Release: Hillgrove: Sumba gold mineralization expanded

Wednesday, January 21 2009 - 09:05 AM WIB

(21 January 2009)--Hillgrove Resources Limited (ASX: HGO) is pleased to announce that further gold mineralisation has been identified on the Sumba license (Kuasa Pertambangan, ?KP?) (Hillgrove 80%) in Indonesia. The project is highly prospective for epithermal and porphyry style mineralisation and covers identified zones of gold mineralization.

Previous work had identified significant epithermal gold mineralisation within the Masu Project at Pahandanjal Prospect (peak values up to 25.27g/t gold and 71g/t silver in rock chip samples) and Okajara Prospect (peak values of 8.96g/t gold and 6.2g/t silver in rock chip samples).

Towards the end of the 2008 field season the focus of fieldwork shifted to other regional areas within the Masu Project and across to the Tanah Daro Project area in Central Sumba.

David Archer, the Managing Director of Hiligrove Resources said today ?the 2008 field season for Sumba didn?t commence until late August and the focus up to this point has been largely on conducting due diligence and gauging the project?s potential. Even with this short programme, the results have been highly encouraging and Sumba is shaping up to be a very exciting gold project with numerous zones of gold mineralisation?.

Hiligrove?s Indonesian partner, PT Fathi Resources has been granted an extension for General Survey activities within the Sumba Exploration License for a further year. An

Indonesian subsidiary of Hillgrove will undertake exploration work and feasibility studies if justified in return for an indirect 80% interest.

Project Update

Masu Project
The Masu Project is located in South East Sumba and has been the principal focus for exploration activities in 2008. Prospect locations are shown in Figure 2 and significant results from rock chip sampling programs are shown in Table 1.

Pahandanjal Prospect
Results from the soil program at Pahandanjal have now been received and reviewed. The program was conducted on a detailed 50 x 25m grid with 1kg samples collected every 12.5m and composited as a 2kg sample at 25m.

The results have defined a very significant 200 x 200m gold in soil anomaly which peaked at 0.67 g/t gold.

The soil anomalism corresponds well with both current rock chip work and from the historical IP surveys and trench sampling conducted by BHP.

The peak gold anomaly coincides with a change in strike of mineralisation from approximately North to a North West direction and this is clearly evidenced by outcropping reefs. The change in strike and corresponding anomalism is possibly an indication of a favourable dilational zone and will be the focus for detailed mapping and trenching activities in 2009.

Okajara Prospect
Mineralisation at Okajara is hosted in quartz reefs and breccia zones within andesite volcanics. Additional samplingat Okajara returned more significant assays with one sample returning 1.98g/t gold and 40.2g/t silver.

Based on BHP trenching and IP anomalies it was initially believed that at least two reefs were present striking North West for 500m. However, anomalous rock chips have now been sampled a further one kilometre away to the North West indicating a potential mineralised corridor of 1.5km.

Pandanjara Prospect
Pandanjara is a new prospect located 3km NE of Pahandanjal and 800m south east and along strike from Okajara. Mineralisation at Pandanjara is hosted within andesitic volcanics and rock chip sampling has returned results up to 8.56g/t gold and 2.7g/t silver

Further exploration is required to understand potential dimensions; however the down strike location from Okajara may be significant.

Kanjilu Prospect
Kanjilu is a new prospect located 2km North West and along strike from Okajara. Mineralisation at Kanjilu is hosted within andesitic volcanics and rock chip sampling has returned results up to 1.05g/t gold, 5.5g/t silver and 0.89% zinc.

Tanah Daro Project
The Tanah Daro Project is located in Central Sumba, west of the 120 degree longitude zone boundary which has been selected as a project boundary for GIS purposes. At this stage work on the project has been restricted to reconnaissance rock chip sampling with two prospects discovered so far that have returned significant mineralisation. Significant results from the rock chip sampling at Tanah Daro Project are presented in Table 2.

Langela Prospect
The Langela Prospect is located in gentle to moderately sloping terrain that is easily accessible. It contains a number of epithermal quartz reefs and hydrothermal breccia zones within andesite and rhyolite volcanics that have been found to host medium grade gold and silver mineralisation.

The best result returned so far has been 3.29g/t gold and 43.4g/t silver.

Pelitalira Prospect
The Pelitalira Prospect is located at a prominent hill of the same name and was found to host medium to high grade gold and silver mineralisation along with low grade base metal mineralisation within andesitic volcanics. One sample returned 37.13g/t gold, 406g1t silver and 0.97% lead.

A return to field exploration activities in Sumba is scheduled for March.

About Hiligrove
Hillgrove is an Australian resources company listed on the Australian Securities Exchange (ASX: HGO) focused on developing its Indonesian, South Australian and Queensland base and precious metals projects. The Company?s portfolio includes an advanced exploration portfolio of 5,128km2 in world class copper and gold terrains in eastern Indonesia targeting porphyry copper-gold and epithermal deposits. (end of edited release)

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