See

discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/284716501

THE KELIAN GOLD DEPOSIT, EAST

KALIMANTAN, INDONESIA: ITS EXPLORATION
HISTORY, EVOLVING GEOLOGICAL MODEL, AND
" INVISIBLE " COARSE GOLDn
Conference Paper October 2015

CITATIONS

READS

179

1 author:
Theo van Leeuwen
Independant
31 PUBLICATIONS 419 CITATIONS
SEE PROFILE

All in-text references underlined in blue are linked to publications on ResearchGate,

letting you access and read them immediately.

Available from: Theo van Leeuwen

Retrieved on: 24 September 2016

THE KELIAN GOLD DEPOSIT, EAST KALIMANTAN, INDONESIA: ITS EXPLORATION HISTORY,
EVOLVING GEOLOGICAL MODEL, AND INVISIBLE COARSE GOLD
Theo van Leeuwen
E-mail: t_vleeuwen@yahoo.com
ABSTRACT
Kelian is the largest gold-only deposit in Indonesia (241 t Au). It was discovered in 1976 and after 12
years of exploration became a designated project. The first gold was poured in 1992 and when the mine
closed in 2004 a total of 179 t Au and 145 t Ag had been produced, a more than a two-fold increase on
the amount estimated during the feasibility study.
This paper documents the deposits discovery and exploration history, and describes how the geological
model evolved during the life of the project. It also discusses an unusual feature that characterizes the
deposit: the common, yet difficult to detect occurrence of coarse gold, and the reasons why reserves
increased significantly during the mining stage.
Kelian is a highly complex deposit showing a bimodal grade distribution. Linking high grade
mineralization to specific geological features with a certain degree of confidence proved to be extremely
difficult during both the exploration and mining stages.
Keywords: Kelian, Indonesia, epithermal gold deposit, exploration history, geological models, coarse
gold.
INTRODUCTION
The Kelian gold deposit is the largest known
gold-only deposit in Indonesia. It belongs to a
subclass of important intermediate/low
sulfidation epithermal deposits, described as
carbonate-base metal gold deposits by Leach
and Corbett (1994). These deposits represent
the most prolific gold producers in the SW
Pacific rim (Corbett, 2002).
Kelian is a complex ore body. It is associated
with coeval andesite and rhyolite intrusions,
and a wide range of pre- and intra-mineral
breccias. Characteristic features include large
vertical extent of the mineralization (+ 600 m),
low quartz abundance, a bimodal style of
mineralization (structurally controlled highgrade
and
disseminated
low-grade
mineralization), and high temperature and
moderate salinity fluids associated with the

main stages of gold and base-metals deposition

(van Leeuwen et al., 1990; Davies, 2002; Davies
et al., 2008 a and b).
Kelian is located in East Kalimantan, Indonesia,
on the island of Borneo, close to the equator
(Fig. 1). During the exploration days it could be
reached only by boat, a ca 50 hour journey up
the Mahakam River, followed by a 3 hour trip
up the Kelian River in a ketinting (a canoe with a
long tail engine for navigating shallow water
and rapids).
The deposit was discovered in 1976 and
exploration commenced the same year. Twelve
years later the project was handed over to a
feasibility study team. In 1992, the first gold
was poured and when the mine closed in 2004,
leaving behind a 320 m deep, 1.2 km wide open
pit, a total of 179 t Au and 145 t Ag had been
produced.
1

Figure 1. Simplified geology of Borneo, showing the location of Kelian and

other Late Cenozoic epithermal deposits (modified after Davies et al., 2008b)

This paper documents how Kelian was found, its

exploration history, the geological models
developed during exploration and mining, and
an intriguing feature of the deposit: the
occurrence of common, yet difficult to detect
coarse gold. It is based largely on a report I
wrote in 2001, which in turn was based on
many unpublished company and external
consultant reports and memos, and my own
involvement in the project from 1976 to 1988.
These documents are not referenced, but those
geologists who played an important part in the
events described in this paper are mentioned in
the Acknowledgements. Over the years a
number of companies belonging to the Rio Tinto
Group were involved in the project. For
convenience sake these companies are referred
to collectively as Rio Tinto. Although the deposit
has been mined out, the present tense is used
to describe its geological features. The history
of the Kelian project is summarized in Table 1.

GEOLOGY OF THE KELIAN DEPOSIT

The following summary description of the
geology of Kelian is after van Leeuwen et al.
(1990) and Davies (2002). Selected features of
the deposit are presented in Table 2.
Kelian is located along a NE-trending corridor,
known as the Kalimantan gold belt, which
hosts several other epithermal Au-Ag deposits
(Fig. 1). It occurs within a structural inlier of
felsic volcaniclastic rocks, surrounded by Eocene
terrestrial and shallow marine sedimentary
rocks, in which intermediate and felsic
intrusions and various types of breccias have
been emplaced (Figs. 2 & 3). The volcaniclastics
(volcanic sandstone, siltstone, conglomerate
and breccia) consist of varied proportions of
crystal fragments, pumice, glass shards, and
non-volcanic lithic fragments. Initially thought
to be of Eocene age, they are now known to be
of Late Cretaceous origin. In the north and west,
the unit is in fault contact with sedimentary
2

Table 1. Kelian Timeline

~1948

Local Dayak finds gold in a tributary of the Kelian River. A mini gold rush ensues.

1975

Rio Tinto geologists inspect alluvials in the Kelian River and recommend searching for the primary
source.

1976

The primary source is found in the Prampus area.

1976-77

Soil and outcrop sampling, pitting, trenching, and Banka Bore drilling. Two main +2 g/t Au anomalies
outlined (East and West Prampus) within larger +0.2 g/t Au envelope. Potential target: 30 Mt at 4 g/t
Au.

1977-78

Further surface exploration. Target changes to 8-10 Mt at 8-10 g/t Au.

Late 78

4 holes drilled in West Prampus and 2 holes in East Prampus. Results diasappointing and project is
terminated.

Mid-1979

Gold price rises. Grades of 2-3 g/t Au may now be economic. A new geological model is proposed that
greatly enhances the resource potential. Exploration resumes.

Mid-1980

8 holes drilled with as target 20 Mt at 2-3 g/t Au. Numerous 2 g/t Au sections intersected plus several
15-450 g/t Au sections.

1980-81

27 holes drilled; most intersect high grade zones.

Late 1981 Another 12 holes drilled. Potential for 20-30 Mt is identified. A Contract of Work (CoW) applied for in
order to obtain more secure title.
1982-85

Auger drilling of oxide zone outlines 0.95 Mt at 3.2 g/t Au. Preliminary metallurgical testwork carried
out on oxide samples (good recoveries) and primary samples (variable recoveries).

1985

CoW signed in February and JV signed in October with Claremont Petroleum and New Zealand
Goldfields.

1986

IP/Resitivity survey and Hg soil sampling. 14 drill holes delineate 4 mineralized zones in W.Prampus,
including 0.3 Mt at 8 g/t Au, and 6 zones in E.Prampus. 3 holes intersect high grade mineralization at
the base of the E. Prampus zone, which is not immediately followed-up.

1987

Further metallurgical testwork produces unfavourable results for primary ore (16-96% recovery;
average 50%). 150 vertical holes drilled in the oxide zone but new SG estimates downgrade the oxide
resource. Float-roast process considered for primary ore. Follow-up drilling to test previous high grade
intersections outlines 255 zone. Pre-feasibility study considers direct cyanidation of oxide ore, floatroast of sulphide ore, and underground mining of 255 zone with cyanidation of the ore.

1988

Drilling focuses on geotechnical and metalurgical aspects, plus some geological holes, including 6 deep
holes. Kelian is declared a designated project.

1989

Feasibility studies completed. Decision is made to mine the entire deposit by open pit method and to
treat all ore by direct cyanidation.

1990

Construction starts, including a harbour on the Mahakam River, an access road to the mine site, and
tailings dam. Alluvial miners are relocated.

1992

First gold poured.

1995

Gravity circuit installed.

1997

Construction waste dam and diversion Kelian River completed.

2004

Production ceases. Total production 171 t Au, 145 t Ag, 1 t Hg. Environmental rehabilitation
commences (monitoring completed in 2015).

