Kalimantan Gold Corp Ltd (LON:KLG) the junior exploration company primarily focused on Indonesian gold, copper and coal, has announced that it has entered into a binding letter of intent with Tigers Realm Minerals an Australian based, privately owned resources company, 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.
The Kalimantan 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.
In order to eventually earn up to 70% interest in the Jelai Gold Project, Tigers Realm Minerals must spend US$6,000,000 on the project by the end of June 2014, with the first US$2,000,000 having to be spent by the end of June 2012 as an obligation. The binding letter of intent, and following due diligence is to be replaced by a final agreement by the 4th of February 2011. [1]
Commenting on the Jelai Gold Project, Rahman Connelly, Deputy Chairman and CEO of the Company said,
"Tigers is an ideal partner to rapidly advance the Jelai Gold Project and create value for all stakeholders. They have extensive experience in Indonesia across exploration, project development and mine operations, a skilled team able to rapidly explore and develop projects and Tigers board and management team have a strong track record in raising capital globally. Tigers shares the Company's commitment to building a sustainable relationship with the local communities."
Also of interest to Kalimantan Gold investors is the fact that positive negotiations are currently taking place with a major copper mining company with regard to the KSK Contract of Work (KSK COW) in Central Kalimantan. The KSK COW comprises of 38 mineral prospects, several of which are touted as potentially world class copper-gold porphyry deposits. [2]
Commenting on the KSK COW, Mr. Connelly added,
"This transaction, combined with the expected…
