Level 41 Australia Square, 264 George Street, Sydney NSW 2000 Tel: 02 8221 0404 Fax: 02 8221 0407 www.hillgroveresources.com.au
Thursday, 4 December 2008
LARGE EPITHERMAL GOLD SYSTEM IDENTIFIED ON SUMBA
Hillgrove Resources Limited (ASX: HGO) is pleased to announce an update on the current general survey work being conducted on the island of Sumba, East Nusa Tengarra Province in the southern central region of the Indonesian archipelago.
The Sumba license (Kuasa Pertambangan, KP) (Hillgrove 80%) is highly prospective for epithermal and porphyry style mineralisation and covers identified zones of gold mineralisation.
Highlights from fieldwork to date include: 2km x 500m corridor of epithermal gold mineralisation defined by geochemical and mapping surveys at Pahandanjal Prospect with peak values up to 25.27g/t gold and 71g/t silver in rock chip samples (not the same sample). Additional epithermal gold mineralisation confirmed at Okajara Prospect with peak values of 8.96g/t gold and 6.2g/t silver in rock chip samples (same sample).
David Archer, the Managing Director of Hillgrove Resources said today Indonesia is shaping up to be an exciting exploration initiative with our first sampling program producing some stellar results. This setting hosts numerous large scale copper/gold porphyry systems and epithermal gold deposits, including Newmonts Batu Hijau Mine on the nearby island of Sumbawa.
Sumba KP
The Sumba KP covers 331,300 hectares and is split into three project areas that coincide with the volcanic basement (see Figure 1). These project areas were originally defined through exploration conducted by PT BHP Sumba Minerals as a joint venture between BHP Minerals International Exploration Inc (90%) and PT Sansaporindo Mandiri (10%), in which BHP was the operator. The work was conducted under a sixth generation Contract of Work (COW) agreement covering 346,500 hectares granted on the 28 April 1997. Hillgroves KP matches the COW boundaries after the first relinquishment.
Hillgrove through its Indonesian partner, PT Fathi Resources, began general survey field work in August 2008 and has since conducted mapping and geochemical sampling programs over all three project areas.
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Hillgrove Resources Limited Figure 1. Map showing basic geology and tenement boundary for Sumba
Masu Project
The main focus of fieldwork has been at Pahandanjal and Okajara Prospects within the Masu Project*. Fieldwork has consisted of mapping the prospective andestitic unit and overlying unconformity, locating BHPs trenches and drill collars, and conducting both soil and rock chip sampling for the two prospects.
Photo1. Pahandanjal Prospect
To date a total of 270 soil samples and 120 rock chip samples have been collected from the Masu Project area and these have confirmed the presence of significant epithermal gold mineralisation hosted within andesitic volcanics. 3
Hillgrove Resources Limited The majority of assays have been received for these programs and Table 1 and Plan 1 summarises significant results from rock chip samples from the Masu Project area.
Assays have produced some exciting first pass results including: 2km x 500m corridor of epithermal gold mineralisation defined by geochemical and mapping surveys at Pahandanjal Prospect with peak values up to 25.27g/t gold and 71g/t silver in rock chip samples (not the same sample). Additional epithermal gold mineralisation confirmed at Okajara Prospect with peak values of 8.96g/t gold and 6.2g/t silver in rock chip samples (same sample).
The basic stratigraphy for Pahandanjal and Okajara consists of a thick folded layer of prospective andesite volcanics that are overlain by a turbidite sequence on a folded unconformity. The turbidites in turn are overlain by a flat dipping limestone unit on a flat unconformity.
All of the mineralisation discovered to date has been hosted within veins and breccia zones within the andesite. Understanding where and why basement exposures occur has been a key focus in mapping activities. It is currently believed block faulting in conjunction with the folded unconformity beneath the turbidite, gives rise to basement exposure in areas where it would otherwise be concealed.
Pahandanjal and Okajara are separated by a ridge of overlying sediments but the possibility exists that the two mineralised corridors are related.
At this early stage of exploration there is insufficient evidence to make size and grade estimates for the two prospects, but based on mineralised vein occurrences and both current and historical assays Hillgrove is certainly encouraged with the potential of what is essentially a virgin gold field which has not seen any mining activity. 4
Hillgrove Resources Limited Tanah Daro and Lamboya Projects
Fieldwork has just been completed for the Tanah Daro Project area and consisted of basic mapping and rock chip sampling programs. Results from this program are expected in late December.