Figure 2. Premining surface geology of the Kelian gold deposit (modified after Davies et al., 2008b).
Position of the diverted section of the Kelian River is shown. Also shown are the positions of cross
sections presented in Figures 3 (AB, CD) and 8 (EF).
4

Figure 3. Geologic cross sections 510 N and 630 N (modified after Davies et al., 2008b). Location of sections
shown in Figure 2 (AB and CD, respectively). Legend as for Figure 2.

Table 2. Kelian deposit: selected features

Deposit type

Carbonate-base metal gold.

Orebody dimensions

1250 m (N-S), 900 m (E-W), 480 m (vertical).

Host rocks

Volcaniclastics, hydrothermal breccias, margins andesite stocks.

Styles of mineralization

Disseminations, sheeted and conjugate veins, breccia cement.

Controls on mineralization

Lithological contacts, NW-, NE-, and NE- striking faults, fault

intersections.

Main sulfide minerals

Pyrite, galena, sphalerite, chalcopyrite pyrrhotite (at depth).

Sulfide content

Average 3%.

Gold occurs as

Electrum/native gold of variable fineness (inclusions within, at

contacts between, and intergrown with sulfides, quartz, carbonate,
sulfosalts) and solid solution in pyrite.

Ag/Au

~2

Gangue minerals

Adularia and/or quartz (early), quartz-illite, dominantly carbonates

(late).

Alteration zonation about

faults, veins, brecias,
lithological contacts

1) Andesite: from proximal qtz-ill-py, through ill-carb pychl, to

distal chl-ct-ill.
2) Volcaniclastics: from qtz-ill-py to distal ill-smect.

Mined reserves

91.3 Mt at 2.64 g/t Au and 4.85 g/t Ag

Sources: PT Kelian Equatorial Mining; van Leeuwen et al (1990);Davies (2000).

rocks with a significant carbonaceous

component. In the east it conformably or
disconformably underlies an easterly dipping
sequenc of mudstone and sandstone. (Note:
during the exploration the volcaniclastics were
called tuffs or pyroclastics).

as 255, 383, 394 and Pillar Breccias. They also

form a discontinuous rind around the Central
and Eastern Andesite. The hydrothermal
breccias have been interpreted to be the result
of a combination of phreatic, hydraulic, and
tectonic brecciation.

The volcaniclastic unit has been uplifted along a

dextral N-trending strike-slip fault (West
Prampus Fault) at its intersection with a
regional-scale NW-trending crustal lineament
This is manifested at the surface by a series of
NW-trending strike-slip and oblique-slip faults.
In the Early Miocene, the intersection was a
focus for andesitic magma emplacement. There
are three main porphyritic andesite bodies,
referred to as the Central, Eastern and Crusher
Andesites. Several smaller intrusions occur as
dykes and plugs. The Central Andesite has
yielded three U/Pb zircon age populations of
21.0 0.16, 20.0 0.06 and 19.7 0.06 Ma
respectively (Setiabudi et al., 2001).

Through the evolution of the hydrothermal

system there was a progressive change from
dominantly explosive brecciation processes
(phreatomagmatic, phreatic) to non-explosive
processes (in situ hydraulic, tectonic). The
principal controls on the location, geometry and
style of brecciation were: lithological
distribution
and
contacts,
magma
emplacement, and structure.

Around the same time the Kelian deposit was

also a focus for intense hypogene brecciation.
On a descriptive basis the breccias can be
broadly divided into two groups: muddy
breccias and hydrothermal breccias. The
muddy breccias occur in three bodies (i.e.
Runcing, Burung and Tepu) and are
characterized by a dark grey mud- to sand-sized
lithic fragment matrix. They are both monomict
and polymict, containing clasts of the
sedimentary and intrusive rocks that make up
the Kelian deposit. The breccias are closely
related, both spatially and genetically, to
rhyolite intrusions (dated at 19.8 0.1 and 19.5
0.1 Ma). Their formation involved
phreatomagmatic, phreatic, hydraulic, and
tectonic processes.
The hydrothermal breccias range from
incipiently fractured zones with open space
cement and no matrix, to massive and chaotic
breccias with abundant rock flour. All have been
pervasively hydrothermally altered and most
are associated with economic gold grades. This
is in contrast to the muddy breccias, which are
in general poorly mineralized. The hydrothermal
breccias occur mostly in four bodies referred to

Plio-Pleistocene basaltic rocks unconformably

overlie the Runcing Breccia and adjacent
sedimentary rocks (pre-mining), and also occur
as lava flows and dykes to the southwest.
Erosion and weathering of the deposit
produced a relatively thin oxide zone to 35 m
below surface. Alluvial gold deposits were
formed adjacent and downstream of Prampus
in the Kelian River.
Kelian consists of several +2.0 g/t Au ore zones
(255, 383, 393, 394, Hanging Wall, Pillar)
occurring in a primary envelope of gold
mineralization defined in the feasibility study by
a cutoff grade of 0.5 g/t Au (Fig. 4). Five other
ore zones (Tepu, 399, Kelian Deeps, Water Tank,
Sungai Jiu) were not originally incorporated in
the primary envelope but added to the reserve
base during the mining stage.
Mineralization occurs as disseminations, in
sheeted and conjugate veins/veinlets, fracture
and cavity filling, and as breccia cement.
Structural controls include NW-, N-, NE-, and Estriking faults. There is an overall progression
through the paragenetic sequence from pyritedominated to base metal sulphide-dominated
mineralization. The average sulfide content is 3
wt %. Pyrrhotite is present at depth beneath the
orebody. Late stage hematite and cinnabar
occur in the upper levels of the deposit. The
associated gangue minerals change in time from
adularia and/or quartz to quartzillite and
7

had been exploring for alluvial tin since the mid1960.

Figure 4. Map showing the outlines of high-grade

ore zones together with the primary envelope
(dashed red lines) and the approximate subsurface
locations of the Pillar and Kelian Deep zones
(modified after Davies et al., 2008b)

finally carbonate-dominated assemblages. Gold

deposition
occurred
throughout
the
hydrothermal event, but was most significant
during the later stages. The gold occurs
intergrown with or at boundaries between
sulfides, and intergrown with or filling cavities
in bladed carbonate. It is also present in pyrite,
either as encapsulated particles or in solidsolution form. The Ag content of individual gold
grains varies from 0 to 30%.
Alteration distribution is controlled by lithology,
structure and host-rock permeability. Within
andesite intrusions alteration grades from
proximal quartz-illite-pyrite through illitecarbonatepyritechlorite to distal chloritecalcite-illite assemblages. In the volcaniclastic
rocks it is zoned from proximal quartz-illitepyrite to distal smectite-illite assemblages.

In 1972, during the regional porphyry copper

sampling programme, one of the field parties
spotted gold panners in the large Batang Hari
river on the east side of the Barisan Mountains.
It was the year that the gold price had started
to take off. These two events led to the decision
to add alluvial gold deposits amenable to
mining by a giant dredge (like the tin dredge Rio
Tinto was building at the time in Malaysia) as an
exploration target. Other areas in Sumatra were
selected on the basis of literature studies
combined with field visits. A year after the
inception of the gold programme we directed
our attention to the other island of gold,
Kalimantan. Here our approach to area
selection was different: as a first step we visited
the regional offices of the Mines Department to
obtain information on the location and
ownership of gold concessions. One of the
concessions was located along the Kelian River.
It was owned by a timber businessman, who
had decided to branch out into gold mining
following the rise in the price of gold. He was
born in a village close to the mouth of the
Kelian River, and as a teenager had witnessed
people panning for gold in the Kelian catchment
after a local Dayak had found gold in 1948 while
cutting rattan. During the next two decades
artisanal mining activity waxed and waned in
response to factors such as periods of drought,
the rice planting and harvesting seasons, and
cholera epidemics. In 1969, the alluvial
workings were largely abandoned as the miners
preferred to work in the booming timber
industry.
Discovery (1976)

DISCOVERY AND EXPLORATION

Events leading to the discovery of Kelian
In 1970, Rio Tinto commenced a survey for
porphyry copper deposits in a large area in the
Barisan Mountains in west-central Sumatra.
During the early years the project was managed
from the Companys office in Malaysia where it

