Jelai Mineralization Expanding for Kalimantan Gold
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Aug. 20, 2008) – Kalimantan Gold Corporation Limited (TSX VENTURE:KLG)(AIM:KLG) continues to achieve success in its drilling at the 100%-owned Jelai gold project in East Kalimantan, Indonesia where 56 holes, totaling 4,468 metres have been drilled over the past year up until July 10, 2008.
Latest results from the drilling include intercepts such as:
– Hole 38 reporting 15 metres @ 4.9 grammes of gold per tonne (“gpt”), including 5.4 metres @ 11.74 gpt.
– Hole 26 encountered 5.6 gpt gold over an interval of 5.2 metres, including 17.33 gpt gold over 1.20 metres.
– Hole 27 encountered 2.15 gpt gold over an interval of 5.95 metres including 10.30 gpt gold over 0.65 metres in the Sembawang vein.
(To view Appendix 1 map please click on the following link: http:/ /media3.marketwire.com/docs/klg0819.pdf)
In all, 1,268 drill core samples have been analyzed. The location and the orientation of the mineralized structures continues to be outlined by the drilling and results to date show the mineralization contains significant gold intercepts. In some areas the veins are known to pinch and swell, which is typical of the veining in low sulfidation epithermal gold systems.
The Jelai mineralization is hosted in quartz veins and silicified breccias within generally north-south trending fault structures. Most of the Kalimantan Gold holes have intersected these mineralized structures at shallow levels in the near surface oxidized zone, following up on 26 drill holes completed by previous explorers.
Since April, drilling at Jelai has focused on the Lipan vein system where results include 1.3 metres @ 8.4 gpt (Hole 24) and 3.1 metres @ 5.8 gpt (Hole 1). The Lipan Vein is a complex structure with multiple parallel veins and the drilling will allow the structures and mineralized zones to be accurately correlated.
Kalimantan Gold’s technical adviser, Dr Peter Pollard, recently visited the property and concluded that the mineralized structures being intersected are most representative of the upper levels of a low sulphidation epithermal gold system and that deeper drilling is required to intersect the potentially higher grade sections of the system. “Dr Pollard has highlighted the similarity between Jelai veins and gold grades and those at North Queensland Metals Limited’s Pajingo gold mine in northeastern Australia which has produced around 2.3 million ounces to date.”
Commenting on the immediate programme going forward President and CEO Rahman Connelly states that, “Our two scout drill rigs will continue to define the near-surface expressions of the structures, whilst the two larger capacity drill rigs, presently on site, will focus on intersecting the gold bearing veins at depth.”
A number of mineralization phases have been identified in the drilling to date, with mineralization occurring as a series of shoots contained within essentially contiguous structures. The higher grade areas encountered are associated with colloform- crustiform banded quartz veins and vein breccias with banded sulfides. Adularia is noted in a number of core sections. Adularia can be an indicator of fluid boiling and precious metal deposition. The host rocks include a sequence of andesitic lava and fragmentals with late-stage dacite and rhyodacite intrusive. The alteration around the veins comprises intense argillic (clay-pyrite) alteration adjacent to the silicified veins enveloped by propylitic alteration. Kalimantan Gold geologists are using the various characteristics described above as vectors to define new potential gold shoots in other vein structures, untested by drilling to date.
Shallow and deep drilling is currently being systematically conducted on two of the vein systems (the Mewet Vein and the Central Sembawang Vein) with the goal of obtaining an independent estimate of resources by the final quarter of this year. Added Rahman Connelly: “Drilling will continue on the two vein systems to understand the greater size potential of the Jelai project.”
All data, as disclosed in this press release, has been verified by Brett Dennis Gunter, the Company’s Qualified Person for the Jelai Project. Mr. Gunter, who acts as a technical consultant to the Company, is a geologist with over 10 years experience in epithermal gold systems and 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. The Company is focused on gold, coal and copper prospects in Indonesia and has exploration rights in three areas: the Jelai epithermal gold prospect in East Kalimantan, five coal prospects, also in East Kalimantan and porphyry copper and gold prospects in Central Kalimantan.
RFC Corporate Finance Ltd acts as KLG’s Nominated Adviser for the purposes of its AIM listing, contact Stuart Laing, ph: +618 9480 2506 or email: email@example.com.
