Kalimantan Gold Corporation has received formal confirmation from the Ministry of Energy and Mineral Resources (MEMR) that its KSK Contract of Work (CoW) in Central Kalimantan will enter the fifth year of its exploration period immediately upon the company receiving formal renewal of its forestry permit from the Capital Investment Coordinating Board (BKPM).
Renewal of the forestry permit which authorizes the company to carry out surface and drilling activities over permitted areas of the CoW for two years is well advanced. Both the MEMR and the Ministry of Environment and Forestry (MEF) have verbally informed the company that technical reviews have been completed and the permit application is now with BKPM for final processing.
With a recently implemented One-Stop-Services policy, BKPM aims to simplify the licensing process and indicate commitment to providing fast service in order to create a competitive investment climate. The company congratulates BKPM on the initiative to simplify and expedite the permitting process.
Initial drilling aims to extend and upgrade confidence of the near-surface higher grade areas of the Beruang Kanan (BK) Main Deposit and although the exploration camp remains under care and maintenance, field preparations including establishment of initial drill sites and the upgrading of camps, roads and access trails, can commence immediately upon receipt of the forestry permit.
Initial drilling is planned on sites prepared during the 2012-2013 program using two drill rigs stored at the BK project camp. Planned drill holes are short and each is expected to be completed within 2-3 days. Initial assay results are anticipated approximately 1-2 weeks after drilling commences.
Kalimantan Gold plans to rapidly advance the BK Main deposit through to scoping study stage over the course of 2015. An extensive program of resource infill and expansion drilling, metallurgical test work and mining studies is planned, subject to positive results and the availability of ongoing funding.
Several nearby prospects, Beruang Kanan South (BKS), Beruang Kanan West (BKW) and Beruang Kanan Polymetallic (BKZ) have potential for additional mineralization and will be scout drill tested.
The Beruang Kanan project is within the KSK CoW and has an inferred mineral resource of 47 million tonnes averaging 0.6% copper for 621.7 million pounds of copper, including 12 million tonnes averaging 1% copper. This estimate is for the BK Main deposit only and is based on assays from 74 diamond drill core holes drilled between 1998 - 2007 and 2012 - 2013.