Kalimantan Going for Gold

Saturday, Nov 19 2011 by
7
Kalimantan Going for Gold

Kalimantan Gold (LON:KLG) the junior exploration company primarily focused on Indonesian gold and copper is about to enter a very interesting phase, as its key gold and copper projects are set to become active with the drill bit.  With two very reputable JV partners working alongside Kalimantan Gold, Faldi Ismail the CEO believes that the two joint ventures ‘give the company breadth and a foundation with enormous potential’, which if the projects yield successful drill results will aid Kalimantan Gold in expanding further as they are also ‘currently seeking new exploration projects’ to develop.

Having recently announced that the Minister of Forestry has granted a "borrow to use" exploration permit for its Jelai Gold project in north eastern Kalimantan, coupled with the strong market value for gold, it’s probably as god a time as any to be exploring and proving up a gold resource alongside a partner committed to funding the project.  This is a very important milestone for Kalimantan Gold, as it has now fulfilled its conditions under the Company's Joint Venture agreement with Tigers Realm Minerals, an Australian based privately owned resources company. [1]

The Jelai Gold project, which is 100% owned by Kalimantan Gold consists of 12 prospects, and has been the subject of considerable work, especially in tracking the results of the previous owner Indochina Goldfields. One of the prospects, the Mewet, is at an advanced exploration stage and has the potential to yield a major epithermal gold deposit, which the company compares in scale to the Vera Nancy mine in Australia, which has produced 2.3 million ounces to date. The permit recently issued, has given the Company authorisation to conduct exploration activities over the Mewet and 10 other of the 12 Jelai gold prospects and is valid for two years.  Tigers Realm Minerals, who in return for meeting certain project expenditure obligations and completing a bankable feasibility study, may earn up to 70% interest in Kalimantan Gold’s Jelai Gold Project located in East Kalimantan.  Tigers Realm's proposed drill program expenditure over the first 18 months is US$2m with approximately 8,000m of drilling at the Mewet prospect planned. [2]

With the eagerly awaited forestry permitting process now complete, the Jelai gold project is set to become active with a drill contactor in place and exploration mapping and sampling set to start in…

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Disclaimer:  

This content has been created for information purposes only, and is NOT, in any way, a recommendation to invest.  This communication is a snapshot of a certain aspect of a discussed business at a moment in time, and is merely a basic starting point for research.  The article/thread has been created with honesty and integrity in mind and is based on publically available information sourced in relation to the title, such as from, RNS announcements, published reports, management comments, analyst reports, media coverage etc.  To this extent the author who has written the piece in good faith accepts no liability for the accuracy of the information and urges all readers to verify the content independently.  Please note that the value of investments may fall or rise and you may not get back the amount originally invested, or in some cases your investment may be wiped off altogether.  When investing, bear in mind that past performance is not a guide to future performance and that qualified independent financial advice should be sought before buying or selling shares.  The Author of this article may hold shares in the companies discussed.


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Asiamet Resources Limited, formerly Kalimantan Gold Corporation Limited, is a Canada-based exploration-stage company. The Company's principal business activities include the acquisition, exploration and development of mineral properties in Indonesia. The Company operates through mineral exploration and development segment. The Company has over three principal areas of interest, which include the KSK Contract of Work (KSK CoW) in Central Kalimantan with multiple copper and gold prospects, including the BKM Deposit that has mineral resources; the Beutong Izin Usaha Pertambangan (Beutong IUP) on the island of Sumatra, Indonesia, which covers approximately two porphyry copper-gold-molybdenum prospects (West and East Porphyries) and the Beutong Skarn (copper-gold) prospect, and the Jelai Izin Usaha Pertambangan (Jelai IUP) epithermal gold prospect in North Eastern Kalimantan, Indonesia. The Company's subsidiaries include Indokal Limited and PT Pancaran Cahaya Kahaya, among others. more »

