Overview

Hillgrove has secured 2,815 square kilometres of ground comprising two major projects - the Bird's Head Project on the north western tip of the eastern Indonesian province of West Papua and a gold prospect on the island of Sumba, west of Timor. Indonesia is shaping up to be an exciting exploration initiative with the first sampling program producing highly encouraging results from our Sumba Prospect.

This setting hosts numerous large scale copper/gold porphyry systems and epithermal gold deposits, including Newmont's Batu Hijau Mine on the nearby island of Sumbawa. The Sumba Project offers us a quick leg up into a zone of previously identified gold mineralisation that was not followed up due to the difficult economic conditions of the late 1990's.

SUMBA PROJECT, SUMBA

A ‘KP’ (Kuasa Pertambangan) was awarded to Hillgrove's Indonesian partner, PT Fathi Resources (20%), in October 2008 that covered 3,313 square kilometres and three project areas which coincided with the volcanic basement. In November 2009 a ten year IUP (Izin Usaha Pertambangan) Eksplorasi or Exploration Mining Business Licence was granted over the most prospective 1,000 square kilometre area.

In return for undertaking exploration work and feasibility studies (if justified) Hillgrove has received an indirect 80% interest. As the project areas originally defined were previously explored by PT BHP Sumba Minerals, extensive historical data was available for review which outlined a corridor of gold mineralisation 2km wide by 10km long, with historical trenching returning results up to 7m at 24.9 g/t gold and 46 g/t Silver (Trench PDL18).

This compilation of exploration work completed by BHP was combined with an extensive field programme over the 12 month General Survey Stage of the KP.

Highlights from the 2008 field season include:

  • Sampling confirming a high grade Western Vein system, striking approximately N-S and outcropping over about 250m, which returned assays up to 164g/t gold and 71.7g/t silver;

  • The discovery of a second high grade vein striking NE and outcropping over about 250m, intersecting the N-S trending Western Vein, that returned assays up to 64g/t gold and 254g/t silver (not the same sample); and

  • Further encouraging rock chip results, from the area of a previously reported gold in soil anomaly, with rock chip assays up to 77g/t gold and 43.3 g/t silver.

The gold mineralisation at the Pahandanjal Prospect in particular, within the southern Masu Project area, warrants detailed mapping and trenching programs. Previous exploration in the Masu area has been of a reconnaissance nature. The known high grade zones have not been adequately tested, followed-up or understood. An additional factor is that trenches have actually stopped in outcropping high grade mineralisation (e.g. 62.3g/t gold and 79g/t gold in different trenches) which have never been followed up. Hillgrove has also confirmed the presence of in situ gold mineralisation in quartz reefs as far as 10km north of the prospect.

Hillgrove’s intention is to follow up these zones with mapping, soil sampling and trenching prior to drill testing in 2010.

While the focus has largely been on conducting due diligence and gauging the project area's potential, even with a short exploration programme, results have been highly encouraging and Sumba is shaping up as a very exciting gold project with numerous zones of mineralisation.

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