Kalimantan Gold and Freeport-McMoRan Exploration have formed a joint venture to explore Kalimantan’s KSK Contract of Work (CoW) copper project in Kalimantan, Indonesia. Freeport can earn a 51% joint venture interest in the KSK CoW by expending a minimum of $7 million on a substantial exploration program over three years and then a further 24% interest (total 75%) by sole funding the completion of a feasibility study, with best efforts to complete it within 10 years.
The first-phase $7-million expenditure must include not less than $3 million in the first year. The three highest priority targets are the Beruang Tengah, Beruang Kanan and Tambang Huoi prospects, all of which are expected to be drill tested by at least one hole to a depth of up to 1,500 m in the first year of the program. Previous drilling results at Beruang Kanan have included intersections of 167 m at 0.59% copper from 4.5 m, 79 m at 0.89% copper from 6.5 m, and 102 m at 0.62% copper from 3 m.
Kalimantan will be the project operator during the initial drilling program under the direction of Freeport.