Sydney, Jan 6, 2009 AEST (ABN Newswire) - Hillgrove Resources Limited (ASX:HGO)(PINK:HLGVF)("Hillgrove") announces the award to P.T. Akram Resources of an exploration license on the Bird's Head Peninsula ("Kepala Burung") in West Papua, Indonesia (the "Bird's Head Project"). An Indonesian subsidiary of Hillgrove will undertake exploration work, feasibility studies if justified, and steps to advance the KP to exploration status in return for an indirect 80% interest. The area is considered highly prospective for world class copper-gold and gold deposits. The licence expands Hillgrove's exposure to world class copper-gold terrains, which includes an exploration licence on the island of Sumba in southern Indonesia.
Mr David Archer, the Managing Director of Hillgrove, said today "The extensive gold and base mineralisation already identified plus the excellent geology, matched with a large exploration data base means we are in the hunt for a potential major discovery. The attractiveness of the Project is highlighted by the fact that on the same basis as Hillgrove, two international majors were concurrently awarded KP's in the same area. This initiative follows on from the excellent gold results we are receiving from our Sumba Gold Project further to the west in the Indonesian archipelago".
The exploration licence is in the form of a Kuasa Penambangan ("KP") covering 1,815 square kilometres. The KP covers a number of mineralised areas that were explored between 1986 and early 1993 and shown to contain extensive porphyry style copper-gold and epithermal gold mineralisation. These prospects are located along the westward continuation of the New Guinea mineral belt that hosts world class porphyry copper-gold and epithermal deposits including Grasberg and Ertsberg in West Papua and Porgera and OK Tedi in Papua New Guinea.
No exploration has been conducted on these prospects in the 15 year period between 1993 and the present.
Priority targets for Hillgrove's work program include:
- Alpha Prospect, where a 2km topographic ridge shows extensive gold mineralisation. Spectacular results from trenching include 14m averaging 14.61g/t gold and 6m averaging 20.77g/t gold at A18 area, and 40m averaging 8.69g/t gold and 8m averaging 70.95g/t gold at A19 area. Four shallow diamond drill holes are understood to have been drilled at the A18 prospect however Hillgrove has not been able to access the results from this work.
- West Delta Prospect, which is an area of complex geology, intruded by granodiorite and diorite bodies. Significant gold and base metal anomalism have been detected in this area in the past by Normandy Anglo Asian Pty Ltd. The complex geology and mineralisation styles suggest the mineralisation is multiphase and may represent a telescoped epithermal to porphyry style system.
The KP covers areas ranging from the coast through to moderate elevations of around 2,500 metres within 60 kilometres of the coast. Hillgrove is in the process of compiling the historic data and establishing logistical support prior to the first phase of "General Survey". Further information regarding prioritisation of targets and work programs will be provided to investors as this work proceeds.
Introduction
The Bird's Head Project is located in north-western West Papua in the Indonesian province of Papua Barat. The regional centre of Sorong, located approximately 130 kilometres to the southwest of the area, is supported by regular commercial air and sea services.
The KP covers 181,500 hectares within the administrative districts of Sorong and Manokwari. The license area is sparsely populated.
Mineralisation Setting
The Bird's Head Project is the northwest portion of the island of New Guinea. Geologically, it forms the continuation of the Southwest Pacific portion of the "Rim of Fire" from New Guinea through to the Philippines. This belt has been subjected to repeated cycles of volcanic and sedimentary activity and associated mineralisation for millions of years through to the present.
Mineral deposits of various ages have been progressively uplifted and exposed by erosion along the length of the Rim of Fire. The Southwest Pacific belt includes world class copper and gold deposits at Bougainville in the Solomon Islands, Porgera (16.2 million ounces of gold) and OK Tedi (4.1 million tonnes of copper and 12 million ounces of gold) in Papua New Guinea, Grasberg and Ertsberg (43 million tonnes of copper and 110 million ounces of gold combined) in West Papua and the yet to be mined Tampakan deposit in the Philippines.
History of Exploration
The regional geology of the area was mapped by Australian and Indonesian governmental geological surveys in the period 1976 to 1979. Rock and stream sediment samples taken during this time were shown to be anomalous in copper, gold, lead and zinc, with visible gold detected in heavy mineral concentrate samples.
