Kalimantan Gold files NI43-101 report for Jelai Project

By Ruli Setiawan

Vancouver-based firm Kalimantan Gold Corporation Limited (KLG) announced on Wednesday the filing of a NI43-101 Technical Report which confirms the potential for a gold mineral resource to be defined and ultimately developed at KLG's 100 percent held Jelai Gold Project in North Kalimantan.

The report, titled "NI43-101 Technical Report on the Jelai Gold Project, North Kalimantan, Indonesia", was prepared by Dr. Steve Garwin and Dr. Noel White, a world authority on epithermal gold systems.

As set out in the Technical Report, the Project consists of low-sulfidation epithermal gold-silver mineralization hosted by the northerly-striking and steeply west-dipping, Mewet, Sembawang, Lipan and Nyabi vein systems. Ore-shoots are formed in these veins where intersected by secondary veins that strike northeasterly and dip steeply towards the northwest. Some of the ore-shoots are open at depth. A total of 140 diamond drill-holes for a total of 16,813 m have been completed in three drill-campaigns from 1997 to 2012.

Mewet Vein
? Shows the most promise with a > 400 m long by 200 m high zone at > 1 g/t Au.
? Best gold result to date is 6.9 m at 24.7 g/t (down-hole length).
? Vein true-width averages about 3 m, with local widths that range up to 10 m.

Sembawang Vein
? The Sembawang vein contains two ore-shoots that are 200 m long by 75 m high at > 1 g/t Au.
? Best gold results are 1.2 m at 17.3 g/t Au and 4 m at 13.3 g/t Au (down-hole lengths).
? Vein true-width averages about 2 m and ranges up to 6 m.

Lipan Vein
? The Lipan vein contains one major ore-shoot that is 100 m long by 50 m high at > 1 g/t Au.
? The best gold assay is 1.4 m at 15.4 g/t Au (down-hole length).
? The true width of the vein averages about 2 m, with local widths that range up to 6 m.

Eight drill targets are proposed by the authors for partially- to completely-concealed high-grade vein segments. These targets are delineated by the intersection of northerly- and northeasterly-trending lineaments drawn to coincide with known vein-trends, intrusive contacts, breaks in topographic slope and magnetic gradients. The targets typically, but do not always, coincide spatially with anomalous gold and arsenic in soil and surface rock-chip samples.

Recommendations of the Technical report
? The Technical report authors recommend that the Company should complete gold resource calculations for Mewet, Sembawang and Lipan vein systems that are NI 43-101 compliant. If the grade-tonnage characteristics of the gold resources justify, then a scoping study for development and mining should be initiated.
? It is the authors' opinion that the location of the veins and the relationship to local topography favor open-pit mining of the Sembawang and Lipan veins and under-ground exploitation of the Mewet vein.
? Assuming a favorable outcome to the economic studies, the authors recommend that future exploration should focus on expanding ore-shoots in the three known vein systems.
? A total of nine diamond drill-holes for 2000 m are recommended to test the depth-potential of existing ore-shoots in major vein systems. The eight targets with the potential to host concealed vein segments should be drill-tested by inclined diamond holes to depths of about 150 m beneath surface. The initial drill program should include a minimum of three holes in each of the targets for a total of 24 holes and 3200 m.
? The company should consider the use of CSAMT (Controlled Source Audio-frequency Magneto-Tellurics) to better define vein structures and assist with drill targeting over the main vein systems in the Mewet drill area (1800 m by 1200 m).
? The exploration of Batikebang - Mangkulit epithermal vein prospects should be advanced by infill grid soil-sampling to cover an aggregate strike-length of about 2 km using a composite sample technique.
? Soil samples should be collected from the B- or C-horizons about every 8 m along lines spaced 50 m apart using a compositing technique. A total of 500 soil samples are recommended over an aggregate area of 2000 m by 300 m. The soil samples should be analyzed using the multi-element ICP assay technique. Anomalous results should be followed-up with hand-trenching and drilling to depths of up to 150 m beneath surface.
? The potential of epithermal vein-breccia bodies in the Mipi, Inyang and Dokot prospects should be investigated. Geological mapping (about 1:2000 scale) and geochemical rock sampling is recommended over the areas of existing gold-arsenic soil anomalies. Anomalous results should be followed-up by hand-trenching and drilling, if warranted.

"The Company is seeking a partner to continue exploration on the Jelai project and this Technical Report confirms the Project's potential" stated Faldi Ismail, Deputy Chairman and CEO of the company.

Editing by Johannes Simbolon