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The junior mining company is up nearly 30% over the last four days.
Kalimantan Gold Corporation Limited (LSE:KLG) is an AIM listed mining company focused on gold, copper and coal prospects in Kalimantan, Indonesia.
10 November Press Release
The company’s gains were perpetuated Thursday with a 6.5% increase in share price following a positive news release. The announcement stated that the Minister of Forestry has granted a “borrow to use” exploration permit for the Jelai Gold project in north eastern Kalimantan. The permit gives the company permission to conduct explorations across 11 of their 12 Jelai gold prospects, including 4,675 of the 5,000 hectare IUP.
Joint Venture With Tigers Realm
This announcement fulfils the outstanding requirements for their joint venture with Melbourne-based Tigers Realm Minerals, who have the right to a 70% interest in the Jelai Gold project if they meet certain conditions. These conditions include fulfilling project expenditure requirements and completing a bankable feasibility study before the expiration of the IUP.
Tigers Realm estimates the drill expenditure to be US$2 million in the first 18 months, with a total of 8,000 metres of drilling at the Mewet prospect planned. With the permits approved, camp construction will follow with drilling planned to commence by mid December.
The Mewet Prospect is the company’s primary gold project, totalling 126 holes drilled at a total depth of 14,000 metres.
Statement From CEO
KGC CEO Faldi Ismail stated the following:
“Securing the forestry permit is a significant step for KGC and the Jelai project and this demonstrates KGC’s understanding and ability to work within the Indonesian regulatory environment. It also demonstrates that Indonesia’s new mining and forestry regulations work. KGC and Tigers Realm are excited to commence exploration at the Jelai Gold Project”
References
↑ About Kalimantan
↑ Kalimantan Press Release
