Kalimantan Gold to enter fifth year of exploration period

By Romel S. Gurky

Toronto-listed mining firm Kalimantan Gold Corporation Limited (KLG) has received formal confirmation from the Ministry of Energy and Mineral Resources (MEMR) that its 100% owned KSK Contract of Work (COW) in Central Kalimantan, enters the fifth year of the Exploration Period immediately upon the Company receiving formal renewal of its forestry permit (IPPKH) from the Investment Coordinating Board (BKPM).

Renewal of the forestry permit which authorizes the company to carry out both surface and drilling activities over permitted areas of the COW for a period of two years is now well advanced, the firm said in a statement on Wednesday.

Both the MEMR and the Ministry of Environment and Forestry (MEF) have verbally informed the company that technical reviews have been completed and the permit application is now with BKPM for final processing. With a recently implemented One-Stop-Services policy, BKPM aims to simplify the licensing process and indicated commitment to providing fast service in order to create a competitive investment climate.

?The company congratulates BKPM on the initiative to simplify and expedite the permitting process,? the firm said.

Initial drilling aims to extend and upgrade confidence of the near surface higher grade areas of the BK Main Deposit and although the exploration camp remains under care and maintenance, field preparations including establishment of initial drill sites and the upgrading of camps, roads and access trails, can commence immediately upon receipt of the forestry permit. Initial drilling is planned on sites prepared during the 2012-2013 program using two drill rigs currently stored at the BK project camp. Planned drill holes are short and each is expected to be completed within 2-3 days. Initial assay results are anticipated approximately 1-2 weeks after drilling commences.

KLG is planning to rapidly advance the BK Main deposit through to scoping study stage over the course of 2015. An extensive program of resource infill and expansion drilling, metallurgical test work and mining studies is planned, subject to positive results and the availability of ongoing funding. Several nearby prospects, Beruang Kanan South (BKS), Beruang Kanan West (BKW) and Beruang Kanan Polymetallic (BKZ) have potential for additional mineralization and will be scout drill tested.

Following is the Beruang Kanan Project?s fact sheet:
? Initial Inferred Mineral Resource of 47 million tons averaging 0.6% Cu or 621,700,000 pounds of copper (reporting cut 0.2% Cu) including 12 million tons averaging 1% copper (reporting cut 0.7% Cu).
? Mineral Resource estimate is for the BK Main deposit only and is based on assays from 74 diamond drill core holes drilled between 1998 - 2007 and 2012 - 2013.
? The mineral resource is contained predominately within a shallow dipping deposit that extends from near surface to a depth of approximately 120 meters over an area of 1100m (N-S) by 950m (E-W) and remains open in several directions. The near surface nature and geometry of the deposit is expected to be highly favorable for shallow open pit mining.
? The BK Main deposit is a part of the broader Beruang Kanan Project that also includes high priority targets for additional mineralization at the BKS, BKW and BKZ prospects, each lying within 1.0km of BK Main

Editing by Johannes Simbolon