VANCOUVER, British Columbia--(BUSINESS WIRE)--
Kalimantan’s First Quarter Results 2014
The unaudited Interim Consolidated Financial Statements and the management discussion and analysis (the “MD&A”) of Kalimantan Gold Corporation Limited (the “Company”) for the first quarter ended March 31, 2014, are available for viewing on www.sedar.com and www.kalimantan.com.
The Company incurred a comprehensive loss for the three months ended March 31, 2014, of $178,652 (2013 – profit of $25,151).
The Company began the current fiscal quarter with $973,464 in cash. Operating activities contributed $37,399 in cash; investing activities contributed $144,056 in cash and include $271 recovered on sale of equipment, and received funding for reclamation of $120,000; and recorded $1,942 of unrealized foreign exchange loss on cash balances, to end the quarter with $1,156,861 in cash.
The highlights of the first quarter and up to May 29, 2014, include:
- Kalimantan Gold regained 100% Control of its' KSK CoW, and more importantly the Company's prospective Beruang Kanan Project (BKP);
- Activities during the quarter focused on data compilation, quality assurance and quality control and prospect evaluations. Much of the focus was on the four prospects located within BKP, namely BK Main (Cu-Ag), BK South (Cu-Au), BK West (Cu-Pb-Zn) and the most northerly BKZ Polymetallic (Pb-Zn-Ag-Au-Cu) prospect;
- Analysis of the final results of an airborne gravity survey over the KSK CoW has identified over 15 geophysical targets, of which 5 are considered high priority and are coincident with surface geochemical anomalies. The most prominent gravity target is at BKP, characterized by a 4.5km "banana shaped" gravity high that encompasses BK West (BKW) and BK Main (BKM). The soil anomaly at BKM is multi-element and measures approximately 1,200 metres north to south by up to 1000 metres east-west, and is characterized by strong copper values in soils of up to 1,380ppm;
- To date, drilling at BKM has confirmed high grade copper mineralization located on at least two different stratigraphic horizons, the first occurs at surface and dips shallowly eastward and the second occurs at 150m depth. Mineralization and alteration styles are typical of those associated with VHMS systems; however there are similarities to high sulphidation and "Manto-type" deposits. The system has not been closed off and remains open in all directions;
- BKP is now recognized as a new emerging copper district in central Kalimantan and BKM is considered the Company's most advanced-stage exploration project. More than 50% of the Stage 1 delineation drilling has been completed at BKM, and funds raised in 2014 will be used to finalize the stage 1 delineation drilling. Subject to funding, it is expected the Company will announce an initial National Instrument (NI) 43-101 compliant mineral resource estimate by Q1 2015;
- A desktop evaluation of the BKZ Polymetallic prospect (<800m from BKM) was also completed during the quarter. Although only three shallow holes were drilled, all intersected moderate to strong VHMS-style lead-zinc mineralization. The first hole (BKZ-1) intersected 16m @ 2.78%Pb, 5.75%Zn, 57.5g/t Ag, 0.64 g/t Au and 0.16% Cu, from 6m depth. A grid has been designed to cover the known BKZ Pb-Zn-Ag-Au-Cu showings, and grid soils will be collected at a spacing of 100m by 50m, covering an area of approximately 60 hectares. Kalimantan Gold plans to scout drill this area, in particular areas with strong lead-zinc soil anomalies, to test the overall potential; and
- Numerous discussions with both foreign and Indonesian companies are progressing positively, with site visits conducted on the Company's KSK and Jelai IUP projects to date.
3D inversion modeling of airborne gravity and magnetic data is expected to assist in defining the extent of the BKP VHMS-system and, combined with recent drilling results, will help Kalimantan Gold refine and focus future drilling programs.
Surya Kencana LLC, a wholly-owned subsidiary of Freeport-McMoRan Exploration Corporation funded over $35 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 CoW 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.
With regard to the Jelai IUP, the Company announced that the Indonesian Ministry of Forestry granted JCM an extension to its Borrow and Use Exploration Forestry Permit (IPPKH). The permit, which is renewable, extends the authorization for the Company to conduct exploration activities until December 16, 2015. It covers all the existing permitted areas, namely the Mewet and ten of the other 12 Jelai IUP prospects, comprising 4,675 hectares of the 5,000 hectare IUP.
The Company has been in discussions with a number of major mineral companies regarding a potential joint venture or similar arrangement in respect of Jelai IUP. These discussions are continuing and some site visits have already been undertaken.
The Qualified Person responsible for the technical content and verification in this news release is Dr. Peter Pollard, a consultant to the Company and the Company's Qualified Person.
Deputy Chairman and CEO, Kalimantan Gold
Mobile: +61 (0) 423 206 324
Director Corporate Development
Telephone: +44 (0) 2077311806
Mobile: +44 (0) 7717473168
VSA Capital Limited
Andrew Raca / Justin McKeegan
Telephone: +44 20 3005 5004 / +44 20 3005 5009
About Kalimantan Gold
Kalimantan Gold Corporation Limited is a junior exploration company listed on both the TSX Venture Exchange in Canada and on AIM in London. The Company has two exploration projects in Kalimantan, Indonesia: the Jelai epithermal gold project in East Kalimantan and the KSK Contract of Work in Central Kalimantan with potential for multiple porphyry copper and gold prospects. For further information please visit www.kalimantan.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.