Kalimantan Gold JV to explore Indonesian copper project

13 March 2012 (Last Updated March 13th, 2012 18:30)

The Kalimantan Gold Corporation joint venture (JV) will commence exploration work at its copper porphyry property located in central Kalimantan, Indonesia.

Kalimantan Gold Corporation joint venture (JV) will commence exploration work at its copper porphyry property located in central Kalimantan, Indonesia.

The move comes after the company received a forestry permit for its PT Kalimantan Surya Kencana sixth generation contract of work for a project area totalling 7, 422ha.

Kalimantan Gold signed a JV agreement with a wholly owned subsidiary of Freeport-McMoRan (Freeport) in relation to the copper project last April.

Freeport may earn up to a 75% interest in the project by sole funding the completion of a feasibility study, under the terms of the agreement.

The JV will begin a $3m exploration programme to drill test the deeper porphyry copper targets that have been identified by the company on the prospect.

Recent advanced inversion modelling by Freeport identified numerous massive deep seated magnetic bodies below extensive surface geochemical anomalies and existing drill holes where copper mineralization was present.

The three highest priority targets were identified the Beruang Tengah, Beruang Kanan and Tambang Huoi prospects.

An extensive exploration drilling programme will be initiated covering 34 holes at Beruang Kanan with two drill rigs to define a potential resource at this prospect.

Kalimantan Gold said it plans to conduct further exploration at several other identified copper porphyry targets this year.