Kalimantan Gold to spend $16.2m for KSK this year

By Peni Pedriawan

Calgary-based Kalimantan Gold Corporation recently announced on Tuesday that it has received notification from Surya Kencana LLC that the latter has elected to continue to sole fund all remaining exploration and feasibility study expenditure under the PT Kalimantan Surya Kencana (KSK) Agreement, previously reaching $7 million by early October 2012. Kalimantan Gold said in a quarterly report that a substantial drilling and exploration project at the KSK CoW of up to $16,200,000 for 2013 is underway.

"Exploration activities at the KSK CoW have recently been focusing on delineation drilling and deep drilling at Beruang Kanan, deep drilling at Beruang Tengah, as well as reconnaissance mapping & sampling and prospect evaluations throughout the permitted area to further prioritize the drill targets," the company said.

Resource delineation drilling at the Beruang Kanan copper prospect is underway with two rigs active since mid-2012. A third larger capacity rig is currently testing deeper levels of the Beruang Tengah porphyry Cu-Au-Mo system. A team of geologists are evaluating eight of 16 known prospects throughout the CoW, identifying several new prospects and upgraded some existing prospects to drill ready targets.

By mid February 2013 a total of 15,108m of drilling had been completed, in which the current drilling production rate is approximately 2,500m per month. The company also stated that a fixed wing airborne gravity and magnetic survey is also planned for early 2013 over the entire KSK CoW area.

Editing by Er Audy Zandri