illgrove Resources (ASX:HGO) and its Indonesian partner, PT Akram Resources, have been granted an exploration mining business licence for the Bird's Head prospect in Indonesia.
Hillgrove has an 80% economic interest in the IUP Eksplorasi.
This is a conversion of the original KP to a mining license by the Governor of West Papua and has a term of seven years.
The license area covers 99,230 hectares or 992.3km² in the Indonesian province of West Papua. This is close to the maximum area for an IUP Eksplorasi under the new Indonesian mining laws proclaimed in January 2009.
In a statement, the company said the IUP Eksplorasi encompasses highly prospective ground which has been shown to contain identified zones of copper and gold mineralisation and paves the way for drill testing in 2010.
David Archer, managing director of Hillgrove Resources, said today “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.”
He said the new law removes the historical restrictions on direct foreign ownership in Indonesian mines and clears the way for drill testing of the promising West Delta prospect, close to the coast where Hillgrove has identified a potential copper/gold porphyry target.
Source: proactiveinvestors.com.au
