Kalimantan Gold in coal asset sale, copper JV talks

Vancouver-based junior coal, mineral exploration firm Kalimantan Gold Corporation Limited reported on Thursday that plans to sell its coal concession and to search for JV partner to copper project-both are located in Kalimantan- are ongoing.

The company said three companies have signed confidentiality agreement and are now undertaking detailed review for its PT Indobara Pratama coal concession.

?Negotiations on a sale agreement with one of these parties are at an advanced stage and the Company is continuing to receive expressions of interest in the project,? it said.

The Company also reported that three more mining companies have signed confidentiality agreements and are proceeding with desk and field due diligence on PT Kalimantan Surya Kencana copper project.

One company that made a site earlier in the year is scheduled to return for further investigation and joint venture discussions, it added.

?The current strong interest being shown in KSK results from a study, reported 11 November 2009 in NR 2009-9, in which advanced inversion technology identified massive magnetic bodies below drilling to date, confirming KSK prospectively for major copper porphyry deposits.?

Kalimantan Gold is a junior exploration company listed on both the TSX Venture Exchange in Canada and on the London AIM market. The Company is active in Indonesia where it has three areas of interest: the Jelai epithermal gold prospect in East Kalimantan; coal opportunities (IBP), also in East Kalimantan and a Contract of Work in Central Kalimantan with multiple porphyry copper and gold prospects.(alex)