Kalimantan Gold to drill newly detected IP targets

Canadian junior mineral explorer Kalimantan Gold Corporation Limited said Thursday it had just completed an Induced Polarization (IP) survey over the majority of the 6 by 4 kilometre Baroi prospect in its Central Kalimantan copper-gold prospect begun in mid July.

Accoding to the company, a geochemical sampling team is now collecting 400 soil samples on 100 metre spacing at select locations along the IP grid that is expected to be finished in mid October.

The Company plans to raise up to C$1.5 million from the sale of up to 7,500,000 units at a price of $0.20 per Unit from a non-brokered private placement. To date the Company has subscriptions and funds in hand for C$1 million and meetings are currently underway with additional potential investors.

The company said contract deep drilling could commence as early as the first week of November. Two of the planned four deep holes will test IP anomalies in the Far Eastern Zone ("FEZ") of Baroi.

Kalimantan Gold Corporation Limited has a 75% interest in the 124,200 hectare KSK Contract of Work located in Central Kalimantan. Baroi is one of 38 prospects identified within the KSK CoW that is currently the main exploration focus of the Company.(alex)