Geology and mineralisation of the Mewet Vein, Jelai Gold Project ...

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PT GMT Indonesia Mewet Vein : Jelai Gold Project 2 INTRODUCTION 2.1 General Introduction and Scope PT GMT Indonesia (GMT) was appointed by PT Jelai Cahaya Minerals (JCM) and Kalimantan Gold Corporation (KGC) to act as Technical Advisors to the Jelai Gold Project in the Kabupaten Bulungan, Province of East Kalimantan since the inception of the exploration programme by JCM (Figure 1). In addition to these works, in September 2008 GMT was also requested to complete an initial geological appraisal of the most advanced of the prospects being investigated, being the Mewet Vein. Mr. Mansur Geiger, the Vice President- Exploration, of Kalimantan Gold Corporation outlined the general scope of the works for the geological model and exploration target estimate as follows: • Validate the data and describe in detail the previous works at the prospect location, • Update the validated database with the JCM exploration data, • Determine the geological and structural constraints on the mineralisation based on the available data, • Undertake analysis to determine the quality of data in the Mewet Vein area and make detailed assessments of the controls on the mineralisation defined, • Make recommendations on the most appropriate methods for continued drilling, • Complete a report on the results, including background information on the property and recommendations for further work. Figure 1. General location of the Jelai Gold Project, East Kalimantan, Republic of Indonesia. 0065 JCM/GEO/2009.04 Page 8
PT GMT Indonesia Mewet Vein : Jelai Gold Project 2.2 Scope and Conduct The purpose of this report is to review the geology and existing data from exploration of the Jelai Gold Project, specifically the Mewet Vein area and to analyse the controls on mineralisation contained within a segment of the vein where sufficient data exists to allow a detailed study. In the discussion of the geology, areas and prospects adjacent to the Mewet Vein are included but this may not specifically impact on the geology of the Mewet Vein. Mr. Brett D. Gunter (B.App.Sc (Geology), mAusIMM), Principal Consultant, PT GMT Indonesia prepared this technical report. JCM/KGC has accepted that the qualifications, expertise, experience, competence and professional reputation of GMT and Mr. Gunter are appropriate and relevant for the preparation of this Report. JCM/KGC has also accepted that the author who has signed this report is a member of a professional body that is appropriate and relevant for the preparation of this report. 2.3 Data Sources and Author Visits The author of this report previously worked with Indochina Goldfields Limited (Indochina, now Ivanhoe Mines Ltd, Ivanhoe) under the banner of PT Borneo Exploration and Mining, which held a 6 th Generation Contract of Work (CoW) over the project between 1995 and 2001. The author visited the prospect on numerous occasions during the period 1996 until late 2000. Indochina Goldfields had, during that time, an extremely active regional exploration programme being conducted over the CoW area. Part of these works were conducted over the general Mewet area, the subject of this report, and included mapping, geochemical sampling (soil, rock and stream sediments), trenching and drilling. The data on the project collected by Indochina is intact and extensive, as discussed later in this report. A number of subsequent site visits have been made to the property by the author since the recommencement of activities by JCM and GMT personnel remain active at the project in a technical role assisting JCM with the ongoing exploration and drilling works. The most recent visit to the property was in August 2008. The data in this report is derived from previous exploration results by Ivanhoe Mines Ltd (acquired by JCM from the originator) and data derived from the current exploration. 2.4 Units and Currency All units of measurement used in this report are metric unless otherwise stated. Currency is expressed in United States dollars unless stated otherwise. 2.5 Disclaimer The Report is based on information known to the author as of the 13 th April 2009. The author has had a number of site discussions with JCM regarding the ongoing exploration of the property and, due to an intimate knowledge of the area, the author is confident that the material items that may affect the compilation of this report and the results reported therein have been sufficiently assessed during these discussions and visits. This report includes technical information, which requires subsequent calculations to derive subtotals, totals and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error. Where these occur, the author does not consider them material. 0065 JCM/GEO/2009.04 Page 9
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Geology and mineralisation of the Mewet Vein, Jelai Gold Project ...

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