In early 1975, two of our geologists investigated

the lower reaches of the Kelian River. Sampling
of active gravels and local workings returned
high gold values, but the volume potential
appeared to be limited. An interesting feature,
though, was that the gold grains showed a
juvenile character as suggested by their shapes
(slivers, rods, wires, and thick pitted flakes and
chips). This combined with the high alluvial
8

First exploration phase (1976 - 1979)

Figure 5. Distribution of gold in soils, Kelian deposit

(after van Leeuwen et al., 1990) and position of
drilling grids.

values (14 g/m in the richer sections)

suggested an unreworked derivation from a rich
primary source upstream. As several members
of the small field party then fell ill with malaria
the survey was unfortunately cut short.
It took another year before the next survey trip,
aimed at finding the primary source, was made.
After two days, working from the confluence
with the Mahakam River, the team arrived at an
area called Prampus that formed a hill rising
170 m above the Kelian River. They observed
and sampled an iron-stained cliff face consisting
of highly altered and pyritic tuffs (the discovery
outcrop) and also took stream sediment and
float samples from a small stream draining the
area. They then continued another 6 km
upriver.
The true significance of the Prampus area
became apparent only after the assay results
had been recieved: 0.8433.5 ppm Au in
stream sediments, up to 100 g/t Au in rock
samples, and 12 g/t Au in the highly altered
tuffs. Further work was clearly warranted. At
this time the gold price averaged US$125/oz
and the Companys minimum target was 30 Mt
of 46 g/t Au, amenable to open-pit mining.

The initial stage consisted of a programme of

geological mapping and soil and outcrop
sampling. Two roughly perpendicular soil lines
across Prampus fortuitously crossed all major
soil anomalies, with 40 out of 103 rock samples
being anomalous (0.17.9 ppm Au). Further
soil sampling was carried out in early 1977
along contours at 20 m vertical and 50 m
horizontal spacing. It outlined a broad +0.2 ppm
anomaly covering an area of about 1 km within
which there were several +2 ppm anomalies.
The two largest anomalies were named West
and East Prampus (Fig. 5). The anomaly
configuration combined with initial geological
observations suggested that we might be
dealing with a porphyry gold-type deposit (see
section Evolution of the geological model:
Porphyry gold model).
The main anomalies were tested by pitting,
followed by trenching (~1600 m) and Banka
bore drilling (14 holes; up to 21 m deep), a
rather novel application of this method. The
results of this programme, which gave rise to a
new geological model (see section Faulted
dome model), showed that in general the soils
gave a reasonable approximation of both the
position and grade of the mineralized zones.
However, they suggested that the 30 Mt target
was not viable, and that instead smaller
volumes with higher grade might exist, i.e.
810 Mt at 810 g/t Au (opencut) or 36 Mt
at 1225 g/t Au (underground).
A 6 hole drilling program, undertaken in late
1978early 1979 when the gold price was
around US$ 200250, was directed towards
delinea ng an 810 g/t Au ore body in the
West Prampus area, which based on its complex
faulting and high gold grades in trenches
appeared to have the best potential. However
the geology intersected in the first four holes
was different from that observed at the surface
and indications of mineralization were not
encouraging. It was therefore decided to drill
the other two holes in the northern East
Prampus zone. None of the six holes repeated
the high grades obtained in the trenches, with
9

average grades being around 2 g/t Au. Sporadic

highs did not occur regurlarly enough to
influence the grade and could not be tied to any
obvious geological control.
Using only trench and drill hole data an inferred
resource of 8.7 Mt at 1.7 g/t Au was estimated.
This was considered insufficient to support an
opencut mining situation. Furthermore, the
absence of any continuous high-grade zones
made an underground target an unlikely
proposition.The exploration program was
therefore terminated in late 1978 and the field
camp handed over to the concession holder.
Second exploration phase (19791981)
Shortly afterwards two events put new life into
the project: 1) the price of gold increased
sharply to about US$ 375/oz, which made Au
grades of 23 g/t poten ally economic (and
also attracted the return of local miners), and 2)
a reapraisal of the prospect resulted in a model
that envisaged gold mineralization may exist
beneath the Central Andesite (see Collapsed
caldera model), thus significantly increasing the
resource potential. A staged drilling program
was proposed. The first stage was to test at
depth the anomalous gold zones outlined
previously, plus a 300 m vertical hole in the
domal area between West and East Prampus to
test continuity of mineralization between the
two areas. The aim was to outline a potential
resource of 20 Mt at 23 g/t Au, which seemed
to be a more realistic goal than the earlier
targets.
The distribution of gold in soil and weathered
bedrock suggested that the trends of the
mineralized zones were striking north in West
Prampus and north-east in East Prampus,
arching to the northwest (Fig. 5). Therefore
drilling grids were designed to intersect these
zones at right angles, i.e.trending E-W, NW and
NE, respectively, with a spacing of 40-50 m
between sections. The dip of the holes varied
between 45 and vertical, depending on geology
and drilling conditions, while most angled holes
were scissored. As discussed below in Bimodal
model, during the mining stage it became

apparent that while overall East Prampus

represents a NE-trending structural corridor,
within this zone NW-trending structures form a
significant control on the mineralization. In
other words, drilling was done partly parallel to
an important mineralization trend.
The hole to test continuity of mineralization at
depth between West and East Prampus
intersected mostly barren andesite. Results
from the other holes were more encouraging.
Numerous intersections of 2 g/t Au and several
high grade intersections of 15-450 g/t Au were
obtained. The drilling confirmed the complex
nature of the geology of the prospect and the
difficulty in predicting the geology likely to be
intersected in a drill hole based on the surface
geology.
The next drilling program was aimed at testing
the possible linkage of individual +2 g/t Au
zones and identifying any high grade zones.
Overall it produced favourable results. High
grade zones were encountered in all holes,only
a few of which could be traced from one hole to
the next. By the end of 1981, 40 holes totalling
over 5000 m had been completed and a
resource potential of 20-30 Mt averaging
around 2 g/t Au had been confirmed. As the
next phase of exploration would require a
substantial increase in expenditure, an
application was lodged with the goverment for
a so-called Contract of Work (CoW) in order to
obtain more secure title.
Throughout the first and second exploration
phases we tried to determine the styles of
mineralization and the grade distribution in the
prospect. A number of features were identified
as being generally associated with gold
mineralization, such as faulting and fracturing,
brecciation, and carbonate-sphalerite-galena
vein and breccia filling. However, there was no
apparent clear relationship between any of
these indicators and gold mineralization.
Exciting looking rocks turned out to be as
often poorly mineralized as containing grade,
while boring looking rocks (e.g. unfractured
volcaniclastics with little sulfide) hosted in
places high-grade material.
10

Drilling aimed at testing continuity of highgrade mineralization, such as drilling off-section

and drilling scissor holes beneath wellmineralized trench sections had limited success.
Importantly, it did not change the overall grade.
From this we concluded that narrow high-grade
intersections could not be extrapolated, using
geological parameters, because of the erratic
nature of the mineralization. This in turn led to
the conclusion that the best approach to
evaluating a complex deposit like Kelian was to
define firstly broad zones of potentially
economic mineralization and then to determine
whether the average grade of a particular zone
was within the range of economic mining grade.
In this context it is interesting to note that
during the feasibility study and beyond
definition of high grade zones was based solely
on assay data. Even then attempts to domain
these zones on a geological basis failed: it
appeared impossible to correlate high grade
with geology.
Interlude (1982 - 1985)
While awaiting the outcome of the CoW
negotiations, little exploration was done for the
next three years. In order to maintain a working
presence and to prevent artisanal miners
(numbering around 6000 and by that time well
aware that Prampus Hill contained gold) from
invading the area, a deep augering program was
undertaken. This was aimed at evaluating the
oxide zone (2124 holes averaging 4.1 m in
length). Preliminary metallurgical testwork had
shown it to contain material readily treated by
cyanide leaching, in contrast to the primary
zone from which variable recoveries had been
obtained. On the basis of the auger results a
resource of 0.95 Mt averaging 3.2 g/t Au was
estimated using a 1 g/ Aut cutoff.
A review of the results obtained during the first
and second exploration was undertaken,
resulting in yet another geological model (see
Intrusive-structural control model).

