Kalimantan Gold Corporation Limited

Kalimantan Gold Corporation Limited

January 28, 2008 02:00 ET

Kalimantan Gold Corporation Limited: Pollard Report Highlights Untested Potential at KSK Copper Gold Prospect

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 28, 2008) - The "untested potential" in several areas of Kalimantan Gold Corporation's (TSX VENTURE:KLG)(AIM:KLG) KSK copper gold concession in Central Kalimantan, Indonesia has been confirmed in a report by leading copper specialist Dr Peter Pollard.

Dr Pollard was asked to produce an independent report on the KSK Contract of Work following a decision by Oxiana Ltd in December 2007 not to exercise its joint venture Option at KSK. Oxiana had previously spent US$2.5 million drilling 16 holes to test the four highest ranked copper prospects which failed to indicate the presence of a shallow style economic porphyry deposit.

Dr Pollard's report states that while several parts of prospects were downgraded by Oxiana's work, there are a number of untested targets at the KSK Beruang and Baroi prospects supported by KGC's earlier work as well as the recommendations of its consultants. "Dr Pollard supports the view of our own geologists that there are still valid known targets to be tested within our main prospect areas," commented CEO Rahman Connelly.

KGC currently has three expressions of interest from major companies to review the KSK data, one of which has already commenced a data review as a first step towards entering into a formal co-operation agreement. Rahman Connelly adds that "Future co-operation arrangements will be structured to ensure that our own geologists, along with Dr Peter Pollard, are involved in detailed program design as well as a structured review process at various milestones during the program."

Dr Pollard's report along with a technical summary of Oxiana's drill program can be viewed at www.kalimantan.com.

Dr Peter Pollard is a consulting economic geologist with more than 20 years experience. He holds a PhD from James Cook University, Australia and is a Member of the Australasian Institute of Mining and Metallurgy and a Fellow of the Society of Economic Geologists. Dr Pollard has consulted widely on porphyry copper-gold and iron oxide copper-gold deposits. He has worked on some of the world's major porphyry copper-gold deposits including Grasberg (Indonesia), Escondida Norte (Chile) and Oyu Tolgoi (Mongolia). In addition, he has consulted on porphyry exploration programs in Australia, China, Indonesia, Iran, Kazakhstan, Mongolia, Peru, U.S.A. and Vietnam.

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 copper and gold in Indonesia and has exploration rights in two areas: the Jelai-Mewet epithermal gold prospects in East Kalimantan and the copper-gold porphyry prospects in Central Kalimantan.

Summary of main prospects from Dr Peter Pollard's report

Oxiana's program included geological mapping, reprocessing of geophysical data and drilling 16 diamond drill holes.

Beruang Kanan - Main Zone: Five holes were drilled and all encountered low-grade copper mineralization, with the best intersections being in KBK0021 with 44m @ 0.58% Cu from 16.6m and 41.7m @ 0.46% Cu from 147m. The drilling did not test the deeper part of the main target previously proposed by Leach (2001) in the vicinity of BK09 and the mineralization is therefore open in this area.

Beruang Kanan - South Zone: The two holes drilled did not test the main part of the coincident IP chargeability and copper in soil anomalies defined by previous work by Geiger et al. (2005).

Beruang Tengah: One hole was drilled targeting high copper in rock chips as well as mapped phyllic alteration and milled breccia. The hole contained no significant copper mineralization and it was concluded that the prospect had no room to host a near-surface economic porphyry copper deposit. The prospect has been delineated by rock chip sampling of creek outcrops, but veining and surface limonite development extend beyond this area, particularly to the south and west. Although the recent drilling downgraded the current prospect area, there appears to be scope for further work possibly involving an extended soil geochemical survey with IP and ground magnetics to help delineate further targets.

Baroi - Central Zone: One hole drilled in Central Baroi targeted a conceptual geophysical and geochemical target but failed to intersect significant mineralization. Two further targets which were supported by the reprocessed IP data were not drilled.

Baroi Far Eastern Zone: One hole was drilled in a base metal vein zone and confirmed earlier interpretations that there is no shallow porphyry style mineralization in this area.

Mansur: Three holes were drilled, two in the area of the main copper in soil anomaly and one targeting an IP anomaly further south. The holes returned no significant mineralization and indicate that it is highly unlikely an economic porphyry copper system is present at Mansur.

Tumbang Huoi: No new drilling was carried out at Tumbang Huoi where the presence of copper in soil anomalies and widespread potassic alteration (biotite +/- magnetite) in earlier drill holes suggest that this prospect may have some potential. Further work involving IP and ground magnetic surveys over the main copper in soil anomalies may help to delineate any sulphide rich zones for further work.

Mamuring and Rinjen: The geochemical anomalies present have received limited exploration attention. These require collection of basic geological data, geochemical data and mineralized samples in order to allow their potential to be assessed. The potential for high-grade skarn-style copper-gold mineralization at Mamuring should be investigated.

The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • Kalimantan Gold Corporation Limited
    Rahman Connelly
    Deputy Chairman and CEO
    +61 7 552 32298 or +61 418 116 955
    Email: rconnelly@ozemail.com.au
    Kalimantan Gold Corporation Limited
    Nick Cottam
    Corporate Relations Manager
    +44 (0) 1394 384115
    Website: www.kalimantan.com