Copper potential of KSK COW - Kalimantan Gold Corporation Limited

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Baroi
The Baroi prospect is located within the southwestern part of the KSK COW (Fig. 1)
and is hosted within an 8 km wide circular feature which is interpreted as a caldera
structure. The main lithologies at Baroi include andesitic volcanics which have been
intruded by monzonite and dacite porphyry intrusions at the margin of a large
granodiorite pluton. The alteration and mineralization explored to date occurs in the
southern part of the circular structure where it is intersected by regional NE and NNW
oriented structures. The Central Zone and the Far East Zone have been the focus of
exploration to date.
Mineralization in both the Central and Far East Zones is hosted by northwest and
north northwest-trending veins up to 10 metres wide. The veins typically contain
chalcopyrite, galena and sphalerite together with quartz and chlorite. Hole BF05
drilled 83 metres down the dip of one such vein and returned 2.64% Cu, 0.62% Pb,
1.85% Zn and 61 g/t Ag and 0.22 g/t Au. SRK considered that the vein density is not
high enough to form a significant resource (Munroe and Clayton, 2006) however, they
may ultimately offer small volumes of high grade material to supplement other ore
sources. Deep drilling at the Far East Zone (to 600 metres) has not indicated the
presence of shallow porphyry style mineralization beneath the vein system.
Veins similar to those at Far East also occur in the Central Zone where a number of
short holes have intersected a series of subparallel veins with Zn ≥ Pb ≥ Cu. The
predominance of sericitic and argillic alteration coupled with the presence of these
base metal veins in the Central Zone is consistent with the exposed material
representing the outer/upper parts of a porphyry system.
Oxiana Limited Drilling
Oxiana drilled two new holes at Baroi, one in a conceptual target in Central Baroi
originally defined by Burke (1996) on the basis of coincident magnetic and resistivity
anomalies flanked by conductivity highs, and the other in the Far East Zone in an area
of weakly anomalous copper and gold geochemistry.
KBC009 in Central Baroi was drilled to a depth of 542.6m without intersecting
significant mineralization. The presence of unaltered carbonaceous shale underlying
andesitic volcanics was believed to explain the resistivity contrast.
KBF0050 in Far East Baroi intersected several quartz-chalcopyrite-pyrite-chlorite
veins which were thought to be up to 0.5m wide. Significant intercepts comprise
(Stewart et al., 2007):
• 14 metres @ 1.61 ppm Ag and 1710.57 ppm Cu (from 30 metres);
• 30 metres @ 0.12 ppm Au, 7.11 ppm Ag and 6586 ppm Cu (from 56 metres);
• 6 metres @ 0.11 ppm Au, 6.73 ppm Ag and 5223.33 ppm Cu (from 112.00
metres).
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Peter J. Pollard
Copper potential of KSK COW, Central Kalimantan