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 sixyear IUP (Izin Usaha Pertambangan) Eksplorasi or Exploration Mining Business Licence was granted over the most prospective 999 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 (KP).
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 had 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 and is undertaking drill testing during 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.
BIRD'S HEAD & SUMBA
Hillgrove has secured 1,991.3 square kilometers of ground comprising two major projects - the Bird's Head Project and a gold prospect in Sumba.
We are mindful that we are operating in and around local landowners and communities and it is our greatest wish to see all benefit from our presence.