Kalimantan Gold aims to announce an initial NI 43-101 compliant resource at the Beruang Kanan Project (BKP) within its KSK CoW Copper Project by the first quarter of 2015. After regaining 100% control of KSK following the withdrawal of Freeport-McMoran from a joint venture, Kalimantan Gold has focused recent activities on evaluating BKP.
Activities have focused on data compilation, quality assurance and quality control, and prospect evaluations. Much of the focus was on the four prospects located within BKP, namely BK Main (BKM), BK South, BK West and the most northerly BKZ polymetallic prospect.
Analysis of the final results of an airborne gravity survey over the KSK CoW has identified more than 15 geophysical targets, of which five are considered high priority and are coincident with surface geochemical anomalies.
The most prominent gravity target is at BKP, characterized by a 4.5km banana shaped gravity high that encompasses BK West and BKM. The soil anomaly at BKM is multi-element and measures about 1200 metres north to south by up to 1000 metres east-west, and is characterized by strong copper values in soils of up to 1380ppm.
This part of Central Kalimantan is now recognized as a new emerging copper district and BKM is considered the company’s most advanced-stage exploration project. More than 50% of the stage 1 delineation drilling has been completed at BKM, and funds raised in 2014 will be used to finalize this drilling.
To date, drilling at BKM has confirmed high grade copper mineralization located on at least two different stratigraphic horizons, the first occurs at surface and dips shallowly eastward and the second occurs at 150 metres depth.
Mineralization and alteration styles are typical of those associated with VHMS systems, however there are similarities to high sulphidation and ‘Manto-type’ deposits. The system has not been closed off and remains open in all directions.
A desktop evaluation of the BKZ Polymetallic prospect, about 800 metres from BKM, has also been completed. Although only three shallow holes were drilled, all intersected moderate to strong VHMS-style lead-zinc mineralization.
Kalimantan Gold plans to scout drill this area, in particular areas with strong lead-zinc soil anomalies, to test the overall potential.
3D inversion modelling of airborne gravity and magnetic data is expected to assist in defining the extent of the BKP VHMS-system and, combined with recent drilling results, will help Kalimantan Gold refine and focus future drilling programs.
Meanwhile, the company has been in discussions with a number of major mineral companies regarding a potential joint venture or similar arrangement in respect of Jelai IUP. These discussions are continuing and some site visits have already been undertaken. www.kalimantan.com