Kalimantan Gold secures forestry permit for exploration
Thursday, November 10 2011 - 04:07 PM WIB
The permit authorizes the company to conduct exploration activities over the Mewet and 10 other of the 12 Jelai Gold prospects, comprising 4,675 hectares of the 5,000 hectare IUP and is valid for two years. This fulfills the outstanding condition for the Company's Joint Venture agreement to take effect with Tigers Realm Minerals Pty Ltd, the company said.
As announced on February 15, 2011, pursuant to an option agreement Tigers Realm has the right to earn up to a 70% interest in the Jelai Gold project by meeting certain project expenditure obligations and completing a bankable feasibility study by June 2, 2015, the expiry of the IUP. Tigers Realm's proposed drill program expenditure is US$2m over the first 18 months with approximately 8,000m of drilling at the Mewet Prospect planned.
With the forestry permitting process now complete, camp construction will follow allowing exploration mapping and sampling to start in early December. A drill contractor has been selected and Tigers Realm expects to be drilling by mid-December. "Securing the forestry permit is a significant step for KGC and the Jelai project and this demonstrates KGC's understanding and ability to work within the Indonesian regulatory environment. It also demonstrates that Indonesia's new mining and forestry regulations work. KGC and Tigers Realm are excited to commence exploration at the Jelai Gold Project," said Faldi Ismail the KGC CEO.
The Mewet prospect is the company's flagship gold project. It has a total of 126 shallow diamond drill holes totaling approximately 14,000 meters. Grid soils, surface mapping and drilling confirmed more than 6km combined strike length of low sulphidation, vein-style, epithermal, gold-silver mineralization, comprising the Mewet, Sembawang, Lipan and Nyabi veins.(alex)