By the time the COW was signed in early 1985

(in the name of PT Kelian Equatorial Mining or
PT KEM), the Company decided to put Kelian up
for farm-in, as it ranked Kelian lower than some
of its other gold projects, e.g. the Wafi deposit
in PNG. In late 1985, a joint venture was
established with two junior companies.
Third exploration phase (1986 - 1988)
Following the farm-out of the project, a major
exploration program was initiated. This included
an IP/resistivity survey and Hg-soil sampling,
aimed primarily at locating sub-surface
mineralization in areas of low surface Au
geochemistry and a drilling program with the
objectives to firm up identified resources and
testing peripheral areas. The depth of some of
the proposed drill holes was restricted by the
notion that open pit mining would not go below
the level of the Kelian River.
The Hg soil results showed a similar pattern as
the Au soil geochemistry, and hence did not add
much value. The IP survey, on the other hand,
identified several new targets. One of these was
an EW zone of strongly anomalous frequency
effects (FE), which subsequent drill testing
showed to be coincident with a zone of strong
pyrite development containing high-grade Au
mineralization (383 zone). Another target,
characterized by high resistivity, which
extended to the north of the West Prampus
zone in an area of silicified sediments, did not
produce any significant results from preliminary
drill testing. However, later (post-exploration
period) the anomaly was shown to be related to
a low-grade ore zone (Sungai Jiu).
The drilling program failed to increase the
resource potential significantly. However,
several results were of particular interest. At
West Prampus, 0.3 Mt averaging around 8 g/t
Au were outlined. In East Prampus, a hole
drilled 32 m past its target depth of 250 m,
because heavy rain had prevented the drill rig
from being shifted, intersected 24 m at 8.3 g/t
Au at the bottom. Two holes drilled later in the
program
also
intersected high grade
mineralization at a similar R.L., suggesting a
11

high grade zone might be present in the deeper

part of the East Prampus resource. This concept
was not immediately tested, but instead drilling
in 1987 was directed at defining the West and
East Prampus ore zones. When metallurgical
testing of primary ore indicated poor recoveries
(average 50%) it was decided to prove up the
oxide resource first. A total of 150 vertical holes
were drilled for this purpose. However, another
setback took place when it subsequently
transpired that bulk densities had been
significantly overestimated during the earlier
test work.
The resulting decrease in tonnage made the
oxide zone not viable as a stand alone project.
Thus it was back to the drawing board. One of
the ideas that emerged was to use a float-roast
process for the primary ore and sell the
sulphuric acid byproduct to a fertilizer plant in
East Java. To this end the primary ore drilling
program was resumed. A 14m interval
averaging 30 g/t Au in diamond drill hole K 255
obtained from the deeper part of the East
Prampus body supported the possible presence
of a high grade zone ( later known as the 255
zone). Towards the end of 1987 a zone of 2 Mt
grading 5 g/t Au had been outlined. Free gold
observed in some samples suggested that this
zone (and possibly other zones) might give high
recoveries from simple cyanidation. This
prompted a re-evaluation of the total resource.
A pre-feasibility study was completed in 1988
recommending the deposit be mined by openpit methods, and the oxide and primary ore
treated by simple cyanidation and float-roast
respectively. Early mining of the 255 zone by
underground methods and processing the ore
together with the oxide material was also
considered. In late 1988, the focus was on
metallurgical testwork and geotechnical drilling.
By that time the float-roast idea had been
abandoned, largely because of potential
environmental problems.
Towards the end of the exploration period six
deep holes were drilled to determine if
mineralization existed beneath the known ore
bodies. This was to ensure that before handing

the project over to the engineers the known

mineralization was not, as the Group Geologist
in Melbourne put it, just a pimple on the
elephants bum. The programme was highly
succesful. Hole K 394, drilled in NE Prampus to
test a target identified by geophysics, a Hg-insoil anomaly, and mineralization in one of the
oxide holes, intersected 134 m averaging about
4 g/t Au (post-exploration follow-up drilling
identified a new high grade zone, the 394 zone).
Another hole, drilled entirely within the Eastern
Andesite, intersected 112 m grading 4.25 g/t Au
from 190 m (which later on led to the
identification of the 383 zone). A third new
zone, 393 zone, was found as the result of an
intersection of 82 m averaging 5.8 g/t Au in hole
K 393. A 606 m long holed drilled in the Central
Andesite, intersected an average of 8.3 g/t Au in
the bottom 22 m (later drilling around this
intersection failed to find significant
mineralization).
A wealth of new geological data was obtained
during the third exploration phase and this
enabled development of a model that focused
on the genesis of the deposit (see Transitional
epithermal-porphyry model). This model was
subsequently modified and refined during the
mining stage (see Diatreme and Integrated
models).
Aftermath
In late 1988, Kelian became a designated
project and a Project Management team took
over to undertake a full-scale, final feasibility
study. By 1989, the exploration portion of this
study was winding down and the work was
aimed at in-fill drilling, sterilization and
geotechnical analysis. A total of 459 diamond
drill holes had been drilled by this time ( a
number which towards the end of the mine life
had increased to 790 holes, totalling 146 km,
plus 94 reverse circulation holes for +8 km ).
The decision to proceed to the construction
phase of the project was taken later in the year
based on a resource of 85 Mt at 1,9 g/t Au,
including mineable reserves of 53.5 Mt at 1.97
12

g/t Au (105 t contained Au) with a recoverable

gold content of 1.39 g/t Au (74.4 t Au).
EVOLUTION OF THE GEOLOGICAL MODEL
During the course of exploration and mining the
Kelian deposit was studied by many geologists.
Its highly complex and at the time apparent
unique nature Kelian provided a fertile ground
for ideas, which led to the formulation of a
number of models, the more important of
which are discussed in this section.
The early models were developed by geologists
working on the project and visiting Rio Tinto
geologists, who based their ideas primarily on
field and drill core observations. During the
more advanced phase of the exploration
program (1986-88) significant input was
provided by consultants, who had considerable
experience in both active geothermal and
epithermal gold systems. Petrographic work,
including fluid inclusion measurements, became
an integral part of these studies. Consequently
the emphasis shifted from predominantly
descriptive to genetic models. Consultants also
made a significant contribution during the
period 1990-95. In the intervening period the
focus was on getting the project off the ground,
and geological investigations took a back seat.
The most recent and final model was
developed towards the end of the mine life as
part of a Ph D study. This had the advantage of
extensive open pit exposures and 160 km of
core from 785 holes, of which15 km from 26
representive holes were re-logged in detail.
Porphyry gold model, 1976 (Fig. 6a)
When the gold price started to rise in the early
1970s, large-tonnage, low-grade open-pittable
gold deposits became of interest to the Rio
Tinto Group. An in-house study was
commisioned to identify deposit types that
could meet these criteria. One of the types that
emerged from the study was a porphyry deposit
valuable primarily for its gold content, referred
to as porphyry gold. At the time it was only a
conceptual idea, as there were no known
examples.

