Kalimantan Gold files technical report for Beruang Kanan prospect

By Romel S. Gurky

Kalimantan Gold Corporation Limited said on Wednesday it has filed a NI 43-101 compliant technical report supporting the independently estimated maiden resource for the Main Zone of the Beruang Kanan (BKM) prospect within the company's 100% held KSK Contract of Work (CoW) project, in Kalimantan as announced on Sept. 26, 2014.

As announced on September 26, 2014, the highlights of the estimate are:
? Inferred Resource of 47 million tons averaging 0.6% Cu or 621,700,000 pounds of copper (reporting cut 0.2% Cu).
? Mineral Resource estimate is only for the Main Zone, a portion of the Beruang Kanan mineralized area and is based on assays from 74 diamond drill core holes that were drilled from 1998 to 2007 and then from 2012 to 2013.
? The Mineral Resource is contained within a near-surface, shallow-dipping and strongly mineralized system, that extends over an area of 1000m (N-S) and 950m (E-W) with depth extents ranging from surface to between 100m and 450m (amended from 350m noted on Sep. 26, 2014 announcement) below surface (top to bottom). The mineralization remains open in several directions.
? Other priority targets in the BKM project area have been identified at Beruang Kanan South, Beruang Kanan West, Beruang Kanan Polymetallic North, Beruang Kanan Polymetallic South and the Low Zone prospects; each within 1.5km of the BKM Inferred Mineral Resource.

The report is titled "Beruang Kanan Main Zone, Kalimantan Indonesia: 2014 Resource Estimate Report", prepared by Duncan Hackman of Hackman and Associates Pty. Ltd. with an effective date of September 30, 2014.

The holder of the KSK Contract of Work is PT Kalimantan Surya Kencana (KSK). The company holds 100% of the shares of Indokal Limited. KSK is owned 75% by Indokal and 25% by PT Pancaran Cahaya Kahayan (PCK). Indokal owns 100% of PCK.

The company said it is in discussions with the Government of Indonesia to amend the KSK CoW. The six points being discussed include, 1) royalties, 2) size of the CoW in Exploration vs. Production, 3) domestic processing, 4) divestment obligations, 5) State Revenues and 6) prioritize the use of local manpower and local products. Continued progress is being made and we are encouraged by our discussions with the Indonesian Government.

Editing by Johannes Simbolon