Kalimantan Gold Corporation Limited

Kalimantan Gold Corporation Limited

June 23, 2011 02:00 ET

Kalimantan Gold Extends Jelai Gold Mining Exploration Licence

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 23, 2011) - Kalimantan Gold Corporation Limited (the "Company") (TSX VENTURE:KLG)(AIM:KLG) is pleased to announce that the term of the Mining Business Permit (Izin Usaha Pertambangan "IUP") at its Jelai Gold Project has been extended until June 2, 2015.

This fulfils one of the two conditions outstanding in respect of the option agreement signed with Tigers Realm Minerals Pty Ltd. ("Tigers") announced on February 16, 2011.

The other outstanding condition is the grant of the forestry permits required for the proposed exploration activities. The Company has submitted the necessary documentation to apply for these permits and the Directors are confident that they will be issued shortly. In recognition of this expected timing, Tigers have extended the period for the fulfilment of this condition until August 16, 2011.

The terms of the option agreement require Tigers to spend a minimum of $2 million on exploration in the first 18 months after the conditions are met. Tigers can incrementally earn up to a 70% interest in the Jelai Project by spending US$6 million and completing a Bankable Feasibility Study ("BFS") by the IUP expiry date. If Tigers do not complete the BFS by the IUP expiry date, its interest earned in Jelai will convert to a royalty capped at two times its investment in the Jelai project.

Immediately following receipt of the forestry permits, Tigers expect to commence site preparation work for their proposed initial drill programme. This will be aimed at increasing the existing mineralized deposit at Jelai and testing the prioritised targets in the highly mineralised epithermal vein system.

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).

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
    Mobile: +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