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An epithermal gold prospect in East Kalimantan
Current activity
KGC has been undertaking a major drill program at its 100%-owned Jelai epithermal gold property in East Kalimantan where the company has successfully tracked the results of the previous incumbent Indochina Goldfields (now Ivanhoe Mines) and is now achieving some promising results of its own.
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CEO Rahman Connelly inspects a piece of Jelai drill core |
The 5,000 hectare exploration concession contains 11 known anomalous gold prospects, only one of which, the Mewet vein system, was drilled by Ivanhoe. While Ivanhoe drilled only 15% of the cumulative 5km strike length within two individual veins of the Mewet vein system, the company has now confirmed the presence of some high grade gold mineralization in four individual veins at Mewet.
KGC's current drill program includes hole 26 which encountered 5.6 grams per tonne ("g/t") gold over an interval of 5.6 metres including 17.33 g/t gold over 1.20 metres and hole 27 which encountered 2.15 g/t gold over an interval of 5.95 metres including 10.30 g/t gold over 0.65 metres in the Sembawang vein; all within 47 metres from surface.
The most significant drilling results of the total programme are as follows:
Hole |
From |
To |
Metres |
Au (g/t) |
Ag (g/t) |
Vein |
Date announced |
JCM-01 |
21.55 |
24.70 |
3.15 |
5.76 |
2.6 |
Lipan |
Nov. 19, 2007 |
JCM-04 |
22.35 |
23.10 |
0.75 |
5.75 |
4.2 |
South Mewet |
Nov. 19, 2007 |
JCM-09 |
37.73 |
38.30 |
0.57 |
1.16 |
Below detection |
Sembawang |
Nov. 19, 2007 |
JCM-12 |
32.40 |
36.32 |
3.92 |
1.33 |
1.2 |
Sembawang |
Nov. 19, 2007 |
JCM-13 |
19.45 |
20.45 |
1.00 |
2.23 |
2.4 |
Sembawang |
Nov. 19, 2007 |
and |
32.00 |
36.75 |
4.75 |
10.43 |
14.6 |
Sembawang |
|
JCM-14 |
35.00 |
36.50 |
1.50 |
13.44 |
20.6 |
Sembawang |
Nov. 19, 2007 |
JCM-16 |
34.50 |
38.50 |
4.00 |
2.27 |
1.1 |
Sembawang |
Feb. 5, 2008 |
JCM-19 |
43.30 |
44.30 |
1.00 |
5.48 |
2.0 |
Balangan |
Feb. 5, 2008 |
JCM-25 |
14.60 |
15.50 |
0.90 |
2.96 |
9.0 |
Sembawang |
Feb. 5, 2008 |
|
32.00 |
35.50 |
3.50 |
1.01 |
1.0 |
Sembawang |
|
JCM-26 |
42.00 |
47.20 |
5.20 |
5.60 |
2.7 |
Sembawang |
Feb. 5, 2008 |
includes |
43.40 |
44.60 |
1.20 |
17.33 |
7.5 |
|
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JCM-27 |
12.55 |
18.50 |
5.95 |
2.15 |
4.2 |
Sembawang |
Feb. 5, 2008 |
includes |
16.70 |
17.35 |
0.65 |
10.30 |
7.6 |
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A recent inspection of the Jelai property by the highly regarded economic geologist Dr Peter Pollard has confirmed the company's approach to the exploration programme. In his February 1, 2008 report, Dr Pollard concluded that exploration conducted since the start of the present programme "has met with considerable success and has enhanced the chance of delineating a major gold resource in the Jelai district".
View Jelai report by Peter Pollard
Geological background
Geology at Jelai fits the model found in similar magmastic arcs world-wide, which predicts that high grade ore shoots are very likely in this type of deposit. The concession is a low-sulphidation epithermal precious metal system consisting of at least seven major veins and numerous subsidiary veins with a cumulative strike length of more than five kilometres.
Drilling to date has discovered at least five potential ore shoots within the restricted strike length that have been explored. Interpretation of mineral textures in the veins and comparison with models for low-sulphidation epithermal systems suggests that the current level of exposure is near the top of the precious metal zone. Previous drilling on the Mewet shoot indicates that the vein becomes thicker with depth and that the mineralization extends over at least 200 metres vertically. Mineral textures are logged in the veins to determine the controls on ore shoot development as a further predictive tool for exploration. The emphasis on drilling will shift to assessing the size and grade of the known mineralized zones using deeper drilling up to 300m. This will take the project to at least inferred resource status while the team at Jelai continues to systematically drill shallow holes outwards along strike from these zones in an attempt to locate further ore shoots. 'size & grade' will be determined using deeper drilling up to 300m and will commence shortly (in fact 1 -2 weeks from now at which point we will issue another Jelai PR).
Jelai vein structure
Eleven major veins and numerous vein splays were identified by ICG in the Mewet vein systems. The main veins are: Mewet, Nyabi-Adau, Sembawang, Lipan, Tigalima and Taman. These veins vary in length from about 250 metres to greater than 1,000 metres and have an average width of between 2 and 8 metres. The veins show complex textural characteristics, including prominent banding and brecciation, which reflect multiple stages of silica, adularia and carbonate deposition and preservation at relatively high levels withi a classic epithermal gold environment.
Highlights of previous drilling by Ivanhoe
 February 2008, Jelai report by Peter Pollard
June 2006, Jelai Drill Proposal
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