Monday, November 22, 2010

Coal sale to fund gold exploration?

I had the opportunity to talk to the CEO of KLG at great length. Most of the relevant information need to make a sound investment decision has been posted in previous news releases and focus on the fact that all three company divisions have deals in play and may result in positive news on the near term.

The company currently has gold, copper and coal operations.This is taken from one of the recent news releases.

The Directors are pleased to be able to confirm that the Company has recently been approached by three parties interested in acquiring the coal concession of IBP, two of whom have now submitted formal expressions of interest. The Directors remain confident that a sale of the coal concession of IBP can be completed on terms satisfactory to the shareholders of IBP and the Company.
IBP is already permitted for production and has the potential to be an open-cut coal mine. KLG completed a 4600m drilling programme on the concession that indicates a potential deposit of 270 MTs of between 4,894 and 5,376 kcal/kg coal (air dried basis), with low ash and low sulfur content (see KLG press release dated March 26, 2009).
KSK CoW Copper Concession
Following the announcement on 11 November, 2009 of the results of the advanced "inversion" processing on the KSK CoW, the Company has been approached by three major mining companies. None of these companies had previously been aware of the KSK CoW copper project. Each of these major mining companies has since undertaken extensive data reviews and site visits and two remain in discussions with the Company. The Directors are hopeful that an agreement can be reached that will see extensive drilling of the massive magnetic bodies identified below existing drill holes, which have the potential to yield major porphyry copper deposits.
In conjunction with these discussions, the Directors are also considering the possibility of attracting minority investment at the project level to fund the drilling of up to four priority targets identified by the "inversion" study, thereby enabling the Company to retain control of the project at this stage.

1 comment:

  1. Its running today:

    Detailed Quote for Kalimantan Gold Corporation Limited (KLG:CA)
    $ 0.125 RT 0.045 (+56.25%) Volume: 812.75 k 11:56 AM EST Nov 24, 2010


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