Kalimantan Gold partially completes coal due diligence

Vancouver-based junior exploration firm Kalimantan Gold Corporation Limited (KGC) announced on Thursday that it has completed the first step in the due diligence process on each of the five mining licenses (KPs) to identify the next work stage.

PT GMT Indonesia, an Indonesia based consulting group has delivered the first two reports prepared for the Company on two of the KP's and is expected to deliver reports for the other three KP's in short order, the company said.

The KP held by PT Central Indo Coal (CIC) covers 5,000 hectares and is located immediately along strike from the producing PT Multi Harapan Utama (MHU) concession area. Exploration during the due diligence period will include detailed mapping and drilling, including deeper stratigraphic drilling to determine the coal-bearing stratigraphy.

The other KP held by PT Citra Saga Utama (CSU) covers 15,090 hectares and is located approximately 60 kilometres inland from the east coast of Kalimantan. Field investigations thus far have mapped a series of coal seams, 7 in all, up to 5 metres in thickness, it said. The coal has good heating value, averaging 5,600 kcal/kg based on sampling to date. The CSU is located within a reasonable haulage distance of proposed port facilities and there remains significant upside along the strike of the coal seams currently known.

The company has option to buy 75 percent stake at the five coal prospects. (denny)