Copper and Gold Explorer in Kalimantan, Indonesia

Copper and Gold Explorer in Kalimantan, Indonesia
Faldi Ismail, CEO
April 2014
TSX.V & AIM: KLG
Forward Looking Statement
This document has been prepared by Kalimantan Gold Corporation (the “Company” or “KLG” or “Kalimantan Gold”) solely for informational purposes.
This presentation is the sole responsibility of the company. Information contained herein does not purport to be complete and is subject to certain qualifications and
assumptions and should not be relied upon for the purposes of making an investment in the securities or entering into any transaction. The information and opinions
contained in the presentation are provided as at the date of this presentation and are subject to change without notice and, in furnishing the presentation, the company
does not undertake or agree to any obligation to provide recipients with access to any additional information or to update or correct the presentation.
This presentation contains “forward-looking statements” including but not limited to, statements with respect to the Company’s plans and operating performance, the
estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of future production, future capital expenditures, and the
success of exploration activities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “expects”, “expected”,
“budgeted”, “forecasts” and “anticipates”. Forward-looking statements, while based on management’s best estimates and assumptions, are subject to risks and
uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks
related to the successful integration of acquisitions; risks related to international operations; risks related to general economic conditions and credit availability, actual
results of current exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals
including gold; fluctuations in foreign currency exchange rates, increases in market prices of mining consumables, possible variations in ore reserves, grade or recovery rates;
failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of
the mining industry; delays in the completion of development or construction activities, changes in national and local government regulation of mining operations, tax rules
and regulations, and political and economic developments in countries in which the Company operates.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking
statements. Please refer to the Company’s most recent Annual Information Form filed under its profile at www.sedar.com for further information respecting the risks
affecting the Company and its business.
The documented geometries of mineralized inventory or exploration targets are not intended to be a proxy, or used as a basis, for mineral resource calculations. It is not
certain if additional exploration will result in the delineation of mineral resources in, or near, these target zones. Resource and reserve calculations that are NI 43‐101
compliant have yet to be determined for the mineralized systems in the Company’s projects. This does not imply that the mineralisation contains economic mineral
resources but merely highlights the relationships of the mineralized zones identified.
All data, as disclosed in this press presentation, has been reviewed and verified by the Company's Qualified Person for the KSK and Jelai Project, Dr. Peter Pollard, who is a
Member of the Australasian Institute of Mining and Metallurgy (Chartered Professional). Dr Pollard acts as an independent non executive director to KLG and has sufficient
experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity he is undertaking to qualify as a Qualified Person under
NI 43-101 and as a Competent Person under the JORC Code.
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Corporate Overview
Capital Structure
 KLG is focused on exploring for and
developing base and precious metal
projects in Kalimantan, Indonesia
 Two key projects:
 Kalimantan Surya Kencana (“KSK”)
Copper-Gold Project
 PT Jelai Cahaya Minerals (“JCM”) Jelai
Gold Project
 Over US$55 million spent on
exploration
 Recognized for community programs
(YTS Foundation), best practice
exploration and excellent government
relations
Value
Shares
171.4 million
Options
11.2 million (average strike
price C$0.109 per share)
Share price
C$0.03 per share (24 March
2014)
Market Capitalisation
C$5.1 million (24 March
2014)
Cash
~C$0.5 million
Debt
C$0 million
Enterprise Value
C$4.6 million
Top Shareholders
Freeport McMoran
Exploration
1.46%
Muhammad Subuh
Foundation
2.33%
Yayasan Muhammad
Subuh
2.33%
Romfal Sifat Pty Ltd
2.93%
Rahman Connelly
3.98%
Management
9%
3
Summary of KLG Projects
KSK CoW
 100% under 6th generation
contract of work (“CoW”)
 Expiry 30 years after
commencement of mining
 Located 165km north west of
Palangkaraya, Kalimantan
 Tenements over 630km2
 Forestry status comprises
7,501.25ha production forest
(open pit or underground
mining) and 165.75Ha
Protected Forest (underground
mining)
 38 prospects
 3D inversion modelling
identified world-class copper
porphyry targets
 Tier 1 Beruang Kanan VHMS
Copper system, exposed at
surface and shallow dipping (20
degrees).
