Kalimantan Gold Corp Ltd (LON:KLG) is a junior exploration company primarily focused on Indonesian gold, copper and coal. Kalimantan Gold has recently announced that it has entered into a binding letter of intent with Tigers Realm Minerals relating to its Jelai Gold project and also a memorandum of understanding with a major mining company with regard to its copper project.
Following the two recent announcements 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, IBP Coal concession, company exposure, market sentiment and sourcing new projects in Indonesia.
Q1. Briefly, could you describe Kalimantan Gold’s history, business model and mission?
The Company began operations in Kalimantan, the Indonesian part of Borneo, in mid 1990’s. It was brought to the TSX.V in the late 1990’s but suffered from Canadian investors’ loss of interest in Indonesia following the Bre-X scandal. For the first 10 years it explored the KSK CoW site, undertaking 36000 metres of drilling. In 2006 it acquired its gold prospect and in 2007 came to AIM.
KLG’s mission is to identify early stage opportunities, prove their potential and then develop them through joint ventures with larger parties. It has a wide range of contacts in Indonesia, especially Kalimantan, and its business model is to use these to create wealth for its shareholders.
Q2. How did Kalimantan Gold acquire its Jelai Gold and KSK Contract of Work Copper projects?
We acquired the Jelai Gold prospects from Indo China Gold, now Ivanhoe, in 2006. Indo China had begun drilling in the early 1990’s but had to leave when Suharto’s government fell. Our KSK Contract of Work dates back to the mid 1990’s. Mansur Geiger, our principal geologist, discovered the site and KLG then applied for an exploration and mining permit.
Q3. What is the current situation and plan for the Jelai Gold project?
There are 12 prospects within the Jelai system. Drilling to date has been at the Mewet prospect, which is a narrow vein low sulphidation system. Significant intercepts have already been found, including 5.0m at 15.84g/t Au & 81.19g/t Ag (incl.0.75m at 62.27g/t Au & 256.0g/t Ag), 5.98m at 24.70g/t Au, 6.9m at 24.7g/t Au & 2.74g/t Ag (incl. 5.65m 29.88g/t Au & 27.09g/t Au. We have just signed…
