Kalimantan Gold resumes C. Kalimantan copper-gold exploration

Copper and gold explorer Kalimantan Gold Corporation Limited announced on Tuesday that it had resumed exploration for copper and gold on its Contract of Work (the "CoW") located in central Kalimantan.

The company said the first priority going forward was to further drill the highly prospective medium-depth Mansur copper/gold prospect. The objective of the phased exploration program is to intersect greater than 1 percent high-grade equivalent copper gold porphyry mineralisation over intersections of greater than 100 meters in one or more drill holes.

According to the company, phase one of the program will consist of detailed mapping and sampling of the proposed drill area, which should be complete in mid to late September. A decision to drill will be dependent on positive results of this first phase and the Company's ability to finance the program.

The Mansur Prospect was discovered in 1984 by exploration teams following up on large amounts of alluvial gold in the rivers draining the area.

Prospecting and mapping is also in progress in progress at West Lakapoi, a 10 kilometer jungle trail away from the Mansur prospect, in search of gold mineralisation within an untested 3,000 by 1,500 meter anomalous alluvial gold target area, said the company.

According to the company, a major mining company had visited the CoW in April 2002 and since then has expressed strong interest in making a substantial investment in Kalimantan Gold as a step towards a joint venture on the CoW. Over the last few months it had conducted technical due diligence on the Kalimantan Gold projects.

?Kalimantan Gold hopes to complete and have the results of the Mansur/Lakapoi programs in hand before negotiating and concluding a joint venture with this or any other major mining company to continue exploration on the CoW,? said the company. (alex)