Kalimantan Gold Corporation Limited

Kalimantan Gold Corporation Limited

July 13, 2011 02:00 ET

Kalimantan Gold Copper and Coal Project Updates

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 13, 2011) - Kalimantan Gold Corporation Limited (TSX VENTURE:KLG)(AIM:KLG) -

KSK Joint Venture with Freeport

As announced on April 19, 2011, Kalimantan Gold Corporation Limited (the "Company") entered into a joint venture agreement with a wholly owned subsidiary of Freeport-McMoRan Exploration Corporation in relation to the Company's KSK Contract of Work copper project in Kalimantan, Indonesia.

The Company is operator and Freeport is funding the KSK joint venture. Extensive preparations are now complete to commence drilling once the necessary forestry permits are issued. The Company has submitted all the required documentation to apply for these permits which are expected to be issued shortly.

The Company intends to begin the program with shallow and deep drilling at Beruang. Field operations and mobilization of drill rigs will start immediately the forestry permits are issued.

PT Indobara Pratama ("PT IBP")

The Directors have been reviewing the allocation of resources following the recently announced joint ventures on its copper and gold prospects.

As shareholders will be aware, the Company was acting as a selling agent for the shareholders of IBP. Despite approaching numerous parties and entering into detailed negotiations with a large number of potential purchasers over the past 2 years, it has not been possible to conclude a sale of PT IBP on terms satisfactory to the owners of PT IBP.

In view of this, the Directors have decided to concentrate its much needed resources on the copper and gold projects. The Company will continue to seek, evaluate and identify new coal opportunities as and when they arise.

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 (which is optioned to Tigers Realm Minerals) and the KSK Contract of Work in Central Kalimantan with multiple porphyry copper and gold prospects (which is optioned to Freeport).

For further information please visit www.kalimantan.com.

RFC Corporate Finance Ltd acts as KLG's Nominated Adviser for the purposes of its AIM listing, contact Stuart Laing, ph: +618 9480 2506 or email: stuartl@rfc.com.au.

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.

Contact Information

  • Kalimantan Gold Corporation Limited
    Faldi Ismail
    Deputy Chairman and CEO
    61 (0) 423 206 324

    Kalimantan Gold Corporation Limited
    Gerald Cheyne
    Director Corporate Development
    +44 (0) 2077311806 or Mobile: +44 (0) 7717473168

    Alexander David Securities Limited
    Bill Sharp / David Scott
    +44 (0) 20 7448 9820