Ongoing drilling at Kalimantan Gold’s Jelai epithermal gold prospect in East Kalimantan has encountered significant intercepts of gold near the surface.

Consulting economic geologist Dr Peter Pollard says that the exploration “has met with considerable success and had enhanced the chance of delineating a major gold resource in the Jelai district”.

In this drilling program Kalimantan Gold has completed 27 holes to depths of up to 80 metres, totalling 2000m of a planned 4000m programme.

Best results are: 5.95m from 12.55m @ 2.15 grams/tonne gold and 4.2 grams/tonne silver, including 0.65m @ 10.3 grams/tonne gold and 7.6 grams/tonne silver; 5.2m from 42m @ 5.2 grams/tonne gold 2.7 grams/tonne silver, including 1.2m @ 17.33 grams/tonne gold and 7.5 grams/tonne silver; 1.0m from 43.4m @5.48 grams/tonne gold and 2.0 grams/tonne silver; 4m from 34.5m @ 2.27 grams/tonne gold and 1.1 grams/tonne silver; and 0.9m from 14.6m @ 2.96 grams/tonne gold and 9 grams/tonne silver.

The scout rig is continuing to test the Sembawang Vein at 50m centres to identify mineralization close to the surface for deeper drill targeting with a larger man-portable rig to be mobilized soon. A second scout rig has also been sourced to increase the rate of which vein systems can be tested as geological mapping continues to expand the known strike length of a number of veins.

The Jelai project is a low sulphidation epithermal precious metal system consisting of at least seven major veins with a cumulative strike length of more than 5km. Drilling to date has discovered at least five potential ore shoots.

Kalimantan Gold CEO Rahman Connelly says: “We are very keen to start deeper drilling below the scout holes as previous data indicates the vein structures widen and become more consistent at depth.”

The ongoing exploration at Jelai will be funded by a private placement in the UK that raised more than Can$772,000. These funds will also be used to fund coal acquisition programmes in Indonesia as well as for general working capital.

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