Initial geological observations made a few years

later at Kelian seemed to fit the porphyry gold
model: a porphyry andesite stock intruded into
a pile of tuffaceous rocks; strong stockwork
fracturing; mineralization dominated by pyrite;
and a large volume of rock that had undergone
pervasive phyllic and propylitic alteration, and
was anomalous in gold.
Faulted dome model, 1978 (Fig. 6b)
After two years of field work, the project
manager came to favour a dominant structural
control on the mineralization. Tthe volcanic
rocks were interpreted to occur in a complex
domal structure faulted both internally and
peripherally, with the andesite unit forming the
lower part of the volcanic sequence, and
subsequently upfaulted to its present position.
In a general sense there appeared to be a
correlation between fracturing and gold
mineralization, alteration and pyritization.
Collapsed caldera model, 1979 (Fig. 6c)
In late 1979, a geologist of the companys
Australia-based research group reviewed all
reports written on Kelian. The resultant
interpretation was the andesite in the central
dome was of extrusive origin and the area
between West and East Prampus represented
the surface expression of a sunken caldera-type
structure. In his model mineralization was not
confined to contact zones, but widely
distributed beneath the impermeable andesitic
rocks within more porous tuffaceous rocks. A
point was made that the barren cap rock
overlying mineralized strata could explain the
circular distribution of gold at surface. An
attractive feature of the model was that it
dramatically increased the resource potential.
Intrusive-structural control model, 1984 (Fig.
6d)
An important outcome of the 1980/81 drilling
campaign was the porphyritic andesite
appeared to be of intrusive origin, occurring as
small pipe to mushroom-shaped bodies and
13

Figure 6. Early geological models of the Kelian deposit (19761984). a) porphyry gold model; b) faulted dome
model; c) collapsed caldera model; d) intrusive-structural model.See text for explanation.

dykes, which commonly had sheared/brecciated

contacts. These contact zones were locally well
mineralized. The intrusive origin downgraded
previous models suggesting a layered volcanic
deposit with variable permeability.
A two-stage model was proposed by the project
team: 1) During the Eocene a volcanic pile of

pyroclastic material was deposited in the

Prampus area. Coincident hydrothermal
solutions permeated the pile and deposited
low-grade and widely dispersed gold together
with pyrite; and 2) Later stage (? Miocene)
intrusive activity produced convection cells of
meteoric waters, remobilizing gold from the
pyroclastics and/or basement. The movement
14

Figure 7. Transitional porphyry-epithermal model (modified after van Leeuwen et al., 1990).

of these solutions was controlled by shears,

faults and fractures, in particular at or near
intrusive-country rock contacts or where
relatively impermeable rocks acted as trapping
mechanism (Ferguson, 1986). Gold and basemetal sulphides were deposited in response to
pressure-temperature changes, as well as
variation in fluid chemistry due to interaction
with the wall rocks (Ferguson, 1986).
Transitional epithermal-porphyry model, 1990
(Fig. 7)
The drilling campaign carried out between 1986
and 1988 provided a wealth of new geological
information, including extensive petrographic

studies of drill core. The model developed

during this time (described by van Leeuwen et
al., 1990) focused on the nature and temporal
evolution of the mineralization and alteration.
Two main episodes of hydrothermal activity
stages were recognized.
I) An initial phase of hydrothermal activity gave
rise to hydrothermal breccias, predominantly
along andesite contacts, and caused widespread
seritization together with quartz and pyrite
deposition in the more permeable zones and
propylitic alteration in the andesite cores (Stage
1). This was followed by repeated boiling of the
fluids, which were relatively dilute (< 4 wt %
NaCl eq.) at mesothermal (290 - 330C)
15

Figure 8. Distribution of carbonate species, types of sphalerite, and pyrrhotite along section 250E, the
position of which is shown in Figure 2 (section EF) (after Corbett and Leach, 1998).

Table 3. Main features of carbonate-base metal gold deposits

Early pyrite quartz Au followed by sphalerite>galena and local chalcopyrite or Ag
sulfosalts followed by variable carbonates (dominated by Mn-varieties).
Considerable vertical range of formation with sphalerite varying in colour from black
(Fe>Zn) at deeper levels, through brown, to red, to yellow and white (Fe<Zn) formed
under low temperature conditions at elevated crustal settings.
Fe sulfides vary from pyrrhotite and chalcopyrite at depth, through central pyrite, to
higher level marcasite.
Styles of mineralization include stockwork, disseminations, sheeted veins and breccia
matrix.
Au grades in the 210 g/t range; Ag:Au ratios >1.
Phreatomagmatic (diatreme) and hydrothermal breccias are common.
Variable metallurgy common.
Examples in Indonesia: Kelian, Mt Muro, Cirotan, Mangani.
Sources: Leach and Corbett (1994); Corbett (2013).

16

temperatures, fracturing, brecciation, and

sealing, accompanied by adularia, sericite and
pyrite deposition (Stage II). 2) Hydrothermal
activity associated with renewed magmatic
activity, produced a hot (300330), saline (5
to >10 wt 5 NaCl), CO-rich brine that carried
gold and base metals. The hot fluids were
initially channeled through the 255 zone, where
sudden pressure release upon brecciation
caused violent boiling, bringing about
widespread carbonate and metal deposition.
Outwards and upwards of zone 255 the brines
mixed with descending cool, low-pH meteoric
fluids. These processes produced a distinct
vertical carbonate zonation, from shallow to
deep: earthy Fe-Mn carbonbates, Mn
carbonate, Mn-Mg-Ca carbonates, and Ca
carbonate (Stage III); Waning of magmatic
activity combined with sealing of the host rocks
through mineral deposition caused a rapid
collapse of the hydrothermal system (Stage IV).
(Note that the muddy breccia does not figure in
this model).
Kelian was interpreted to possess affinities to
both porphyry and epithermal styles of
mineralization (van Leeuwen et al., 1990), and
was subsequently grouped by Leach and
Corbett (1993; 1994) within a new class of
deposits, named carbonate-base metal gold
systems. The main features of this type of
deposit are shown in Table 3.
Following a petrographic study of a suite of
outcrop and drill core samples from NE Kelian
in 1990/2 it was proposed that the main center
of hydrothermal activity was located in the NE
part of the orebody and not in the 255 zone
(see Corbett and Leach, 1998). This
interpretation was based on indications
obtained from this area of: 1) relative hot
conditions apparent in the progression from FeMn carbonates at shallow levels, to Ca-Mg
carbonates at deeper levels, together with the
presence of pyrrhotite and a change to more
Fe-rich sphalerite at depth; and 2) reducing
conditions proximal to an inferred intrusion
suggested by the local intergrowth of pyrrhotite
with magnetite (Fig. 8). The hot, magmaticderived fluids migrated southwest at depth

along a NE-trending shatter zone to East

Prampus, and progressively mixed
with
descending cool, low pH fluids. This resulted in
gold
deposition,
with
higher
grade
mineralization being concentrated in permeable
fracture and breccia zones (255, Hanging Wall,
394, and upper portion 393). Away from this
corridor, gold was deposited under decreasing
temperature conditions, resulting in changing
mineral assemblages and a general decrease in
recoverable gold (383, Tepung, West Prampus,
and Sungai Jiu).
Diatreme model, 1993 (Fig. 9)
The origin of the muddy breccia remained an
enigma for more than 15 years. Early
interpretations envisaged it to be extrusive in
origin (lahar, volcanic breccia; Ferguson, 1986),
but after sharp crosscutting contacts were
observed between the breccia and other rock
units an intrusive origin was assumed. However,
the nature of the intrusive mechanism
remained unexplained. Consultants visiting the
prospect in 1988 proposed two different
scenarios: 1) the muddy breccia was emplaced
by diapiric action as a result of fluidization of
the mud component in a sedimentary sequence
below or within the pyroclastic unit, triggered
by tectonic forces and/or heating associated
with the main magmatic/hydrothermal event
(favoured by van Leeuwen et al., 1990); and 2) it
was a sub-surface emplaced phraetomagmatic
breccia, induced by late-stage magmatic activity
(Lawless, 1988).
It was only after the largest muddy breccia body
(Runcing) had been more fully exposed during
mine development that another consultant was
able to demonstrate that the mineralization at
Kelian was intimately associated with a maardiatreme complex. This was represented by
three diatreme vents related to felsic plug
domes that were eroded sufficiently to expose
the diatreme portion. The interpretation was
based on the recognition of a juvenile, felsic
matrix to the muddy breccia, the dominant high
matrix to fragment ratio displayed by the
breccia, and the presence of several subsided
blocks of pyroclastic base surge deposits
17

