Release: Kalimantan Gold: Reports on two more coal concessions
Friday, May 30 2008 - 01:13 AM WIB
The KP held by PT Anggek Hitam Coalindo (the 'AHC KP') covers 6,066 hectares and is located 65 kilometres west of the Mahakam River, a major coal transportation river in East Kalimantan. The geology of the concession area comprises Warukin Formation sediments which is known to host thick seams of lower calorie coal in other parts of the Kutai Basin. Exploration during the due diligence period will include detailed mapping and drilling, including deeper stratigraphic drilling to fully test the potential of the coal-bearing stratigraphy within the concession. For development, the coal resources would need to be larger than similar deposits closer to the coast but the size of the concession gives it excellent potential for the discovery of such targets. In addition, the ideal deposit at such a location is a low stripping ratio, multiple seam deposit with shallow dipping seams.
The KP held by PT Tengin Sejahtera (the 'TS KP') covers 4,808 hectares and is located 25 kilometres along strike from the producing PT Multi Harapan Utama PKP2B concession area. The geology of the KP comprises Pulaubalang Formation sediments and it is also situated along strike from other known coal deposits and currently producing mines. The Pulaubalang Formation coal is considered good quality with a calorific value of between 6,000 to 6,500 kcal/kg. The area around the TS KP is well established as a mining centre and a number of options could be considered for development. Exploration during the due diligence period will include detailed mapping and drilling, including deeper stratigraphic drilling to fully test the potential of the coal-bearing stratigraphy.
The availability of the reports follows the announcement on April 21, 2008 that the Company had signed an Option Agreement to acquire a 75% stake in five KP's. To this end, the Company is working with the Indonesian consulting group PT GMT Indonesia, which is producing the reports as part of the first phase of a six month due diligence period. This involves gathering all the available technical data on each of the five KP's to identify the next work stage, the goal being to identify the potential for minable coal deposits on each of the KP's held under option.
Qualified Person
All data, as disclosed in this press release, has been verified by Brett Dennis Gunter, the Company's Qualified Person for the coal prospects and a principal of PT GMT. Mr. Gunter, who acts as a technical consultant to the Company, is a geologist with over 18 years experience in exploration and mining and has more than 12 years experience in Indonesia in various commodities, including coal. He is a member of the AusIMM.
About Kalimantan Gold
Kalimantan Gold Corporation Limited is a junior exploration company listed on both the TSX Venture Exchange in Canada and on AIM. The company is focused on gold, copper and coal prospects in Indonesia and has exploration rights in three areas: the five coal prospects discussed in this press release, the Jelai epithermal gold prospects in East Kalimantan and the porphyry copper and gold prospects in Central Kalimantan. (end of edited release)