Kalimantan Gold, Oxiana team up to develop copper-gold project

Vancouver-based junior exploration firm Kalimantan Gold Corporation Limited announced Friday the signing of a Heads of Agreement with Australia's Oxiana Limited to advance exploration of Kalimantan's KSK Contract of Work (CoW) copper-gold porphyry prospects in Central Kalimantan.

Under the deal Oxiana will sole fund expenditure for a program of full data compilation, review, reprocessing and assessment followed by drill testing with an expenditure commitment of US$2.5 million.The program will be completed at the maximum time of 18 months.

After the Initial Period, Oxiana can elect to continue to sole fund the Joint Venture and will earn up to a total interest of 66.67% in the project.

Oxiana may withdraw at any time during the Sole Funding Period.

Oxiana will also complete Bankable Feasibility Study within 48 months.

Kalimantan holds exploration rights over a 941km2 area in Central Kalimantan which is governed by the KSK Contract of Work (CoW). Kalimantan

currently holds a 75% interest in the CoW, with the remaining 25% owned by a locally-based company.(alex)