New Exploration License (IUP) granted for Sumba project

Australian firm Hillgrove Resources Limited announced on Tuesday that the Governor of East Nusa Tengarra Province has approved the grant of an Exploration Mining Business License (in Indonesian, an Izin Usaha Pertambangan or ?IUP?) to its Indonesian partner, PT Fathi Resources.

The IUP has been granted for a term of six years and permits the exploration for metals, gold and other associated minerals in an area of 99,970 hectares (999km?) falling across East, Central and West Sumba districts on the Indonesian island of Sumba.

The IUP encompasses highly prospective ground which has been shown to contain identified zones of gold and base metal mineralisation and provides the green light to commence drill testing in early 2010, the company said.

Fieldwork in the latter half of 2009 has mainly concentrated on confirming the presence of high grade gold and silver mineralisation in multiple vein systems at Pahandanjal Prospect in the Masu Project area, the company said. This work has included extensive soil sampling which has extended to other satellite prospects and detailed trench sampling on the two main vein system, with the aim to have clearly delineated drill targets for the start of the dry season in April 2010

The company also said it was pleased with the recent success of regional exploration program with the discovery of a high grade gold system at the Pelitalira Prospect in the northern part of the IUP.(alex)