Central Kalimantan is covered by a large sedimentary basin, the Barito Basin. This basin contains placer deposits of zircon and gold over a large area. Gold mining has been carried out in Kalimantan for centuries and is still being undertaken. The value of the contained zircon was not properly recognised until the last five years when mining started on a wide scale by artisan miners who sold zircon as concentrate into China. Most Kalimantan zircon is sold into the Chinese market with some sold into India and other Asian countries.

In 2007 Matilda commenced an exploration program in Central Kalimantan with the aim of establishing mining and processing operations. This exploration confirmed the prospectivity of Central Kalimantan for zircon mineralisation.

In late 2007 Matilda was offered the opportunity to purchase a partly completed zircon processing plant at Sampit in Central Kalimantan. This plant was relatively low cost at USD$535,000 and gave Matilda a base in Kalimantan to develop its exploration program as well as having the potential to produce a modest cash flow from producing zircon from concentrates produced by the artisan miners. Matilda took the opportunity to purchase the plant and it commenced operation in February 2008.

Sampit

Sampit is situated in Central Kalimantan and is central to the zircon mining areas near Pangkalanbun, Tumbangsamba and Kereng Pangi.

The processing plant has a processing capacity of 7,000 tpy of zircon concentrate to produce approximately 4,500 tpy of zircon, 600 tpy of ilmenite, 150 tpy of leucoxene and 100 ounces per year of gold. At full capacity Sampit will produce sales revenue of approximately $5 million per year.

The Sampit site fronts onto the Sampit River where the plant’s licensed wharf can accommodate coastal vessels of up to 3,700 tonnes. This allows bulk shipping of product direct from the plant to customers. Alternatively, 19km by road from the processing site is the Port of Sampit which has container loading facilities for shipping of bagged product in sea containers.
 

Air tables installed at Sampit	Product Analysis	Air table separators and electrostatic separation equipment