VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 04/30/12 — Kalimantan Gold Corporation Limited (TSX VENTURE: KLG)(AIM: KLG) –
Attached are the audited Consolidated Statements of Financial Position, Consolidated Statements of Comprehensive Loss, Consolidated Statements of Cash Flows, Consolidated Statements of Changes in Equity (the „Financial Statements“) and Management Discussion and Analysis (the „MD&A“) of Kalimantan Gold Corporation Limited (the „Company“) for the fiscal year ended December 31, 2011. The Annual Financial Statements and MD&A are available for viewing on or .
The Company has two principal areas of interest: the Jelai Cahaya Minerals, Jelai epithermal gold prospect in East Kalimantan; and the KSK Contract of Work (the „KSK CoW“) in Central Kalimantan with multiple porphyry copper and gold prospects.
The highlights of the year and up to the date of the MD&A:
On February 16, 2011, the Company executed an option agreement (the „Deed“) with Tigers Realm Metals Pty Ltd. („Tigers“) in relation to the Jelai gold project all as previously reported and as detailed in the Financial Statements. The Deed took effect on November 7, 2011 upon receipt of the forestry permit necessary to enable the on-ground activities to be conducted. By February 21, 2012, the community consultation in respect of planned exploration activities was complete and we have full support from the local government, community and village leaders. Drill camp construction and road repair at the Jelai Project are near completion, and rig mobilization to site #1 is 70% complete. A water quality sampling survey has been completed, as part of the Company-s environmental baseline monitoring program. The first drill hole is targeting high grade shoots at a depth below the epithermal gold – silver mineralization intersected by hole JCM-067 (9.50m @ 7.08 g/t Au).
On April 18, 2011, the Company entered into a joint venture agreement (the „Agreement“) with a wholly-owned subsidiary of Freeport-McMoRan Exploration Corporation („Freeport“) in relation to the KSK CoW all as previously reported and as detailed in the Financial Statements. On March 12, 2012, the Company received the extension to the expired forestry permit granting full permission to explore certain areas of the KSK COW for two years and denied permission to explore certain other areas of the COW within the Hutan Lindung. The phase one forestry permit is for an area totaling 7,422 hectares of the KSK CoW and gives the rights to the holder to carry out full mineral exploration activities within the permitted concession area. The Company will continue to work through the permitting process to secure permitting over the remaining prospective areas, including Tambang Huoi, one of the three highest priority targets, of the KSK CoW. The portion of the KSK CoW that has not been permitted will remain in suspension until a forestry permit is issued. Safety training has been completed and mobilization of field crews to Beruang drill camps has commenced. Drilling is planned to commence at both of the high priority target sites, Beruang Kanan and Beruang Tengah, by the end of May or early June.
On May 6, 2011, the Company issued 2,500,000 common shares to Freeport at C$0.14 per common share being 125% of the volume weighted average price of the Company-s common shares traded on the TSX-V in the seven business days following April 18, 2011, the date of the Freeport Agreement, for proceeds of $363,939 (C$350,000).
Management believes that the Company-s combined cash on hand at December 31, 2011 of $1,000,678, combined with ongoing operator management fees and with the proceeds of the private placement expected to close in May 2012 of up to $480,000, is sufficient to fund exploration activities and operations through the next twelve months.
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts: Kalimantan Gold Corporation Limited Faldi Ismail Deputy Chairman and CEO Mobile: +61 (0) 423 206 324
Kalimantan Gold Corporation Limited Gerald Cheyne Director Corporate Development +44 (0) 2077311806 or Mobile: +44 (0) 7717473168
Alexander David Securities Limited Bill Sharp/David Scott +44 (0) 20 7448 9820
KLG-s Nominated Adviser RFC Group Limited Stuart Laing +61 8 9480 2506
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