Kalimantan Gold’s KSK joint venture has ended after Freeport-McMoRan withdrew from the copper project. Kalimantan Gold will regain 100% of the KSK CoW as of January 31.
Since April 2011 the KSK project has been under an earn-in with Surya Kencana LLC (SK LLC), a subsidiary of Freeport-McMoRan Exploration Corporation.
The company stresses that Freeport’s decision to cease sole funding is “not based on the geological prospectivity of the project”, which it believes to be significant. The company says it will now make contact with a number of Indonesian groups which expressed an interest in the project last year to discuss possible partnerships.
Freeport, which was earning a 51% interest in KSK, funded $33 million of exploration work since the JV’s inception, including more than 30,000 metres of drilling, more than 28,000 analysed samples and 4762 line kilometres of airborne geophysical surveys. A drill plan has been prepared to expand the identified zone of mineralization at the exciting Beruang Kanan prospect.
“Freeport has been a magnificent joint venture partner which has hugely developed our understanding and significantly enhanced the prospectivity of the KSK CoW,” says Kalimantan Gold’s chief executive Faldi Ismail. “We remain optimistic that a new partner will be found to complete the project and will shortly recommence discussions with those interested parties.”
Meantime, Kalimantan Gold has amended a technical report filed recently to ensure it now accords with standards required by the British Columbia Securities Commission. The company filed a revised version of the Jelai project technical report that is now compliant with NI 43-101, a national instrument for the standards of disclosure for mineral projects.
The NI 43-101 report on the wholly-owned project in North Kalimantan outlines the low-sulphidation epithermal gold-silver mineralization present. The revised report recommends that the company should complete gold resource calculations for the Mewet, Sembawang and Lipan vein systems that are NI 43-101 compliant. If the grade-tonnage characteristics of the gold resources justify, then a scoping study for development should be initiated.
“It is the authors’ opinion that the location of the veins and the relationship to local topography favour open-pit mining of the Sembawang and Lipan veins and under-ground exploitation of the Mewet vein,” a Kalimantan Gold announcement said.
“This opinion does not imply that the veins contain economic mineral resources but merely highlights the relationships of the veins to local topography. Assuming a favourable outcome to the economic studies, then future exploration should focus on expanding gold-bearing shoots in the three known vein systems,” the company said.