intervals. This grid will be utilized for geochemical soil sampling and a geophysical survey in the near future.

* Quickly defining drill targets.

* Establishing a base camp and several fly-in camps throughout the mineralized area, to allow exploration in the more remote parts of the prospect.

Financing

Proceeds from the Company's private placement, which was announced on January 8, 2003, will be used to finance the continuing exploration programs in Kalimantan as well as for working capital. Exploration is presently ongoing on the Mansur, Focus 1 and Baroi prospects

Kalimantan Gold has a 75 percent owned, 1,242 square kilometer concession area in Central Kalimantan, held under a 6th. generation Contract of Work with the Government of Indonesia. (alex)