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Kalimantan Gold Investor Presentation Rahman Connelly | London | - - PowerPoint PPT Presentation

Kalimantan Gold Investor Presentation Rahman Connelly | London | October 2006 Disclaimer Kalimantan Gold The information contained within this presentation is not intended to be a comprehensive review of all matters and developments


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SLIDE 1

Kalimantan Gold

Investor Presentation

Rahman Connelly | London | October 2006

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SLIDE 2

Kalimantan Gold

2 Disclaimer

The information contained within this presentation is not intended to be a comprehensive review of all matters and developments concerning Kalimantan Gold Corporation Limited (KLG) and KLG assumes no responsibility as to its completeness, accuracy or currency. This presentation may contain forward-looking statements which involve risks and uncertainties which may affect KLG's business and prospects and cause actual results to differ from the forward-looking statements. Specifically, charts, tables and text in this presentation may make use of estimates. Forward-looking statements contained in this presentation may be affected by the following factors, among others: – risks associated with mining exploration, development, construction and mining operations; – changes in the equity markets and market conditions for equity financing; – changes in the price of commodities; – changes in foreign currency exchange rates; – foreign investment risk; – government regulations including regulations relating to prices, taxes, royalties, land tenure, use, importing and exporting

  • f minerals and environmental protection.

The information in no way should be construed or interpreted as – or as a part of – an offering or solicitation of securities. No securities commission, stock exchange or other regulatory authority in Canada or any other country or jurisdiction has in any way passed upon this information and no representation or warranty is made by KLG to that effect .

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SLIDE 3

Kalimantan Gold

3 Kalimantan - Overview

  • Junior explorer focused on Kalimantan

in Indonesia

  • Advanced copper & gold exploration

prospects

  • Experienced management team
  • Active community development

program - vital ahead of potential mining

Kalimantan

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Kalimantan Gold

4 Indonesia – Large Exploration Potential

20 32 34 52 24 36 55 3 9 4 6 10 5 8

2

21 7 11 12 13 14 15 16 17 18

1

19 22 30 31 27 26 23 25 29 28 33 35 37 38 39 40-45 48 47 46 51 50 49 53 54

= In Operation = Exploration / Development Copper/Gold/Silver Base Metals Coal (Selected) Other Kalimantan

Active Operators include: RioTinto Freeport Newmont BHP Billiton, Eramet Newcrest Antam Avocet

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Kalimantan Gold

5

Beruang Mansur Baroi

The Copper Story

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Kalimantan Gold

6 Indonesia: Copper Rich

  • Successful history of copper production
  • World’s 3rd largest copper exporter

– Freeport’s Grasberg mine – Newmont’s Batu Hijau mine

  • Regional geological setting (plate

margins and magmatic arcs) provide heat sources and structures favourable for copper and gold mineralisation

  • Yet Indonesia remains relatively

underexplored

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Kalimantan Gold

7 Copper Exploration - Central Kalimantan

  • 75% ownership of KSK Contract of

Work (CoW)

  • 941 km2 area with 38 prospects
  • Priority targets: Beruang, Mansur &

Baroi

  • Exploration to date:

– Drilling – over 20 km – IP & mag surveys – over 190 km – Samples – over 9,000 – Aeromagnetics – 8000 km – Structural analysis

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Kalimantan Gold

8

* Terry Leach paper to PDAC “ Porphyry Copper Gold Systems in Central Kalimantan” ** Resource World Magazine

  • Major new copper-porphyry province*
  • Porphyry deposits normally >500mt &

contribute to more than 50% of annual world production (~15mt)**

  • Freeport has 80bn lbs Cu, 108moz

Au - in-ground asset / resource $380bn

  • Batu Hijau 920 mt @ 0.55% Cu,

0.42g/t Au: in-ground asset / resource $50bn

CoW– New Copper Porphyry Province

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Kalimantan Gold

9 Baroi Prospect

  • Focus for past 3 years
  • 4 mineralized zones cover a

massive 6x4km area

  • 8 characteristics of major

porphyry deposits in the region*

  • Several priority targets defined

for deeper drilling

*Leach Report 2003

Hole BF-5 – 83 meters @ 2.6% copper; 0.6% lead; 1.9% zinc; 61 g/t silver and 0.22 g/t gold

