Hillgrove obtains IUP exploration licence at W. Papua project

Australian firm Hillgrove Resources Limited announced on Tuesday that its Indonesian partner, PT Akram Resources, has been granted an Exploration Mining Business Licence (Exploration IUP) for its Bird?s Head copper/gold project by the Governor of West Papua.

The IUP has a term of seven years, which covers an area of 99,230 hectares or 992.3km2, the company said.

The IUP gives PT Akram Resources the right to continue its exploration programs and, subject to positive feasibility studies, is convertible into a Production IUP for an initial period of 20 years and extendable for a further 20 years (by way of two 10 year extension periods). The granting of the IUP provides the company with a long term security of tenure, it said.

David Archer, the Managing Director of Hillgrove Resources, said ?With our partners, we now hold almost 2,000km2 under IUP?s over the Bird?s Head and Sumba Projects which contain some of the most prospective exploration ground in Indonesia. Both these projects will be the subject of extensive drilling campaigns in 2010.?

?The granting of the IUP follows the proclamation in 2009 of the new Law on Mineral and Coal Mining in Indonesia. The new Law removes the historical restrictions on direct foreign ownership in Indonesian mines and represents an important step forward for foreign investment in the Indonesian mining industry, where foreign investors have historically sought to obtain benefits from mining operations through cooperation arrangements with local shareholders rather than through direct ownership.?

?It also clears the way to drill testing of the very promising West Delta prospect close to the coast where Hillgrove has identified a potential copper/gold porphyry target.?

Hillgrove has an 80% economic interest in the Exploration IUP. (kanti)