 Road access & existing camp
 Targeting 250-500kt copper in
12 months
Kalimantan, Indonesia
 Kalimantan Gold has
developed close
relationships with all levels
of society, from local
communities surrounding
the projects to the highest
tier of decision making
 Fostering good relationships
and strengthen local
capacity to self manage
across various community
aspects
Jelai IUP
 100% under a Mining
Business Licence (“IUP”)
 8 year exploration license,
expires June 2015
 Located in East Kalimantan,
Borneo, 45 km from major city
of Tarakan
 Tenements over 50km2
 Forestry licence status allows
for open pit and underground
mining
 Forestry permit valid until 16
December 2016
 11 prospects
 Over 10km of low
sulphidation epithermal goldsilver veins mapped at surface
 Road access & existing camp
 Targeting over 500koz gold in
24 months
4
KLG Board
Peter Pollard
Non-Executive Chairman, Technical
Adviser. 20 + years experience as a
consulting economic geologist. PhD from
James Cook University. International
experience on porphyry copper-gold
deposits including Grasberg.
Faldi Ismail
Deputy Chairman, CEO
Extensive experience as corporate
advisor specialising in the restructure
and recapitalisation of a wide range of
ASX-listed companies, and is a director
of several ASX listed companies.
Pudji Wahjuni Purbo
Non-Executive Director
Senior lawyer experienced in resources
project finance, merger, acquisitions,
corporate and commercial law. Has
represented major multinational
mining companies in Makarim &Taira S,
one of the premier law firms in
Indonesia.
Stephen Hughes
Director
Geologist with 17+ yrs mineral
exploration, project generation and
evaluation, resource and mine
geology experience at Freeport and
Oxiana.
Doris Meyer
Director, Corporate Secretary
Extensive experience in the mining
industry, and has been involved with
KLG since 1997. Member of the
Associations of the Certified General
Accountants of BC and Canada.
Mansur Geiger
Vice President, Exploration
Over 30 years mineral exploration
experience in Australia and
Indonesia. Fluent in the
Indonesian language and customs.
Has worked on the project from its
inception in 1982
Jefferson Dau, SH
Vice President Director KSK
35+ years as professional lawyer,
member of the Indonesian Chamber of
Commerce and Industry and on the
Advisory Board of the Indonesian Bar
Association.
Gerald Cheyne
Director Corporate Development
25 + years experience acting for
quoted and unquoted companies
Served as a CFD of Guinness Mahon
and Henderson Crosthwaite.
Resides in London.
Bambang Setiawan
Commissioner KSK
Geologist with 35 + years experience.
Masters (ITB) and PhD (France) in
mining. Director General of Mineral,
Coal and Geothermal, 2008 – 2011
and President Commissioner of
numerous mining companies
Len Goldsmith
Chief Financial Officer
Has served as corporate controller
and CFO for a number of TSX and
TSX-V listed companies.
Prasetianto W Mangkusubroto
Government Relations
Masters of Industrial Engineering with 22
years’ experience in the Indonesian
mining Industry. Working in both mining
engineering and government relations for
mineral and coal mining including
companies such as Freeport.
Bardolf Paul
Manager, Community Relations
20 + years experience in the Asia
region, primarily in the resources
and rural sectors. Heads YTS, the
community development
foundation established by
Kalimantan Gold in 1997.
Senior Management
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Indonesia
 The largest economy in SE Asia with
GDP of ~US$867.5 billion and 5.3%
GDP growth in 2013
 Mining industry accounts for >12% of
GDP
 2nd largest producer of tin and nickel
 11th largest copper, and 9th largest
gold producer
 Minerals and related products 20% of
total exports
 100’s of undeveloped Cu-Au projects
in the “Ring of Fire”
 Ranked 4th most prospective country
in the world by Fraser Institute (2013)
Real GDP Growth
Source: IMF
Mineral Occurrences
6
Competitive Environment for Mining
 Favorable for discovery of world-class
copper and gold deposits
 Favorable logistics, proximity to
Australia and China
 Lower mining costs compared to
global average
 Higher profits and returns due to:
 Competitive royalties
 Competitive tax regulations
 Low corporate tax rate of 25%
 Low cost labour force
 Higher grade deposits
 Tax holidays
Competitive Royalty Rates, 2013
Commodity
Production Royalty Rate
Copper
Gold
4%
3.75%
Source: Mining in Indonesia Investment & Taxation Guide, PwC, May
2013, page 26.
