Hillgrove updates Indonesian gold, copper/gold project
Monday, November 30 2009 - 03:02 AM WIB
Exploration continues on 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 164g/t gold and 71.1 g/t silver. The aim is to define targets for drilling early next year. Good grades in rock chips, the significant distribution of mineralisation, evidence of high grade shoots and good access with nearby roads makes this a high priority project for Hillgrove.
The target at the Bird?s Head project is the discovery of tier 1 style epithermal gold or porphyry copper/gold ore bodies. The project exhibits exceptionally attractive geochemistry matched by a geological setting that hosts world class ore bodies. The existing extensive database of exploration results from the 1990?s in combination with Hillgrove?s own work will provide an excellent platform for drilling targets in the first half of 2010. Initial drilling will target gold mineralisation at the Kali Sute epithermal gold prospect (rock chips up to 184g/t gold and trenching up to 50m @ 4.51g/t gold and 1.09% copper) and the West Delta porphyry copper/gold prospect (rock chips up to 17.9% copper).
Both the Indonesian projects offer exceptional potential for growth in shareholder value.
BIRD?S HEAD COPPER/GOLD PROJECT, WEST PAPUA
(Hillgrove 80%, PT Akram Resources 20%)
P.T. Akram Resources was awarded an exploration license or Kuasa Penambangan (KP) over I ,815km2 of the Bird?s Head Peninsula (Kepala Burung) in West Papua, Indonesia on the 4 December 2008. Hillgrove will undertake exploration work, feasibility studies if justified, and steps to advance the KP to exploration status in return for an indirect 80% interest.
The Bird?s Head Project is located in north-western West Papua in the Indonesian province of Papua Barat. The regional centre of Sorong, located approximately 130km to the southwest, is supported by regular commercial air and sea services. The KP license area is sparsely populated and covers areas ranging from the coast through to moderate elevations of around 2,500m within 40km of the coast.
The KP covers a number of mineralised areas explored between 1986 and early 1993 and shown to contain extensive porphyry style copper-gold and epithermal gold mineralisation, with five major zones identified. Three stream drainages showing detrital gold were named Alpha, Bravo and Golf and prioritised as epithermal style gold targets and an additional two, Foxtrot and Delta, as porphyry style copper-gold targets.
Exploration Programme
On ground exploration is currently underway. An office has been established in the regional city of Sorong to act as an administrative and logistics hub for exploration. A total of 36 skilled and unskilled workers have been sourced to construct a base camp at the coastal village Warmandi, close to the Delta Prospect, and to undertake field exploration. Exploration was initially focused on the Kali Sute portion of Delta which is located within 1km of the coast and has now been expanded to cover the potential porphyry copper system at West Delta. Work is being led by an experienced team of expatriate geologists supported by local labour.
Initial rock chip and trenching results are expected over the coming weeks and will be released when they come to hand.
SUMBA GOLD PROJECT, EAST NUSA TENGGARA
(hillgrove 80%, PT Fathi Resources 20%)
In consideration of the grant of an 80% indirect interest, Hillgrove will fully fund and undertake exploration work, feasibility studies if justified, until a decision to mine is made in relation to the exploration tenement held by Hillgrove?s Indonesian partner PT Fathi Resources.
PT Fathi Resources was granted an Exploration Mining Business License (IUP Eksplorasi) under the newly implemented mining laws to replace the pre-existing KP. The IUP has been granted for a term of six years and covers an area of 999km2 (Plate 6).
In May-June 2009 a field program was completed with the focus of the work to sample BHP?s previously identified outcropping high grade veins. Fieldwork confirmed the presence of additional high grade gold and silver mineralisation on the license with 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, which intersects the N-S trending Western Vein, returned assays up to 64g/t gold, and 254g/t silver (not the same sample). Further encouraging rock chip results from the area of Hillgrove?s previously reported gold in soil anomaly had assays up to 77g/t gold, and 43.3g/t silver and due diligence work completed by Hillgrove has confirmed a significant zone of epithermal gold mineralisation, outlining a corridor 2km wide by 10km long.
