KSK Contract of Work - Central Kalimantan
KSK is a 941 sq km 6th generation Contract of Work comprising a total of 38 mineral prospects. Of the 38, KGC has identified several of which are acknowledged to hold potential world class copper-gold porphyry deposits.
Dr Peter Pollard was asked to produce an independent report on KSK following the completion of a drill programme by Oxiana Ltd in December 2007 and it's subsequent decision not to exercise its joint venture option after spending US$2.5 million on a limited program.
Dr Pollard's report highlighted the "untested potential" in several areas which is currently attracting interest from a number of potential joint venture partners. Dr Pollard's report states that while several parts of prospects were downgraded by Oxiana's work, there are a number of untested targets at the KSK Beruang prospect where previous drilling results include 167 meters @ 0.59% copper and at Baroi where previous results include 83 meters @ 2.64% copper. As a result the company believes that there are still valid known targets to be tested within the main KSK prospect areas. KGC is seeking a partner that will commit the funds necessary to do a thorough program, which will cost around $US 10 million.
View KSK report by Peter Pollard
Previous activity - 1998 onwards
With just two copper mines - Freeport's Grasberg and Newmont's Batu Hijau - Indonesia is the third largest copper producer in the world. The geological formations that yielded these deposits are widespread throughout the country and in Kalimantan especially. Industry 'lore' is that Indonesia will yield many more such deposits. They haven't yet been found simply because Indonesia remains massively under-explored.
As a result of KLG's exploration work, the region became acknowledged as a new copper gold porphyry province, confirmed by Dave Howard in his report dated January 2001, by Terry Leach in a paper to the 2002 PDAC in Toronto and commented upon in a Competent Person Report by SRK Consulting Engineers & Scientists.
From 1998 to 2000 KLG's efforts were in the east of its CoW, in an area that became known as Beruang where eight mineralized zones are located at the margins of a 12 kilometer diameter caldera. Exploration work included 19 medium depth diamond drill holes at Beruang Kanan which returned results up to 167 meters @ 0.59% copper. Five major mining companies conducted technical due diligence in 2001, but withdrew from discussions because of the unstable political and economic climate in Indonesia at the time.
In 2002, exploration shifted to focus on several induced polarization (IP) and geochemical targets at the Mansur prospect, in the west of the CoW, which displays classic porphyry alteration and geochemistry. While working at Mansur, reconnaissance exploration was conducted in the adjoining Baroi prospect; exceptionally high-grade samples were found containing up to 16.4% copper, 460 grams per tonne silver, and 17.3 grams per tonne gold. As a result, the entire exploration effort moved to 6 x 4 kilometer Baroi prospect.
Selected Baroi Drill Results
Competent Person's Report on the Mineral Exploration Assets of Kalimantan Gold Corporation Limited
Appraisal and Exploration Summary Baroi and other significant prospects, KSK Contract of Work