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Kalimantan Gold

10

Low Zone South Polymetallic South Zone Main Zone North Polymetallic West Zone

N/W S/E

Beruang Kanan looking S/W

Right structural setting intersecting major faults Drill hole BK2 results up to 167 meters @ 0.59% copper Two independent technical reviews Deep drill ready

Beruang Prospect

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Kalimantan Gold

11

  • Right structural setting intersecting major

faults

  • Classic copper porphyry geology
  • Exploration work includes:

– Airborne geophysics & satellite image interpretation – Geological mapping/sampling – Diamond drilling

  • Close to surface & drill ready

Mansur Prospect

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Kalimantan Gold

12 Development Strategy

  • Heads of Agreement signed with Oxiana (ASX:OXR)

– Initial funding period

  • US$2.5m over 18 months
  • Includes deep drilling at Baroi, Mansur & Beruang
  • Nil equity earn-in

– Right to sole fund JV to earn equity

  • 40% equity at completion of a Pre-Feasibility Study: 30-42 months.
  • 66.67% equity at completion of a Bankable Feasibility Study: 48-60 months

– Project Financing

  • Oxiana to use best endeavours to arrange Kalimantan’s share of project

financing

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Kalimantan Gold

13 Summary – Copper Prospects

  • New porphyry province
  • All prospects potential to be company

transforming

  • Dr Peter Pollard recently completed

independent review of data to prioritize drill targets

  • Heads of Agreement signed for future

joint development of the prospects

“The KSK CoW contains the Baroi, Beruang and Mansur prospects.......mineralisation shows similarities with that which occurs in similar arc-related settings in Indonesia and the south-west Pacific, which are known to host economically significant copper deposits.” SRK Competent Persons Report

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Kalimantan Gold

14 GOLD

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Kalimantan Gold

15 Jelai Mewet – East Kalimantan

  • Epithermal Gold Project 100% owned
  • Previously explored by Indochina

Goldfields (Ivanhoe)

  • 11 gold prospects identified
  • Mewet Prospect confirmed high-grade

gold mineralisation

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Kalimantan Gold

16 Mewet Prospect

  • 8 major veins identified
  • 26 holes drilled: 3,872 m – depths up to

200m

  • Gold bonanza grades to 63g/t & 87g/t

gold

  • Less than 10% of 5km strike length

drilled

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Kalimantan Gold

17 Select Indochina Drill Hole Results

Hole Hole Fro From To To Metr Metres es Au g/t Ag g/t

JM011 26.31 28.43 2.12 6.9 16 10 13 14 20 8 15 3 18 JM012 57.00 58.70 1.70 11.1 JM013 38.33 40.20 1.87 7.5 JM015 67.50 69.00 1.50 7.3 JM018 115.00 119.51 4.51 6.4 JM019 185.10 191.20 6.10 5.7 JM024 58.07 59.35 1.28 8.4 JM024 60.73 60.85 0.12 53.8 JM015 69.27 70.77 1.50 7.4

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Kalimantan Gold

18

Proposed Drill Holes

Jelai Mewet Drilling Program

  • Validate Indochina results
  • Evaluate Mewet prospect with systematic

drilling program

  • 4,000m drilling program
  • Regional exploration of 10 other

prospects

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Kalimantan Gold

19 Summary - Gold Prospects

  • Advanced gold exploration properties in Indonesia
  • Formerly explored by Indochina (now Ivanhoe)
  • 6-month 4,000m drilling program to start January 2007
  • Drilling will expand known mineralisation towards resource definition
  • 10 other similar prospects
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Kalimantan Gold

20 Directors & Management

Murray Clapham, Chairman Rahman Connelly, Executive Chairman Peter Bojtos, Director Doris Meyer, CEO

  • Mansur Geiger, VP Exploration

Brett Gunter, Technical Advisor Jelai Mewet Bardolf Paul, Community Development Manager