Profitability of Indonesian Mines
Key profitability ratios
Average 10 years (up to 2011)
EBITDA Margin
Indonesia
40%
Top 40 companies – global
35%
Net profit margin
Indonesia
20%
Top 40 companies – global
19%
Return on capital employed
Indonesia
26%
Top 40 companies – global
15%
Return on shareholders’ funds
Indonesia
35%
Top 40 companies – global
21%
Source: Mine Indonesia 2013, PwC, May 2013, page 8.
7
Community and Environment
 1998 KLG established the YTS
Foundation to provide community
support for a wide range of programs
as part of its commitment to work
hand in hand with local communities
 Strengthen local governance capacity
and support local economic
development
 KLG has been working in advance of
mining to foster good relationships
and strengthen local capacity to self
manage across various community
aspects including linking villages with
local government services and linking
donor agency support to the needs of
communities
Community Development and Operating
in Indonesia
KLG has developed close working
relationships at all levels of society, from
the local communities surrounding its
project areas to the highest tier of
decision making.
8
KSK Contract of Work
 PT Kalimantan Surya Kencana (“KSK”)
 100 % ownership, under a 6th generation
Contract of Work (“CoW”)
 Tenement covers 630 km2
 Located 175km NW from Palangkaraya,
Kalimantan, project area accessible via a
logging road or a 45 minute chopper flight
 Guaranteed 30 years production term and
can apply for two ten year extensions
 Excellent access and existing infrastructure
 38 mineral occurrences and prospects.
 Forestry permit covers all main targets
 Multiple surface / shallow VHMS precious
and base metal targets
Tenement Map
0
200km
KSK CoW
Prospect &
Mineral
Occurrences
9
A New Emerging VHMS District
 Several Tier 1 copper, zinc, lead, silver and
gold prospects occur within the CoW,
mineralization styles include VHMS, skarn,
porphyry, and epithermal.
 Beruang Kanan Project (“BK”) is KLG’s
immediate focus, an under-explored VHMS
District in central Kalimantan
 Advanced stage exploration project, with
more than USD 50M spent on scout and
delineation drilling, Lidar, Gravity, IP,
Magnetic and geochemical sampling
surveys & studies
 Only 40% of BK project area drill tested
 Forestry Permitted, renewable to 2016.
Production Forest, open pit mining allowed
Regional location map showing road and air access
Road
Access
10
Beruang Kanan Main (“BKM”)
 BK Project area is divided into the BK Main
(Cu), BK South (Cu-Au), BK West (Cu-Pb-Zn)
and BKZ Polymetallic (Pb-Zn-Ag-Cu-Au)
Prospects
 BK Main (“BKM”) is an advanced-stage
copper-dominated VHMS prospect
 Drilling has confirmed VHMS-style
mineralization over a strike length of 1100m,
is up to 450m wide, averages 50m in
thickness and is open in all directions
 Southern most drill hole (BK28) indicates a
potential strike length of >2.5km
 Exploration camps fully operational, and a
network of logging roads provides direct
access to BKM camp and surrounding areas
BK Project Area – 4 VHMS Prospects
KSK Exploration Logistical Base
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BKM – Copper VHMS System
 Prospect is characterized by a coincident
gravity & copper in soil anomaly
 Drilling has defined an intact, shallow
dipping and undisturbed zone of VHMSstyle copper mineralization
 High grade copper mineralization at surface
that dips sub-parallel to topography,
approximately 23 degrees eastward
 Mineralization is dominated by covellite &
chalcopyrite in silicified and phyllic altered
volcaniclastics & hydrothermal breccias
 Second zone of VHMS copper
mineralization occurs at 150m depth,
dimensions unknown, but will be targeted
as part of next phase of drilling
BK Main Prospect showing strong gravity anomaly coincident
with strong copper in soils
BK058 (14.7 – 17.7m)
3m @ 9.61% Cu & 15g/t Ag
BK058 (107.7m)
3m @ 1.0% Cu
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BKM - Exploration Target
 Phase 1 definition drilling is planned
across 100m spaced lines at 50m
centers, testing 1300m of strike length
 Planned 12,000m of drilling, with an
average hole depth of 100m
 4-5 months to complete program
 3 months to conduct scoping study
including resource, metallurgy,
geotechnical, environment & economics
 Exploration target of 50 - 80Mt @
0.60% to 0.80% Cu*
 All-in costs are expected to run at
<US$300/m
 Budget estimated at US$3.5 million
* The documented geometries of mineralized inventory or exploration targets are not intended to be a proxy, or used as a basis, for mineral
resource calculations. It is not certain if additional exploration will result in the delineation of mineral resources in, or near, these target zones.