Figure 9. Diatreme model (after R.H. Sillitoe, 1993; unpublished report prepared for PT KEM)

showing low-angle cross stratification and beds

packed with accretionary lapilli. Similarities
were noted with the diatreme-hosted Au
deposit at Montana Tunnels, Montana, USA,
which were also interpreted to have formed in
the deep-epithermal environment, and like
Kelian rich in Zn, Pb, and manganoan
carbonates, but lacking appreciable quartz
(Sillitoe, 1994).
In the diatreme model, rhyolite magmatism
plays a crucial role. Felsic clasts in the muddy
breccia are derived from the igneous body that
was responsible for diatreme generation when
its contained magma came into contact with
external cool groundwater. The magma was
also the most likely candidate as a supplier of
gold-bearing fluid, which was controlled by the
upward-flared southern contact of the Runcing
diatreme.
During the exploration period we thought that
the rhyolite was related to the Cretaceous felsic
volcaniclastics because of compositional
similarities. A rhyolite sample from Gunung
Runcing had yielded a K/Ar age of 20.8 0.2 Ma
(in 1986), but as it was heavily seriticitized we

interpreted this age to reflect probably the

timing of the alteration/mineralization event.
Bimodal model, 1994
During mining operations the Company realized
that the average gold grade used in the
feasibility study had been significantly
underestimated. As a result, in 1994, a Rio Tinto
Internal Resource Consultant was asked to
review all available blast hole data with the aim
to identify possible causes. The analysis
suggested that the dominant control on the
mineralization in East Prampus was a NEtrending structural corridor, about 250 m wide,
consisting of anastomosing faults, and NWtrending structures.
Structurally-controlled,
steeply plunging columns of high-grade
mineralization fell into two categories: 1) those
localized in NW-striking dilational zones,
forming disconneced pods; and 2) larger
(1020 m wide) and higher grade breccia
bodies formed at the intersection of NE- and
NW-trending structures. The high-grade
structures appeared to be surrounded by
envelops characterized by increased grade
variability. The two high-grade styles were
18

Figure 10. Integrated model. Simplified illustration of the model proposed by Davies (2002). See text
for explanation.

estimated to contribute ca. 43% to the total

gold content of the ore body. The remainder
occurred mainly as widespread, low-grade
mineralization. It should be noted that the
model is not a true geological model as it is
based solely on an interpretation of blast hole
assay data without any geological constraints.

Integrated model, 2002 (Fig. 10)

Between 1997 and 2002, a Ph student from
CODES, University of Tasmania, carried out a
study of the Kelian deposit. The lithological,
structural, magmatic, mineralogical, and
hydrothermal aspects of the deposit were
studied in detail, and these various phenomena
19

integrated into a new genetic model (Davies,

2002). Particular attention was paid to the
nature and evolution of the different breccia
types, and the role they played in the formation
of the ore body (Davies et al., 2008 a & b). The
model builds on the transitional porphyryepithermal and diatreme models, but is more
detailed and includes a number of
modifications. Its main features are described
below.
Phase 1: Pre- to syn-magmatic uplift (ca 1-2 km)
of a basement block of
felsic volcaniclastic
rocks took place at the intersection of the West
Prampus Fault and a regional-scale NW-striking
fault corridor. Smaller blocks of carbonaceous
mudstone were down faulted in the block,
resulting in tectonic brecciation.
Phase 2: Andesitic stocks were emplaced
around 20 Ma causing doming of overlying
stratigraphy, and extensional faulting above and
around intrusions. During the final stages of
andesite emplacement, or immediately after, a
hydrothermal system started to form. Illitepyrite-quartz assemblages filled NW-striking
veins, and andesite intrusion-related breccias. It
was accompanied by minor (typically <0.5 g/t)
gold mineralization (stage 1 mineralization/
alteration).
Phase 3: Maar diatrememe complexes formed
as a result of felsic magma emplacement into
the active hydrothermal system around 19.8
Ma. Rhyolite dykes were emplaced along NWand NE-striking faults. Mixing of magma and
wet, unconsolidated mudstone triggered
phreatomagmatic explosions with surge
eruptions occurring at the paleo-surface. This in
turn triggered phreatic and hydraulic
brecciation, enhancing permeability. The result
was a favourable environment for vigorous
boiling of the hydrothermal fluids and fluid
mixing, while the phreatomagmatic breccias
themselves acted as barriers to fluid flow.
Formation of the 393 and 255 Breccia bodies
commenced. Pyrite, quartz and adularia were
deposited in open spaces in varyied proportions

(mineralization stages 2A & B). Low grade Au

mineralization is associated with stage 2A, and
ore grade, although visible gold has rarely been
observed in drill core, with stage 2B. The
hydrothermal fluids were near neutral to slighly
alkaline, low salinity (0.24.7 eq. wt.% NaCl),
and hot (~290 C).
Phase 4: Phreatic and hydraulic brecciation
expanded into areas away from the diatremes,
including the Pillar breccia and parts of the 255
and 393 breccias. Overpressuring of the
hydrothermal system, in combination with
intrusion of rhyolite plugs in the Runcing and
Burung diatremes may have driven the largescale phreatic events. Partial cementation of
the early phreatic breccias by pyrite-quartz or
adularia-quartz-pyrite and a major episode of
phreatic brecciation occurred. This was
followed by deposition of abundant base-metal
sulphides and gold with a high Au/Ag ratio in
breccia vugs, veins (commonly in sheeted and
conjugate sets), faults, and disseminations
(mineralization stages 3A & B). Fluids were
moderately saline (0.211.6 wt% NaCl eq.) and
hot (~ 300C).
Phase 5: During the later part of, and after the
stage 3 mineralization, abundant bladed
carbonate was deposited in vugs within veins
and breccias, accompanied by significant gold
and minor sulphide mineralization (stage 3C).
Drusy or dogtooth quartz is intergrown with,
and more commonly overgrowths 3A and B
sulphides, and 3C carbonates (stage 3D). Sealing
of
the
hydrothermal
system
caused
overpressured conditions with restricted
hydraulic brecciation being caused by local
failure, recording a return towards steady-state
boiling geothermal conditions. Fluids during
late stage 3 were moderately saline (0.415
wt% NaCl eq.) and hot (~ 310C).
Phase 6: Sulfosalts and sulfides, including
cinnabar, stibnite, and arsenopyrite, formed
peripheral to the hydrothermal system in the
West Prampus and 394 ore zones
(mineralization stage 4). These were deposited
20

in cockade bands with bladed rhodochrosite,

minor chalcedony and rare rhodonite.
Mineralization occurred around 400 m below
the paleowater table, which was at shallower
depth conditions than those under which
mineralization stages 2 and 3 were formed.
Fluids were relatively cool (~ 190260C) and
less saline than stage 3 fluids (0.46.9 wt%
NaCl eq.).
Phase 7: The hydrothermal system collapsed,
which was accompanied by pervasive kaolinite
pyrite marcasite alteration. Uplift and partial
erosion of the deposit occurred prior to PlioPleistocene mafic volcanism. Lava flows and
airfall deposits blanketed the Gunung Runcing
area. Quaternary erosion resulted in further
disection of the shallow levels of the Kelian
system.
THE INVISIBLE COARSE GOLD
Following the installation of a gravity circuit in
1995, significant amounts of coarse gold were
recovered in the processing plant. This came as
a (pleasant) surprise as during 12 years of
exploration gold had rarely been observed in
core and outcrop, even although more than 60
km of core had been examined and reexamined by many geologists (in particular high
grade sections). Experience during the mining
phase was similar; even during mining of the
255 zone in 1996/7, when over 25% of the gold
produced was coming from the gravity circuit
(10,000 oz a month), little free gold was
observed in the pit. It was a different story in
the case of the Watertank zone: after mining
excavations had exposed veins with spectacular
wire gold specimen, both company workers and
local villagers would scour the pit floor during
night shifts to pick up gold. Extensive
metallurgical testwork carried out as part of the
feasibility study suggested that only 10-12% of
the gold would be recovered by gravity. This
was the main reason a gravity plant was not
included initially in the project.

