Kalimantan Gold, Oxiana commence drilling program in C. Kalimantan copper-gold project

Vancouver-based explorer mineral firm Kalimantan Gold Corporation Limited (KGC) said that it started drilling operations with its funding partner Australia's firm Oxiana Ltd. at KGC’s 941 km2 Contract of Work (CoW) copper-gold porphyry prospects in Central Kalimantan.

 

The first phase of the drilling program takes place at the Beruang Kanan prospect with three drills testing to varying depths over a 3.5 kilometre strike length and then it is scheduled to move on to Mansur and Baroi, two other major targets on the property, KGC said in statement Monday.

 

“We are working closely with Oxiana who have targeted up to 4,500 meters of drilling for the first phase which shouldn’t take more than two months,” KGC’s Vice President Exploration and geologist on the ground Mansur Geiger said.

 

Under an Option Deed signed in December 2006, Oxiana is committed to spending US$2.5 million on data compilation and drilling over a 12-18 month period. Oxiana will then have the option of earning a 40 percent stake by the completion of a pre-feasibility study and a 66.67 percent stake by the completion of a bankable feasibility study. By this time it will have spent an estimated US$37.5 million. (denny)