Kalimantan Gold says to drill advanced gold project

Vancouver-based junior explorer Kalimantan Gold Corporation Limited announced on Monday the plan to further evaluate the Jelai vein system with a systematic drilling program towards resource definition.

The Jelai prospect is located in North East Kalimantan. The prospect was explored by Indochina Goldfields Limited (ICG) (now Ivanhoe Mines Ltd.) from 1993 to 2000.

Previous drilling by ICG at Jelai has confirmed the presence of high-grade gold mineralization, the company said.

"The Company believes that Jelai has the potential to yield a major epithermal gold-silver deposit. We consider the Jelai to be one of the most advanced gold properties in Indonesia." the company said.

The company said it was planning the Jelai exploration program developed a budget of US$1 million to include 4,000 metres of drilling.

The company said On March 29, 2006 that it, through a newly incorporated 100% owned domestic Indonesian subsidiary, has applied for and been granted an exploration permit to conduct surface exploration including taking samples over the Jelai vein system before deciding on the total size of the area needed prior to requesting the issue of a mining permit.(alex)