LSE Price
2.23p
Change
 
Mkt Cap (£m)
8.1
P/E (fwd)
n/a
Yield (fwd)
n/a

Churchill Mining Plc (Churchill) is a United Kingdom-based company, which focuses on thermal coal deposit (the East Kutai Coal Project (EKCP)) in the East Kutai Regency of Kalimantan Indonesia. The Company operates through Indonesia Administration Office and Australian corporate office segments. The Company's EKCP thermal coal deposit comprises a Joint Ore Reserves Committee (JORC) resource of approximately 2.73 billion tons (comprising measured resource of approximately 693.3 metric tons, an indicated resource of approximately 825.1 metric tons and an inferred resource of approximately 1,211.8 metric tons). The Company's subsidiaries include Planet Mining Pty Ltd, PT Indonesia Coal Development, PT Techno Coal Utama Prima, PT Ridlatama Tambang Mineral, PT Ridlatama Trade Powerindo, PT Ridlatama Steel and PT Ridlatama Power. more »

LSE Price
30.38p
Change
 
Mkt Cap (£m)
44.9
P/E (fwd)
n/a
Yield (fwd)
n/a

BHP Billiton Plc is engaged in exploration, development, production, processing and marketing of minerals, in respect of iron ore, metallurgical and energy coal, copper, aluminum, manganese, uranium, nickel, silver and potash, and exploration, development, production and marketing of conventional and unconventional oil and gas. The Company operates through segments, including Petroleum and Potash, Copper, Iron Ore and Coal. The Company's Petroleum and Potash segment is engaged in exploration, development and production of oil and gas and potash pre-development. The Copper segment is engaged in mining of copper, silver, lead, zinc, molybdenum, uranium and gold. The Iron Ore segment is engaged in mining of iron ore. The Coal segment is engaged in mining of metallurgical coal and thermal (energy) coal. more »

LSE Price
1162.5p
Change
 
Mkt Cap (£m)
61,873
P/E (fwd)
22.2
Yield (fwd)
2.8
69



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9 Comments on this Article show/hide all

Elias Jones 9th Dec '11 1 of 9
4

If anyone is interested in proposing Qs or topics for the Kalimantan Q&A, could you please forward them via my Stockopedia mail or comments by mid day Monday, thanks.

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ohisay 10th Dec '11 2 of 9
1

Hi Elias.
I can't say I follow Kalimantan but I had the misfortune to put a few bob into Churchill Mining at the end of last year.
This turned out to be a catastrophic investment even allowing for the "transparency" risks of investing in a country like Indonesia.

http://www.thejakartaglobe.com/business/dispute-over-land-after-coal-is-found/480783

A couple of years ago, Britain-based Churchill Mining pumped in millions to invest in exploration work on a plot of land for a coal project in East Kalimantan and discovered tonnes of untapped coal.

But before it could get going on full mining works, it found itself locked in a bitter court battle with the previous owner of the land, politician and retired general Prabowo Subianto, who reclaimed rights to the area upon realizing its worth. The matter has gone all the way to Indonesia's Supreme Court.

So when I see
"Securing the forestry permit is a significant step for KGC

I'm kind of in deja vue land .

It'll be interesting to see how this resolves - CHL as you might be aware has now written a long letter to the Indonesian president.

Until then I'm inclined to give Indonesia a fairly wide berth.

http://online.wsj.com/article/SB10001424052970204012004577071342939311470.html?mod=googlenews_wsj




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Elias Jones 10th Dec '11 3 of 9
2

Hi ohisay,
Thanks for posting the comment and for the links, having not been invested in CHL, I was hoping for this Q&A that someone with a better understanding and feel of that ugly situation would contribute a question for the Kalimantan Gold Q&A. That type of situation is certainly not helpful in terms of attracting investment into Indonesia, let’s hope that some common sense prevails in the end with CHL.

Kalimantan Gold have reassured us as to the security of their titles and for what it’s worth (probably not much if we ever find ourselves up against a retired general and leader of the opposition!), have some respected natives involved with the business and have been committed to Indonesia and community involvement for a long time.

Having recently entered into two JV agreements with Tigers Realm Minerals and Freeport, one would also hope as a KLG shareholder that their extensive and time consuming due diligence prior to signing the deals would have covered this type of issue also, giving us some additional piece of mind.

