The term of the Mining Business Permit (IUP) at Kalimantan Gold’s Jelai Gold Project in East Kalimantan has been extended until June 2, 2015. The company says this fulfils one of the two conditions outstanding in respect of the option agreement signed with Tigers Realm Minerals 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 Realm has 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 Jelai by spending US$6 million and completing a bankable feasibility study (BFS) by the IUP expiry date.
Immediately following receipt of the forestry permits, Tigers expect to begin site preparation work for their proposed initial drill program aimed at increasing the existing mineralized deposit at Jelai and testing the prioritized targets in the highly mineralized epithermal vein system.
Meanwhile, at the KSK Contract of Work Copper Project in Kalimantan extensive preparations are now complete to begin drilling once the necessary forestry permits are issued. The company has submitted all required documentation to apply for these permits which are expected to be issued shortly.
Kalimantan Gold 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.
Earlier this year Kalimantan Gold entered into a joint venture agreement with a wholly- owned subsidiary of Freeport-McMoRan Exploration Corp in relation to KSK. The company is operator and Freeport is funding the joint venture.