ALIMANTAN GOLD CORPORATION
Canadian Office: Indonesian Office:
Suite 2070 - 777 Hornby St. S. Widjojo Centre, 2nd Floor
Vancouver, B.C. Canada Jalan Jenderal Sudirman 71
V6Z 1S4 Jakarta, 12190 Indonesia
PRESS RELEASE
For Immediate Release Vancouver Stock Exchange
April 30, 1997 Symbol: "KLG.U"
Vancouver, British Columbia
Kalimantan Gold Corporation Announces Signing of Contract of Work
Kalimantan Gold Corporation announces that on April 28, 1997 the Company's
Kalimantan Surya Kencana (KSK) 6th Generation Contract of Work (CoW) was
signed with the Government of Indonesia. The Company holds its interest in
the KSK CoW via a 75% interest in the issued and outstanding shares of a
newly formed Indonesian company, PT Kalimantan Surya Kencana, which is the
actual holder of the CoW.
The KSK property is located in Central Kalimantan, Indonesia and comprises
an area of 121,900 hectares. It is located on the northern edge of a
highly prospective structural corridor called the Kalimantan Suture or
"Gold Belt". The corridor is a subduction zone that includes a number of
world class gold deposits including Kelian, Mirah, and Mount Muro.
Since September 1996, regional reconnaissance and local detailed
exploration has been completed on over approximately 20% of the KSK
concession area. Company geologists have already identified at least 38
major geophysical and geochemical mineral exploration targets on the
property. Detailed field exploration is now in progress on four selected
prospects: the Derajoi Gold Prospect, Focus 1 Gold Prospect, Rinjen
Gold-Copper Prospect, and the Bruang Gold- Copper Prospect. Drilling is
expected to commence in June, 1997.
The Company also holds 80% of the issued and outstanding shares of PT
Pancaran Paringa Kalimantan (PPK), an Indonesian company which, until
November 7, 1996, was the holder of a 4th generation CoW (the PPK CoW)
covering an area of 33,100 hectares located immediately to the west of the
KSK CoW. The Company has entered into an arrangement with the Minister of
Mines and Energy of Indonesia whereby the PPK CoW and KSK CoW will be
merged. As part of this process, on May 23, 1996, application was made by
PPK to the Minister of Mines and Energy of Indonesia for the termination of
the PPK CoW. Termination was approved in Decree No. 1494/29/MPE/1996,
dated November 7, 1996, and became effective as at May 31, 1996.
Now that the KSK CoW has been signed, the Company anticipates that the
formal merger of the PPK area into the new KSK CoW will be completed in the
near future.
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For further information, please contact Raynard von Hahn, Manager -
Corporate Development of Kalimantan Gold Corporation at 1-604-688-5399,
1-800-533-0323; fax: 1-604-688-3392; E-Mail: info@kalimantan.com, or visit
the Company's web site at: www.kalimantan.com.
No regulatory authority has either approved or disapproved the information
contained herein. |
