Kalimantan Gold Director Interview Q2 FY12

11th May '12 by AnonymousUser3343

4 comments 13510 reads

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 becoming operationally active once again with the drill bit, alongside two very reputable JV partners in Tigers Realm Metals and Freeport. Following recent company updates, Gerald Cheyne, the Kalimantan Gold Director of Corporate Development, has taken time out to discuss various aspects of the business, including, the Jelai Gold project, KSK CoW copper project, permits, community work and sourcing new projects in Indonesia.

Some other London listed stocks with an interest in Indonesia include Churchill Mining (LON:CHL), who have endured a torrid time recently over the validity of the EKCP licenses and are currently seeking an award of about $1.8 billion in compensation from an international arbitrator in its dispute over the rights to develop a huge $3 billion undeveloped coal asset located in East Kalimantan. Bhp Billiton (LON:BLT), who hold a 75 per cent stake in the $US1.34 billion IndoMet coal project, which is scheduled to begin development in the Indonesian part of Borneo this year and Rio Tinto (LON:RIO) who has exposure to Indonesian mines through its 40 per cent stake in the Grasberg copper mine one of the world’s largest copper mines owned and operated by PT Freeport Indonesia, a subsidiary of US-based Freeport-McMoRan Copper & Gold Inc and who is also Kalimantan Gold’s JV partner for the KSK copper project.

Q1. Kalimantan Gold has two very reputable JV partners for its Jelai Gold and KSK Copper projects, what did their due diligence process entail and what attracted them to the projects and to work alongside a smaller partner as opposed to finding projects outright on their own?

Our Jelai Gold JV partner, Tigers Realm Metals whose management team came out of Oxiana, a mid cap Australian miner, knew us from the days when Oxiana JV’d our copper prospect in 2007. Tigers were looking for advanced stage exploration gold projects with prospects for a major gold mine. Their due diligence involved reviewing the 14000m of drill results to date and existing geological data.

Freeport McMoRan, the largest quoted copper company in the world, knew us through their ownership of Grasberg also in Indonesia. …

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AnonymousUser3343

5th Jun '12

While in London with work, I met up for a pleasant coffee with Gerald Cheyne at the Villiers Street Starbucks! Gerald was happy with both projects now progressing nicely, we discussed the KsK and the 36,000m of drilling completed to date and the forward programme. Gerald pointed out that the drilling programme will also be evaluating the deep prospects and said, imagine the initial drilling programme has hit the arms of an upside-down octopus, we are now aiming for the head where the 3D inversion modelling identified potential targets for several world-class copper porphyry deposits.

Gerald said comparisons have been made between the potential for the KsK project to be along the lines of the Oyu Tolgoi in Mongolia, and that the hope is the story could map out in this way alongside a large strategic partner such as RIO, KLG obviously have Freeport who can earn up to 75% ownership by sole funding the operations up to the completion of a feasibility study. The Oyu Tolgoi Oyu Tolgoi contains approximately 41 billion pounds of copper and 21 million ounces of gold in measured and indicated resources.

With the KsK drilling underway, as an investor I will be awaiting the first 1000m deep drill result with interest.

Gerald Cheyne Podcast
Kalimantan Gold Corporation Gold & Copper prospect update
Tue, 29 May 2012, 1:00pm

http://www.brrmedia.co.uk/event/98296/gerald-cheyne-director-corporate-development

28th Jun '12

Kalimantan Gold Investor Mailing List Update

KGC Mobilisation Report 2012
http://www.youtube.com/watch?v=BE7XjXp6VZQ

Dear Investors

I would like to thank you deeply for your commitment, belief and continued support of our projects an Company. There is nothing that adds value to a junior exploration company like a significant discovery. KGC is now fully mobilized with comprehensive programs in place for the balance of 2012.

Our budget for the KSK (Copper) project for remainder of 2012 is $11m and for Jelai (Gold) $3m. Patience is required because exploration is a process that takes time as we continually refine and increase the odds for a substantial discovery.

We have developed a business model to mitigate the exploration risks. Our projects are being drill tested by our partners. Human resource assets are critical to our success and we have a very professional exploration team in place in the field. We cannot eliminate all risk but we can develop better odds of success.

On the Jelai project we have two rigs on site and currently drilling our fifth and sixth holes. The four holes that have been completed are currently being assayed and we await these results in anticipation.

