Kalimantan Gold copper and coal project updates
Wednesday, July 13 2011 - 07:41 AM WIB
KSK Joint Venture with Freeport
As announced on April 19, 2011, Kalimantan Gold Corporation Limited (the "Company") entered into a joint venture agreement with a wholly owned subsidiary of Freeport-McMoRan Exploration Corporation in relation to the Company's KSK Contract of Work copper project in Kalimantan, Indonesia.
The Company is operator and Freeport is funding the KSK joint venture. Extensive preparations are now complete to commence drilling once the necessary forestry permits are issued. The Company has submitted all the required documentation to apply for these permits which are expected to be issued shortly.
The Company intends to begin the program with shallow and deep drilling at Beruang. Field operations and mobilization of drill rigs will start immediately the forestry permits are issued.
PT Indobara Pratama ("PT IBP")
The Directors have been reviewing the allocation of resources following the recently announced joint ventures on its copper and gold prospects.
As shareholders will be aware, the Company was acting as a selling agent for the shareholders of IBP. Despite approaching numerous parties and entering into detailed negotiations with a large number of potential purchasers over the past 2 years, it has not been possible to conclude a sale of PT IBP on terms satisfactory to the owners of PT IBP.
In view of this, the Directors have decided to concentrate its much needed resources on the copper and gold projects. The Company will continue to seek, evaluate and identify new coal opportunities as and when they arise.(ends)