Jan 2 2014
Kalimantan Gold Corporation Limited (the “Company”) has been delivered notice of intention to cease sole funding and to withdraw from the joint venture agreement made April 18, 2011 by its joint venture partner, Surya Kencana LLC, a wholly owned subsidiary of Freeport-McMoRan Exploration Corporation (“Freeport”), in relation to the Company’s KSK Contract of Work copper project (the “KSK CoW”) in Kalimantan, Indonesia.
The effective date of the withdrawal will be January 31, 2014 after which time Freeport will forfeit its interest in the KSK CoW to the Company and deliver to the Company any mining information held by Freeport regarding the KSK CoW that is not already in possession of the Company.
It is important to understand that the decision to withdraw from the project was not based on the geological prospectivity of the project.
A number of Indonesian groups expressed interest in the KSK CoW during 2013. The Board will now make contact with these parties and others to discuss possible partnerships and ways forward.
Freeport funded over $33 million of exploration expenditures since April 2011 on the KSK CoW, leaving the Company with a wealth of exploration data and multiple drill targets. During their involvement, over 30,000m of drilling was completed, over 28,000 samples were analyzed, 4,762 line kilometers of airborne geophysical surveys were completed, and 24,363 ha of the KSK was covered with a high resolution Lidar imaging survey. A drill plan had been prepared to expand the identified zone of mineralization at Beruang Kanan where the two most recent drill holes, BK57 and BK58, both intersected significant mineralization (refer Press Release dated 22 August 2013).
Since September 2013, data compilation, resampling of historical core samples, petrographic studies, age dating and follow-up mapping and sampling at Mansur, Baroi, and Tumbang Huoi has identified several well defined deep potential copper porphyry drill targets.
Faldi Ismail, CEO, commented, “Freeport has been a magnificent joint venture partner which has hugely developed our understanding and significantly enhanced the prospectivity of the KSK CoW. We remain optimistic that a new partner will be found to complete the project and will shortly recommence discussions with those interested parties."
All data, as disclosed in this press release, has been reviewed and verified by the Company's Qualified Person for the KSK project, Dr. Peter Pollard, who is a Member of the Australasian Institute of Mining and Metallurgy (Chartered Professional). Dr Pollard is a director and the Chairman of KLG. He acts as a technical consultant to KLG and has sufficient experience which is relevant to the style of mineralization and types of deposits under consideration and to the activity he is undertaking to qualify as a Qualified Person under NI43-101.
For further information please contact:
Faldi Ismail
Deputy Chairman and CEO, Kalimantan Gold
Mobile: +61 (0) 423 206 324
Email: [email protected]
Gerald Cheyne
Director Corporate Development
Telephone: +44 (0) 2077311806
Mobile: +44 (0) 7717473168
Email: [email protected]
VSA Capital Limited
Andrew Raca / Justin McKeegan
Telephone: +44 20 3005 5004 / +44 20 3005 5009
Email: [email protected]
KLG's Nominated Adviser
RFC Ambrian Limited
Stuart Laing
Telephone: +61 8 9480 2506
Email: [email protected]
Source: http://www.kalimantan.com/