Press release: Kalimantan Gold private placement closed, drill program on schedule
Thursday, May 17 2001 - 04:30 AM WIB
Junior mineral explorer listed in Canadian Venture Exchange Kalimantan Gold Corporation Limited today closed the non-brokered private placement financing announced April 4, 2001 for proceeds of US$200,000.
The company issued 1,000,000 common shares and 500,000 share purchase warrants entitling the holder(s) to purchase one common share at an exercise price of US$0.20 until May 15, 2002.
The common shares issued and any common shares issued pursuant to the exercise of the share purchase warrants are subject to a hold period until September 15, 2001.
The Company is currently drilling the fourth of what is now a six hole, diamond drill program that began on March 13, 2001. The objective of the program is to add exploration value to the Beruang Kanan porphyry copper target in Kalimantan.
Four holes will attempt to extend the Beruang Kanan Main Zone beyond the known mineralization of the 800 meters positively tested in 1998.
Two holes will attempt to identify the potential primary source of copper porphyry mineralization within the adjoining West Leach Cap Zone and to test the validity of the existing Induced Polarization (IP) geophysical model. Results of the program will be released when drilling is complete and all assays have been received.
A geophysical contractor has now completed a 55-line kilometer IP geophysical program covering an area of 25 square kilometres begun on March 6th, 2001 and results are now being compiled and analyzed. Results of the IP program together with the ongoing geological mapping program will be used to identify additional new drill targets in the Central and South Main Zones, the West Leached Cap Zone and the West Zone.
Contact: Kalimantan Gold Corporation Limited, Doris Meyer, (604) 516-0566, (604) 516-0568. (*)