Release: Kalimantan Gold Corporation Limited: Status Report
Wednesday, March 17 2010 - 11:07 AM WIB
The IBP Coal Project
On 3 December, 2009 the Company announced that it had entered into an exclusive due diligence period with Daun Consulting Limited ("DCL") to purchase the coal concession of PT Indobara Pratama ("IBP"). As a result of DCL's failure to place a US$1 million deposit into escrow as required by the agreement, the exclusive period has now expired.
Despite this, the Directors are pleased to be able to confirm that the Company has recently been approached by three parties interested in acquiring the coal concession of IBP, two of whom have now submitted formal expressions of interest. The Directors remain confident that a sale of the coal concession of IBP can be completed on terms satisfactory to the shareholders of IBP and the Company.
IBP is already permitted for production and has the potential to be an open-cut coal mine. KLG completed a 4600m drilling programme on the concession that indicates a potential deposit of 270 MTs of between 4,894 and 5,376 kcal/kg coal (air dried basis), with low ash and low sulfur content (see KLG press release dated March 26, 2009).
KSK CoW Copper Concession
Following the announcement on 11 November, 2009 of the results of the advanced "inversion" processing on the KSK CoW, the Company has been approached by three major mining companies. None of these companies had previously been aware of the KSK CoW copper project. Each of these major mining companies has since undertaken extensive data reviews and site visits and two remain in discussions with the Company. The Directors are hopeful that an agreement can be reached that will see extensive drilling of the massive magnetic bodies identified below existing drill holes, which have the potential to yield major porphyry copper deposits.
In conjunction with these discussions, the Directors are also considering the possibility of attracting minority investment at the project level to fund the drilling of up to four priority targets identified by the "inversion" study, thereby enabling the Company to retain control of the project at this stage.
About Kalimantan Gold
Kalimantan Gold is a junior exploration company listed on both the TSX Venture Exchange in Canada and on the London AIM market. The Company is active in Indonesia where it has three areas of interest: the Jelai epithermal gold prospect in East Kalimantan; coal opportunities, also in East Kalimantan and a Contract of Work in Central Kalimantan with multiple porphyry copper and gold prospects.(end of release)