In 2000, one of the mining geologists undertook

a study of the occurrence of coarse gold in the
255 and 394 zones. It involved panning of <2
mm blast hole material from 274 samples
assaying >3 g/t Au. Visible gold was observed in
167 samples (247 coarse, 466 medium and 827
fine particles), confirming that coarse gold was
much more common than suggested by visual
observations of core and rock samples. The gold
grains were generally flat and showed varied
colours (yellow, light yellow and bronze in the
394 zone, and silvery yellow in the 255 zone).
During the early exploration days we commonly
referred to the gold at Kelian as no seeum
gold. The perception that the gold was not
visible (about <250 microns using a hand lens)
got support from petrographic studies of drill
core and limited metalurgical testwork
undertaken in 1978-82, which suggested that
the gold occured predominantly as 2-50 micron
particles, occassionally up to 200 micron in
diameter. Coarse gold particles (up to 0.5 mm
in diameter) could be readily panned from soil
and highly weathered rock, but we thought
these to be the result of leaching,
remobilization and accretion processes.
(Examination of five alluvial nuggets from Tepu
creek in 1992 led to the conclusion that these
particles were of hypogene origin based on the
coexistence of adularia and sulphide inclusions,
lack of accretionary growth bands, and the
presence of marcasite-magnetite-ilmente bands
occurring only at the outside of the grains).
While we considered the gold to be fine in a
geological sense, we realized early on there was
a coarse gold problem in terms of assaying.
This was highlighted by the fairly common poor
repeatability in check assaying. Because of this
problem all core samples were screened into
plus and minus 150 mesh (106 microns)
fractions. The whole oversize fraction (in which
most of the coarse gold could be expected to
report) and three 10 gram portions from the
undersize fraction were assayed, from which
the total gold content of the sample was
calculated. It was only fairly late in the
21

exploration program that we used the data also

for geological purposes by calculating the ratio
between the total gold content of a sample and
the -150 mesh fraction, referred to as the
coarse fraction coefficient (CFC); a ratio of 1
meant no coarse gold, and the higher the CFC
the higher the coarse gold content.
The following conclusions were drawn from the
study:
1) There was no obvious correlation between
CFC and gold grade, and between CFC and
lithology types.
2) There appeared to be a positive correlation
between moderate to strong free carbonate
development (i.e. vein and vug fillings) and
high CFC values.
3) There was no noticeable increase in CFC
values going from the primary sulphide
zone into the oxide zone, suggesting that no
significant remobilization of gold had taken
place during the weathering processes as
had been previously assumed.
4) There was a fairly well-defined zonation in
East Prampus: the 255 zone displayed
consistently high ratios; centred on this
zone was a plume-like zone of high to
variable ratios, which was surrounded by a
broad zone of low to variable ratios; the
Hanging Wall zone was characterized by
ratios close to 1 (and highly refractory gold).
5) There was a straight correlation between
CFC and the percentage of cyanide soluble
gold in six metallurgical samples.
As no particle size analyses were carried out
during the exploration period it is not known
how much of the gold in the oversize fraction
was within the visible range.
A GROWING ORE BODY
It is common that during the life of a mine
reserves increase, as geological resources are
converted into mineable reserves and new
reserves are added. Kelian is a good example.
The feasibility study estimated a total
production of 74 t Au (see 3.7). After six years

of operation this figure had already been

exceeded, and when the mine closed in 2004
179 t had been produced from 91 Mt averaging
2.65 g/t Au (241 t contained Au). This more
than two-fold increase can be contributed to:
1) Underestimation of the gold grade within
the primary envelope defined by the
feasibility study, amounting to an additional
20-30 t Au.
2) Infill deeper drilling of some ore zones
within the envelope, e.g. 393 zone.
3) Reserve drilling of mineralized zones, not
originally incorporated in the primary
envelope, were identified either during or
after the exploration period, e.g. 339,
Watertank and Tepu zones.
4) Diversion of 1.6 km of the Kelian River (Fig.
2) completed in 1997, which added 30t of
mineable gold.
DISCUSSION
Several factors contributed, in part indirectly, to
the discovery of Kelian:
1) Richard Nixons decision to abandon the
gold standard that tied the price of gold to
the US dollar, resulting in a rapid increase in
the price gold. This prompted both the local
timber business man to take out a mining
concession along the Kelian River and Rio
Tinto to add gold as an exploration target.
2) Geologists who thought outside the box: a)
Our porphyry search team in West Sumatra
included two geologists assigned from Rio
Tintos Malaysian operations, who had
extensive experience and a keen interest in
exploration of alluvial mineral deposits.
They made the jump from observing a few
people panning for gold in the large Batang
Hari River to coming up with the concept to
look for large low- grade gold deposits that
might be amenable to mining by a giant
dredge, an idea that appealed to
management, and b) The brief given to the
geologists sent to the Kelian River in 1976
was to evaluate its alluvial potential. They

22

recognized, however, that the real prize

might be a primary deposit.
3) Intial observations suggesting that Kelian
might represent a porphyry gold type
deposit (this at the time purely conceptual
deposit type is another example of lateral
thinking). As this was a target of interest to
the Rio Tinto Group it ensured that we
recieved funds to undertake follow-up
exploration. In this context it is of interest
to note that several companies that visited
Kelian in the mid-1980s, when the project
was put up for joint venture, did not pursue
this opportunity because they were
discouraged by the lack of quartz lodes.
The ensuing exploration history of Kelian, with
its many twists and turns, illustrates a wellknown fact: exploration of complex gold
deposits requires perseverence, optimism,
dedicated and creative geologists, and, yes,
probably some luck too.
The geological model of the Kelian deposit
evolved, as most models do, by developing and
testing a series of hypotheses based on field
data and concepts. Ideas put forward by various
geologists were naturally influenced by their
knowledge,
experience,
methodology,
interaction with other geologists etc. The early
models were developed in house, and were
largely descriptive in nature, whereas the later
ones had a significant external input
(consultants, PhD student) and focused on the
genesis of the ore body.
One difficulty faced during the exploration
period was that we were not aware of any lookalike deposits elsewhere which could be
compared to Kelian. This may have been to
some extent because we did not have ready
access to scientific literature. More importantly,
at the time the carbonate-base metal-gold
deposit type (Leach and Corbett, 1994) had not
yet emerged as a distinctive group of
epithermal gold deposits. In fact, the Kelian
transitional
porphyry-epithermal
model
(developed by Terry Leach) is one of the

precursors to the carbonate-base metal gold

model, with others including Porgera and Wau
(G. Corbett, written comm, 2015). As noted by
Corbett (2002), this group of deposits shows a
variety in mineralization styles. Many occur as
fissure veins (e.g. Acupan, Edie Creek), whereas
others are characterized by fracture/vein and
breccia fills and/or disseminated ore (e.g.
Kelian, Porgera, Gold Ridge, Mt Leyson).
Diatreme breccias are a common feature. At
higher crustal levels these breccias do not
fracture well because of their incompetent
nature and consequently mineralization tends
to occur in adjacent competent host rocks (e.g.
Kelian, Kenmenge). At depth mineralization may
occur as a breccia matrix within the breccia
bodies (e.g. Montana Tunnels, Mt Leyshon)
(Corbett, 2002).
Throughout most of the exploration program
the prospect was approached as a large, low
grade deposit amenable to bulk mining, despite
the recognition of strong structural control
early on. This shaped the evaluation philosophy,
which favoured proving a single domain
orebody with reasonably predictable grade.
Poor continuity of high-grade values at the early
stages of drilling led to their interpretation as
spot highs, and in turn to the practice of
cutting all high values to 20 g/t Au. Logarithmic
treatment of the gold values also contributed to
surpressing the influence of high-grade values,
as did the kriging method.
Another factor that contributed significantly to
the grade underestimation in the feasibility
study was that only a small number of all holes
used in this study fully intersected the narrow
high-grade zones. Drilling on a unrealistically
close spaced grid, at a prohibitive cost, would
have been required to detail completely the
high-grade structures. It has been suggested
that instead we could have carried out more
selective drilling off section and off grid aimed
at testing high-grade intersections, and then
extrapolating the results to other parts of the
deposit. However, this may have been a hit and
23

