Kalimantan Gold intercepts more high-grade gold at Jelai Project

Vancouver-based junior exploration firm Kalimantan Gold reported that ongoing resource definition drilling from the Jelai Gold Project in East Kalimantan continued to suggest the project has the potential to be a high grade gold-silver mine.

The company announced on Monday announced results from a further four drill holes, which included a 6-metres grading 15.84 grams per tonne gold and 81 grams per tonne silver from the Mewet Vein. This included a bonanza intercept of 0.75 metres grading 62 grams per tonne gold and 256 grams per tonne silver.

Kalimantan Gold has completed almost 6,500 metres of diamond drilling at Jelai in the last year, and is planning to announce a maiden resource estimate before the end of 2008. The company is currently drilling ahead with a dual strategy; two rigs are focusing on shallow targets while two further rigs test for mineralisation at depth. The company is currently focused on the Mewet and Central Sembawang Veins.

Rahman Connelly, CEO commented, "This aggressive step-out and infill drilling not only confirms the strength and continuity of gold mineralization along trend in the Mewet vein but extends the drill indicated strike length by 130 meters. The Mewet gold vein system remains open to the north, south and at depth. The latest drill results have returned some exceptionally high grades, notably hole number JCM-69, which included gold assays up to 0.75 m @ 62.3 g/t Au and 256 g/t Ag."(alex)