klg presentation oct08
TRANSCRIPT
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Exploring Resource Rich Indonesia
Kalimantan Gold CorporationGerald Cheyne, Director Corporate Development
October 2008
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Disclaimer
General Disclaimer
Kalimantan Gold Corporation Limited "KLG" has taken all reasonable care in producing and publishing informationcontained in this presentation. Material in this presentation may still contain technical or other inaccuracies, omissions, or typographical errors, for which KLG assumes no responsibility. KLG does not warrant or make any representationsregarding the use, validity, accuracy, completeness or reliability of any claims, statements or information in thispresentation. Under no circumstances, including, but not limited to, negligence, shall KLG be liable for any direct, indirect,special, incidental, consequential, or other damages, including but not limited to, loss of programs, loss of data, loss of use of computer of other systems, or loss of profits, whether or not advised of the possibility of damage, arising from your use, or inability to use, the material on this site. The information is not a substitute for independent professional advicebefore making any investment decisions. Furthermore, you may not modify or reproduce in any form, electronic or otherwise, any information in this presentation, except for personal use unless you have obtained our expresspermission.
No stock exchange has reviewed the information in this presentation and no stock exchange accepts responsibility for theadequacy or accuracy of it.
This presentation contains information about adjacent properties on which we have no right to explore or mine. Weadvise U.S. investors that the SEC's mining guidelines generally prohibit information of this type in documents filed withthe SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral depositson our properties.
Forward-Looking Statements
This presentation contains forward-looking statements, including but not limited to comments regarding predictions andprojections. Forward-looking statements address future events and conditions and therefore involve inherent risks anduncertainties. Actual results may differ materially from those currently anticipated in such statements.
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GoldEast Kalimantan
Copper Central Kalimantan
CoalEast Kalimantan
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Kalimantan Gold
Samarinda
Balikpapan
Palangka Raya
Tarakan
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Replacing oil as an energy source
80% of Chinas and Indias electricity
Indonesia largest thermal coal exporter
60% from East Kalimantan -oo a world hot spot for coal
Demand has produced
oo sharp price increases
GoldEast Kalimantan
Copper Central Kalimantan
CoalEast Kalimantan
Coal
Options over 9 coal concessions
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CoalOption Agreement with Mesra Group
9 concessions totaling,,, 32,545ha
Located in areas where coal,,, occurrences known to exist
Some adjacent to, or along,,, strike, from existing mines
Some within 7 km of port,,, facilities
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CoalKalimantan Gold
CoalOption Agreement terms
Option period to 12 th Jan 2009 j
Upon option exercise: Mesra 25%, KLG 70% and GMT 5%(incentive shares)
j
Upon decision-to-mine, bonus payment to Mesra based onJORC reserve tonnage
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Kalimantan GoldProspect locations in relation to major mines Coa l
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Coal
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CoalSurveys and drilling confirm coal potential
Work underway in association with GMT Indonesia which managesseveral coal exploration projects in Kalimantan
Field Surveys completed on 9 concessions
7 holes drilled at PT Emas Hitam Coalhindo, Mandul Island, withmultiple seams to four meters thick, confirm significant, commercialthermal coal occurrences
High calorie coal showings at PT Central Indo Coal and PT TenjinSejahtera concessions. Starting early October, 6 holes will be drilledin each of these
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Mandul Island :
further drilling to increase resource potential three additional concessions totalling 8,000 ha are under application
PT Central Indo Coal and PT Tengin Sejahtera concessions :
drilling to test prospective areas for their resource potential
Surveys and evaluations underway on several near
b production projects
Exercise options and develop coal resource
CoalThe Coal Opportunity
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Kalimantan Gold
SamarindaBalikpapan
Palangka Raya
Tarakan
Jelai
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Jelai Gold Project
Previously explored by Ivanhoe
Mines (Indochina) 12 prospects over 5,000 ha
only one drilled
Work to date confirms potential
for a major resource
Jelai epithermal gold project
GoldEast Kalimantan
Copper Central Kalimantan
CoalEast Kalimantan
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elai project prospect areas Gold
12 prospects
Low sulphidationnepithermal vein systemnstyle of mineralization
Right geological setting,nie sediments andnvolcanics intruded byndacite porphyries
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Kalimantan GoldMewet Vein System - completed and planned drilling Gold
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Hole From To Metres Au g/t Ag g/t
JM011 26.3 28.4 2.1 6.9 16
JM012 57.0 58.7 1.7 11.1 10
JM013 38.3 40.2 1.9 7.5 13
JM015 67.5 69.0 1.5 7.3 14
JM015 69.3 70.8 1.5 7.4 20
JM018 115.0 119.5 4.5 6.4 8
