Kalimantan Gold seeks new concessions in E. Kalimantan

Canadian mining firm Kalimantan Gold Corporation Limited said Thursday it had submitted two applications for survey permits or Surat Izin Prinsip Pertambangan (SIPP) covering additional mineral exploration prospects in Bulungan regency, East Kalimantan.

?The first SIPP application covers 13,870 hectares and includes the Jelai Mewet project and the second SIPP application covers 11,140 hectares and includes the Sekatak Bikis project,? Kalimantan Gold said.

The prospects had been explored by Ivanhoe Mines Ltd (formerly Indochina Goldfields' Ltd.) from 1993 to 2000 prior to exiting Indonesia to operate in Mongolia, Kalimantan Gold said.

?Once the SIPPs are formally granted and funding is in place, exploration will continue,? said Kalimantan Gold, adding that it will be required to undertake exploration programs at a budgeted cost of about US$40,000 for each SIPP over six months.

An SIPP is a survey permit allowing an applicant to conduct preliminary exploration activities for one year pending the granting of a Contract of Work (CoW).

Kalimantan Gold already has a 75 percent owned, 1,242 square kilometer concession area in Central Kalimantan, under a 6th generation CoW with the Government of Indonesia. (Robert)