The field crew is currently working in the Lamboya Project area. Results from this program are expected in J anuary.
* Note: both the Pahandanjal and Okajara prospects were collectively referred to as Puhulubandil Prospect in a previous ASX announcement but they have since been separated due to their size and the occurrence of a geological boundary.
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.
About Hillgrove
Hillgrove is an Australian resources company listed on the Australian Securities Exchange (ASX: HGO) focused on developing its South Australian, Queensland and Indonesian base and precious metals projects. The Company has an exploration portfolio of over 970km within the Kanmantoo Trough and the Gawler Craton which are recognised as being amongst Australias most prospective regions for copper and gold.
Hillgroves key asset is the Kanmantoo Copper Gold Project, located less than 60km from Adelaide. Kanmantoo currently hosts a Mineral Resource of 31.8Mt (21.4MT Indicated and 10.4MT Inferred) grading 0.9% copper and 0.20g/t gold, containing 290,700 tonnes of copper, 189,300 ounces of gold and 3,218,400 ounces of silver. With production targeted for the first quarter of 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.
Hillgrove also holds a portfolio of strategic positions in emerging energy and resources companies. These include a fully diluted direct 22.6% shareholding in coal seam gas company Eastern Star Gas Limited (ASX:ESG) and a direct 85% shareholding in Queensland and South Australian focussed minerals explorer InterMet Resources Limited (ASX:ITT).
For more information contact: Mr David Archer Mr Dale Ferguson Managing Director General Manager Exploration & Operations Hillgrove Resources Limited Hillgrove Resources Limited Tel: +61 2 8221 0404 Tel: +61 8 9481 1433 Mobile: 0414 737 767 Mobile: 0439 886 019
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Hillgrove Resources Limited Plan 1. Map showing significant gold results for Masu Project
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Hillgrove Resources Limited Table 1. Significant Rock Chip Results from Masu Project Project Prospect Sample No UTM_E UTM_N Au Av ppm Ag ppm Pb ppm Masu Pahadanjal 000001 203939 8880992 23.6 6.5 29 Masu Pahadanjal 000003 204176 8881154 2.35 5.7 384 Masu Pahadanjal 000004 204198 8881172 6.41 7 1390 Masu Pahadanjal 000006 204013 8881227 1.31 7.5 242 Masu Pahadanjal 000007 203918 8881386 1.56 64 443 Masu Pahadanjal 000010-11 203994 8880916 2.92 9.6 746 Masu Pahadanjal 000010-12 203994 8880916 1.02 3.2 69 Masu Pahadanjal 000013 204198 8882593 8.15 7.4 1210 Masu Pahadanjal 000017-C 203830 8881362 14.75 49.7 41 Masu Pahadanjal 000017-D 203830 8881362 1.65 14.1 132 Masu Pahadanjal 000017-E 203830 8881362 3.57 42.5 77 Masu Pahadanjal 000022 203712 8881166 12.65 71 251 Masu Pahadanjal 000023 203717 8881170 4.08 4.1 335 Masu Pahadanjal 000030 204327 8881599 8.96 1.6 52 Masu Pahadanjal 000031 204210 8881712 0 3.2 5010 Masu Pahadanjal 000032 204139 8881840 1.81 11.4 1900 Masu Pahadanjal 000033 204145 8881867 2.96 7.7 919 Masu Pahadanjal 000035 204180 8882428 25.27 32.9 731 Masu Pahadanjal 000038 204448 8882265 1.18 4.8 648 Masu Pahadanjal 000040 204274 8883197 1.53 2.4 521 Masu Pahadanjal 000042 203862 8881420 0.84 5.7 1230 Masu Pahadanjal 000043 203747 8881368 5.41 5.6 603 Masu Okajara 000267 204161 8885156 0.92 31.2 56 Masu Okajara 000277 203683 8885831 1.88 5.4 586 Masu Okajara 000364 203729 8885583 4.10 5 372 Masu Okajara 000366 203487 8885398 1.65 2.8 320 Masu Okajara 000369 203389 8885395 8.96 6.2 335
Note: Gold values are derived from an average of up to 5 repeats using fire assay method. Silver and lead values are derived from a multi element sweep using ICP method. Datum used for the East Sumba is WGS 84 Zone 51.