JM019 185.1 191.2 6.1 5.7 15
JM024 58.1 59.4 1.3 8.4 3
JM024 60.7 60.9 0.1 54 18
Mewet Prospect - Ivanhoe drilling
26 holes over 4000 m,,, depths to 200 m
Bonanza grades to,,, 54g/t gold
Less than 5% of 5 km strike,,, length drilled
Gold
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Mewet Prospect sample KLG drilling Gold
73 holes drilled over ,,, 6500m ,,,
4 rigs working 24/7
Drilling includes,,, Bonanza mineralization,,, of 0.75m @ 62.3 g/t,,, Au 256 g/t Ag
Deep drilling underway5.05
13.80
2.74
14.60
2.707.50
4.20
11.03
81.19256.00
Ag g/tHole From To Metres Au g/t Vein
JCM-69including
22.7522.75
28.7523.50
6.000.75
15.8462.27 Mewet
JCM-68 36.65 39.10 2.45 4.45 Mewet
JCM-27 12.55 18.50 5.95 2.15 Sembawang
CentralJCM-26includes
42.0043.40
47.2044.60
5.201.20
5.6017.33
SembawangCentral
JCM-13 32.00 36.75 4.75 10.43 SembawangSouth
JCM-50 26.45 34.50 8.05 4.52 Lipan
JCM-38includes
21.9523.45
27.3524.95
5.401.50
11.7430.68 Lipan
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Comparing Vera-Nancy and Mewet veins
Mewet vein system comparable in scale to Vera-Nancy, part of thePajingo mine in northeastern Australia
Mewet gold shoot is open north, south down dip
Vera-Nancy production to date: 2.3M Oz
Gold
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Comparing Vera-Nancy and Mewet veins Gold
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Work to date confirms potential for ,,, a major resource
Extensive scout drilling has,,, produced highly encouraging,,, results and targets for deeper ,,, drilling
4 rigs working 24/7
Estimated initial inferred,,, resource by end of 2008
Jelai - Summary Gold
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Samarinda
Balikpapan
Palangka Raya
Tarakan
KSK Contract of Work (CoW)
941 km2
Summary of exploration work since1997:
38 prospects identified 265 km of IP and magnetic surveys
35,558 m of drilling Nearly 20,000 samples sent for
analysis
GoldEast Kalimantan
Copper Central Kalimantan
CoalEast Kalimantan
KSK CoW
KSK Contract of Work (CoW)
941 km2
Summary of exploration work since1997:
38 prospects identifed 265 km of IP and magnetic surveys
35,558 m of drilling Nearly 20,000 samples sent for
analysis
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Kalimantan GoldKSK Contract of Work
. mineralisation shows similarities with thatwhich occurs in similar arc-related settings inIndonesia and the south-west Pacific, which areknown to host economically significant copper deposits.SRK Competent Persons Report, 2006
Copper
Large scale intense copper
mineralisation over 38prospects
Beruang Kanan 167m @0.59% Cu
Baroi 83m @ 2.64% Cu NorthMansur
Mansur
BAROI
FEZ
DangoiKalang
Volcano
Tumbang Huoi
Focus 1
Kalang
Low ZoneGold Zone
Beruang Tengah
BERUANG
Beruang South
DerajoiMamuring
Nabalang
Rinjen
Liang Bulau II Liang Bulau I
Sama Tuan
Copper Prospect
Gold Prospect
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Kalimantan GoldKSK: sample Baroi prospect drill resultsCopper
Hole From To Meters Cu (%) Pb (%) Zn (%) Ag(g/t) Au(g/t)
BF-4 52.75 76.75 24.00 1.53 0.25 2.27 28.6 0.13
BF-5 2.45 85.45 83.00 2.64 0.62 1.85 61.1 0.22
Incl. 40.45 64.45 24.00 5.08 0.04 1.24 88.5 0.02
BF-9 6.80 36.80 30.00 2.18 0.07 0.37 53.7 0.05
BF28/030 1.00 42.85 41.85 3.18 0.99 1.85 101 0.16
Incl. 1.00 12.05 11.05 11.05 1.64 2.55 296 0.24
BF29/033 27.95 64.90 36.95 0.73 1.08 0.02 144.7 0.23
BF040 36.30 67.30 31.00 1.04 0.59 2.9 29.6 0.17
BF0048 154.50 184.50 30.00 1.1 0.2 0.8 29.4 0.02
The Baroi Central Zone prospect has produced significant drill results and contains a number of untested targets according to a Jan 2008 report by Dr Peter Pollard
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Copper KSK summary
Discovered a new copper porphyryprovince
Limited Oxiana program has leftsubstantial untested potential
KLG currently seeking jv partner that willcommit funds for a thorough programme
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Community Development our social license
Working in advance of mining to foster good relationships & strengthen
local capacity using a Hand Up approach Building local capacity to self manage,,, village development
Linking villages with local government,,, services
Link donor agency support to the needs,,, of communities
Providing technical support to improve,,, livelihoods
Programs currently operating in 24,,, villages
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Directors and Senior Management
Murray ClaphamChairman
RahmanConnelly
Deputy Chairman,CEO
Peter BojtosDirector
DorisMeyer
CFO
Gerald CheyneDirector CorporateDevelopment
Mansur Geiger
VP Exploration
BrettGunter TechnicalAdvisor,Jelai
Nick CottamCorporateRelationsManager
Dr Peter PollardTechnicalAdviser
Bardolf PaulCommunityDevelopment
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In summary the KLG opportunity
CoalEast Kalimantan
Option over 9 concessions Coal confirmed - quick to production
GoldEast Kalimantan
Significant intercepts resource estimate by end 2008
Copper Central Kalimantan
Potential for large porphyry seeking a new JV partner
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Kalimantan Gold
KalimantanInvestmentCorporation
Management
Retail andInstitutionalHolders
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Share Structure
AIM & TSX.V code: KLG
Shares outstanding 75.0 millionWarrants 650,000Options 6.9 millionFully diluted 82.5 million
Note: KGC is acquiring 25% of KSK CoW from Kalimantan InvestmentCorporation in exchange for 20 million shares
K li G ld
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Contact
Gerald Cheyne,Director Corporate DevelopmentOffice +44 (0) 2077311806Mobile +44 (0) 7717473168Email: [email protected]