| ||Thu Nov 15, 2012|
Kalimantan's Third Quarter Results 2012
| ||The unaudited Interim Consolidated Financial Statements of Kalimantan Gold Corporation Limited (the "Company" or "KLG") for the third quarter ended September 30, 2012, are available for viewing on www.sedar.com or www.kalimantan.com. All dollar amounts are expressed in US dollars.|
The Company incurred a loss and comprehensive loss for the nine month period ended September 30, 2012, of $172,959 (2011 - $1,270,415). Included in the loss were net exploration costs to the Company of $160,720 (2011 - $320,223). The exploration costs are net of those costs funded by an ongoing joint venture with Surya Kencana LLC ("SK LLC"), a subsidiary of Freeport-McMoRan Exploration Corporation on the KSK Contract of Work and by Tigers Realm Metals Pty Ltd. on the Jelai project until that agreement was terminated effective September 30, 2012. The current loss is also net of $451,384 of management fees earned by the Company pursuant to these joint ventures.
The Company began the current fiscal year with $791,511 in cash. Operating activities contributed $243,568 in cash, the Company recognized restricted cash becoming unrestricted of $209,167, used $113,751 in cash for asset acquisitions and received $92,493 as recoveries against those acquisitions, realized net proceeds from share issues of $473,230, and recorded $2,194 of unrealized foreign exchange loss on cash balances, to end the third quarter with $1,698,412 in cash, of which $1,078,445 is held exclusively for use on joint venture projects.
The highlights of the third quarter and up to November 14, 2012, include:
Having completed sole funding exploration to $7,000,000, in early October 2012, SK LLC has notified KLG that SK LLC has elected to continue to sole fund all remaining exploration and feasibility study expenditure under the joint venture agreement, subject to SK LLC's right to withdraw from the joint venture in accordance with the terms of the agreement.
KLG continued to execute drill tests of key prospects at Beruang Tengah and Beruang Kanan, resource definition drilling at Beruang Kanan as well as bring other priority prospects to the drilling stage with additional important ground follow-up work. Multiple deep drilling targets have collectively been defined and prioritized at five of the priority copper porphyry targets with the SK LLC exploration team.
On October 29, 2012, KLG provided an update, by way of news release, that two Duralite drill rigs had been utilized on the deep porphyry copper program and two smaller Jackro rigs had been assigned to the Beruang Kanan near-surface delineation drilling program. Two deep and six delineation holes had been completed and a further two deep holes were nearing completion with a total of 8,005 metres having been drilled to October 29, 2012.
For further information please contact:
Deputy Chairman and CEO, Kalimantan Gold
Mobile: +61 (0) 423 206 324
Corporate Development (UK)
Telephone: +44 (0) 2077311806
Mobile: +44 (0) 7717473168
VSA Capital Limited
Nick Redfern/ Peter Damouni
Telephone: +44 20 3005 5005/ +44 20 3005 5007
KLG's Nominated Adviser
RFC Ambrian Limited
Telephone: +61 8 9480 2506
About Kalimantan Gold
Kalimantan Gold Corporation Limited is a junior exploration company listed on both the TSX Venture Exchange in Canada and on AIM in London. The Company has two exploration projects in Kalimantan: the KSK Contract of Work in Central Kalimantan with potential for multiple porphyry copper and gold prospects and the Jelai epithermal gold project in East Kalimantan. For further information please visit www.kalimantan.com.
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.
This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
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