Kalimantan Gold - KSK Copper Project Update
VANCOUVER, British Columbia--(BUSINESS WIRE)--Kalimantan Gold Corporation Limited (TSX-V:KLG) (LSE:KLG) is pleased to announce the latest drill and assay results from holes drilled at the Beruang Kanan, Mamuring, Low Zone and Bukit Dea projects together with the commencement of an airborne magnetic and gravity gradiometer survey.
- High grade copper at Beruang Kanan. Definition drilling continues to intersect significant copper mineralization at the Beruang Kanan Prospect, including:
BK057-01 returned 60.50 meters @ 0.65% Cu, from 7.7 meters
- Including 22.5 meters @ 1.27% Cu, from 7.7 meters
BK058-01 returned 64.9 meters @ 1.24% Cu, from 2.30 meters
- Including 33 meters @ 2.29% Cu, from 11.7 meters
Including 9 meters @ 7.35% Cu, from 11.7 meters
BK058 @ 107.70m showing high grade chalcopyrite mineralization: http://www.usetdas.com/pr/BK058a.jpg
BK58 @20m semi-massive chalcopyrite and covellite mineralization: http://www.usetdas.com/pr/BK058b.jpg
- Deep drilling is ongoing at the Tumbang Huoi and Baroi prospects
- Commencement of a 5000 km airborne gravity gradiometer and magnetic survey
Two of the recently completed Beruang Kanan holes (BK057 & BK058) focused on the area where BK5 was drilled, an historic KLG drill hole. BK5 intersected a zone of chalcopyrite-dominated copper mineralization previously reported at 102m @ 0.62% Cu (from 3m depth) and including 63m @ 0.75% Cu. The recently completed BK057 & BK058 holes also intersected near-surface copper mineralization defining a zone of shallow dipping (15 degrees) copper mineralization extending for at least 220m east of BK5, and open in all directions. Final assay results completed for the definition drilling at Beruang Kanan since our announcement on 10 June 2013 are tabled below.
Beruang Kanan Prospect (based on a 0.1% cutoff)
|Hole locations are indicated on the map further below. True thicknesses of intercepts cannot be determined. *NSA – no significant assays|
This extension of the copper sulfide mineralization at Beruang Kanan supports the current exploration model of the Beruang Kanan prospect as a VHMS system. Detailed drilling indicates that the semi-massive, vein- and breccia-hosted, disseminated and stockwork VHMS-style copper mineralization has a strike length of at least 900m (N-S dimension), is laterally extensive for 100m to 235m and is up to 80m thick.
The extension of mineralization intersected in BK5, located on a E-W section 250m south of the area of detailed drilling, indicates that copper mineralization continues to the south of the area of detailed drilling.
Beruang Kanan Drill Program: http://www.usetdas.com/pr/beruangkanan.jpg
A deep diamond drill hole (MRD02-01) at Mamuring prospect intersected deep-seated gold mineralization associated with late quartz – pyrite veins. Significant assays are tabled below:
|Mamuring Deep Drilling (based on a 0.1g/t cutoff)|
True thicknesses of intercepts cannot be determined.
At Low Zone, two 600 meter holes (LZ01-01 and LZ02-0) targeting IP and soil geochemical anomalies respectively have been completed. Both holes intercepted abundant pyrite mineralization hosted within a sequence of interbedded volcanic and sedimentary rocks. No significant copper or gold assays to report.
A single drill hole completed at the Bukit Dea prospect returned narrow zones of elevated gold geochemistry. KLG is currently evaluating surface data and drilling results to determine if the hole actually pierced the zone of high-grade gold mineralization that was defined by surface rock chip sampling.
Baroi & Tumbang Huoi
Drilling is now well underway at the Baroi and Tumbang Huoi prospects. At Baroi one deep hole BRD01-01 and one shallow hole BB08-01 have been completed. Drill hole BF51-01 targeting 600 meters is in progress, meanwhile at Tumbang Huoi one deep hole and one shallow hole have been completed, with results pending.
The drilling program at KSK CoW will be suspended after the current drill holes are completed. Currently a Bell Geospace DC3 aircraft is conducting an airborne gravity gradiometer and magnetic survey. The survey will cover the entire KSK CoW and will be flown at 200 meter line spacings, with 100 meter in-fill lines over KLG’s priority prospects. The survey is expected to take 4-6 weeks to complete and results will be used to optimize drill plans and identify additional exploration targets.
The 3D inversion modeling of airborne gravity and magnetic data is expected to assist in defining the Beruang Kanan VHMS-system and, combined with recent drilling results, will help KLG refine and focus the future drilling program.
During this period field mapping and sampling programs will continue at Mansur, Baroi and Tumbang Huoi prospects, and the senior geology team will also focus on compilation and evaluation of the enormous amount of data collected over the past 15 months. In addition, a Resistivity / IP survey (using a down-hole radial electrode array) will be conducted in several of the deep holes at Beruang Kanan and Beruang Tengah.
Over the next several months we will focus on re-logging campaigns of drill core in the framework of our expanded understanding of the district geology that was derived from the past 15 months of intensive effort. This pause in drilling activity will allow KLG’s 16 geologists time to evaluate the down hole IP survey and gravity survey results. Once the new data is processed it will allow KLG to refocus the next phase of exploration efforts in the CoW.
Our 2013 exploration program budget of $16.2m announced in the Feb 19, 2013 press release will be maintained or exceeded.
Faldi Ismail, KLG’s Chief Operating Officer stated: "We are extremely pleased with the BK057 and BK058 drill results, which confirm the presence of additional copper zones at the Beruang Kanan project area. We need this breather to properly analyze and interpret the enormous data set we have collected over the past 15 months to ensure every hole we drill is well placed. The next phase of drilling, in addition to our other main porphyry target areas, will include focusing on expanding the BK5 zone at Beruang Kanan and will continue to extend the broader zone of disseminated and vein hosted copper mineralization to the north, south and west.”
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 acts as a technical consultant and non executive chairman to KLG and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person under the JORC Code.
For further information please contact:
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
Katrina Damouni/ Peter Damouni
Telephone: +44 20 3005 5005/ +44 20 3005 5007
KLG's Nominated Adviser
RFC Ambrian Limited
Telephone: +61 8 9480 2506
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: 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.