Pahandanjal Prospect
Previously reported results from Hillgrove?s 2008 field program included the identification of a 200m x 200m gold in soil anomaly peaking at 0.67g1t gold at the Pahandanjal Prospect. Follow-up rock chip sampling of this anomalous zone in May-June 2009 has returned further encouraging results (Figure 1 below). Significant new rock chip results include:
? 77g/t Gold, 43.3g/t Silver;
? 13.25g/t Gold, 6.8g/t Silver;
? 11.7g/t Gold, 6g/t Silver.
This Eastern Vein system strikes approximately NNW and outcrops over at least 600m but exhibits variable strikes and dimensions which require more detailed mapping and trenching in the latter part of 2009, prior to potential drill testing in early 2010.
Pahandanjal Western Vein
A high-grade outcropping vein zone previously identified by BHP, located approximately 400m to the west of the eastern vein system, has been sampled (Figure 1). This zone has previously returned significant gold and silver results in trenches dug by BHP in the 1990s, which include the following highly anomalous results which actually stopped in high grade zones and have never been followed up:
? Trench PDL18: 7m at 24.9g/t gold, 46g/t Silver (stopped in grade of 62.3g/t Gold Au, 89g/t Silver);
? Trench PDL35: 3m at 49.4g/t Gold, 26g/t Silver (stopped in grade on both sides in 79g/t Gold, 32g/t Silver and 18.56 g/t Gold, 21 g/t Silver);
? Trench PDL17: 5m at 8.7g/t Gold, 6 g/t Silver (stopped in grade on both sides in 9.2g/t Gold, 6g/t Silver and 12.2g/t Gold, 7g/t Silver);
? Trench PDL36: 8m at 7.3g/t Gold, 7.8g/t Silver (stopped in grade of 4.01 g/t Gold, 5g/t Silver).
The Western Vein strikes approximately N-S, with an unknown but variable width and exhibits an outcropping strike length of approximately 250m, which has not been closed off either north or south.
Follow-up due diligence rock chip sampling of this anomalous zone by Hillgrove in May-June 2009 returned further highly encouraging results. Significant new rock chip results included:
? 164 g/t Gold, 71.7 g/t Silver;
? 29.75 g/t Gold, 47.8 g/t Silver;
? 22.2 g/t Gold, 29.6 g/t Silver;
? 15.4 g/t Gold, 46 g/t Silver;
? 10.8 g/t Gold, 26 g/t Silver.
A second NE striking vein has also been identified during recent field work which intersects the N-S trending Western Vein (Figure 1). This cross-cutting vein, which has not been previously recognised, outcrops over at least 250m and returned significant rock chip results including:
? 64g/t Gold, 123g/t Silver;
? 43.7g/t Gold, 254g/t Silver;
? 9g/t Gold, 12.7g/t Silver.
This vein appears to extend under a shallow unconformity towards the NE, where thin greywacke cover masks the NE continuation of the reef. As with the vein system to the east, the Western Veins exhibit variable strikes and outcrop dimensions which require more detailed mapping and trenching prior to drill testing.
Both the Western Vein and the area of anomalous gold in soils and rock chips to the east will be the subject of an upcoming program of further soil sampling, mapping and trenching in the remaining part of 2009 aimed to better define and understand the controls to mineralisation, prior to potential drill testing.
Masu Regional Work
Further work on the compilation and analysis of historical data indicates a significant corridor of epithermal mineralisation (2km x 10km) stretching from Pahandanjal in the south through to the Okajara and Kanjilu prospects in the north and northwest (Figure 2). This corridor of mineralisation is probably genetically related to large zones of previously identified porphyry mineralisation to the west by BHP. This corridor strikes approximately NNW-SSE and there is a suggestion of a large fracture system trending around to a more SSW direction in the south that exhibits several outcropping high grade zones, all of which require more detailed mapping and sampling prior to potential drill testing.
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, as mentioned above, 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 intends fast-tracking exploration work during 2009-2010, including undertaking more detailed mapping, soil sampling and trenching in the latter part of 2009, prior to potential drill testing in early 2010. Hillgrove will also selectively follow up specific zones already identified with additional soil sampling. (end of edited release)