Kalimantan Gold Corporation Limited

Kalimantan Gold Corporation Limited

November 19, 2007 02:00 ET

Kalimantan Gold Corporation Limited: Oxiana Completes Initial Phase of Exploration

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 19, 2007) - Kalimantan Gold ("Kalimantan" or the "Company") (TSX VENTURE:KLG)(AIM:KLG) reports that Oxiana Limited has completed its obligation to spend US$2,500,000. Pursuant to the option deed Oxiana must deliver to Kalimantan Gold within the next 30 days their comprehensive report on the results of this initial program and within 30 days after that Oxiana must deliver Kalimantan notice as to their intentions with respect to exercising their option under the option deed.

The option deed covers Kalimantan Gold's 941 km2 Contract of Work (the "KSK COW") in Central Kalimantan and initially committed Oxiana to spend US$2.5 million on data compilation and drilling 12 deep holes over a period of 12-18 months. Oxiana will then have the option to elect to earn a 40% stake by the completion of a pre-feasibility study and 66.67% stake by the completion of a bankable feasibility study. By this time it will have spent an estimated US$37.5 million.

Oxiana geologists reviewed a decade of KGC exploration data relating to the KSK COW. This detailed geological, geochemical and geophysical review and assessment delineated three key areas of porphyry-related mineralization in the Beruang Kanan prospect area as well as quality drill targets at the Beruang Tengah, Baroi and Mansur prospects. Work programs completed to date encompass geological mapping, reprocessing of geophysical and geochemical data and drill testing. Reconnaissance exploration was conducted on other anomalous areas on the KSK COW to determine potential and delineate additional targets.

To date 16 holes for 5,980 metres of diamond drilling have been completed. While the geology and alteration observed confirm porphyry style mineralisation, significant volumes of drilling assays are still outstanding.

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 is focused on exploration in Indonesia and currently has rights in two areas: the Jelai epithermal gold prospect in East Kalimantan and the KSK COW copper-gold porphyry prospects in Central Kalimantan.

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
    Kalimantan Gold Corporation Limited
    Nick Cottam
    Corporate Relations Manager
    +44 (0) 1394 384115
    Website: www.kalimantan.com
    Keith, Bayley, Rodgers & Co Limited
    Gerald Cheyne
    +44 (0)20 3100 8274
    Email: gerald.cheyne@wcwb.co.uk
    RFC Corporate Finance Ltd. (the
    Company's AIM Nominated Adviser)
    Stuart Laing
    +61 8 9480 2500