Resource and reserve calculations that are NI 43‐101 compliant have yet to be determined for the mineralized systems in the Company’s
projects. This does not imply that the mineralisation contains economic mineral resources but merely highlights the relationships of the
mineralized zones identified.
Table : High grade significant assays for BKM
BK01
From
(m)
22.50
To
(m)
42.50
Length
(m)
20.00
Cu
(%)
1.12
BK02
4.50
52.50
48.00
1.07
BK03
6.40
28.40
22.00
1.25
BK34
Hole ID
171.60
231.70
60.10
1.03
BK44-01
0.00
18.70
18.70
1.22
BK44-02
4.00
25.00
21.00
1.57
BK45-01
1.40
21.80
20.40
2.65
BK48-01
4.50
19.50
15.00
1.21
BK50-01
0.60
16.00
15.40
1.03
BK57-01
7.70
30.20
22.50
1.27
BK58-01
11.70
44.70
33.00
2.28
Including
11.70
20.70
9.00
7.35
BKD03-01
260.45
274.22
13.77
1.40
100m
Interpreted base of
VHMS mineralization
Section line through BK057 - BK058
13
BK : Untested Priority VHMS Targets
 Two nearby Cu - VHMS targets identified at
BK South & BK West, and a Zn-Pb-Ag-Au
VHMS at BK Polymetallic Prospect. All are
drill ready targets
 BK South : a coincident copper in rock chip and
BK Project
Area
Colour Plot
Showing
Copper in
Soils
soil anomaly measuring 1700m in NE-SW
dimension. Rock chips up to 17.6% Cu.
 BK West : a coincident copper in rock chip and
soil anomaly measuring 1700m by 1000m,
coincident with the western extent of the gravity
anomaly that defines BK Main. Rock chips
returned up to 0.80% Cu.
BK Project
Area
Colour Plot
Showing
Lead in Soils
 BKZ Polymetallic : VHMS mineralization with
200m strike length, open in all directions. Three 3
holes tested one area, BKZ-1 (16m @ 5.75% Zn,
2.78% Pb, 0.64g/t Au, 57.5g/t Ag and 0.16% Cu).
BK Project
Area
Colour Plot
Showing
Zinc in Soils
14
BKM : Timeline for Maiden Resource
Estimated Budget up to US$3.5 million to
complete:
 Resource definition drilling at BKM
 Scout drilling at BKS, BKW & BKZ
Polymetallic Prospects
 Metallurgical & associated studies
 Commission Maiden NI 43-101 Resource
Estimate
BKM Program Goals to mid-2015:
 Complete a NI 43-101 compliant Maiden
Resource for BKM
 Complete scout holes at BKW, BKS and BKZ
polymetallic
 Carryout a Preliminary Economic Assessment
on BKM
15
KSK : Baroi – FEZ Polymetallic Veins
 Baroi – FEZ visited by Terry Leach in 2003.
Identified up to >200m wide zones of
abundant sheeted to locally stockwork,
metal-rich, quartz-sulphide veins, strike
length ≤1km
 Veins are copper-silver ± gold rich, locally
>10m in width and in some cases grade over
10% copper (e.g. sample 641-43 : 9m @
14.03 % Cu, 0.11 g/t Au and 464 g/t Ag.
 High grade copper mineralization intersected
in drill hole BF030, 41.9m @ 3.18% Cu and
101g/t Ag (including 11.1m @ 11.1% Cu and
296g/t Ag)
 Forestry status is Protected Forest, and only
underground mining is permitted.
