Pelsart to commence exploration works in S. Kalimantan gold prospect

Australian mining firm Pelsart Resources said in a statement released Monday that exploration work in its South Kalimantan gold prospect was expected to commence ?soon?.

?Subject to the approval of various government permits, exploration activities programmed for phase 1 in Meratus contract of work (CoW) will include helicopter supported diamond drilling, geophysical (IP) survey, metallurgical and petrological work. It is hoped that works can commence soon,? said the company in a statement.

Pelsart Resources signed a farm-in and joint venture agreement with Southkal Resources, a wholly owned subsidiary of Placer Dome Inc of Canada concerning the Meratus and Kusan CoWs, both of which are located in South Kalimantan, on September 19, 2001. The agreement provides Southkal Resources (100 percent Placer Dome), an opportunity to earn a maximum of 60 percent interest in the project by funding all exploration works in the CoW and defining a sizeable and economically robust mineral deposit.

Pelsart however, said that there would be no immediate field exploration activities for Kusan CoW except for review of past and recent exploration results. (alex)