KALIMANTAN Gold has regained 100% control of its KSK Contract of Work copper project in Kalimantan. This occurred after the company received notice of intention to cease sole funding and to withdraw from the joint venture agreement made in April 2011 by its joint venture partner, Surya Kencana LLC, a wholly-owned subsidiary of Freeport-McMoRan Exploration Corporation.
The effective date of the withdrawal was January 31, 2014, after which time Freeport forfeited its interest in the KSK CoW to the company and was to deliver any mining information held regarding the KSK CoW that is not already in possession of Kalimantan Gold.
Kalimantan Gold says the decision to withdraw from the project was not based on geological prospectivity. It says a number of Indonesian groups expressed interest in the KSK CoW during 2013 and the Board will make contact with these parties and others to discuss possible partnerships and ways forward.
Freeport funded over $33 million of exploration expenditures since April 2011 on the KSK CoW, leaving the company with a wealth of exploration data and multiple drill targets. During their involvement, more than 30,000 metres of drilling was completed, more than 28,000 samples were analysed, 4762 line kilometres of airborne geophysical surveys were completed, and 24,363 hectares of the KSK was covered with a high resolution Lidar imaging survey. A drill plan had been prepared to expand the identified zone of mineralization at Beruang Kanan where the two most recent drill holes both intersected significant mineralization.
Since September 2013, data compilation, resampling of historical core samples, petrographic studies, age dating and follow-up mapping and sampling at Mansur, Baroi, and Tumbang Huoi has identified several well defined deep potential copper porphyry drill targets.
An airborne magnetic and gravity gradiometer survey was completed in November. The results of this survey have assisted in developing a better understanding of the correlation between gravity, magnetics and mineralization. At Beruang Kanan, a moderate gravity high response is present over the known mineralized zone. This response extends to the south of the two most recent drill holes. This moderate gravity high also extends to Beruang Kanan West which will be subject to drilling this year. Several new geophysical targets have also been identified within the COW.
Kalimantan Gold’s CEO Faldi Ismail says, “Freeport has been a magnificent joint venture partner which has hugely developed our understanding and significantly enhanced the prospectivity of the KSK CoW. We remain optimistic that a new partner will be found to complete the project.”