The latest drill results continue to burnish the potential of the BKM deposit, which is earmarked for fast-track development by the new team.
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Kalimantan Gold Corporation () said it was ‘very pleased’ with the results from its latest seven drill holes on the Beruang Kanan copper project in Central Kalimantan, Indonesia.
Moderate to high grade copper was reported in all holes and the results met, and in some cases, exceeded expectations.
The work also confirmed “good continuity of mineralisation” between holes and sections within the Beruang Kanan Main, or BKM deposit.
In fact, copper continues to be intersected beyond the existing mineral resource boundaries to the west.
The highlights of the latest drill round were five metres at 2.05% copper, 5.2 metres at 1.21% copper and 17 metres at 1.61% copper, including seven metres at 2.06% copper.
The above mineralisation was intercepted from 12 metres down to 48 metres – so it is very near surface.
To date 15 holes have been drilled to assess the potential of BK for a total of 1,196 metres and another two are currently underway.
Chief executive Tony Manini said: "All holes drilled thus far have intersected good widths of near surface copper mineralization amenable to open pit mining.
“The deposit continues to grow in size and good internal continuity is being confirmed.
“Operationally the field teams are doing an exceptional job with the program running smoothly and safely, to time and budget.
“We look forward to keeping all our stakeholders fully informed as this exciting project is advanced through the various stages of evaluation"
Kalimantan is currently sitting on 47mln tonnes of ore at 0.6% copper, with 12mln tonnes at 1% at BKM.
The latest drilling is part of an 80-hole, 6,500 metre programme that is expected to significantly expand the resource base.
It will also move at least some of the ore through the various confidence categories towards reserve status.
BKM is a shallow dipping deposit that follows the contour of a hill and work going forward will concentrate on assessing the potential of the copper mineralisation within the first 50 metres from surface.
To the non-miners this will mean very little. To those in the know, it suggests the strip ratio (i.e. how much soil has to be removed to expose the ore) ought to be extremely low.
In turn the low strip ratio ought to mean low cost of production – assuming the metallurgy works and the grade is economic.
The plan this year is to carry out two rounds of metallurgical test work plus mining studies.
“By the end of this year the whole thing should come together as a scoping level study and assuming that is all positive we will be ready to press the button on feasibility studies next year,” Manini told Proactive Investors recently.
VSA Capital said "We were confident that the BKM deposit would grow in size and contained copper with further drilling. So far, this is proving to be true. We look forward to continued good news and further growth of the deposit."
The broker recommended a 'speculative buy' rating for Kalimantan and put a target price on its shares of 3.2p, way above its current 1.3p.