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Kalimantan Gold

21 Key Focus over next 6 months

  • KSK – Copper

– US$2.5m deep drilling program funded by Oxiana

  • Jelai – Gold

– Substantial drilling program to prove up initial Indicated Resource to NI 43-101 standards

  • New Prospect Acquisition Program

– Work through extensive data on hand to acquire other well worked / highly prospective areas in Kalimantan

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Kalimantan Gold

22 Share Structure

  • KLG listed TSX.V 1996
  • Introduction to AIM in London – October 2006
  • Symbol:

KLG/TSX.V

  • Shares outstanding

57.1 million

  • Warrants

17.3 million

  • Options

3.6 million

  • Fully diluted

78.0 million

  • Retail & Institutions

69.5%

  • Significant shareholder

21%

  • Management

9.5% Shareholders Kalimantan Investment Corp. Management Retail & Institutional holders

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Kalimantan Gold

23 Community Development Program

  • Aim to foster good relationships & improve

conditions locally

  • Programs include:

– Building local capacity to self-manage village level development – Linking villages with local government services – Linking donor agency support to the needs of communities

  • Good to establish strong community links

ahead of potential mining operations

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Kalimantan Gold

24 Investment Opportunity

  • Major porphyry copper opportunity – Joint Venture – highly valued

by the market

  • Advanced gold exploration property – drilling towards resource

definition

  • Early focus on community development demonstrates Kalimantan’s

commitment Listing on AIM

  • Recent private placement raised £1.3 million
  • Introduction to AIM in October
  • Will diversify shareholder base
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SLIDE 25

Kalimantan Gold

25 Contacts

www.kalimantan.com Rahman Connelly Doris Meyer Executive Chairman President and CEO Office +61 7 55232298 Office +1 604 536 2711 Mobile +61 418 116955 Email: rconnelly@ozemail.com.au Email: dorism@telus.net

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Kalimantan Gold

26

Appendices

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Kalimantan Gold

27 Baroi Geology

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Kalimantan Gold

28 Baroi

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Kalimantan Gold

29

(Geo data) (Geo data)

Cu-Au Geochem Anomalies IP Chargeability High

BF0047 BF0046 BF0048 BF0049 BB04 BB03 BC08 BC09

BDH-4 Diamond Drill Hole

BB-7 BB-6 BB-5

Baroi soil and IP chargeability anomalies

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Kalimantan Gold

30

Surface/Channel Samples

Baroi Drilling

Sample No Meter Cu % Pb % Zn % Au_Ave Ag 0633-5 12 3.90 0.01 0.03 0.07 53.3 672-5 12 6.06 0.17 0.40 0.72 197.5 1800 & 1845-6 9 4.16 0.24 0.76 0.05 62 1802 & 1863-4 9 0.83 0.17 3.79 0.06 24.7 1869-71 9 2.42 0.54 3.26 0.16 149.7 0641-3 9 14.03 0.04 0.66 0.11 464.3 0669-71 9 3.63 0.01 0.51 0.07 46 0241&0330 6 6.68 3.51 5.78 0.61 240 0648-9 6 6.73 0.04 0.32 0.14 104.5 676-7 6 15.60 0.02 0.25 0.14 240.5 682-3 6 6.30 0.02 0.17 0.04 103 724-5 6 4.82 0.30 1.84 0.04 119.5 822-3 6 7.68 0.52 0.78 0.05 332.5

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Kalimantan Gold

31

Drill Core Results

Baroi Drilling

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. 2.45 31.45 29.00 3.18 1.71 4.21 97.1 0.57 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 BF024 13.50 61.50 48.00 0.52 0.26 0.18 28.1 0.02 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 Incl. 163.50 175.50 12.00 2.2 0.05 0.5 47.8 0.02

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Kalimantan Gold

32

BK-2 : 0 4 .5 0 – 1 7 1 .5 0 m : 1 6 7 .0 0 m @ 0 .5 9 % Cu including : 9 3 .0 0 m @ 0 .7 5 2 % Cu

BK-2

Proposed Drill hole

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Kalimantan Gold

33 Jelai Sample

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Kalimantan Gold

34

(Geo data) (Geo data)

Jelai Mewet