Elias

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Elias Jones 16th Dec '11 4 of 9
2

The questions which I’m personally as a shareholder looking forward to reading are currently being completed by Kalimantan Gold, but, as a number either directly or indirectly refer to the KSK copper CoW we need to wait for the permit award first before the piece can be uploaded. Therefore the piece will be uploaded as appropriate when the KSK copper permit has been awarded.

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Elias Jones 21st Feb '12 5 of 9
3

Progress in Indonesia permitting and then exploration start is at best slow, however today Kalimantan Gold have updated the market that community consultation in respect of planned exploration activities at the Jelai Gold project is now complete and that they have the full support from the local government, community and village leaders to get going, with a team on site completing the following activities:
• Refurbished the office in Tanjung Selor;
• Commenced base camp construction;
• Commenced camp construction at Mewet Prospect, to accommodate drilling activities;
• Repaired 50% of the access road to the drill & base camp;
• Established contracts for key supplies such as fuel;
• Spotted the first drill hole and surveyed access trails.

Drilling of the proposed first Mewet hole is expected to commence in about 4 weeks time.
With regards to the Q&A, we are still waiting for the KsK forestry permit to be issued before it can be completed and uploaded.

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Elias Jones 29th Mar '12 6 of 9
4

Hooray finally, all be it at a snail’s pace, the Indonesian authorities have awarded Kalimantan Gold the extension to the expired Forestry Permit for its PT Kalimantan Surya Kencana sixth generation Contract of Work, covering its copper project alongside a wholly owned subsidiary of Freeport-McMoRan, who may earn up to a 75% interest in the project by sole funding the completion of a feasibility study.

There is a long way to go, but being an investor in Kalimantan Gold is about to get a bit more interesting (we have suffered boredom long enough!) with both the Jelai gold and KsK copper about to become active with the drill bit.

Now, with regards to the follow up Q&A for those interested Gerald Cheyne of Kalimantan Gold has promised he will have it for me to upload and share soon!

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Marc Benjamin 1st Apr '12 7 of 9

Elias, i have been taking a close look at kalimantan over the last month or so and also mineral facts and figures for Indonesia generally. Great work on the article.

 

You may find the research link below interesting.

http://minerals.usgs.gov/minerals/pubs/country/2010/myb3-2010-id.pdf

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Elias Jones 2nd Apr '12 8 of 9
3

Thanks Marc, the resource potential with both projects is clearly very attractive, but the big problem is actually getting through the Indonesian bureaucracy, which is drawing the life blood from the mineral investors. As investors we want to see exploration and production, but all we seem to hear about is permits, wrangles, community liaison work etc.
Hopefully with both projects finally free to continue with exploration we can put all the niggles behind us and concentrate on the resource. KLG have from what I can observe done it all properly and are now about to enter a very active operational phase.

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Elias Jones 8th May '12 9 of 9
2

Just a quick update for those interested in Kalimantan Gold, the follow up Q&A with Gerald Cheyne, the Kalimantan Gold Director of Corporate Development, discussing the various aspects of the business, including, the Jelai Gold project, KSK CoW copper project, permits, sourcing new projects in Indonesia and forward plans etc will hopefully be upload onto Stockopedia this Friday 11/05.

It’s been a very busy period for the company with the gold drilling set to commence this week and the copper drilling at c. end of the month with 4 drill rigs being mobilized.

Also good to see the company announcing that they have funds on hand for working capital to cover operations for 2012 and beyond, after this morning stating they had secured commitment for £300k at 5p which was above the London open market price when secured with a 4 month lock in, which is good going in this weak market imo, also noted Asian and Australian interest appearing for this placing.

As a long term investor in Kalimantan Gold, I’m certainly hoping that in 2012 the resource does the talking here from now on!

Nice Summary - April 2012 KLG Corporate Update PDF
COPPER JOINT VENTURE WITH FREEPORT-MCMORAN;
GOLD JOINT VENTURE WITH TIGERS REALM - DRILLING TO COMMENCE SHORTLY
http://www.kalimantan.com/i/pdf/Kalimantan-Fact-Sheet-April-2012.pdf

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