Kalimantan Gold to raise funds for drilling campaign at Baroi prospect

Vancouver-based mining company Kalimantan Gold Corporation Limited said Tuesday it planned to raise up to US$830,000 from a non-brokered private placement financing to fund deep drilling campaign at the Baroi prospect in Central Kalimantan.

Kalimantan Gold said all of the holes in the just completed Baroi Far East Zone (FEZ) drill series targeted different potential porphyry intrusions; however, it has become increasingly evident that its drill rig is not capable of reaching the depth necessary to intercept the targets.

According to Kalimantan Gold, a deep hole drill program has been designed for the FEZ utilizing a drilling contractor whose drill rig is capable of drilling to depths of 600 meters, however, the FEZ is only a fraction of the total 6 by 4 kilometer Greater Baroi area.

?Before deep drilling commences in the FEZ an Induced Polarization (IP) and geochemical survey is planned for the Greater Baroi area to ensure the greatest chance of success on intercepting a porphyry intrusion with drilling,? Kalimantan Gold said.

Kalimantan Gold also said it will resume exploration on well defined targets in Beruang prospects, as logging companies return to the area and reopen roads.

The Beruangs cover an area of 16 square kilometers and only 5 percent of it has been drill tested. Kalimantan Gold has not visited the area since 2000.

Kalimantan Gold further said it would bring the prospects to the attention of major mining companies seeking to enter into a joint venture.

Kalimantan Gold has a 75 percent interest in a 124,200 hectare Contract of Work located in Central Kalimantan. Baroi, the Beruangs and Liang Bulau are all prospects identified within the CoW and are currently the main exploration focus of the company. (Robert)