Baroi – FEZ Prospect
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KSK : Baroi – FEZ Cross Section
 Recently recognized deep
porphyry Cu-Au potential at
Baroi-FEZ. A drill proposal has
been generated, designed to
test below a zone of strong
alteration with coincident
intermediate sulphidation
veins
Drill Hole BF30 intersected
Covellite – Chalcopyrite mineralization
11.05m @ 11 % Cu and 296g/t Ag
BF30 41.9m@ 3.18%Cu,101gpt Ag
Interpreted Deep Porphyry Potential Supported by Surface Alteration and Mineralisation Data
Geophysical anomalies Green: IP Anomaly, Purple: Magnetic 3D Inversion
Baroi – FEZ
mineralization
characteristic of
the Cu-Zn-Pb-Ag
lode zones that
are encountered
around the
margins of a large
porphyry system
17
KSK : Other Priority Targets
Other Potential Copper Resources
 Mansur copper-gold porphyry,
shallow lower grade intersections,
deeper potential remains untested
 Gold Zone located west of Beruang
Tengah porphyry, not sufficiently
tested – possible oxide gold target
 Follow-up drilling required at:
 Gold Zone (Production Forest)
 Low Zone(Production Forest)
 Volcano(Production Forest)
 Baroi-FEZ Lode Veins (Protected
Forest)
 Tumbang Huoi (Protected Forest)
 Mamuring (Protected Forest)
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Jelai Gold Project
 KLG owns 100% of this project through
PT Jelai Cahaya Minerals (“PT JCM”)
 The Jelai Gold Project is located in East
Kalimantan, Borneo, Indonesia, 45 km
from the major city of Tarakan
 The prospect lies in foot hills & is
accessed via all-weather regional
highway
 IUP Exploration valid to June 2015
 Forestry permit
 Clean & Clear
 Tenement area 49.5 km2
 Project on care & maintenance
 KLG seeking expressions of interest
from potential funding partners
Jelai Gold Project
19
KLG : Jelai Gold Project
 Jelai is a low-sulphidation epithermal
gold project.
Exploration
up-side
 The Mewet Prospect has four vein
systems
 Gold mineralized low sulphidation
epithermal veins are hosted by a
sequence of andesite and dacite and
an intrusive breccia.
 Key minerals (eg adularia) and
textures indicate strong potential.
 Encouraging results from previous
drilling (DDH)
 Approximately 2000m of vein strike
length remains to be tested
Drillcore from JCM 81 with 22.1 g/t Au, 41.7 g/t Ag/t
Adularia (yellow) in colloform-banded quartz (right)
20
Mewet Drill Results
 Encouraging results from previous drilling (DDH) at Mewet, Lipan and
Sembawang prospects:
Mewet
Sembawang
•JCM-69 6.00m @ 15.84 g/t Au, 81.19 g/t Ag from 22.75m
•incl. 1.20m @ 17.33 g/t Au, 7.5 g/t Ag from 43.4m
& 2.85m @ 2.09 g/t Au, 6.91 g/t Ag from 52m
•JCM-13 1.00m @ 2.23 g/t Au, 2.4 g/t Ag from 19.45m,
JM018 4.51m @ 6.40 g/t Au, 8 g/t Ag from 115m
& 4.75m @ 10.43 g/t Au, 14.6g/t Ag from 32m
JM019 6.10m @ 5.70 g/t Au, 15 g/t Ag from 185.1m
Lipan
•JCM-38 5.40 m @ 11.74 g/t Au, 5 g/t Ag from 21.95m,
incl. 1.50m @ 30.68 g/t Au, 14 g/t Ag from 23.45m
• JCM-50 8.05m @ 4.52 g/t Au, 3 g/t Ag from 26.45m,
incl. 1.35m @ 15.40 g/t Au, 6 g/t Ag from 26.45m
• JCM-26 5.20m @ 5.60 g/t Au, 2.7 g/t Ag from 42m,
21
Regional Exploration Potential
 11 untested gold & copper prospects
in the south, west and eastern
tenement areas (yellow stars)
Regional Targets
 Extensive sampling completed over
the property & geophysical data
encourage further exploration
 Priority targets include five sediment
hosted Au prospects (Lian, Balangan,
Bakayan, Muang, Gugung), and two
silicified porphyry-breccia vein style
Cu-Au prospects (Dokot and Inyang)
 Forestry allows for Open Pit mining
22
Contact Information
KLG – TSX.V & AIM
Contact Information:
Faldi Ismail
M: +61 423 206 324
E: [email protected]
W: www.kalimantan.com
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