Appendix 2 – Jelai drill results to date Lipan Vein ——————————————————————– ——- ______________________________________________________________Date __________________________________ Au________ Ag______________announced Hole______ From____ To__Metres__ (g/t)______(g/t)__Vein______ by KLG ——————————————————————– ——- JCM-53____28.75__31.50____2.75__ 1.23______ 1.05__ Lipan______9th July ______________________________________________________________2008 ——————————————————————– ——- JCM-50____26.45__34.50____5.45__ 3.88______ 2.54__ Lipan______20th June ______________________________________________________________2008 ——————————————————————– ——- JCM-38____21.95__27.35____5.40__11.74______ 2.74__ Lipan______8th April ______________________________________________________________2008 ——————————————————————– ——- JCM-01____21.55__24.70____3.15__ 5.76________2.6__ Lipan______19th November ______________________________________________________________2007 ——————————————————————– ——- JM024____ 60.73__60.85____0.12__ 53.8________ 18__ Lipan______Ivanhoe Mines ——————————————————————– ——- JM024____ 58.07__59.35____1.28____8.4__________3__ Lipan______Ivanhoe Mines ——————————————————————– ——- Sembawang Central Vein ——————————————————————– ——- ______________________________________________________________Date __________________________________ Au________ Ag______________announced Hole______ From____ To__Metres__ (g/t)______(g/t)__Vein______ by KLG ——————————————————————– ——- JCM-51__ 128.85 130.10____1.30__ 1.22______Below__ Sembawang__3rd July ______________________________________ detection__ Central____2008 ——————————————————————– ——- JCM-49____ 7.10__10.40____2.20__ 1.07______ 1.03__ Sembawang__12th June __________________________________________________ Central____2008 ——————————————————————– ——- JCM-25____14.60__15.50____0.90__ 2.96________9.0__ Sembawang__5th February and______32.00__35.50____3.50__ 1.01________1.0__ Central____2008 ——————————————————————– ——- JCM-26____42.00__47.20____5.20__ 5.60________2.7__ Sembawang__5th February includes 43.40__44.60____1.20__17.33________7.5__ Central____2008 ——————————————————————– ——- JCM-27____12.55__18.50____5.95__ 2.15________4.2__ Sembawang__5th February includes 16.70__17.35____0.65__10.30________7.6__ Central____2008 ——————————————————————– ——- South Mewet Vein ——————————————————————– ——- ______________________________________________________________Date __________________________________ Au________ Ag______________announced Hole______ From____ To__Metres__ (g/t)______(g/t)__Vein______ by KLG ——————————————————————– ——- JCM-04____22.35__23.10____0.75__ 5.75________4.2__ South______19th November __________________________________________________ Mewet______2007 ——————————————————————– ——- Sembawang South Vein ——————————————————————– ——- ______________________________________________________________Date __________________________________ Au________ Ag______________announced Hole______ From____ To__Metres__ (g/t)______(g/t)__Vein______ by KLG ——————————————————————– ——- JCM-16____34.50__38.50____4.00__ 2.27________1.1__ Sembawang__5th February __________________________________________________ South______2008 ——————————————————————– ——- JCM-09____37.73__38.30____0.57__ 1.16______Below__ Sembawang__19th November ______________________________________ detection__ South______2007 ——————————————————————– ——- JCM-12____32.40__36.32____3.92__ 1.33________1.2__ Sembawang__19th November __________________________________________________ South______2007 ——————————————————————– ——- JCM-13____19.45__20.45____1.00__ 2.23________2.4__ Sembawang__19th November and______32.00__36.75____4.75__10.43______ 14.6__ South______2007 ——————————————————————– ——- JCM-14____35.00__36.50____1.50__13.44______ 20.6__ Sembawang__19th November __________________________________________________ South______2007 ——————————————————————– ——- Balangan Vein ——————————————————————– ——- ______________________________________________________________Date __________________________________ Au________ Ag______________announced Hole______ From____ To__Metres__ (g/t)______(g/t)__Vein______ by KLG ——————————————————————– ——- JCM-19____43.30__44.30____1.00__ 5.48________2.0__ Balangan__ 5th February ______________________________________________________________2008 ——————————————————————– ——- Mewet Vein ——————————————————————– ——- __________________________________ Au________ Ag Hole______ From____ To__Metres__ (g/t)______(g/t)__Vein______ Reported by: ——————————————————————– ——- JM011____ 26.31__28.43____2.12____6.9________ 16__ Mewet______Ivanhoe Mines ——————————————————————– ——- JM012____ 57.00__58.70____1.70__ 11.1________ 10__ Mewet______Ivanhoe Mines ——————————————————————– ——- JM013____ 38.33__40.20____1.87____7.5________ 13__ Mewet______Ivanhoe Mines ——————————————————————– ——- JM015____ 67.50__69.00____1.50____7.3________ 14__ Mewet______Ivanhoe Mines and______69.27__70.77____1.50____7.4________ 20__ ——————————————————————– ——- JM018____115.00 119.51____4.51____6.4__________8__ Mewet______Ivanhoe Mines ——————————————————————– ——- JM019____185.10 191.20____6.10____5.7________ 15__ Mewet______Ivanhoe Mines ——————————————————————– ——-
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