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. 
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. 
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 early December. Kalimantan Gold management see Tigers Relam Minerals as an ideal partner to rapidly advance the Jelai Gold Project with their extensive experience in Indonesia across exploration, project development and mine operations. Commenting on the recent exploration permit, Faldi Ismail, the Kalimantan Gold Chief Executive Officer noted; 
"Securing the forestry permit is a significant step for KGC and the Jelai project and this demonstrates KGC's understanding and ability to work within the Indonesian regulatory environment. It also demonstrates that Indonesia's new mining and forestry regulations work. KGC and Tigers Realm are excited to commence exploration at the Jelai Gold Project,"
Also of interest to Kalimantan Gold investors will be the issue of the necessary forestry permits with regard to the KSK Contract of Work (KSK COW) in Central Kalimantan, which the company having submitted the application 6 months agao now ‘await with confidence’ their issue. The KSK COW comprises of 38 mineral prospects, several of which are touted as potentially world class copper-gold porphyry deposits. Kalimantan Gold announced back in April this year that they had entered into a joint venture agreement with a wholly owned subsidiary of Freeport-McMoRan Exploration Corporation, which gives them the option in relation to the Company's KSK Contract of Work copper project, with various funding and percentage terms included of up to 75% ownership by sole funding the operations up to the completion of a feasibility study. Commenting on signing the definitive agreement with Freeport Rahman Connelly, the then Deputy Chairman and CEO of Kalimantan Gold noted; 
"Freeport-McMoRan Copper and Gold Inc., as the world's second largest copper producer with extensive Indonesian experience is an exceptional and ideal partner to rapidly advance the KSK Copper Project and create value for all stakeholders."
Steering and managing the gold and copper projects for Kalimantan Gold will be Faldi Ismail, the Deputy Chairman and Chief Executive Officer of the Company, who took over the reins from Rahman Connelly earlier this year. Since being at the helm Faldi Ismail has increased hi personal holding in KLG to 3.3% of the issued total and has been exploring new projects in Indonesia for the company.  On summing up his first 6 months as CEO of Kalimantan Gold and the way forward for the company, Faldi Ismail commented for this article;
"I stepped in to Rahman Connelly’s CEO role after he had completed the successful negotiations of the joint ventures with Freeport on the copper porphyry and with Tigers Realm on the gold project in East Kalimantan. Since joining , I have been working very hard with a two pronged approach: (1) to secure the IUP and forestry permits and (2) to use the time available and existing resources effectively and efficiently to update our systems, processes and equip ourselves to manage the KSK JV and facilitate the Jelai gold JV. We have now completed the preparatory work for the two joint ventures."
"Having been exposed to our joint venture partners for a while in an operational context we could not ask for a better team to work with. They have added a tremendous amount of technical and logistical expertise to our projects. They are very accommodating in terms of accepting our philosophy in working in Kalimantan particularly the way we have managed the community involvement and sourcing local staff from Kalimantan. The monies we have spent in the past on community development is very much bearing fruit and has given us enormous goodwill for taking the projects forward."
"We are delighted that we now have both the IUP and forestry permits for Jelai gold; we await with confidence the issue of the forestry permit for KSK which we applied for 6 weeks after Jelai. Obtaining the forestry permits has been a demanding and slow process, taking much longer than we had anticipated, with our senior geologist visiting the Forestry department almost every day for last 6 months!"
"The two joint ventures give the company breadth and a foundation with enormous potential. We are currently seeking new exploration projects. How we develop clearly depends upon the success of the drilling program. My aspiration is that both joint ventures meet the goals our partners believe are there and we find and establish new exploration projects."
Upcoming Kalimantan Gold Director Interview
Following on from the recent gold permit news Gerald Cheyne, the Kalimantan Gold Director of Corporate Development has agreed to participate in a Q&A interview as a follow up to the one he participated in towards the end of 2010. Some other UK listed stocks with an interest in Indonesia include Churchill Mining (LON:CHL), BHP Billiton (LON:BLT). If anyone wants to get involved with suggesting questions or a topic area for Gerald Cheyne then please let me know in the via Stockopedia mail, I’m aiming to upload onto Stockopedia 16 December 2011 or before, depending on the KSK permit award.
Ticker code: KLG, Shares in issue: 165.407m, Current SP: 5.38, Market Cap: £8.90m, 52 Wk Low: 3.25, 52 Wk High: 8.95
Disclosure: The author holds shares in Kalimantan Gold (LON:KLG)
 Kalimantan Gold-Jelai Update August 23, 2011, http://www.stockopedia.com/share-prices/kalimantan-gold-LON:KLG/news/rns/110823klgm2482.htm/?title=kalimantan-gold-jelai-update
 Kalimantan Gold Signs Definitive Agreement With Freeport, April 19, 2011 http://www.stockopedia.com/share-prices/kalimantan-gold-LON:KLG/news/rns/110419klgm6804.htm/?title=kalimantan-gold-signs-definitive-agreement-with-fr
 Kalimantan Gold Reports CEO Buys Shares, September 28, 201, http://www.stockopedia.com/share-prices/kalimantan-gold-LON:KLG/news/rns/110928klgm4402.htm/?title=kalimantan-gold-reports-ceo-buys-shares
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