VANCOUVER, BRITISH COLUMBIA -- 05/15/08 --
Kalimantan Gold Corporation Limited (the "Company") (TSX VENTURE: KLG)(AIM: KLG) announced the signing of an Option Agreement to acquire a 75% stake in each of five Indonesian companies each holding a single coal concession (KP) in Indonesia on April 21, 2008. See map attached:
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Pursuant to the option agreement the Company has an exclusive six month period in which to conduct its due diligence including carrying out a minimum program of 3,000 metres of drilling. The Company is working in close association with PT GMT Indonesia, an Indonesia based consulting group which manages a number of coal exploration projects in East Kalimantan.
PT GMT is completing the first step in the due diligence process by gathering all the available technical data on each of the five KP's to identify the next work stage with the goal of identifying the potential for mineable coal deposits on each of the KP's held under option. PT GMT has delivered the first two reports prepared for the Company on two of the KP's and is expected to deliver reports for the other three KP's in short order. These reports are posted in the project section of the Company's web site at www.kalimantan.com.
The KP held by PT Central Indo Coal (the "CIC KP") covers 5,000 hectares and is located immediately along strike from the producing PT Multi Harapan Utama PKP2B concession area which produces approximately 2.5 Mt/annum of 6,400 kcal/kg coal from a total reported resource of approximately 120 Mt. The geology of the concession area comprises three different known coal-bearing sedimentary formations close to the nose of a major syncline in the area. Dependent on the host formation calorific values are expected to range from 5,300 to 6,800 kcal/kg. Multi Harapan is currently exploiting coal from similar formations as those exposed within the CIC KP. Thus far little exploration has been carried out on the CIC KP area. The region around the KP is well established as a mining centre and a number of options could be considered for development. Exploration during the due diligence period will include detailed mapping and drilling, including deeper stratigraphic drilling to determine the coal-bearing stratigraphy.
The KP held by PT Citra Saga Utama (the "CSU KP") covers 15,090 hectares and is located approximately 60 kilometres inland from the east coast of Kalimantan. Field investigations thus far have mapped a series of coal seams, 7 in all, up to 5 metres in thickness. The coal is described as black with a brown streak and dull. Twelve reconnaissance holes have been drilled testing a very small area of the coal-bearing sequence with up to three major seams being intersected. The coal has good heating value, averaging 5,600 kcal/kg based on sampling to date. The CSU KP is located within a reasonable haulage distance of proposed port facilities and there remains significant upside along the strike of the coal seams currently known.
The evaluation of the five KP's is nearing completion. Reports will be announced as completed. The commencement of drilling utilizing two drill rigs will be also be announced.
Qualified Person
All data, as disclosed in this press release, has been verified by Brett Dennis Gunter, the Company's Qualified Person for the coal prospects and a principal of PT GMT. Mr. Gunter, who acts as a technical consultant to the Company, is a geologist with over 18 years experience in exploration and mining and has more than 12 years experience in Indonesia in various commodities, including coal. He is a member of the AusIMM.
About Kalimantan Gold
Kalimantan Gold Corporation Limited is a junior exploration company listed on both the TSX Venture Exchange in Canada and on AIM in London. The Company is focused on gold, copper and coal prospects in Indonesia and has exploration rights in three areas: the five coal prospects discussed0 in this press release, the Jelai epithermal gold prospect in East Kalimantan and the porphyry copper and gold prospects in Central Kalimantan.
The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.
Contacts:
Kalimantan Gold Corporation Limited
Rahman Connelly
Deputy Chairman and CEO
+61 7 552 32298
+61 418 116 955 (FAX)
Email: rconnelly@ozemail.com.au
Kalimantan Gold Corporation Limited
Nick Cottam
Corporate Relations Manager
+44 (0) 1394 384115
Email: Nick@nickcottam.com
Website: www.kalimantan.com
