Vancouver — At the same time that it explores its copper porphyry property in central Kalimantan, Indonesia,
In particular, the company has implemented several local community programs and joined with the local Dyak community to form the non-profit organization known as Yayasan Tambuhak Sinta (YTS), the aim of which is to encourage economic and social development.
YTS programs are managed by village co-operatives, while the foundation itself provides technical assistance and advice. Some of the programs include:
– organic farming as an alternative to “slash-and-burn” agriculture;
– fresh water fish breeding and farming;
– providing villagers with access to clean water;
– nutrition programs for mothers and children; and
– sustainable forestry.
Kalimantan Gold holds a sixth-generation contract of work (CoW) with the Indonesian government in the Upper Kahayan River area of Central Kalimantan. The project covers 1,242 sq. km and is 250 km northwest of Palangkaraya, the provincial capital of Central Kalimantan.
In order to develop good relationships with the local communities, the company frequently has based its exploration teams in the villages. This has led to a greater understanding of the customs and needs of the locals.
Significantly, Kalimantan Gold has been able to use the local Dyaks’ knowledge of the region and their bush skills to sustain and advance its exploration programs. Indeed, over the years, more than half of its staff have been Kahayan or central Kalimantan Dyaks. A good number continue to be trained in geochemical sampling and geological mapping.
Community programs initiated by the company have helped establish health programs as well as construct schools and a church. The Kalimantan Kids Club was formed with contributions from employees and investors to help fund scholarships to enable children from villages to continue their education in Palangkaraya.
In early 2000, the YTS organization instituted a program to provide extra food and nutrition to pregnant mothers and children. The program was self-administered by the women of the community at a cost to YTS of only $50 per month.
Another program involves the harvesting and trading of rattan, which is used for wickerwork. Women and children harvest and polish the rattan, while men treat and dry it.
The YTS shares its experience with AusAid, and Australian government aid agency, and is co-operating with the World Bank in a survey of 12 villages in the region to determine the effectiveness of social programs. Six of the villages are near Kalimantan Gold’s properties.
In addition, the YTS is working with government to establish a community forestry program designed to offset the impact of large-scale commercial logging of the rain forest.
Sustainable farming
Kalimantan Gold’s last exploration camp established a small model organic garden which was used to train villagers in sustainable farming methods, as well as provide vegetables for the exploration crew.
The company’s exploration efforts are focused on the Beruang Kanan prospect, which is road-accessible from the river port of Kuala Kurun on the Kahayan River. Beruang Kanan is on the southern margin of a caldera, which measures 15 km in diameter. This caldera is bounded by three regional sets of structural lineaments that are visible on satellite images.
Beruang Kanan appears to represent the eroded upper margins of a larger copper porphyry system. Alteration and mineralization are hosted in a series of calc-alkaline-to-felsic intrusions that have been emplaced into a sequence of fine-grained sedimentary and pyroclastic type rocks.
Geophysical surveys correlate with soil geochemistry, and data suggest that five large mineralized areas are present within a 25-km area of the Beruang prospect. To date, only the Main zone, representing 5% of this area, has been drill-tested.
Initial diamond drilling on the prospect took place between January and April 1998. The program utilized a hand-portable wireline diamond drill capable of drilling 200 metres using NQ-sized (47.6-mm diameter) core, and 250 metres using BQ-sized (36.5-mm) core. Results indicate near-surface copper mineralization in six of the 10 holes drilled. The weighted average copper grade of all of the assays was 0.21%. The weighted average grade of holes 1 through 6 was 0.34% copper. Using a cutoff grade of 0.25%, the weighted average grade rises to 0.78% copper.
In late August 2001, the company tabled the results of nine additional widely spaced holes on the Main zone. The drilling confirmed the presence of a shallow, up-to-75-metre-thick, supergene blanket of chalcocite and covellite.
This blanket overlays a northwest-trending structural zone that measures up to 300 metres wide. Mineralization in the Main zone now spans 1.3 km by 300 metres and remains open to the north, as well as to depth.
Highlights of this program include:
– 114 metres grading 0.25% copper in hole 11;
– 48 metres averaging 0.21% copper in hole 12;
– 41 metres grading 0.51% copper in hole hole 15; and
– 108 metres of 0.32% copper, including 75 metres grading 0.41% copper, in hole 18.
In addition, sampling of the southern polymetallic zone, one of five other Beruang Kanan targets, returned high-grade surface assays of up to 3% copper, 35% zinc and 26% lead, plus 1 gram gold and 3,440 grams silver per tonne.
In total, the company has found more than 38 porphyry and porphyry-related copper and/or gold prospects on the property, and only a few of these have been explored in detail.
The company recently announced a non-brokered private placement financing valued at US$200,000. The placement will consist of up to 1 million units priced at US20 each. A unit consists of one share and one share purchase warrant. Each warrant entitles the holder to buy one common share at an exercise price of US20 for two years.
In addition, Kalimantan Gold has executed a shares-for-debt agreement to extinguish its US$70,290 debt in return for 351,450 units priced at US20 each.
Proceeds from the placement will be used to finance ongoing exploration in Kalimantan.
Kalimantan Gold has 23 million shares fully diluted.
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