Hillgrove to spend $10m for gold projects

Australian firm Hillgrove Resources Limited said on Wednesday that it would spend some $10 million over the next 12 months on its fully funded Sumba gold project in East Nusa Tenggara and Bird?s Head copper and gold projects in West Papua.

Exploration is currently underway at the Sumba epithermal gold project where recent rock chipping in a gold mineralised zone 2km wide and 10km long has recorded results of up to 164 g/t gold and 71.1 g/t silver.

The area has the potential to host targets of >1 Moz, the company said.

The target at the Bird?s Head project is a discovery of tier 1 style epithermal gold or porphyry copper/gold ore bodies. The project exhibits exceptionally attractive geochemistry matched by a geological selling that hosts world class ore bodies.

The existing extensive database of exploration results from the 1990?s in combination with Hiligrove?s own work will provide an excellent platform for drilling targets in the first half of 2010. Initial drilling will target gold mineralization at the Kali Sute epithermal gold prospect (rock chips up to 184 g/t gold and trenching up to 50m @ 4.51 g/t gold and 1.09% copper) and the West Delta porphyry copper/gold prospect (rock chips up to 17.9% copper), it said. (denny)