The Indonesian Ministry of Forestry has granted Kalimantan Gold more time to explore its Jelai gold project in north-eastern Kalimantan.
The ministry has granted Kalimantan's subsidiary PT Jelai Cahaya Minerals an extension to its borrow-and-use exploration forestry permit (IPPKH), until 16 December 2015.
The extension covers all the existing permitted areas, namely the Mewet and ten of 12 other Jelai Gold prospects, which comprises 4,675ha of the 5,000ha.
Kalimantan said it is in negotiations with several mineral firms regarding a potential joint venture or similar options for the project.
The company plans to release an update on its KSK copper project shortly and remains confident of attracting a credible partner.
The company has two exploration projects in Kalimantan; the Jelai epithermal gold project in eastern part and the KSK contract of work in the central area, with several porphyry copper and gold prospects.
The Jelai project features low sulphidation epithermal gold-silver mineralisation hosted by the northerly striking and steeply west-dipping Mewet, Sembawang, Lipan and Nyabi vein systems.
The company has drilled more than 35,000m at its KSK copper project, which it says has the potential to be a world-class deposit.
The KSK project has been under joint venture to a subsidiary of Freeport-McMoRan Exploration since April 2011.
The company received the required forestry permit in March 2012 to start drilling, which has been on-going since then.