The first significant mineral exploration of the area was not until 1986, when regional stream sediment sampling showed 15 stream drainages to contain detrital gold. Within the Bird's Head Project, three drainages, named Alpha, Bravo and Golf, were prioritised as epithermal style gold targets and an additional two, Foxtrot and Delta, as porphyry style copper-gold targets. Surprisingly, the region has no history of artisanal gold mining.
Priority Prospects
Alpha Prospect
Previous surveys identified gold shedding into streams from the Alpha drainage, which was confirmed during the initial exploration of the 1980's.
A 2 kilometre section of ridge was found to show extensive gold in quartz mineralisation associated with anomalous lead, zinc and copper.
A ridge and spur soil program carried out during 1991 confirmed anomalous gold and base metals over an area of 3.5 kilometres east-west by 1.5 kilometres north-south.
During 1992, a 50 metre by 50 metre grid soil geochemical programme defined a gold anomaly over 900 metres by 400 metres.
Trenching conducted during 1992 identified significant mineralisation that included;
- 14m averaging 14.61g/t gold at A18 area.
- 6m averaging 20.77g/t gold at A18 area.
- 40m averaging 8.69g/t gold in A19 area.
- 8m averaging 70.95g/t gold in A19 area.
- 4m averaging 11.5% zinc in A17 area.
- 8m averaging 2.94% lead in A17 area.
Mineralisation in the Alpha Prospect is widespread and multiphase, with at least three discrete phases of mineralisation recognised. Four shallow diamond drill holes were completed at A18 area and further work was recommended to advance the other areas in Alpha to drilling status. At this time, Hillgrove has not been able to source the results of the diamond drillholes, however the very limited nature of the drill program is not considered to detract from the potential to discover a major gold deposit in this area.
Table 1. Selected Trenching Results from Alpha West Prospect
-----------------------------------------Trench ID Local Local Intercept East North-----------------------------------------A18 # 4 10250 9250 14m @ 14.61g/t goldA18 # 4a 10270 9260 6m @ 20.77g/t goldA19 # 1 9400 9900 40m @ 8.69g/t goldA19 # 1 9400 9900 8m @ 70.95g/t goldA17# 1 9800 10000 4m @ 11.5% zincA17# 1 9800 10000 8m @ 2.94% lead------------------------------------------
N.B Coordinates are from local grid established by Ashton Group Indonesia Ltd and identify the
approximate centre of trenches.
West Delta Prospect
West Delta Prospect is located within 20 kilometres of the coast and was the main focus for exploration in the early 1990's. Geochemical studies and drilling was concentrated on an area of faulted volcanics in contact with a large granodiorite to diorite intrusion.
Significant gold and base metal anomalies were detected along a northwest trend and HGO is currently processing this data.
Mineralisation is multiphase and may represent overprinting, or telescoping, of a mesothermal or porphyry style system on epithermal mineralisation.
Work Program
The KP is in a 12 month general survey phase aimed at advancing prospects to drill definition. Existing work includes sourcing previous exploration reports and compiling the historic data into a working database, and establishing logistical support for ground activities. Hillgrove and its partner have established logistical and geological services in Jakarta, which includes geologists highly experienced in working in West Papua. Contact has been made with local workers who were involved in earlier exploration, which will substantially shorten the time to establish access and on-ground facilities.
Further information regarding prioritisation of targets and work program will be provided to investors as additional historical data for this project is collated and analysed.
Hillgrove's has a strategic, fully diluted, direct 22.6% shareholding in the leading New South Wales coal seam gas company, Eastern Star Gas Limited (ASX: ESG).
Hillgrove's most advanced project is the Kanmantoo Copper Gold Project, located less than 60km from Adelaide. Kanmantoo currently hosts a Mineral Resource of 32.2Mt (2.3MT Measured, 22.5Mt Indicated and 7.4MT Inferred) grading 0.9% copper and 0.20g/t gold, containing 292,200 tonnes of copper, 191,100 ounces of gold and 3,313,600 ounces of silver. With production targeted for 2010, Kanmantoo will be a 2Mt p.a. open-cut mine producing approximately 17,000 tonnes of copper in concentrate and 8,000 ounces of gold per annum.
The information in this report that relates to Exploration Results is based on information compiled by Mr. Adam Freeman, who is a Member of The Australasian Institute of Geoscientists. Mr. Freeman is an Exploration Manager for Hillgrove Resources and has sufficient relevant experience to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Freeman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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