On the KSK project two deep holes are underway and are now at 300m. The first two definition drill rig pads are built and we are deploying two additional rigs that will drill to 250m. We have completed mapping and 400 soil samples at Beruang Low Zone and Beruang Tengah which have gone for analysis.

To see Kalimantan Gold team in action - take a look at our video
http://www.youtube.com/watch?v=BE7XjXp6VZQ

Yours sincerely,

Faldi Ismail

CEO

4th Aug '12

Back in May, Gerald Cheyne, the Kalimantan Gold Director of Corporate Development participated in the above interview and has now taken time out to provide an update on the appointment of VSA Capital Limited as Kalimantan Gold’s corporate broker and a progress update on the two KLG active drilling projects in Indonesia:

Q1. Kalimantan have recently appointed VSA Capital Limited as its corporate broker, what were the reasons behind this change and can KLG expect to attract new investors as a result?

We decided that KLG had reached a stage where we would benefit from a broker with in-house mining skills and mining analysts: VSA Capital Limited met these needs being a specialist mining and oil and gas broker and offering bespoke services to its clients. Shortly after being appointed, VSA organised a week’s roadshow in late June taking us around their clients; in addition to updating existing shareholders and investors we met and presented to a range of new investors, mostly private client brokers. We plan to follow up this roadshow with VSA organising a further series the next being late autumn or early 2013. VSA will also update their initial analyst’s cover note with a more detailed appraisal in due course.

Q2. How are the two drilling campaigns progressing in Indonesia? How many holes have been drilled to date and when can shareholders expect some results?

The drilling in Indonesia is progressing well. At KSK, 2 deep holes are now at ~1,000m with a targeted depth of between 1,200m to 1,500m. Delineation drilling at Beruang Kanan began early July with 29 holes planned, each to a depth of about 200m to 300m. We anticipate the first drill results will be available September/October but this date may move depending upon decisions taken our JV partner.

Drilling at Jelai is progressing well with the aim of drilling 27 holes by May 2013. Holes are being drilled to a depth of about 200m to 300m with 8 holes now complete. We anticipate our JV partner Tigers releasing drill information in batches of 5 holes, with the first announcement being made in August.

Roll on the results!

8th Sep '12

Kalimantan Gold have now had their second stakeholder relations video produced since the start of their Indonesian drilling campaign in mid May. The latest video distributed to its shareholders is shot from the base camp of the KSK copper project and stars off with Mansur Geiger stating “We have been working here for more than 19 years, our company philosophy is to always use the exploration industry best practices, being responsible towards the environment, responsible towards the government and most of all responsible towards the community without which we couldn't have survived until now.”

At the KSK site, Hambit Bintih, the Bupati of Gunung Mas who had come with his government team to see the project for himself in the field states; “I have seen that this mining project cares about the environment. The company is behaving correctly and not destroying the area. There are no open mines, there are rumours from the outside saying that KSK is cutting down all the trees, but then I saw for myself that it wasn't so. They have only cleared the trees about 20 meters around the drilling area. The government of this area has hopes, and I see and am proud that, on the employment side, I have seen more or less 300 workers in the first stage of exploration. I have seen for myself that almost 80% - 90% of the employees are local.”

Of the KSK workers, Isung Binhanit who is the site security guard, started working with Mansur in 1982, states “So this is our hope, that the community of this area will help and support investors like PT KSK with their needs. If in the future there are no problems and we start to produce, this company will be very good for Central Kalimantan, especially for Gunung Mas. They will continue to establish good relations with all levels of the communities and the government.”

Kalimantan Gold have invested a lot of time an effort into their projects and community involvement and a testimony to this is almost a life time of hard work by the VP of exploration Mansur Geiger. I must say I have never seen a junior mining company go to such great lengths to do it the right way. The KSK copper alongside Freeport is potentially a giant resource base, and with two deep drills at around target depth, the results will soon indicate if all this hard work and dedication has been worth it.

This drilling campaign which is fully funded by its two partners, Freeport and Tigers Realm Metals, has around 60 holes to report between now and May 2013.

KSK - Bupati Gunung Mas at Base Camp (English translation tag at the bottom)
http://www.youtube.com/watch?v=QbCM0uAkd34

Kalimantan Gold Director Interview Q2 FY12

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