KALIMANTAN Gold Corporation has announced a maiden inferred resource of 47 million tonnes averaging 0.6% copper for 621.7 million pounds of copper at the Beruang Kanan Main (BKM) project within the KSK Contract of Work (CoW) in Central Kalimantan. Earlier this year the company regained 100% control of the KSK CoW after Freeport-McMoRan Exploration Corporation withdrew from a joint venture agreement.
The mineral resource estimate is for the Main Zone only, which is a portion of the Beruang Kanan mineralized area, and is based on assays from 74 diamond drill core holes that were drilled from 1998 to 2007 and then from 2012 to 2013.
The resource is contained within a near-surface, shallow-dipping and strongly mineralized system, that extends over an area of 1000 metres (N-S) and 950 metres (E-W) with depth extents ranging from surface to between 100 and 350 metres below surface. The mineralization remains open in several directions.
Other priority targets in the BKM area have been identified at Beruang Kanan South (BKS), Beruang Kanan West (BKW) and BKZ Polymetallic prospects, each within 1.5km of the inferred resource.
The Beruang Kanan project is now recognized as a new emerging copper district in Central Kalimantan and BKM is considered Kalimantan Gold’s most advanced-stage exploration project.
The company’s CEO Faldi Ismail says, “The BKM independent inferred maiden mineral resource estimate for the company’s flagship Beruang Kanan copper project is an important milestone which gives the Board, potential partners and shareholders confirmation of BKM’s potential. The Board is further encouraged by the fact that the BKM mineralization is high grade near-surface with a relatively shallow dipping nature, and drilling in 2013 and desktop work confirmed the potential for additional resources to both the west and south.
“The Board remains committed to drill testing these further areas and developing the BKM Copper Project with a view to fast tracking the project through to an early development option.”
The holder of the KSK Contract of Work is PT Kalimantan Surya Kencana (KSK). Kalimantan Gold holds 100% of the shares of Indokal Limited. KSK is owned 75% by Indokal and 25% by PT Pancaran Cahaya Kahayan (PCK). Indokal owns 100% of PCK.
Kalimantan Gold also has the Jelai epithermal gold prospect in East Kalimantan which is on care and maintenance. The holder of the Jelai IUP is PT Jelai Cahaya Minerals (JCM). A wholly-owned subsidiary of Kalimantan Gold, KLG Singapore Private Limited holds 99.3% of the shares of JCM. The remaining 0.7% continues to be held by the same two nominee shareholders who previously held 100% of JCM.