miss exercise in view of the general patchy

nature of the high-grade mineralization. Even in
the case of there being more continuous highgrade zones drilling would not necessarily have
hit the target because the attitudes of the zones
were often not known.
It has also been suggested that a few selected
areas could have been drilled on a close spaced
grid. It was assumed that this would have
provided an upgrade factor, which could have
been extrapolated to the ore body as a whole. It
is debatable, though, whether in either case
extrapolation of localized results accross a
highly complex ore body like Kelian would have
produced a more reliable grade estimation.
A third factor that likely played a role in the
underestimation of the grade is the partly
coarse nature of the gold. It is common to
underestimate the grade of deposits with a
significant high coarse gold content. This
provokes the question as to why it took more
than 15 years to realize that coarse gold was a
characteristic feature of the deposit. Several
explanations have been put forward:
1) Coarse gold was common in the narrow
high-grade structures, which were largely
missed during the exploration and
evaluation drilling.
2) Petrographic data suggest that at hand
specimen scale coarser gold particles tend
to occur in clusters rather than being evenly
distributed. Therefore, the odds of them
being present on a core or rock sample
surface were low.
3) In some cases yellow gold grains may have
been lost in abundant fresh pyrite,
whereas in other cases tarnished grains
may have been difficult to recognize.
A final observation: Kelian differs in several
aspects from the other epithermal Au-Ag
deposits and prospects in the Kalimantan gold
belt. It is not hosted by co-eval volcanic rocks,
but instead occurs in an uplifted basement
block, consisting of Cretaceous volcaniclastic
rocks. This may be one of the main reasons why

it is significantly larger in terms of contained

gold than the other deposits. The volcaniclastic
inlier is of restricted size (about 1.5 x 1.5 km)
and was a favourable lithology in which to form
fractures, faults and breccias. The adjacent and
overlying Eocene sedimentary rocks are on the
other hand relatively impermeable, as are the
cores of the andesite intrusions and most of the
diatreme breccias. Consequently, mineralizing
fluids were confined to a relatively small, highly
permeable
space.
In
contrast,
gold
mineralization at Mt Muro and Masuparia
occurs over much larger areas in widely spaced,
fault-controlled veins. Another important
reason may be that the catastrophic brecciation
event that took place at Kelian resulted in the
development of a highly productive auriferous
hydrothermal system (Davies, 2002). Similar
events have not been recorded from the other
deposits.
CONCLUSIONS
1) Kelian is a highly complex orebody
characterized by extremely irregular gold
grades, a feature typical of many carbonatebase metal-gold deposits (Corbett, 2002).
2) This is one of the reasons that the grade
was
initially
underestimated:
unintentionally most of the high grade
mineralization was missed by the premining drilling at 40 m spacing.
3) Structural control to the high-grade
mineralization was recognized early on in
the exploration program, but was not
systematically tested with drilling. Closespaced drilling sufficient for complete
orebody definition would have been costly
and time consuming, given the apparent
structural complexity and lack of grade
continuity within the high-grade structures.
Such intensive drilling was not justified
because the ore body could be predicted
with reasonable confidence to yield an
economic reserve based on the existing
drilling grid.
4) The significance of coarse gold in the
orebody was not fully appreciated. The
24

Kelian experience has shown that it is

important to undertake particle size
distribution analyses throughout the
exploration and evaluation stages for
sampling, geological (identification of grade
domains) and metallurgical purposes.
5) Evalution of screen assay data using CFC
ratios is a cheap method to obtain semiquantitative information on the distribution
of coarse gold and may have some use as a
first step in outlining metalurgical domains.
6) Identification of zones of increased grade
variability may be an effective tool to vector
to narrow high-grade zones in epithermal
gold deposits showing a bimodal grade
distribution.
7) It took almost 40 years from initial
discovery
to
completion
of
site
rehabilitation and monitoring: 16 years preproduction, 12 years production, and 12
years post-production. This highlights that
mining often represents a relatively short
part of the overall time frame of a project.
ACKNOWLEDGEMENTS
Many geologists have contributed to the
success of the exploration and development of
the Kelian ore body. Following are the names of
those whose work and ideas form the main
basis of this paper.
Eric Toh and Duncan Large, who recommended
to search for the primary source of the alluvial
gold; Ken Ferguson, who had less than one year
experience under his belt when he found Kelian
and ably managed the project until 1985, with
many of his observations and ideas having
withstood the test of time; the late Alan Hawke,
his wife Michelle, and Brian Hawkins, who had a
major input in the third exploration phase; Rio
Tinto geologists Jacob Rebek and Tim
McConnachy, who provided stimulating ideas
during the early exploration stages, and Duncan
Hackman and the late Ross Andrews, who
critically reviewed the exploration results;
consultants Jeff Hedenquist, Jim Lawless, Dick
Sillitoe, Greg Corbett, and in particular the late

Terry Leach, who contributed significantly to

the development of the later geological models;
and last but not least Andrew Davies, whose
study has led to an increased understanding of
the processes responsible for the formation of
the Kelian ore body, and whose proposed
breccia classification scheme, based on a
descriptive approach, is readily applicable to
the exploration of other breccia-related
systems.
I thank John Baldwin, Steve Hunt and Mark
Hunter for sharing their experiences during the
mining stage, Gregg Corbett and John Carlile for
helpful comments, and PT Kelian Equatorial
Mining for providing data. John Baldwin is also
thanked for his thorough review of the
manuscript. Lastly, I am grateful to Iryanto
Rompo for preparing the figures.
REFERENCES
Corbett, G.J., 2002. Epithermal gold for
explorationists. AIG Journal Applied
geoscientific practice and research in
Australia, 126.
Corbett, G.J., 2013. Pacific Rim Epithermal AuAg. Paper presented at the World Gold
Conference, Brisbane 26-27 September
2013. Australasian Institute of Mining and
Metallurgy.
Corbett, G.J., Leach, T.M., 1998. Southwest
Pacific Rim Gold-Copper Systems: Structure,
Alteratiuon, and Mineralization. Society of
Economic Geologists, Special Publication
Number 6, 237 pp.
Davies, A.G.S, 2002. Geology and genesis of the
Kelian gold deposit, East Kalimantan,
Indonesia. Unpublished Ph.D thesis,
Tasmania, Australia, University of Tasmania,
404 pp.
Davies, A.G.S., Cooke, D.R., Gemmell, J.B.,
Simpson, K.A., 2008a. Diatreme breccias at
the Kelian gold mine. Economic Geology
103, 689716.
Davies, A.G.S., Cooke, D.R., Gemmell, J.B., van
Leeuwen. T., Cesare, P., Hartshorn, G.,
25

2008b. Hydrothermal breccias and veins at

the Kelian gold mine, East Kalimantan,
Indonesia. Economic Geology 103, 717
757.
Ferguson, K.J., 1986. The Kelian gold prospect,
Kalimantan,
Indonesia.
Proceedings
Symposium 5: Volcanism, Hydrothermal
Systems and Related Mineralization, IAVCEI,
Hamilton, New Zealand, pp. 4146.
Lawless, 1988. Punctuated equilibrium and
paleohydrology Proceedings 10th Annual
geothermal Workshop, Auckland University,
pp. 165170.
Leach, T.M., Corbett, G.J., 1993. Porphyryrelated carbonate base metal gold systems:
The transition between the epithermal and
porphyry environments. In: Second national
meeting Specialist Group in Economic
Geology, Armidale, New South Wales.
Geological Society of Australia Abstracts 34,
3940.
Leach, T.M., Corbett, G.J., 1994. Porphyryrelated carbonate base metal gold systems:
Characteristics. In: Rogerson, R., (ed),
Geology,
exploration
and
mining
conference, June 1994, Lae, Papua New
Guinea, proceedings: Parkville, The
Australasian Institute of Mining and
Metallurgy, p. 8491.
Setiabudi, B.T., 2001. Geochemistry and
geochronology of the igneous suite
associated with the Kelian epithermal gold
deposit, Indonesia. Unpublished PhD thesis,
Canberra Australia, Australian National
University, 132 p.
Sillitoe, R.H., 1994. Indonesian mineral deposits
introductory comments, comparisons and
speculations. In:
van Leeuwen, T.M.,
Hedenquist, J.W., James, L.P., Dow, J.A.S.
(eds), Mineral deposits of Indonesia
discoveries of the past 25 years. Journal of
Geochemical Exploration 50, 111.
Van Leeuwen, T.M., Leach, T.M., Hawke, A.A.,
Hawke,
M.M.,
1990.
The
Kelian
disseminbated
gold
deposit,
East
Kalimantan, Indonesia. In: Hedenquist, J.W.,
White, N.C., Siddeley, N., (eds), Epithermal
gold mineralization of The Circum Pacific.

Journal of Geochemical Exploration 35, 1

61.

26